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Records:

Records of households certified, benefits issued, and records relating to any financial transaction are required and must be maintained for 3 years. FINANCIAL INFORMATION:

Account Identification:

12-3505-0-1-605.

Obligations:

(Direct payments to individuals) FY 05 $28,535,000,000; FY 06 est $30,329,000,000; and FY 07 est $30,094,000,000.

Range and Average of Financial Assistance:

Varies by income and family size. Averaged $92.69 per month, per person, in fiscal year 2005.

PROGRAM ACCOMPLISHMENTS:

During fiscal year 2005, every area in every State operated a Food Stamp Program. Participation per month averaged 25.68 million persons. REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR 271-282. Available from the national office and the regional offices: "Facts About the Food Stamp Program, "PA-1340 (English) and PA-1340-S (Spanish); "Official Food List," FNS-110 (English), FNS-110-S (Spanish), FNS-110-K (Korean), FNS-110-V (Vietnamese), FNS-110 (English/Chinese), FNS-110-Alaska; FNS-136 EBT Do's and Don'ts/Penalties for Violations of the FSP; "USDA Food Assistance" (poster) FNS-200, fns-200-S (Spanish); "USDA Food Assistance" (flyer), FNS-182 (English), FNS-182-S (Spanish); Food Stamp Rights Poster, FNS183 (English) and FNS-183-S (Spanish); Using Food Stamps Poster, FNS283 (English) and FNS-283-S (Spanish); Team Nutrition Series of flyers (English/Spanish); "We Accept Food Stamps" (poster), FNS-132; "We Accept Food Stamps" (decal); FNS- 1325, "We Accept Food Stamps" (Spanish), (poster and decal); FNS-240 (English) Report Abuse Poster. INFORMATION CONTACTS:

Regional or Local Office:

See the Food and Nutrition Service Regional Offices listed in Appendix IV of the Catalog.

Headquarters Office:

Deputy Administrator, Food Stamp Program, Food and Nutrition Service, Department of Agriculture, Alexandria, VA 22302. Contact: Clarence H. Carter, Deputy Administrator, Food Stamp Program. Telephone: (703) 305-2026. Use the same number for FT S.

Web Site Address:

http://www.fns.usda.gov.

RELATED PROGRAMS:

None.

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.553 SCHOOL BREAKFAST PROGRAM

FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Child Nutrition Act of 1966, as amended, 42 U.S.C. 1773, 1779, Public Laws 104-193, 100-435, 99-661, 97-35.

OBJECTIVES:

To assist States in providing a nutritious nonprofit breakfast service for school children, through cash grants and food donations. TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

USES AND USE RESTRICTIONS Federally appropriated School Breakfast Program funds are available to reimburse participating public and nonprofit private schools, of high school grade and under and residential child care institutions, for breakfasts, meeting the nutritional requirements prescribed by the Secretary of Agriculture, served to eligible children. The rates of reimbursement are adjusted on an annual basis to reflect changes in the Food Away From Home series of the Consumer Price Index for all Urban Consumers. For the period July 1, 2005 through June 30, 2006, the rates of reimbursement are 23.00 cents for paid breakfasts, 97.00 cents for each reduced price breakfast, and 127.00 cents for each free breakfast. The maximum reduced price charged for breakfast is 30 cents. Schools serving 40 percent or more free and reduced price lunches in the second preceding

school year get up to 121.00 cents and 151.00 cents for each breakfast served to children qualifying, respectively, for a reduced price and a free breakfast. All participating schools must agree to serve free and reduced price meals to eligible children, and to operate the program on a nonprofit basis for all children regardless of race, sex, color, National origin, age, or disability.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:

State and U.S. Territory agencies; (except territories subject to the requirements to the Compact of Free Association) public and nonprofit private schools of high school grade and under; public and nonprofit private residential child care institutions, except Job Corps Centers. Schools desiring to participate must agree to operate a nonprofit breakfast program that is available to all children regardless of race, sex, color, National origin, age, or disability.

