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Grants are released for the fiscal year using an electronic transfer system. State agencies may withdraw funds only as needed.

POST ASSISTANCE REQUIREMENTS:

Reports:

Monthly report of participation, value of food or food instruments issued, operating expenses, and funds withdrawn from the Federal letter of credit. 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 expend a total amount of Federal awards equal to or in excess of $500,000 in any fiscal year shall have either a single audit or (in certain cases stated in the Circular) a program-specific audit made for such fiscal year. Audit rules provided by OMB Circular A-133 must be applied for audits of grantee and subgrantee fiscal years that began on or after July 1, 1996. Authority to conduct such audits less frequently than annually is limited to: 1) State or local governments required by constitution or statute, in effect on January 1, 1987, to undergo audits less frequently than annually; and 2) nonprofit organizations that had biennial audits for all biennial periods ending between July 1, 1992 and January 1, 1995. If a biennial audit is authorized, the audit must cover the two year period.

Records:

Full and complete records concerning program operations including financial operations, food delivery systems, food instrument issuance and redemption, equipment purchases and inventory, certification, nutrition education, civil rights and fair hearing procedures.

FINANCIAL INFORMATION:

Account Identification:

12-3510-0-1-605.

Obligations:

Obligations (Grants for food) FY 05 $3,615,163,800; FY 06 est $3,765,229,970; and FY 07 est. $3,877,495,200.

Range and Average of Financial Assistance:

$72,937 to $876,411,882. Average: $57,984,539 in fiscal year 2005 for the 89 State Agencies.

PROGRAM ACCOMPLISHMENTS:

PROGRAM ACCOMPLISHMENTS For fiscal year 2005, FNS approved the operation of the WIC Program in 89 State agencies. This figure includes 50 States, 34 Indian agencies, Puerto Rico, the Virgin Islands, Guam, American Samoa and the District of Columbia. As of September 2005, an average of approximately 8,022,615 women, infants and children received WIC benefits every month. Although food package costs varied widely among the States, the monthly average food package cost as of September 2005 was approximately $37.42 per person. For fiscal year 2005, the WIC Program realized over $1.7 billion in savings generated by infant formula rebates, which allowed approximately 2.08 million additional participants to be served with the WIC grant. In its continuing effort to advance new technologies, FNS awarded approximately $3.4 million in Electronic Benefits Transfer (EBT) grants to 5 WIC State agencies in FY 2003, in support of EBT pilot projects. As part of its efforts to revitalize quality nutrition services, in FY 2005 FNS took several significant steps to increase training and technical assistance opportunities and facilitate communication among its partners. First, in collaboration with the National Agricultural Library-Food and Nutrition Information Center, FNS continues to enhance the WIC Works Resource System (WWRS), an on-line system for WIC educators to talk, share successes, receive training on counseling strategies, and find educational materials and tools for assessment, and review current research. A new feature of WWRS is Food and Fun For Families. This online gallery contains State developed, easy to access, printable materials from the FIT WIC obesity prevention initiative. These resources, developed under a grant from FNS, promote family meals, active play, and fruit, vegetable and water consumption for WIC participants. FNS developed guidance intended to assist State and local agencies in strengthening nutrition education services by identifying the key elements of quality nutrition education interventions/contacts that have been determined by research to be effective. The guidance includes an evaluation tool that provides standardized, science-based criteria for State agencies to use when designing, developing and evaluating electronic-based nutrition education for WIC participants. The evaluation tool, together with a set of Frequently Asked Questions, is available on WWRS. As part of FNS Using Loving Support to Build a Breast feeding Friendly Community project, the Spring 2005 bi-annual WWRS Outreach Mailing to WIC Local

