[Code of Federal Regulations]
[Title 7 Volume 4]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR240.4]

[Page 250]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 240--CASH IN LIEU OF DONATED FOODS--Table of Contents
 
Sec. 240.4  Cash in lieu of donated foods for nonresidential child and adult care institutions.

    (a) For each school year any State agency may, upon application to 
FNS prior to the beginning of the school year, elect to receive cash in 
lieu of donated foods for use in nonresidential child care or adult care 
institutions participating in the Child and Adult Care Food Program. FNS 
shall pay each State agency making such election, at a minimum, an 
amount calculated by multiplying the number of lunches and suppers 
served in the State's nonresidential child and adult care institutions 
which meet the meal pattern requirements prescribed in the regulations 
for the Child and Adult Care Food Program under part 226 of this chapter 
by the national average value of donated food prescribed in section 
6(e)(1) of the Act. However, if a State agency has elected to receive a 
combination of donated foods and cash, the required amount shall be 
reduced based upon the number of such lunches and suppers served for 
which the State receives donated foods.
    (b) Notwithstanding any other provision of this section in any State 
in which FNS administers the Child Care Food Program in any 
nonresidential child care institution, FNS shall withhold from the funds 
payable to such State under this section an amount equal to the ratio of 
the number of lunches and suppers served in such institutions in which 
the program is administered by the FNS and for which cash payments are 
provided to the total number of lunches and suppers served in that 
program and for which cash in lieu of payments are received, in all 
nonresidential child care institutions in the State.

[47 FR 15982, Apr. 13, 1982, as amended at 58 FR 39120, July 22, 1993]