Beneficiary Eligibility:

All children attending schools where the breakfast program is operating may participate. Breakfast is served free to children who are determined by local school authorities to have household income levels at or below 130, or at a reduced price to children from households with incomes higher than 130 and at or below 185, percent of the income eligibility guidelines, respectively. Meals served to non-needy children also get cash assistance (23.00 cents for the school year ending June 30, 2006). Such determinations are made in accordance with income eligibility guidelines prescribed by the Secretary and cross reference household income with household size. The Secretary prescribes these income eligibility guidelines by June 1; the statistical source used in making such revisions is the Federal Income Poverty Guidelines. Children from households certified to receive food stamps, the Food Distribution Program on Indian Reservations, Temporary Assistance for Needy Families (formerly known as Aid to Families with Dependent Children) and some children in Head Start Programs are automatically eligible for free meals. Beginning on July 1, 2005, homeless children, children in certain runaway and homeless youth grant programs, and migrant children became automatically eligible for free meals.

Credentials/Documentation:

Applicant organizations must furnish evidence of nonprofit status. Costs will be determined in accordance with USDA Uniform Federal Assistance Regulations (7 CFR Part 3015 or 3016 and 3019). APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

The application forms as furnished by the State agency or FNS, as applicable, must be used for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance. Application Procedure:

Public schools in all States make application to the State Educational Agency unless the State applies or is approved for a waiver to designate an alternate agency. Appropriate forms may be obtained from this agency. Nonprofit private schools should also apply to the State Educational Agency in most States. In some States, however, the State Educational Agency is prohibited by statute from disbursing Federal funds to nonprofit private schools. In such instances, the application will be referred to the alternate State agency or the appropriate Food and Nutrition Service regional office.

Award Procedure:

When application is approved, schools make agreements with appropriate agency.

Deadlines:

Federal-State agreement must be signed.

Range of Approval/Disapproval Time:

Agreements become effective upon approval by the State Agency or Food and Nutrition Service regional office, where applicable. Appeals:

None. The State Agency or Food and Nutrition Service regional office, where applicable, is responsible for determining a school's eligibility. Renewals:

Permanent, amended as necessary. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements:

Federal funds are made available for breakfast assistance in accordance with

Section 4 of the Child Nutrition Act on a performance basis by: (1) multiplying the number of paid breakfasts served to eligible children during the fiscal year by a National Average Payment (NAP); (2) multiplying the number of breakfasts served free to eligible children by a NAP prescribed by the Secretary for free breakfasts; and, (3) multiplying the number of reduced price breakfasts served to eligible children by a NAP prescribed by the Secretary for reduced-priced breakfasts. The amount of Federal funds given the grantee is the sum of the products obtained from these three computations, plus an additional 6 cents for every breakfast served. Schools with a high percentage of needy may receive additional payments. The statistical factors used in this formula are: (1) The NAP's; (2) the number of paid breakfasts served; and (3) the number of breakfasts served free or at reduced price to eligible children. The NAP's are prescribed by the Secretary and adjusted each July 1, in accordance with the Food Away From Home component of the Consumer Price Index for All Urban Consumers. The source of this adjustment factor is the Bureau of Labor Statistics. The source of the numbers of breakfasts served, including the number served free or at reduced price, is the monthly programmatic reports submitted to Food and Nutrition Service and described under "Post Assistance Requirements." This program has no maintenance of effort (MOE) requirements.

Length and Time Phasing of Assistance:

For the period covered by the agreement on a fiscal-year basis. POST ASSISTANCE REQUIREMENTS:

Reports:

State Agencies, schools and institutions file monthly reports on the number of meals served, by type, to claim for reimbursement. Schools and institutions must submit final meal claims to the State no later than 60 days after claiming month. States must submit final program reports to Food and Nutrition Service no later than 90 days after the claiming month. States must submit a final fiscal year grant closeout report to the Food and Nutrition Service no later than 120 days after the end of the fiscal year to which they pertain.

Audits:

In accordance with the provisions of OMB Circular No. A- 133, "Audits of States, Local Governments, and Non-profit Organizations," State and local governments, and non profit organizations that expended $500,000 or more under Federal awards within any fiscal year shall have either a single audit or (in certain cases) a program specific audit made for that year. Audits may be conducted less frequently under conditions specified in A133.

Records:

Schools must maintain full and accurate records of the breakfast program. Such records shall be retained for a period of 3 years after the end of the fiscal year to which they pertain, except that if audit findings have not been resolved, records shall be retained beyond the 3 year period until audit findings have been resolved.

FINANCIAL INFORMATION: Account Identification:

12-3539-0-1-605.

Obligations:

(Grants) FY 05 $1,937,416,000; FY 06 est $2,082,855,000; and FY 07 est $2,251,275,000.

