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REGULATIONS, GUIDELINES, AND LITERATURE: Regulations -

7 CFR Part 215, "Special Milk Program for Children," and 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. (Same for FTS.) RELATED PROGRAMS: 10.550, Food Distribution; 10.553, School

Breakfast Program; 10.555, National School Lunch Program;
10.557, Special Supplemental Food Program for Women, Infants,
and Children; 10.558, Child and Adult Care Food Program;
10.559, Summer Food Service Program for Children; 84.010,
Chapter 1 Programs--Local Educational Agencies; 84.014, Follow

Through.
EXAMPLES OF FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: Not applicable.

health facility. Costs will be 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 the State plan must sign the State plan pur

suant 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 the Federal agency. 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 must be used for this pro

gram by State and local agencies. Application Procedure: Local agencies must apply to the State health

agency in writing. The State or U.S. Territorial agency must notify the applicant agency in writing of approval or disapproval of its completed application within 30 days of receipt. Individual participants apply for WIC benefits at an approved local agency. This program is excluded from coverage under OMB Circular No.

A-110. Award Procedure: Funds are awarded by the Department on the

basis of funding formulas to State agencies for distribution to ap

proved local agencies subject to fund availabilities. Deadlines: A State plan for the next fiscal year is required by August

15.

10.557 SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR WOMEN, INFANTS, AND

CHILDREN

(WIC Program) FEDERAL AGENCY: FOOD AND NUTRITION SERVICE, DE

PARTMENT OF AGRICULTURE AUTHORIZATION: Child Nutrition Act of 1966, as amended, Section

17, Public Law 92-433, 86 Stat. 729, 42 U.S.C. 1786. OBJECTIVES: To provide, at no cost, supplemental nutritious foods,

nutrition education, and referrals to health care to low-income pregnant, breastfeeding and postpartum women, infants, and chil

dren to age five determined to be at nutritional risk. 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 for participants and specified administrative costs, including nutrition services. Additional nutrition services and administration support may be available to a State which increases its participation through use of acceptable measures, above the level estimated by FNS. State agencies are provided Federal funds according to formulas determined by FNS. Only local agencies qualifying under State agency applications may operate WIC

programs. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: A local agency is eligible to apply to partici

pate in the WIC program provided: 1. It gives health services free or at reduced cost or can arrange for such service to be provided to residents of low-income areas; 2. it serves a population of lowincome women, infants, and children at nutritional risk; 3. it has the personnel, expertise, and equipment to perform measurements, tests, and data collection specified for the WIC program or can arrange for such services; 4. it maintains, or is able to maintain, adequate eligibility records; and, 5. 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, breastfeeding and postpartum

women, infants, and children up to 5 years of age are eligible if 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 meet an income standard. They

must also reside in the State in which benefits are received. Credentials/Documentation: Individuals are certified as meeting a set

income standard. Certification regarding nutritional need for supplemental foods is determined by professionals on staff of local

Range of Approval/Disapproval Time: Approval determination is

made within 30 days of submission of a completed plan or amend

ment. 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 a State action or local agency action. The right of appeal is granted when a local agency's or food vendor's application to participate is denied, or when any other adverse action that affects participation is taken. The adverse action is 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 denial of participation, suspension, or termination from the

WIC Program Renewals: The program's authorization has been extended through

September 30, 1994; it presently operates under the authority of

Public Law 101-147. 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, nutrition services and administration costs. No matching funds are required, but States and local agencies are expected to bear the food and nutrition services

and administration costs in excess of their funds allocation. Length and Time Phasing of Assistance: 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

vouchers issued, operating expenses, and funds withdrawn from the Federal letter of credit. Biennial report of civil rights partici

pation data, and annual report of participation by priority status. Audits: In accordance with the provisions of OMB Circular No. A

128, "Audits of State and Local Governments," State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year described in OMB Circular A-128. State and local governments that receive between $25,000 and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance with Federal laws and regulations governing the programs in which they participate.