Agencies included information and resources to assist WIC local agencies in working collaboratively with community partners and stakeholders to develop a community-based breast feeding program. The mailing included a Partnership Ideas Checklist and a sample outreach letter. FNS awarded a Cooperative Agreement to SUMA/Orchard Social Marketing (SOSM) of Austin, Texas to work with FNS to develop the WIC Hispanic Breast feeding Promotion and Education Project. SOSM will develop a video, a video discussion guide, educational brochures and posters. To meet the goals of this project, SOSM is conducting social marketing research that includes interviews and focus groups. Also in FY 2005, $14.9 million was made available to WIC State agencies to continue implementing and enhancing breast feeding peer counseling programs. The FNS- developed training curriculum Loving Support through Peer Counseling was presented to WIC State agencies in each of the seven Food and Nutrition Service regions. The training is designed to assist WIC breast feeding staff in training and supervising peer counselors. In FY 2005, FNS and the National WIC Association continued to work together on the Value Enhanced Nutrition Assessment (VENA) initiative. Part of the continuing effort to improve and revitalize nutrition services in the WIC Program, VENA is WIC nut

rition assessment guidance to enhance and ensure the collection and interpretation of accurate and relevant assessment information for all WIC Program participants. In FY 2005, FNS also entered into a cooperative agreement with the Rochester Institute of Technology to provide training to all WIC State agencies on the competencies necessary to implement VENA: critical thinking, rapport building, and positive health outcomebased approaches to nutrition assessment. These competencies will be addressed through a series of train-the-trainer sessions in the summer of 2006.

REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR Part 246; "WIC State Plan Guidance" is available at no charge from FNS.

INFORMATION CONTACTS:

Regional or Local Office:

See Food and Nutrition Service regional offices listed in Appendix IV of the Catalog.

Headquarters Office:

Supplemental Food Programs Division, Food and Nutrition Service, Department of Agriculture, Alexandria, VA 22302. Contact: Patricia Daniels, Director. Telephone: (703) 305-2746. Use the same number for FTS.

Web Site Address:

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

RELATED PROGRAMS:

10.550, Food Donation; 10.551, Food Stamps; 10.556, Special Milk Program for Children; 10.565, Commodity Supplemental Food Program; 10.572, WIC Farmers' Market Nutrition Program (FMNP); 93.246, Health Centers Grants for Migrant and Seasonal Farmworkers; 93.283, Centers for Disease Control and Prevention_Investigations and Technical Assistance; 93.600, Head Start.

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.558 CHILD AND ADULT CARE FOOD PROGRAM FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF
AGRICULTURE

AUTHORIZATION:

Richard B. Russell National School Lunch Act, as amended, Sections 9, 11, 14, 16 and 17, as amended, 89 Stat. 522-525, 42 U.S.C. 1758, 1759a, 1762a, 1765 and 1766.

OBJECTIVES:

To assist States, through grants-in-aid and other means, to initiate and maintain nonprofit food service programs for children, elderly or impaired adults in nonresidential day care facilities and children in emergency shelters.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

Funds are made available for disbursement to eligible institutions to

reimburse their costs in providing meals and snacks to homeless children in emergency shelters and children and adults receiving nonresidential day care, including after school programs. Disbursement is made on the basis of the number of lunches, suppers, breakfasts, and snacks served, using annually adjusted reimbursement rates specified by law. Program institutions may receive reimbursement for not more than three meals per day, per participant. The Program is available in child care centers and day care homes to children through the age of 12 years, except for the children of migrant workers, who may participate through the age of 15 years, and individuals with disabilities without regard to their age, if participating in a center or home where the majority of children are 18 years of age or younger. In addition, the Program is available to children in emergency shelters through the age of 18. In after school care programs, reimbursement is available for snacks (and suppers in seven States) served to children through age 18. In adult day care centers, functionally impaired adults 18 years of age and older and adults 60 years of age and older who are not residents of an institution are eligible. Meals must meet minimum requirements of the United States Department of Agriculture (USDA). ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:

The State or U.S. Territory agency applies for, and signs an annual agreement to receive Federal funds for disbursement. In Virginia, where the State does not administer the program, institutions may receive funds directly from USDA. If the institution is a school food authority that operates another Child Nutrition Program (NSLP, SMP, SBP, SFSP), the institution must have a single, permanent agreement with the State agency.