Range and Average of Financial Assistance:

Average Federal cash assistance for school year 2005 ranged from 23.0 to 148.0 cents per meal depending upon income levels of the individual participant and upon the number of free and reduced price meals served by the school. Individual State grants vary according to participation in the program.

PROGRAM ACCOMPLISHMENTS:

The number of schools and children participating in the breakfast program has been increasing. In fiscal year 2005, 1.6 billion breakfasts were served, 82 percent to needy children., School breakfasts must provide, over a school week, 1/4 of the Recommended Dietary Allowances for Key Nutrients and 1/4 of the calories needed by growing children. They also must conform to the recommendations of the Dietary Guidelines for Americans, including limitations on calories from fat (no more than 30 percent of total calories) average over a school week and saturated fat (less than 10 percent of total calories).

REGULATIONS, GUIDELINES, AND LITERATURE:

Regulations 7 CFR Part 220-School Breakfast Program regulations, 7 CFR Part 245-Determining Eligibility for Free and Reduced Price Meals and

Free Milk in Schools. INFORMATION CONTACTS: Regional or Local Office:

See Appendix IV of the Catalog. Headquarters Office:

Headquarters Office Director, Child Nutrition Division, Food and Nutrition Service, Department of Agriculture, Alexandria, VA 22302. Telephone: (703) 305-2590. Contact: Stanley C. Garnett, Director. Web Site Address:

http://www.fns.usda.gov/cnd.

RELATED PROGRAMS:

10.550, Food Donation; 10.555, National School Lunch Program; 10.556, Special Milk Program for Children; 10.557, Special Supplemental Nutrition Program for Women, Infants, and Children; 10.558, Child and Adult Care Food Program; 10.559, Summer Food Service Program for Children; 84.010, Title I Grants to Local Educational Agencies. EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.555 NATIONAL SCHOOL LUNCH PROGRAM (School Lunch Program)

FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

National School Lunch Act, as amended, 42 U.S.C. 1751 1760, 1779. OBJECTIVES:

To assist States, through cash grants and food donations, in making the school lunch program available to school children and to encourage the domestic consumption of nutritious agricultural commodities. TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

USES AND USE RESTRICTIONS Federally appropriated National School Lunch Program funds are available to each State agency to reimburse participating public and nonprofit private schools, of high school grades or under, including residential child care institutions, for lunches meeting the nutritional requirements prescribed by the Secretary of Agriculture, served to eligible children. Schools meeting eligibility criteria may be reimbursed for meal snacks served to children enrolled in after school hour care programs. Participating schools are reimbursed at rates that are adjusted on an annual basis to reflect changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers. For the period July 1, 2005, through June 30, 2006, the rates of reimbursement are 22.00 cents general cash assistance for paid lunches, 22.00 cents general cash assistance for free and reduced price lunches plus an additional 1.70 cents special cash assistance for each reduced price lunch and 2.10 cents for each free lunch. The maximum reduced price charge for lunch is 40 cents. Schools that served 60 percent or more free or reduced price lunches in the second preceding school year received an additional 2 cents general cash assistance for all lunches served. The reimbursement for snacks in after school care programs is 63.00 cents for each free snacks, 31.00 cents for each reduced price supplement and 5.00 cents for each paid snack. In addition to cash reimbursement, the national average value of donated commodities for each lunch is 17.25 cents, for the period July 1, 2005, through June 30, 2006, and is adjusted annually to reflect changes in the Price Index for Food Used in Schools and Institutions. All participating schools must agree to serve free and reduced price meals to eligible children. ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:

State and U.S. Territory agencies (except territories subject to the Compact of Free Association), public and nonprofit private schools of high school grade and under; public and nonprofit private residential child care institutions, except Job Corps Centers, residential summer camps that participate in the Summer Food Service Program for children and private foster homes. Schools and residential child care institutions desiring to participate must agree to operate a nonprofit food service that is available to all children regardless of race, sex, color, National origin, age, or disability.