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. Additionally, non-profit organizations serving as WIC local agencies have similar audit requirements in accordance with OMB Circular A-133, "Audits of Institutions of Higher Education and Other Non-Profit Organizations.” The determination of when an audit is required and whether that audit should be an OMB Circular prescribed single audit or a program audit is based on the same dollar value of Federal financial assistance as for State and

local governments. FINANCIAL INFORMATION:

Account Identification: 12-3510-0-1-605.
Obligations: (Grants for food) FY 92 $2,001,336,867; FY 93 est

$2,235,873,000; and FY 94 est $2,479,720,000. Grants for adminis-
tration and program services) FY 92 $666,112,289; FY 93 est

$732,774,000; and FY 94 est $811,500,000. Range and Average of Financial Assistance: $43,768 to $266,358,916;

$31,347,359 in fiscal year 1992 for the 85 State agencies. PROGRAM ACCOMPLISHMENTS: FNS has approved the operation

of the WIC Program in 85 State agencies. This figure includes 50 States, 31 Indian agencies, Puerto Rico, the Virgin Islands, Guam, and the District of Columbia. In fiscal year 1992, an average of 5,412,303 women, infants and children received WIC benefits every month. Although food package costs varied widely among the States, the monthly average food package cost was $30.17 per

person. 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: Alberta Frost, Director. Telephone: (703)

305-2746. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.550, Food Distribution; 10.551, Food

Stamps; 10.556, Special Milk Program for Children; 10.565, Commodity Supplemental Food Program; 93.246, Migrant Health Centers Grants; 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.

children and private for-profit centers that receive compensation under Title XX for at least 25 percent of the children or under Title XIX and Title XX for at least 25 percent of the adults, who are enrolled in non-residential day care services. 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; however, child care centers may be reimbursed for four meals for children in care for eight hours or more. If three meals are served, one of these meals must be a snack; if four, three meals and a snack or two meals and two snacks. The program in child care institutions is limited to children 12 years old and younger, except for children of migrant workers, who may participate if aged 15 years and younger, and the mentally or physically handicapped persons with no age restriction, (handicapped persons over 12 years of age would be eligible to participate only in a center or home where the majority of the enrollees are 18 or under). In adult day care centers, functionally impaired adults and adults 60 years of age or older who are not residents of an institution are eligible. Meals must meet minimum requirements of the Department of Agricul

ture. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: The State or U.S. Territory Educational

Agency or other designated agency within the State or U.S. Territory applies for, and signs an annual agreement to receive Federal funds for disbursement, except in States where such agency is not permitted to disburse funds to any institution. In that case, institutions may receive funds directly from the Department of Agricul

ture. Beneficiary Eligibility: Public and nonprofit private organizations in

cluding, but not limited to, day-care centers, settlement houses, recreation centers, family and group day-care home programs, Head Start programs, institutions providing day-care services for mentally or physically handicapped children, and private for-profit centers that receive compensation under Title XX for at least 25 percent of the enrolled children, or 25% of the licensed capacity, or under Title XIX or Title XX for at least 25 percent of the adults, who are enrolled in non-residential day care services, which are licensed or approved by State, local, or Federal authority to provide child or adult care or program child or adult care standards requirements. Any eligible institution can participate in

Child and Adult Care Program Food Program upon request. Credentials/Documentation: Applicant organizations must furnish evi

dence of tax-exempt status under the Internal Revenue Code of 1986 or be in the process of securing such status under this code, unless they are serving Title XIX adults or Title XX children or adults. Costs for State and local governments will be determined

in accordance with OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: This program is subject to the provi

sions 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 the State requires to be followed in applying for assistance, if the State has selected the program for review. This program is excluded from coverage under OMB Circular No.

A-102. Application Procedure: Institutions apply to the responsible State

agency. Where the State does not administer the program, the application will be referred to the USDA Food and Nutrition Service regional office. FNS will continue to administer the CACFP only in those States in which FNS has continuously administered the program since October 1, 1980, except that the State may, upon request to FNS, assume administration of the program. This

program is subject to the provisions of OMB Circular No. A-110. Award Procedure: When the application is approved, the institution

signs an annual agreement with the administering agency. Deadlines: None.