Beneficiary Eligibility:

Approved institutions providing nonresidential day care services may participate in the program. Emergency shelters which provide shelter and meals to homeless children are eligible. Eligible public and nonprofit private organizations may include day care centers, outside-school-hours care centers, settlement houses, family and group day care homes, Head Start programs, and institutions providing day care services to children with disabilities. Private for-profit centers may also participate if at least 25 percent of the children in care (enrolled or licensed capacity, whichever is less) are eligible for free or reduced price school meals or receive benefits under Title XX Also eligible for participation are nonprofit centers which provide nonresidential adult day care, and private for-profit adult day care centers which receive compensation under Title XIX or Title XX, if not less than 25 percent of their enrolled eligible adults receive benefits under Title XIX, Title XX, or a combination of Title XIX and Title XX. Any eligible institution may participate in the Child and Adult Care Food Program upon request with State agency approval. Credentials/Documentation:

The allow ability of costs incurred by States in administering the program will be determined in accordance with USDA Uniform Federal Assistance Regulations (7 CFR Part 3016 and 3019). Applicant organizations must furnish evidence of tax-exempt status under the Internal Revenue Code of 1986. This requirement does not apply to public agencies or proprietary institutions.

APPLICATION AND AWARD PROCESS:
Preapplication Coordination:

This program is subject to the provisions of 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 required by the State. Application Procedure:

Institutions apply to the responsible State agency. In Virginia, where the State does not administer the program, the application is directed to the USDA Food and Nutrition Service (FNS) Mid-Atlantic Regional Office. This program is subject to the provisions of USDA Uniform Federal Assistance Regulations (7 CFR Parts 3016 and 3019).

Award Procedure:

When the application is approved, the institution signs an annual agreement with the administering agency.

Deadlines:

None.

Range of Approval/Disapproval Time:

Not applicable to States. States must approve or disapprove an application from an institution within 30 calendar days after receipt of a completed application.

Appeals:

The administering agency must provide a hearing procedure for local institution (i.e., center and sponsoring organization) grievances. Renewals:

Not less frequently than every three years. ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:

Program funds are provided to the States through letters of credit to reimburse institutions for costs of food service operations, including administrative expenses. Appropriate rates of reimbursement, multiplied by the number of meals served to enrolled participants, represent the basic program payment that an institution receives for each meal served. The assigned rates of reimbursement are adjusted annually on July 1. For child care centers, adult day care centers, and emergency shelters for homeless children, the annual adjustment reflects changes in the Food Away from Home series of Consumer Price Index for All Urban Consumers. For day care homes, the adjustment reflects changes in the Food at Home series of the Consumer Price Index for All Urban Consumers. Donated foods or cash in lieu of donated foods are also made available. Program payments to child care or adult day care centers depend on the number and types of meals served to enrolled participants, multiplied by the appropriate rate of reimbursement. Rates for meals served to enrolled children and eligible adults in day care centers are determined by the participants' eligibility for free, reduced price, or paid meals using USDA Income Eligibility Guidelines. All children through age 18 in eligible emergency shelters receive free meals without application. After school care programs, which must be located in low-income areas, are reimbursed at the free rate for all snacks-and suppers in the States of Missouri, Delaware, Michigan, Pennsylvania, New York, Oregon, and Illinois--served to children through age 18. Sponsoring organizations of day care homes for children are reimbursed at a graduated administrative rate based on the number of homes they operate. The level of reimbursement for meals served to enrolled children in day care homes is determined by economic need based on either the location of the day care home; or the income of the day care provider; or the income of an individual child's household. Meals served in day care homes to the provider's own children are reimbursable only if those children are determined eligible for free and reduced price meals, and at least one other nonresidential child is participating in the meal service. The reimbursement for food service is passed on by sponsoring organizations to the day care home providers under their auspices. This program does not have maintenance of effort (MOE) requirements. Length and Time Phasing of Assistance:

For the period covered by the agreement. POST ASSISTANCE REQUIREMENTS: Reports:

Institutions file monthly reports on program operations to claim reimbursement for meals served and must submit final meal claims no later than 60 days after the claiming month. States, then, must submit final program reports to FNS no later than 90 days after the claiming month. Audits:

In accordance with the provisions of OMB Circular No. A- 133, "Audits of States, Local Governments, and Non-profit Organizations," States and Local Governments, and Non-profit organizations that expend $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. For-profit institutions are subject to audit by their administering State agencies.