Beneficiary Eligibility:

All children enrolled in schools where the lunch program is operating may participate. Lunch is served free to children who are determined by local school authorities to have household income levels at or below 130, and at a reduced price to children from households with incomes higher than 130 but at or below 185, percent of the poverty line respectively. Such determinations are made in accordance with income eligibility guidelines prescribed by the Secretary and cross reference household income with household size. The Secretary announces these income eligibility guidelines by July 1. The statistical source used in making such revisions is the Federal Income Poverty Guidelines. Children from households certified to receive food stamps, the Food Distribution Program on Indian Reservations, in most cases, Temporary Assistance for Needy Families (formerly Aid to Families With Dependent Children) and some children in Head Start Programs are automatically eligible for free meals. Credentials/Documentation:

Applicant organizations must furnish evidence of nonprofit status. Costs will be determined in accordance with USDA Uniform Federal Assistance Regulations (7 CFR Part 3015 or 3016 and 3019).

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

The application forms as furnished by FNS or the State agency, as applicable, must be used for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance. Application Procedure:

Public schools in all States make application to the State educational agency unless the State applies and is approved for a waiver to designate an alternate agency. Appropriate forms may be obtained from this agency. Nonprofit private schools should also apply to the State educational agency in most States. In some States, however, the State educational agency is prohibited by statute from disbursing Federal funds to nonprofit private schools. In such instances, the application should be submitted to the alternate State agency or the appropriate Food and Nutrition Service regional office.

Award Procedure:

The State agency, or Food and Nutrition Service Regional Office (FNSRO) where applicable, reviews the written application of a school or a residential child care institution and, upon determination of eligibility, makes a written agreement with the school or institution for participation in the program.

Deadlines:

Federal/State Agreements must be signed.

Range of Approval/Disapproval Time:

Range of Approval/Disapproval Time Agreements become effective upon approval by the State agency or FNSRO, where applicable.

Appeals:

None. The State agency or FNSRO, where applicable, is responsible for determining a school's eligibility.

Renewals:

Permanent, amended as necessary. ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:

Formula and Matching Requirements The funding formula for the general cash for food assistance phase of the program is set forth in Section 4 of the National School Lunch Act, as amended; the formula for special cash assistance is described in Section 11 of the Act. The program is funded on a performance basis. For every lunch served during the applicable fiscal year, the State receives a payment from funds made available under Section 4. In addition, the State receives a payment from Section 11 funds for each lunch served to a child eligible for free or reduced price lunches. The amounts of such per-lunch payments are determined by "National Average Payment" (NAP) factors. The amount due the State under this program is obtained by: (1) multiplying the total number of eligible paid lunches and free and reduced price lunches served during the fiscal year by the Section 4 NAP factor for lunches; (2) multiplying the number of free lunches served by the Section 11 NAP factor for free lunches; (3) multiplying the number of lunches served at reduced price by the Section 11 NAP factor for reduced price lunches; (4) multiplying the total number of lunches served during the fiscal year in school food authorities which served 60 percent or

more free or reduced price lunches in the second preceding school year by $ .02; and (5) adding together the four products obtained thereby. The NAP factors are prescribed by the Secretary in accordance with Sections 4 and 11, respectively, of the Act; the numbers of lunches are obtained from programmatic reports submitted to Food and Nutrition Service. In addition, the funding formula for snacks in after school care programs is described in Section 17 A of the Act. Section 11(a)(3) of the Act requires that the NAP factors be adjusted annually, according to changes in the Food Away From Home series of the Consumer Price Index for All Urban Consumers; the source is the Bureau of Labor Statistics. Each State must appropriate from State revenues and use, for program purposes, an amount equal to 30 percent of the Section 4 funds made available to the State in the 1980-81 school year. Also, commodity schools are eligible to receive donated commodities equal in value to the sum of section 6 and section 4 assistance rates, except that up to 5 cents of this amount may be received in cash for processing and handling commodities. In addition, commodity schools are eligible for Section 11 free and reduced price meal reimbursements. Length and Time Phasing of Assistance:

For the period covered by the agreement on a fiscal-year basis. POST ASSISTANCE REQUIREMENTS:

Reports:

State agencies and schools file monthly reports on the number of meals served, by type, to claim program funds. School food authorities must submit final meal claims to the State no later than 60 days after the claiming month, and States must submit final program reports to Food and Nutrition Service no later than 90 days after the claiming month. States must submit final fiscal year grant close out reports to Food and Nutrition Service within 120 days after the end of the fiscal year to which they pertain.

Audits:

In accordance with the provisions of OMB Circular No. A- 133, "Audits of States, Local Governments, and Non-profit Organizations," State and local governments, and non-profit organizations that expended $500,000 or more under Federal awards within any fiscal year shall have either a single audit or (in certain cases) a program specific audit made for that year. Audits may be conducted less frequently under conditions specified in A133.

