[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: 7CFR220.6]



[Page 87-88]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 220_SCHOOL BREAKFAST PROGRAM--Table of Contents

 

Sec. 220.6  Use of funds.



    (a) Federal funds made available under the School Breakfast Program 

shall be used by State agencies, or FNSROs where applicable, to 

reimburse or make advance payments to School Food Authorities in 

connection with breakfasts served in accordance with the provisions of 

this part. However, with the approval of FNS, any State agency, or FNSRO 

where applicable, may reserve for use in carrying out special 

developmental projects an amount up to 1 per centum of the funds earned 

in any fiscal year under the School Breakfast Program. Advance payments 

to School Food Authorities may be made at such times and in such amounts 

as are necessary to meet current obligations.

    (b) Whoever embezzles, willfully misapplies, steals, or obtains by 

fraud any funds, assets, or property provided under this part, whether 

received directly or indirectly from the Department, shall--



[[Page 88]]



    (1) If such funds, assets, or property are of a value of $100 or 

more, be fined not more than $25,000 or imprisoned not more than 5 years 

or both; or

    (2) If such funds, assets, or property are of a value of less than 

$100, be fined not more than $1,000 or imprisoned not more than one year 

or both.

    (c) Whoever receives, conceals, or retains to his use or gain funds, 

assets, or property provided under this part, whether received directly 

or indirectly from the Department, knowing such funds, assets, or 

property have been embezzled, willfully misapplied, stolen, or obtained 

by fraud, shall be subject to the same penalties provided in paragraph 

(b) of this section.



(Sec. 10(a), Pub. L. 95-627, 92 Stat. 3623 (42 U.S.C. 1760); sec. 

10(d)(3), Pub. L. 95-627, 92 Stat. 3624 (42 U.S.C. 1757); sec. 14, Pub. 

L. 95-627, 92 Stat. 3625-3626)



[40 FR 30923, July 24, 1975, as amended by Amdt. 25, 41 FR 34759, Aug. 

17, 1976; Amdt. 28, 44 FR 37899, June 29, 1979; 64 FR 50742, Sept. 20, 

1999]