[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR247.11]

[Page 407]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247--COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec. 247.11  Administrative costs.

    (a) General. Funds provided to State and local agencies may be used 
to cover administrative costs identified under FMC 74-4 which State 
agencies determine to be necessary to carry out the Program within their 
jurisdiction.
    (b) Allowable costs. The following costs are specifically identified 
as illustrative of costs allowable under the Program:
    (1) The cost of certification procedures including: (i) Laboratory 
fees incurred for tests conducted to determine the eligibility of 
persons to participate in the Program; (ii) expendable medical supplies 
necessary to determine the eligibility of persons to participate in the 
Program; and (iii) centrifuges, measuring boards, skin fold calipers, 
spectrophotometers, hematofluorometers, hemoglobinometers, and scales 
used for determining the eligibility of persons, provided that 
expenditure limits will be set by FNS for each piece of equipment and 
expenditures which exceed the limits shall receive prior approval by the 
FNS Regional Office.
    (2) The cost of nutrition education services provided to 
participants and parents and guardians of participants, and used for 
training local agency staff members;
    (3) The cost of transporting food and of administering the food 
distribution system;
    (4) The cost of interpreters and translators for Program materials;
    (5) The cost of outreach services;
    (6) The cost of audits and fair hearings;
    (7) General administration of the State and local agencies 
including, but not limited to, personnel, warehousing, and insurance;
    (8) The cost of monitoring and reviewing Program operations; and
    (9) The cost of transportation for participants to and from the 
local agency when the local agency has determined and documented the 
need for such assistance.
    (c) Restrictions on allowable costs. The following costs are 
allowable only with the prior approval of FNS.
    (1) Automatic Data Processing equipment and system purchases whether 
by outright purchase, rental-purchase agreement or other method of 
purchase;
    (2) Capital expenditures over $2,500.00 such as the cost of 
facilities, equipment, other capital assets and any repairs that 
materially increase the value or useful life of capital assets, provided 
that any subsequent sale of real or personal properties, purchased in 
whole or in part with Program funds, shall be used to reimburse FNS in 
an amount computed by applying to the sale proceeds the percentage of 
FNS participation in the original acquisition costs;
    (3) Occupancy of space under rental-purchase or a lease with option 
to purchase agreements;
    (4) Equipment rental costs where the agreement provides for rental-
purchase or a lease with option to purchase; and
    (5) Management studies performed by agencies or departments other 
than the State or local agency or those performed by outside consultants 
under contract with the State or local agency.
    (d) Unallowable costs. Expenditures by a State agency or local 
agencies which result in costs that may not be applicable to the Program 
objectives are ``unallowable costs.'' A State agency's system for 
financial management shall identify such unallowable costs. In addition 
to unallowable costs identified in FMC 74-4 the following are 
specifically unallowable costs for reimbursement by FNS:
    (1) Costs incurred for rearrangement and alteration of facilities 
not required specifically for the program;
    (2) Actual losses which could have been covered by permissible 
insurance (through an approved self-insurance program or otherwise).