[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR210.17]



[Page 39-40]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 210_NATIONAL SCHOOL LUNCH PROGRAM--Table of Contents

 

          Subpart D_Requirements for State Agency Participation

 

Sec. 210.17  Matching Federal funds.





    (a) State revenue matching. For each school year, the amount of 

State revenues appropriated or used specifically by the State for 

program purposes shall not be less than 30 percent of the funds received 

by such State under section 4 of the National School Lunch Act during 

the school year beginning July 1, 1980; provided that, the State 

revenues derived from the operation of such programs and State revenues 

expended for salaries and administrative expenses of such programs at 

the State level are not considered in this computation. However, if the 

per capita income of any State is less than the per capita income of the 

United States, the matching requirements so computed shall be decreased 

by the percentage by which the State per capita income is below the per 

capita income of the United States.



[[Page 40]]



    (b) Private school exemption. No State in which the State agency is 

prohibited by law from disbursing State appropriated funds to nonpublic 

schools shall be required to match general cash assistance funds 

expended for meals served in such schools, or to disburse to such 

schools any of the State revenues required to meet the requirements of 

paragraph (a) of this section. Furthermore, the requirements of this 

section do not apply to schools in which the Program is administered by 

a FNSRO.

    (c) Territorial waiver. American Samoa and the Commonwealth of the 

Northern Mariana Islands shall be exempted from the matching 

requirements of paragraph (a) of this section if their respective 

matching requirements are under $100,000.

    (d) Applicable revenues. The following State revenues, appropriated 

or used specifically for program purposes which are expended for any 

school year shall be eligible for meeting the applicable percentage of 

the matching requirements prescribed in paragraph (a) of this section 

for that school year:

    (1) State revenues disbursed by the State agency to school food 

authorities for program purposes, including revenue disbursed to 

nonprofit private schools where the State administers the program in 

such schools;

    (2) State revenues made available to school food authorities and 

transferred by the school food authorities to the nonprofit school food 

service accounts or otherwise expended by the school food authorities in 

connection with the nonprofit school food service program; and

    (3) State revenues used to finance the costs (other than State 

salaries or other State level administrative costs) of the nonprofit 

school food service program, i.e.:

    (i) Local program supervision;

    (ii) Operating the program in participating schools; and

    (iii) The intrastate distribution of foods donated under part 250 of 

this chapter to schools participating in the program.

    (e) Distribution of matching revenues. All State revenues made 

available under paragraph (a) of this section are to be disbursed to 

school food authorities participating in the Program, except as provided 

for under paragraph (b) of this section. Distribution of matching 

revenues may be made with respect to a class of school food authorities 

as well as with respect to individual school food authorities.

    (f) Failure to match. If, in any school year, a State fails to meet 

the State revenue matching requirement, as prescribed in paragraph (a) 

of this section, the general cash assistance funds utilized by the State 

during that school year shall be subject to recall by and repayment to 

FNS.

    (g) Reports. Within 120 days after the end of each school year, each 

State agency shall submit an Annual Report of Revenues (FNS-13) to FNS. 

This report identifies the State revenues to be counted toward the State 

revenue matching requirements specified in paragraph (a) of this 

section.

    (h) Accounting system. The State agency shall establish or cause to 

be established a system whereby all expended State revenues counted in 

meeting the matching requirements prescribed in paragraph (a) of this 

section are properly documented and accounted for.