Records:

Schools must maintain full and accurate records of their lunch programs. Such records shall be retained for a period of 3 years after the end of the fiscal year to which they pertain, except that if audit findings have not been resolved, the records shall be retained beyond the 3 year period as long as required for the resolution of audit findings. FINANCIAL INFORMATION:

Account Identification:

12-3539-0-1-605.

Obligations:

(Grants) FY 05 $7,023,830,000; FY 06 est $7,457,572,000; and FY 07 est $7,831,893,000. (Value of food commodities including bonus commodities) FY 05 $1,061,698,000; FY 06 est $1,087,769,000. Range and Average of Financial Assistance:

Range and Average of Financial Assistance Average Federal cash for school year 2005 was 142.00 cents per meal and ranged from 5.0 cents for "paid" snacks to 274.00 cents for free lunches in school districts serving more than 60 percent free and reduced price lunches. State grants vary according to participation in the program.

PROGRAM ACCOMPLISHMENTS:

In fiscal year 2005, 4.9 billion lunches were served and this is expected to increase by additional 70 million in fiscal year 2006. School lunches must provide, over a school week, 1/3 of the Recommended Dietary Allowances for key nutrients and 1/3 of the calories needed by growing children. They also must conform to the recommendations of the Dietary Guidelines for Americans, including limitations on calories from fat (no more that 30 percent of total calories) and saturated fat (less than 10 percent of total calories) averaged over the school week. Recognizing that simply updating standards would not improve children's diets and health, USDA has established Team Nutrition to provide nutrition education for children and their families and technical assistance for local school food service professionals.

REGULATIONS, GUIDELINES, AND LITERATURE:
None.

INFORMATION CONTACTS:

Regional or Local Office:

See Appendix IV of the Catalog.

Headquarters Office:

Director, Child Nutrition Division, Food and Nutrition Service, Department of Agriculture, Alexandria, VA 22302. Telephone: (703) 3052590. Contact: Stanley C. Garnett, Director.

Web Site Address:

http://www.fns.usda.gov.

RELATED PROGRAMS:

10.550, Food Donation; 10.553, School Breakfast Program; 10.556, Special Milk Program for Children; 10.557, Special Supplemental Nutrition Program for Women, Infants, and Children; 10.558, Child and Adult Care Food Program; 10.559, Summer Food Service Program for Children; 84.010, Title I Grants to Local Educational Agencies. EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.556 SPECIAL MILK PROGRAM FOR CHILDREN

FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Child Nutrition Act of 1966, as amended, 42 U.S.C. 1772 and 1779. OBJECTIVES:

To provide subsidies to schools and institutions to encourage the consumption of fluid milk by children.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

Funds are made available to State agencies to encourage the consumption of fluid milk by children in public and private nonprofit schools of high school grade and under, public and private nonprofit nursery schools, childcare centers, settlement houses, summer camps, and similar nonprofit institutions devoted to the care and training of children, except Job Corps Centers, provided that these schools and institutions do not participate in a meal service program authorized under the National School Lunch Act or the Child Nutrition Act of 1966. The Child Nutrition Amendments of 1986 expanded eligibility in the program to include children in split session kindergarten and pre-kindergarten programs in nonprofit schools and institutions who do not have access to the Federal meal service program operating in schools the children attend. Disbursement to States is made on the basis of the number of half pints of milk served to non-needy children, using a reimbursement rate specified by law. Milk served free to eligible needy children is reimbursed at the average cost of a half pint of milk.

ELIGIBILITY REQUIREMENTS: Applicant Eligibility:

Any State or U.S. Territory (except territories subject to the requirements of the Compact of Free Association). Any public and nonprofit private school of high school grade or under, and public and private nonprofit residential and nonresidential child care institutions, except Job Corps Centers, may participate in the Special Milk Program upon request if it does not participate in a meal service program authorized under the National School Lunch Act or the Child Nutrition Act of 1966. This generally includes nonprofit nursery schools, child-care centers, settlement houses and summer camps. Schools with split session kindergarten and prekindergarten programs can receive subsidies for milk served to children in the split session kindergartens and pre- kindergartens who do not have access to another meal service program operating in the school. All schools and child care institutions which participate must agree to operate the program on a nonprofit basis for all children without regard to race, sex, color, National origin, age or disability.