Records:

Institutions must maintain full and accurate records of program operations for a period of 3 years after the end of the fiscal year to which they pertain. However, where there are unresolved audit findings, records must be retained until there is satisfactory resolution of audit issues. FINANCIAL INFORMATION:

Account Identification:

12-3539-0-1-605.

Obligations:

(Grants) FY 05 $2,134,418,000; FY 06 est $2,156,445,000; and FY 07 est $2,272,053,000.

Range and Average of Financial Assistance:

State grants vary according to participation in the program. In 2005, cash assistance per State agency ranged from $48,726 to $241,324,362. PROGRAM ACCOMPLISHMENTS:

In fiscal year 2005, 1,828,400,000 meals were served.

REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR Part 226 Regulations and the Child and Adult Care Food Program fact sheet are available at no charge. Administrative and nutrition guidance is available at no charge to program participants from the administering agency.

INFORMATION CONTACTS:

Regional or Local Office:

See Appendix IV of the Catalog.

Headquarters Office:

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

Web Site Address:

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

RELATED PROGRAMS:

10.553, School Breakfast Program; 10.555, National School Lunch Program; 10.556, Special Milk Program for Children; 10.559, Summer Food Service Program for Children; 93.600, Head Start.

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF
AGRICULTURE

AUTHORIZATION:

Richard B. Russell National School Lunch Act, Sections 9, 13 and 14, as amended, 42 U.S.C. 1758, 1761 and 1762a. OBJECTIVES:

To assist States, through grants-in-aid and other means, to conduct nonprofit food service programs for low-income children during the summer months and at other approved times, when schools are out of session or are closed for vacation. TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

Funds are made available for disbursement to eligible service institutions (sponsors) which provide free meals to children in areas where at least 50 percent of the children meet the income eligibility criteria for free and reduced price lunches. Meals may be served to children 18 and younger, and to individuals over 18 who participate in State approved school programs for persons with disabilities. The program generally operates during the months of May through September at site locations where regularly scheduled food services are provided for children. Sites may also participate in the program from September through May if the school is closed because of an emergency situation. Service institutions operating food programs for children on school vacation under a continuous year-round calendar may apply for participation in other months. Disbursement to service institutions in States qualifying for the Simplified Summer Food Program under section 18(f) of the Richard B. Russell National School Lunch Act, equals the maximum per meal reimbursement rates. (In 2006, 27 States were eligible for participation under the simplified procedures.) Disbursement to service institutions in all other States equals the full cost of food service operations, not to exceed per meal reimbursement rates. Reimbursement may be paid for one meal and one snack or two meals per child each day. Camps and sites primarily serving children of migrant workers may be approved to serve up to three reimbursable meals each day. Meals must meet minimum requirements of the United States Department of Agriculture (USDA). Funds are also paid to participating State agencies for State administrative expenses related to employing personnel, including travel and related expenses, and to supervise and provide technical assistance to service institutions operating the program. ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:

The State or U.S. Territory agency applies for and signs an annual agreement to receive Federal funds for disbursement. Where the State does not administer the program, an applicant institution may sign an agreement and receive funds directly from USDA. Beneficiary Eligibility:

A service institution that conducts a regularly scheduled program for children from areas in which poor economic conditions exist is eligible to participate in the program. Such institutions include public or private nonprofit school food authorities; public or private nonprofit residential summer camps; public or private nonprofit colleges or universities operating the National Youth Sports Program during the months of May to September; and units of local, municipal, county, or State governments. Other private nonprofit organizations are eligible to participate under certain conditions. Service institutions which develop food service programs for children during school vacations under a continuous school calendar may also participate. Public or private nonprofit residential or nonresidential summer camps may also participate; however, at camps, reimbursement will only be paid for meals served to enrolled children who are individually determined to be eligible for free and reduced price school meals under USDA Income Eligibility Guidelines. Credentials/Documentation:

The allowability of costs incurred by States in administering the program will be determined in accordance with USDA Uniform Federal Assistance Regulations (7 CFR Parts 3016 and 3019). APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

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 required by the State. Application Procedure:

Service institutions may apply directly to the responsible State administering agency. In Virginia where the State does not administer the program, the application is directed to the USDA Food and Nutrition Service regional office. This program is subject to the provisions of USDA's Uniform Federal Assistance Regulations (7 CFR Parts 3016 and 3019).

