[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: 7CFR210.5]



[Page 13-14]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 210_NATIONAL SCHOOL LUNCH PROGRAM--Table of Contents

 

 Subpart B_Reimbursement Process for States and School Food Authorities

 

Sec. 210.5  Payment process to States.



    (a) Grant award. FNS will specify the terms and conditions of the 

State agency's grant in a grant award document and will generally make 

payments available by means of a Letter of Credit issued in favor of the 

State agency. The State agency shall obtain funds for reimbursement to 

participating school food authorities through procedures established by 

FNS in accordance with 7 CFR part 3015. State agencies shall limit 

requests for funds to such times and amounts as will permit prompt 

payment of claims or authorized advances. The State agency shall 

disburse funds received from such requests without delay for the purpose 

for which drawn. FNS may, at its option, reimburse a State agency by 

Treasury Check. FNS will pay by Treasury Check with funds available in 

settlement of a valid claim if payment for that claim cannot be made 

within the grant closeout period specified in paragraph (d) of this 

section.

    (b) Cash-in-lieu of donated foods. All Federal funds to be paid to 

any State in place of donated foods will be made available as provided 

in part 240 of this chapter.

    (c) Recovery of funds. FNS will recover any Federal funds made 

available to the State agency under this part



[[Page 14]]



which are in excess of obligations reported at the end of each fiscal 

year in accordance with the reconciliation procedures specified in 

paragraph (d) of this section. Such recoveries shall be reflected by a 

related adjustment in the State agency's Letter of Credit.

    (d) Substantiation and reconciliation process. Each State agency 

shall maintain Program records as necessary to support the reimbursement 

payments made to school food authorities under Sec. 210.7 and Sec. 

210.8 and the reports submitted to FNS under this paragraph. The State 

agency shall ensure such records are retained for a period of 3 years or 

as otherwise specified in Sec. 210.23(c).

    (1) Monthly report. Each State agency shall submit a final Report of 

School Program Operations (FNS-10) to FNS for each month. The final 

reports shall be limited to claims submitted in accordance with Sec. 

210.8 of this part. For the month of October, the final report shall 

include the total number of children approved for free lunches, the 

total number of children approved for reduced price lunches, and the 

total number of children enrolled in participating public schools, 

private schools, and residential child care institutions, respectively, 

as of the last day of operation in October. The final reports shall be 

postmarked and/or submitted no later than 90 days following the last day 

of the month covered by the report. States shall not receive Program 

funds for any month for which the final report is not submitted within 

this time limit unless FNS grants an exception. Upward adjustments to a 

State's report shall not be made after 90 days from the month covered by 

the report unless authorized by FNS. Downward adjustments to a State's 

report shall always be made regardless of when it is determined that 

such adjustments are necessary. FNS authorization is not required for 

downward adjustments. Any adjustments to a State's report shall be 

reported to FNS in accordance with procedures established by FNS.

    (2) Quarterly report. Each State agency shall also submit to FNS a 

quarterly Financial Status Report (SF-269) on the use of Program funds. 

Such reports shall be postmarked and/or submitted no later than 30 days 

after the end of each fiscal year quarter.

    (3) End of year report. Each State agency shall submit a final 

Financial Status Report (SF-269) for each fiscal year. This final fiscal 

year grant closeout report shall be postmarked and/or submitted to FNS 

within 120 days after the end of each fiscal year or part thereof that 

the State agency administered the Program. Obligations shall be reported 

only for the fiscal year in which they occur. FNS will not be 

responsible for reimbursing Program obligations reported later than 120 

days after the close of the fiscal year in which they were incurred. 

Grant closeout procedures are to be carried out in accordance with 7 CFR 

part 3015.



[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12580, Mar. 28, 1989; 56 

FR 32939, July 17, 1991]