Beneficiary Eligibility:

All children enrolled in schools and institutions in which the Special Milk Program is in operation may participate in the program. Credentials/Documentation:

Applicant organizations must furnish evidence of nonprofit status. Costs will be determined in accordance with USDA Uniform Federal Assistance Regulations (7 CFR Part 3015 or 3016 and 3019). APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

The application forms as furnished by the State agency or Food and Nutrition Service, as applicable, must be used for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance.

Application Procedure:

Public schools in all States make application to the State educational agency unless the state applies and is approved a waiver to designate an alternate agency. Appropriate forms may be obtained from this agency. In most cases, nonprofit private schools and institutions also apply to the State educational agency. However, in some States, the State educational agency is prohibited by State statute from disbursing Federal funds to nonprofit private schools and institutions. In such instances, the application will be referred to the appropriate alternate State agency or the appropriate Food and Nutrition Service regional office.

Award Procedure:

The State agency or Food and Nutrition Service regional office, where applicable, reviews the written application of school or child care institution and, upon determination of eligibility, makes a written agreement with school or sponsor for participation in the program. Deadlines:

Federal/State agreement must be signed.

Range of Approval/Disapproval Time:

Agreements are effective upon approval of the State Agency or Food and Nutrition Service, where applicable.

Appeals:

None. State agencies or Food and Nutrition Service regional offices, where applicable, are responsible for determining eligibility of a school or institution.

Renewals:

Permanent, amended as necessary. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements:

Formula and Matching Requirements The reimbursement rate for each paid half pint of milk served to children with household income levels above 130 percent of the poverty line in schools and institutions that participate in the Special Milk Program during school year 2005-06 is 15.5 cents, and the reimbursement rate for each 1/2 pint of milk served free (in pricing programs with a free milk option) to children with household income levels at or below 130 percent of poverty is the average cost of 1/2 pint of milk. This rate is adjusted each school year to correspond to the change in the Producer Price Index for Fluid Milk Products published by the Bureau of Labor Statistics. The statistical factor used for beneficiary eligibility for free milk is 130 percent of the poverty line and the source is the Federal income poverty guidelines. There is no matching guideline. The cost of milk in excess of the Federal reimbursement must be borne by sources within the States (7 CFR Part 215). Disbursement to States is based on the number of half pints served to children. This program has no maintenance of effort (MOE) requirement.

Length and Time Phasing of Assistance:

Length and Time Phasing of Assistance For the period covered by the
agreement on a fiscal year basis.
POST ASSISTANCE REQUIREMENTS:
Reports:

State agencies, schools and institutions file monthly reports on program operations to claim for reimbursement. Schools must submit final claims to the State agency no later than 60 days after the claiming month, and States must submit final program reports to Food and Nutrition Service no later than 90 days after the claiming month. For each fiscal year, States must submit final grant close out reports to the Food and Nutrition Service not later than 120 days after the close of the fiscal year to which they pertain.

Audits:

In accordance with the provisions of OMB Circular No. A- 133, "Audits of States, Local Governments, and Nonprofit Organizations," State and local governments, and nonprofit organizations that expended $500,000 or more under Federal awards within any fiscal year shall have either a single audit or (in certain cases) a program specific audit made for that year. Audits may be conducted less frequently under conditions specified in A

133.

Records:

Schools and institutions must maintain full and accurate records of Special Milk Program operations. Such records shall be retained for a period of 3 years after the end of the fiscal year to which they pertain except that, if audit findings have not been resolved, the records shall be retained as long as required for their resolution. This program is subject to periodic audits. FINANCIAL INFORMATION:

Account Identification:

12-3539-0-1-605.

Obligations:

(Grants) FY 05 $16,637,000; and FY 06 est $14,998,000; and FY 07 est $13,988,000.

Range and Average of Financial Assistance:

For fiscal year 2005, average Federal assistance is 15.5 cents for each halfpint of milk served to children with income levels above 130 percent of poverty. State grants vary according to participation in the program. Average Federal assistance for half-pints served free is 15.5 cents. PROGRAM ACCOMPLISHMENTS:

In fiscal year 2005, 99.5 million half-pints of milk were served. REGULATIONS, GUIDELINES, AND LITERATURE:

Regulations -- 7 CFR Part 215, "Special Milk Program for Children," and 7 CFR Part 245, "Determining Eligibility of Free and Reduced Price Meals

and Free Milk in Schools."