Award Procedure:

When an application is approved, the service institution (sponsor) enters into an agreement with the appropriate administering agency for the duration of summer program operations. If the institution is a school food authority that operates another Child Nutrition Program (NSLP, CACFP, SMP, or SBP) with the same administering agency, the institution must have a single, permanent agreement.

Deadlines:

A State Management Administration Plan is due February 15. States establish the deadline date for sponsor applications; however, no applications can be accepted after June 15.

Range of Approval/Disapproval Time:

Not applicable to States. States must render a decision within 30 calendar days of receipt of a complete and correct application from a service institution. If an incomplete application is received, the State agency shall notify the applicant within 15 days and provide technical assistance to complete the application.

Appeals:

The administering agency must have a hearing procedure for local service institution grievances.

Renewals:

Annually.

ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements:

Program funds are earned by the States and institutions on a per meal reimbursement basis with rates adjusted annually on January 1, to reflect changes in the "Food Away from Home" series of the Consumer Price Index for All Urban Consumers. This program has no maintenance of effort (MOE) requirements.

Length and Time Phasing of Assistance:

For the period covered by the agreement. POST ASSISTANCE REQUIREMENTS: Reports:

Service institutions file monthly reports on program operations to claim reimbursement for meals served.

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 expend $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:

Service institutions must maintain full and accurate records of program operations for a period of 3 years after the end of the fiscal year to which they pertain. However, where there are unresolved audit findings, records must be retained until there is satisfactory resolution of the audit issues. FINANCIAL INFORMATION:

Account Identification:

12-3539-0-1-605.

Obligations:

(Appropriations) FY 05 $273,202,000; FY 06 est $290,201,000; and FY 07 est $305,897,000.

Range and Average of Financial Assistance:

State grants vary according to participation in the program. In 2005, States received Cash assistance ranging from $279,251 to $36,713,705. PROGRAM ACCOMPLISHMENTS:

In fiscal year 2005, over 117 million meals were served. REGULATIONS, GUIDELINES, AND LITERATURE:

7 CFR Part 225 regulations and the Summer Food Service Program fact sheet, are available at no charge. Administrative and nutrition guidance is available at no charge to program participants from the administering agency.

INFORMATION CONTACTS:

Regional or Local Office:

See Appendix IV of the Catalog.

Headquarters Office:

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

Web Site Address:

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

RELATED PROGRAMS:

10.553, School Breakfast Program; 10.555, National School Lunch Program; 10.556, Special Milk Program for Children; 10.558, Child and Adult Care Food Program.

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.560 STATE ADMINISTRATIVE EXPENSES FOR CHILD NUTRITION

FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF

AGRICULTURE

AUTHORIZATION:

Child Nutrition Act of 1966, as amended, 42 U.S.C. 1776, 1779. OBJECTIVES:

To provide each State agency with funds for its administrative expenses in supervising and giving technical assistance to local schools, school districts and institutions in their conduct of Child Nutrition Programs. State agencies that administer the distribution of USDA donated commodities to schools or child or adult care institutions are also provided with State Administrative Expense (SAE) funds.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

SAE funds must be used for purposes specified in the legislation, consistent with the cost principles and constraints on allowable and unallowable costs, and indirect cost rates as prescribed in OMB Circular No. A-87. These funds may be used, under certain conditions, for the procurement of supplies, equipment, and services.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:

State agencies responsible for the conduct of Child Nutrition Programs, and agencies responsible for the distribution of USDA donated commodities to schools, and/or child or adult care institutions, including agencies in the U.S. Territories.

Beneficiary Eligibility:

State agencies responsible for the conduct of Child Nutrition Programs, and agencies responsible for the distribution of USDA donated commodities to

schools, and/or child or adult care institutions, including agencies in the U.S. Territories.

