[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: 7CFR210.7]



[Page 14-16]

 

                          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. 210.7  Reimbursement for school food authorities.



    (a) General. Reimbursement payments to finance nonprofit school food 

service operations shall be made only to school food authorities 

operating under a written agreement with the State agency. Subject to 

the provisions of Sec. 210.8(c), such payments may be made for lunches 

and meal supplements served in accordance with provisions of this part 

and part 245 in the calendar month preceding the calendar



[[Page 15]]



month in which the agreement is executed. These reimbursement payments 

include general cash assistance for all lunches served to children under 

the National School Lunch Program and special cash assistance payments 

for free or reduced price lunches served to children determined eligible 

for such benefits under the National School Lunch and Commodity School 

Programs. Reimbursement payments shall also be made for meal supplements 

served to eligible children in afterschool care programs in accordance 

with the rates established in Sec. 210.4(b)(3). Approval shall be in 

accordance with part 245 of this chapter.

    (b) Assignment of rates. At the beginning of each school year, State 

agencies shall establish the per meal rates of reimbursement for school 

food authorities participating in the Program. These rates of 

reimbursement may be assigned at levels based on financial need; except 

that, the rates are not to exceed the maximum rates of reimbursement 

established by the Secretary under Sec. 210.4(b) and are to permit 

reimbursement for the total number of lunches in the State from funds 

available under Sec. 210.4. Within each school food authority, the 

State agency shall assign the same rate of reimbursement from general 

cash assistance funds for all lunches served to children under the 

Program. Assigned rates of reimbursement may be changed at any time by 

the State agency, provided that notice of any change is given to the 

school food authority. The total general and special cash assistance 

reimbursement paid to any school food authority for lunches served to 

children during the school year are not to exceed the sum of the 

products obtained by multiplying the total reported number of lunches, 

by type, served to eligible children during the school year by the 

applicable maximum per lunch reimbursements prescribed for the school 

year for each type of lunch.

    (c) Reimbursement limitations. To be entitled to reimbursement under 

this part, each school food authority shall ensure that Claims for 

Reimbursement are limited to the number of free, reduced price and paid 

lunches and meal supplements that are served to children eligible for 

free, reduced price and paid lunches and meal supplements, respectively, 

for each day of operation.

    (1) Lunch count system. To ensure that the Claim for Reimbursement 

accurately reflects the number of lunches and meal supplements served to 

eligible children, the school food authority shall, at a minimum:

    (i) Correctly approve each child's eligibility for free and reduced 

price lunches and meal supplements based on the requirements prescribed 

under 7 CFR part 245;

    (ii) Maintain a system to issue benefits and to update the 

eligibility of children approved for free or reduced price lunches and 

meal supplements. The system shall:

    (A) Accurately reflect eligibility status as well as changes in 

eligibility made after the initial approval process due to verification 

findings, transfers, reported changes in income or household size, etc.; 

and

    (B) Make the appropriate changes in eligibility after the initial 

approval process on a timely basis so that the mechanism the school food 

authority uses to identify currently eligible children provides a 

current and accurate representation of eligible children. Changes in 

eligibility which result in increased benefit levels shall be made as 

soon as possible but no later than 3 operating days of the date the 

school food authority makes the final decision on a child's eligibility 

status. Changes in eligibility which result in decreased benefit levels 

shall be made as soon as possible but no later than 10 operating days of 

the date the school food authority makes the final decision on the 

child's eligibility status.

    (iii) Base Claims for Reimbursement on lunch counts, taken daily at 

the point of service, which correctly identify the number of free, 

reduced price and paid lunches served to eligible children;

    (iv) Correctly record, consolidate and report those lunch and 

supplement counts on the Claim for Reimbursement; and

    (v) Ensure that Claims for Reimbursement do not request payment for 

any excess lunches produced, as prohibited in Sec. 210.10(a)(2), or 

non-Program lunches (i.e., a la carte or adult



[[Page 16]]



lunches) or for more than one meal supplement per child per day.

    (2) Point of service alternatives. (i) State agencies may authorize 

alternatives to the point of service lunch counts provided that such 

alternatives result in accurate, reliable counts of the number of free, 

reduced price and paid lunches served, respectively, for each serving 

day. State agencies are encouraged to issue guidance which clearly 

identifies acceptable point of service alternatives and instructions for 

proper implementation. School food authorities may select one of the 

State agency approved alternatives without prior approval.

    (ii) In addition, on a case-by-case basis, State agencies may 

authorize school food authorities to use other alternatives to the point 

of service lunch count; provided that such alternatives result in an 

accurate and reliable lunch count system. Any request to use an 

alternative lunch counting method which has not been previously 

authorized under paragraph (2)(i) is to be submitted in writing to the 

State agency for approval. Such request shall provide detail sufficient 

for the State agency to assess whether the proposed alternative would 

provide an accurate and reliable count of the number of lunches, by 

type, served each day to eligible children. The details of each approved 

alternative shall be maintained on file at the State agency for review 

by FNS.

    (d) The State agency shall reimburse the school food authority for 

meal supplements served in eligible schools (as defined in Sec. 

210.10(n)(1)) operating afterschool care programs under the NSLP in 

accordance with the rates established in Sec. 210.4(b).



[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12581, Mar. 28, 1989; 56 

FR 32939, July 17, 1991; 58 FR 42487, Aug. 10, 1993; 60 FR 31207, June 

13, 1995; 65 FR 26912, May 9, 2000]