10.558 CHILD AND ADULT CARE FOOD

PROGRAM FEDERAL AGENCY: FOOD AND NUTRITION SERVICE, DE

PARTMENT OF AGRICULTURE AUTHORIZATION: National School Lunch Act, Sections 9, 11, 14,

16 and 17, as amended, Public Law 94-105, 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,

maintain nonprofit food service programs for children and elderly or impaired adults in public and private nonprofit non-residential institutions providing care; family day care homes for children; and private for-profit centers that receive compensation under Title XX for at least 25 percent of the enrolled children, or 25% of licensed capacity, and under Title XIX or Title XX for at least 25 percent of the adults, who are enrolled in non-residential day

care services. TYPES OF ASSISTANCE: Formula Grants; Sale, Exchange, or Dona

tion of Property and Goods. USES AND USE RESTRICTIONS: Funds are made available for dis

bursement to eligible public and nonprofit private non-residential organizations including, but not limited to, day-care centers, outside school hours care centers, settlement houses, recreation centers, family and group day-care home sponsors, head start grantees, and institutions providing day-care services for handicapped

est

Obligations: (Grants) FY 92 $1,089,627,596; FY 93

$1,273,160,000; and FY 94 est $1,528,446,000. (Donated commodities including bonus commodities) FY 92 $30,561,780; FY 93 est

$44,354,000; and FY 94 est $0. Range and Average of Financial Assistance: State grants vary accord

ing to participation in the program. In 1992, cash assistance ranged

from under $46,000 to over $132 million. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, an estimated

1.2 billion meals were served. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR Part

226., Child and Adult Care Food Program fact sheet, no charge; Planning Guide for Centers (FNS-64), no charge; Recipe Cards (FNS-86), no charge to participants ; Child Care Food Program Food Chart (PA-1165), no charge; Food Buying Guide for Child

Nutrition Programs (PA-1331), no charge. 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. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.553, School Breakfast Program; 10.555,

National School Lunch Program; 10.556, Special Milk Programfor
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.

Range of Approval/Disapproval Time: Not applicable to States. States

must render a decision within 30 calendar days after receipt of a

completed and correct application from an institution. Appeals: The State must provide a fair hearing to any institution

with a grievance concerning a denial of an institution's application for participation or a termination of the participation, a suspension of an institution's agreement, a denial of an application for startup or advance payments; denial of all or a part of the claim for reimbursement; or denial by a State to forward to FNS an "exception request" for payment of a late claim or of an upward adjustment

to a claim. Renewals: Annually. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Program funds are provided to

the States through a letter of credit to reimburse institutions for their costs in connection with the 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 to reflect changes in the food away from home component of the Consumer Price Index for All Urban Consumers, published in the Bureau of Labor Statistics periodical entitled, "Monthly Labor Review.” Donated foods or cash in lieu thereof, 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 rates of reimbursements. For children in child care centers and eligible adults in adult day care centers, these rates are determined by the income levels of the children/adults served using USDA income eligibility based on the Income Poverty Guidelines issued by the Department of Health and Human Services. The participant's eligibility for free and reduced price meals is determined, based on a statement of family size and income. The participant is eligible for one of three categories; free, reduced price, or paid meals. Sponsoring organizations of day-care homes for children are reimbursed at a separate, single rate, by meal type, for all food service and administrative cost, except that meals served to the provider's own children are reimbursable only if such children have been determined eligible for free or reduced price meals. The reimbursement for food service is passed on by sponsoringorganizations to the day-care home providers under their auspices. This program has maintenance of effort (MOE) requirements. Consult

funding agency for further details. Length and Time Phasing of Assistance: For the period covered by

the agreement. POST ASSISTANCE REQUIREMENTS: Reports: Institutions file monthly reports on program operation to

claim reimbursement for meals served and must submit final meal claims no later than 60 days after 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.

128,"Audits of State and Local Governments,” State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year. State and local governments that receive between $25,000 and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance with Federal laws and regulations governing the programs in which they participate. Private institutions are subject to the requirements of OMB Circular No. A-133. For-profit, Title XX, institutions are subject to audit by State agencies, or by the Department of Agriculture in States which do not administer the pro

gram. Records: Institutions must maintain full and accurate records of food

service for a period of 3 years after the end of the fiscal year to which they pertain or, if audit findings remain unresolved until

final audit determinations are made. FINANCIAL INFORMATION:

Account Identification: 12-3539-0-1-605.