Credentials/Documentation:

Costs are to be determined and documented in accordance with agency regulations (7 CFR 235) and USDA Uniform Federal Assistance Regulations (7 CFR Parts 3015 or 3016 and 3019). APPLICATION AND AWARD PROCESS: Preapplication Coordination:

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.

Application Procedure:

The State agency enters into a written agreement with the Food and Nutrition Service (FNS) on a form prescribed by the FNS. The standard application forms as furnished by the Federal agency must be used for this program. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:

Release of funds to a State agency is contingent upon receipt and approval of their plan for disbursement of SAE funds. A State agency must submit an initial Plan in fiscal year 1997 and their estimated funding needs for the duration of fiscal year 1997. Thereafter, in accordance with Public Law 104-193 which deleted the requirement for an annual plan unless there are substantive changes, a State agency would only submit revisions to the initial plan.

Deadlines:

In accordance with Public Law 104-193, a State agency must submit a plan only when there are significant changes to the initial plan submitted in fiscal year 1997 or amendments to that plan. Beginning in fiscal year 2005, each plan must include a description of the technology and information systems that the State agency will use to improve program integrity. Data on additional funds needed or funds not needed and to be returned as applicable, are due by May 1 of each year. Range of Approval/Disapproval Time: Not applicable.

Appeals:

Not applicable. Renewals:

Annually.

ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements:

For each fiscal year 2005 through 2007, each State will receive not less
than the initial allocation made to the State in fiscal year 2004. For the
National School Lunch Program, the School Breakfast Program, and the
Special Milk Program, funds are allocated on the basis of an amount equal
to one percent of the total funds used in the State for these programs
during the second preceding year based on FNS program and fiscal data. No
State receives less than $200,000 or the amount it received in fiscal year
1981, whichever is larger. For the Child and Adult Care Food Program, a
sliding grant is made based on FNS program and fiscal data. In addition, the
Secretary has discretionary authority to provide funds to States for
program improvement, based on FNS program and fiscal data. The
authorizing legislation which establishes eligibility for SAE funds is the
Child Nutrition Act of 1966, as amended, Section 7 (42 U.S.C. 1776).
This program has a Maintenance of Effort (MOE) requirement. See
funding agency for details. Any reduction of funds from State sources
below the fiscal year 1977 level will result in a withdrawal of Federal funds
under this grant.

Length and Time Phasing of Assistance:

Funded each fiscal year during the period covered by the agreement. A State agency may carry over up to twenty percent of SAE funds allocated to it for obligation and expenditure during the succeeding fiscal year. POST ASSISTANCE REQUIREMENTS: Reports:

Each State agency shall submit quarterly financial status information on SAE funds on forms provided by FNS and will continue to report information on the use of SAE funds, after the end of the fiscal year to which they pertain, until all unpaid obligations have been liquidated. Audits:

In accordance with the provisions of OMB Circular No. A- 133, "Audits of

States, Local Governments, and Non-profit Organizations," State governments 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:

Each State agency shall keep records on administrative expenses conforming with the applicable SAE plan and shall maintain current accounting records of SAE funds that shall adequately identify fund authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income.

FINANCIAL INFORMATION: Account Identification:

12-3539-0-1-605.

Obligations:

(Grants) FY 05 $145,710,000; FY 06 est $156,061,000; and FY 07 est $165,481,000.

Range and Average of Financial Assistance:

From $306,620 to $18,688,202; $2,898,109.

PROGRAM ACCOMPLISHMENTS:

The availability of SAE funds has enabled State agencies to be more effective in meeting their administrative responsibilities under the National School Lunch, School Breakfast, Special Milk, Child and Adult Care Food Program, and Food Distribution Program.

REGULATIONS, GUIDELINES, AND LITERATURE:

Regulations 7 CFR Part 235, "State Administrative Expense Funds." 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) 305

2590. Contact: Stanley C. Garnett, Director.

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; 10.556, Special Milk Program for Children; 10.558, Child and Adult Care Food Program.

