[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: 7CFR251.9]

[Page 494-495]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 251--THE EMERGENCY FOOD ASSISTANCE PROGRAM--Table of Contents
 
Sec. 251.9  Matching of funds.

    (a) State matching requirement. The State must provide a cash or in-
kind contribution equal to the amount of TEFAP administrative funds 
received under Sec. 251.8 and retained by the State agency for State-
level costs or made available by the State agency directly to eligible 
recipient agencies that are not emergency feeding organizations as 
defined in Sec. 251.3(e). The State agency will not be required to match 
any portion of the Federal grant passed through for administrative costs 
incurred by emergency feeding organizations or directly expended by the 
State agency for such costs in accordance with Sec. 251.8(e)(4) of this 
part.
    (b) Exceptions. In accordance with the provisions of 48 U.S.C. 
1469a, American Samoa, Guam, the Virgin Islands and the Northern Mariana 
Islands shall be exempt from the matching requirements of paragraph (a) 
of this section if their respective matching requirements are under 
$200,000.
    (c) Applicable contributions. States shall meet the requirements of 
paragraph (a) of this section through cash or in-kind contributions from 
sources other than Federal funds which are prohibited by law from being 
used to meet a Federally mandated State matching requirement. Such 
contributions shall meet the requirements set forth in 7 CFR 3016.24. In 
accordance with part 3016 or 3019, as applicable, the matching 
requirement shall not be met by contributions for costs supported by 
another Federal grant, except as provided by Federal statute. Allowable 
contributions are only those contributions for costs which would 
otherwise be allowable as State or local-level administrative costs.
    (1) Cash. An allowable cash contribution is any cash outlay of the 
State agency for a specifically identifiable allowable State- or local-
level administrative cost, including the outlay of money contributed to 
the State agency

[[Page 495]]

by other public agencies and institutions, and private organizations and 
individuals. Examples of cash contributions include, but are not limited 
to, expenditures for office supplies, storage space, transportation, 
loading facilities and equipment, employees' salaries, and other goods 
and services specifically identifiable as State- or local-level 
administrative costs for which there has been a cash outlay by the State 
agency.
    (2) In-kind. (i) Allowable in-kind contributions are any 
contributions, which are non-cash outlays, of real property and non-
expendable personal property and the value of goods and services 
specifically identifiable with allowable State administrative costs or, 
when contributed by the State agency to an eligible recipient agency, 
allowable local-level administrative costs. Examples of in-kind 
contributions include, but are not limited to, the donation of office 
supplies, storage space, vehicles to transport the commodities, loading 
facilities and equipment such as pallets and forklifts, and other non-
cash goods or services specifically identifiable with allowable State-
level administrative costs or, when contributed by the State agency to 
an eligible recipient agency, allowable local-level administrative 
costs. In-kind contributions shall be valued in accordance with part 
3016 or 3019, as applicable.
    (ii) In order for a third-party in-kind contribution to qualify as a 
State-level administrative cost for purposes of meeting the match, all 
of the following criteria shall be met:
    (A) In its administration of food assistance programs, the State has 
performed this type of function over a sustained period of time in the 
past;
    (B) The function was not previously performed by the State on behalf 
of eligible recipient agencies; and
    (C) The State would normally perform the function as part of its 
responsibility in administering TEFAP or related food assistance 
programs if it were not provided as an in-kind contribution.
    (d) Assessment fees. States shall not assess any fees for the 
distribution of donated foods to eligible recipient agencies.
    (e) Reporting requirements. State agencies shall identify their 
matching contribution on the FNS-667, Report of TEFAP Administrative 
Costs, in accordance with Sec. 251.10(d).
    (f) Failure to match. If, during the course of the fiscal year, the 
quarterly FNS-667 indicates that the State is or will be unable to meet 
the matching requirements in whole or in part, the Department shall 
suspend or disallow the unmatched portion of Federal funds subject to 
the provisions of paragraph (a) of this section. If, upon submission of 
the final FNS-667 for the fiscal year, the Department determines that 
the State has not met the requirements of paragraph (a) of this section 
in whole or in part, the unmatched portion of Federal funds subject to 
the requirements of paragraph (a) of this section shall be subject to 
disallowance by FNS.

[52 FR 17934, May 13, 1987, as amended at 59 FR 16975, Apr. 11, 1994; 64 
FR 72906, Dec. 29, 1999]