10.559 SUMMER FOOD SERVICE PROGRAM FOR

CHILDREN FEDERAL AGENCY: FOOD AND NUTRITION SERVICE, DE

PARTMENT OF AGRICULTURE AUTHORIZATION: National School Lunch Act, Sections 9, 13 and

14, as amended, Public Law 94-105, 89 Stat. 516-518, 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 needy children during the summer months and at other approved times, when

area schools are closed for vacation. TYPES OF ASSISTANCE: Formula Grants. USES AND USE RESTRICTIONS: Funds are made available for dis

bursement to eligible service institutions (sponsors) which conduct a regularly scheduled program for children in areas where at least 50 percent of the children meet the income eligibility criteria for free and reduced price lunches. The program may be operated generally during the months of May through September; service institutions operating food service programs for children on school vacation under a continuous year- und calendar and higher education institutions operating the National Youth Sports Program may apply for participation in other months. Disbursement to service institutions equals the full cost of food service operations, except that per meal reimbursement rates cannot be exceeded. Meals must meet minimum requirements of the Department of Agriculture. Funds are also paid to any State for State administrative expenses for employing personnel, including travel and related expenses, and to supervise and give technical assistance to sponsors

operating the SFSP. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: The State and 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, the institution may sign an agreement and receive funds directly from

the Department of Agriculture. Beneficiary Eligibility: Public or private nonprofit school food au

thorities; public or private nonprofit residential summer camps; higher education institutions operating the National Youth Sports Program; and units of local, municipal, county, or State governments, conducting a regularly scheduled program for children from areas in which poor economic conditions exist are eligible to participate in the program. Other nonprofit private organizations are eligible to participate under additional, limiting conditions. It may be operated for any period during the months of May through September, at site locations where regularly scheduled food service is provided for children in attendance. Service institutions which develop food service programs for children on school vacations of 15 school days or more at any time under a continuous school calendar may also participate. Higher education institutions which operate the National Youth Sports Program may participate from October through April as well as during summer. Public or private nonprofit residential summer camps may also participate and receive reimbursement only for meals served to enrolled children individually determined to be eligible for free or reduced price school meals under the USDA Income Eligibility

Guidelines. Credentials/Documentation: Cost of State administrative expenses

will be determined in accordance with OMB Circular No. A-87. 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. This program is excluded from coverage under OMB Circular No.

A-102. Application Procedure: Service institutions apply directly to the re

sponsible State administering agency. Where the State does not administer the program, the application is directed to the Food and Nutrition Service (FNS) regional office. Reimbursement may be made to noncamp sites serving one meal each day (breakfast, lunch, or snack), or two meals consisting of either a lunch and a snack or a lunch and a breakfast. Camp sites or migrant sites may serve up to four (breakfast, lunch, supper and a snack). This program is subject to the provisions of the Department's Uniform Federal Assistance Regulations (7 CFR Part 3015). Service institutions should obtain application forms from the State administering agency or the FNS Regional Office, where applicable. This pro

gram is subject to the provisions of OMB Circular No. A-110. Award Procedure: When an application is approved, the service insti

tution (sponsor) enters into an agreement with the appropriate state or regional agency for the duration of the summer program

operations. 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 days of receipt of a complete and

correct application from a service institution. Appeals: The States 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 component of the Consumer Price Index for all urban consumers. This programhas 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 oper

ation to claim reimbursement for meals served. Audits: Service institutions are subject to audits in accordance with

OMB Circulars No. A-133 or A-128 and the Department's Uniform Federal Assistance Regulations (7 CFR Part 3015). In accordance with the provisions of OMB Circular No. A-128, "Audits of State and Local Governments," State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year. State and local governments that receive between $25,000

and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance with Federal laws and regulations governing the programs in

which they participate. Records: Service institutions must maintain full and accurate records

of food service for a period of 3 years after the end of the fiscal year to which they pertain, except for unresolved audit findings, for which records must be retained until satisfactory resolution of

audit issues are made. FINANCIAL INFORMATION:

Account Identification: 12-3539-0-1-605.
Obligations: (Grants) FY 92 $202,926,601; FY 93 est $230,394,000,

and FY 94 est $254,612,000. (Donated commodities including
bonus commodities) FY 92 $1,109,567; FY 93 est $1,109,567; and