INFORMATION CONTACTS:
Regional or Local Office:

See Appendix IV of the Catalog.

Headquarters Office:

Director, Child Nutrition Division, Food and Nutrition Service, Department of Agriculture, Alexandria, VA 22302. Contact: Stanley C. Garnett, Director. Telephone: (703) 305-2590.

Web Site Address:

http://www.fns.usda.gov/cnd.

RELATED PROGRAMS:

10.550, Food Donation; 10.553, School Breakfast Program; 10.555, National School Lunch Program; 10.557, Special Supplemental Nutrition Program for Women, Infants, and Children; 10.558, Child and Adult Care Food Program; 10.559, Summer Food Service Program for Children; 84.010, Title I Grants to Local Educational Agencies.

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:

A local agency is eligible to apply to deliver locally the services of the WIC Program, provided that: 1) it serves a population of low-income women, infants, and children at nutritional risk; and 2) it is a public or private nonprofit health or human service agency. All local agencies must apply through the responsible State or U.S. Territory agency. Beneficiary Eligibility:

Pregnant, breast feeding and postpartum women, infants, and children up to 5 years of age are eligible if: 1) they are individually determined by a competent professional to be in need of the special supplemental foods supplied by the program because of nutritional risk; and 2) meet an income standard, or receive or have certain family members that receive benefits under the Food Stamp, Medicaid or Temporary Assistance for Needy Families Programs. They must also reside in the State in which benefits are received.

Credentials/Documentation:

Individuals are certified as meeting an income standard, or as participating in certain other means-tested Federal programs. Certification regarding nutritional need for supplemental foods is determined by local level professionals. As of April 1999, all State agencies were using uniform criteria to determine nutrition risk. Costs are determined in accordance with OMB Circular No. A-87 for State and local governments. The State designated official responsible for ensuring that the program is operated in accordance with program requirements must sign the State plan and Federal-State agreement pursuant to program regulations. APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

Application is made through submission of a "State Plan of Program Operation and Administration," as required by legislation. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. The standard application forms as furnished by FNS and required by OMB Circular No. A-102, as implemented by 7 CFR part 3016, must be used for this program by State and local agencies.

Application Procedure:

Local agencies must apply to the State agency in writing. Individual participants apply for WIC benefits at an approved local agency. Award Procedure:

10.557 SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN

(WIC Program)

FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Child Nutrition Act of 1966, as amended, Section 17, 42 U.S.C. 1786. OBJECTIVES:

To provide low-income pregnant, breastfeeding and postpartum women, infants, and children to age five determined to be at nutritional risk, at no cost, supplemental nutritious foods, nutrition education, and referrals to health care providers.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

Grants are made to State health departments or comparable agencies, Indian tribes, bands, or intertribal councils, or groups recognized by the Bureau of Indian Affairs, U.S. Department of the Interior, or the Indian Health Service of the U.S. Department of Health and Human Services. These agencies distribute funds to participating local public or nonprofit private health or welfare agencies. Funds are expended to pay for supplemental foods, nutrition education and health care referrals for participants, as well as specified administrative costs, including certification services. State agencies are provided Federal funds according to legislative and regulatory formulas. Only local agencies qualifying under State agency applications with formal agreements may operate WIC programs.

Funds are awarded by the Department on the basis of funding formulas to State agencies for distribution to approved local agencies subject to available funds.

Deadlines:

A State plan for the next fiscal year is required by August 15. Only substantive changes to the currently approved State plan must be submitted.

Range of Approval/Disapproval Time:

Approval determination is made within 30 days of submission of a completed plan or amendment.

Appeals:

Local agency or food vendor appeals: The State agency provides a hearing appeal procedure for a food vendor or local agency adversely affected by certain State or local agency actions. The adverse action may be postponed until a hearing decision is reached. Participant appeals: The State agency provides a hearing appeal procedure for any individual that receives a State or local agency action that results in a claim for repayment of the cash value of improperly issued benefits, denial of participation, or disqualification from the WIC Program.

Renewals:

The program is authorized through September 30, 2003; it presently
operates under the authority of the Child Nutrition Act of 1966, as
amended.

ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements:

Grants are allocated on the basis of formulas determined by the Department of Agriculture which allocate funds for food benefits, and nutrition services and administration costs. No matching funds are

required, but some States contribute nonfederal funds in support of a larger WIC Program in their State.

Length and Time Phasing of Assistance:

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