EXAMPLES OF FUNDED PROJECTS:

Not applicable.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.

10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR FOOD STAMP PROGRAM

FEDERAL AGENCY:

FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

AUTHORIZATION:

Food Stamp Act of 1977, as amended, Section 16, Public Law 95-113, 91 Stat. 958, 7 U.S.C. 2025; Public Law 99-198, Public Law 105-33, Public Law 105-185.

OBJECTIVES:

To provide Federal financial aid to State agencies for costs incurred to operate the Food Stamp Program.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

To provide Federal funding for administrative costs incurred by State and local agencies to operate the Food Stamp Program. Unless authorized by Federal legislation, outlays charged to other Federal grants or to Federal contracts may not be considered as State agency costs. Submission of claims for payments of administrative costs shall be in accordance with 7 CFR 277 of the Food Stamp Program Regulations. ELIGIBILITY REQUIREMENTS: Applicant Eligibility:

Agreements are between USDA-FNS and State cooperators. (U.S.
Territories qualify as States for grant purposes.)

Beneficiary Eligibility:

Agreements are between USDA-FNS and State cooperators. (U.S. Territories qualify as States for grant purposes.)

Credentials/Documentation:

Costs will be determined in accordance with OMB Circular No. A-87 for State and local governments, 7 CFR 277, and cost allocation plans negotiated by a cognizant Federal agency for State government. APPLICATION AND AWARD PROCESS:

Preapplication Coordination:

No preapplication forms are required. A plan of operation must be submitted by the State agency prior to approval for funding. The standard application forms as furnished by the Federal agency and required by OMB Circular No. A-102, as implemented by 7 CFR part 3016, 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, if the State has selected the program for review.

Application Procedure:

State governments may apply for Federal financial aid in accordance with requirements outlined in 7 CFR Parts, 271 and 277. This program is excluded from coverage under OMB Circular No. A-110.

Award Procedure:

Food and Nutrition Service funds State cooperator operations. Deadlines:

Budgets are due to FNS August 15.

Range of Approval/Disapproval Time: 30 days.

Appeals:

Not applicable.

Renewals:

Annually, as of October 1.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:

Federal agency funds 50 percent of State administrative costs, including the
costs of food stamp fraud investigations and prosecutions costs of
developing certain computer systems as provided for in 7 CFR 277, and the
cost incurred in the verification of alien status. States may receive
enhanced funding up to 60 percent of costs for efficient administration.
Administrative cost- sharing is authorized by Section 16 of the Food Stamp
Act of 1977 (7 U.S.C. 2025). By April 1, 1987 all States were to
implement an Employment Training (E&T) Program mandated by Public
Law 99-198. States' E&T programs are funded by individual grants
requiring no State matching; should a State's costs exceed the grant
allocation, additional funding is available on a 50 percent basis. The
Federal agency shall also pay 50 percent of States' costs of reimbursing
participants' costs of dependent care as a result of E&T participation, not
to exceed the applicable local market rate and other reimbursable
participant expenses, not to exceed $25 per month per participant, and 50
percent of costs for case management or casework to facilitate the
transition from economic dependency to self-sufficiency through work.
The Balanced Budget Act (Public Law 105-33) provides additional funding
for grants to States (which do not require a State match) for work/training
programs generally targeted for non-working able-bodied adults without
dependents. These funds were reduced by Public Law 105-185. Nutrition
education grants (authorized by Public Law 105-33 to private nonprofit
organizations or State agencies are available with the Federal share of costs.
limited to 50 percent.

Length and Time Phasing of Assistance:
Annually by fiscal year.

POST ASSISTANCE REQUIREMENTS:
Reports:

Reports are submitted as required by 7 CFR Parts 272 and 277.
Audits:

In accordance with the provisions of OMB Circular No. A- 133, "Audits of State Local Governments, and Nonprofit Organizations," State and local government, and Nonprofit organizations that expend Federal financial assistance of $500,000 or more 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:

Financial records, supporting documents, statistical records, and all records pertinent to a grant program shall be retained for a period of 3 years. Additionally, those record retention requirements outlined in 7 CFR 3016,

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