FY 94 est $1,576,600. Range and Average of Financial Assistance: State grants vary accord

ing to participation in the program. In 1992, States received cash

assistance ranging from $17,468 to over $37 million. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, 105 million

meals were served. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR Part

225. Sponsor's Handbook (FNS-206), no charge; Sponsor Meal Preparation Handbook (FNS-207), no charge; Site Supervisor's Guide (PA-1179), no charge; Monitor's Handbook (FNS-179), no

charge. 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. (Use same 7-digit number for FTS.) 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, DE

PARTMENT OF AGRICULTURE AUTHORIZATION: Child Nutrition Act of 1966, as amended, Sec

tions 7 and 10, Public Law 89-642, 80 Stat. 888-889, 42 U.S.C.

1776, 1779. OBJECTIVES: To provide each State Agency with funds for its ad

ministrative 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 funds (SAE). TYPES OF ASSISTANCE: Formula Grants. USES AND USE RESTRICTIONS: SAE funds must be used for pur

poses 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 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, including agencies

in the U.S. Territories. Credentials/Documentation: Cos are to be determined and docu

mented in accordance with agency regulations (7 CFR 235) and OMB Circular No. A-87.

with Federal laws and regulations governing the programs in

which they participate. Records: Each State agency shall keep records on administrative ex

penses 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 92 $68,765,863; FY 93 est $79,932,000; and

FY 94 est $86,738,000.
Range and Average of Financial Assistance: In fiscal year 1992, State

agencies were allocated from $201,328 to $7,699,753; an average

of $1,273,442 per State agency. 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, and Child Care Food Programs. 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. (Use same 7-digit number for

FTS.) Contact: Stanley C. Garnett. 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.

APPLICATION AND AWARD PROCESS:
Preapplication Coordination: This program is eligible for coverage

under E.O. 12372, "Intergovernmental Review of Federal Pro-
grams." An applicant should consult the office or official designat-
ed as the single point of contact in his or her State for more infor-
mation on the process the State requires to be followed in apply-
ing for assistance, if the State has selected the program for review.
This program is excluded from coverage under OMB Circular No.

A-102. Application Procedure: The State agency enters into a written agree

ment 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 pro

gram 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 a plan for disbursement of SAE funds. State agencies submit annual information to the FNS on their use of these funds and their estimated funding needs for the duration of the fiscal year. Based on this and other available information, FNS reallocates available funds among States to insure the

most effective usage. Deadlines: Annual plan for use of SAE funds is due by August 15 of

each year. Data on additional funds needed or funds not needed
and to be returned, as applicable, is due between March 1, and

May 1, of each year.
Range of Approval/Disapproval Time: Not applicable.
Appeals: Not applicable.

Renewals: Annually, as of October 1.
ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: 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 $100,000 or the amount it received in fiscal year 1981, whichever is larger. For the Child 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 Fed

eral funds under this grant. Length and Time Phasing of Assistance: Funded each fiscal year

during the period covered by the agreement. Beginning in fiscal year 1991, 25 percent of SAE funds for National School Lunch Program, School Breakfast Program, Special Milk Program, and Child and Adult Care Food Program and Food Distribution Program which are made available to any State will remain available for obligation and expenditure by that State during the fiscal year immediately following. Beginning in fiscal year 1992, 20 percent of SAE funds made available to any State remain available for obligation and expenditure by that State during the fiscal year immediately following the fiscal year for which the funds were made

available. POST ASSISTANCE REQUIREMENTS: Reports: Each State agency shall submit quarterly financial status in

formation 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

128, "Audits of State and Local Governments," State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year. State and local governments that receive between $25,000 and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance

10.561 STATE ADMINISTRATIVE MATCHING

GRANTS FOR FOOD STAMP PROGRAM FEDERAL AGENCY: FOOD AND NUTRITION SERVICE, DE

PARTMENT 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

100-77, 101 Stat. 533. 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 State for grant pur

poses.) 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 Fed

eral agency for State government. APPLICATION AND AWARD PROCESS: Preapplication Coordination: No preapplication forms are required. A

plan of operation must be submitted by 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 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 ap

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