[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: 7CFR225.15]



[Page 144-150]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 225_SUMMER FOOD SERVICE PROGRAM--Table of Contents

 

                  Subpart C_Sponsor and Site Provisions

 

Sec. 225.15  Management responsibilities of sponsors.



    (a) General. (1) Sponsors shall operate the food service in 

accordance with: the provisions of this part; any instructions and 

handbooks issued by FNS under this part; and any instructions and 

handbooks issued by the State agency which are not inconsistent with the 

provisions of this part.

    (2) Sponsors shall not claim reimbursement under parts 210, 215, 

220, or 226 of this chapter. In addition, the sponsor must ensure that 

records of any site serving homeless children accurately reflect 

commodity allotments received as a ``charitable institution'', as 

defined in Sec. Sec. 250.3 and 250.41 of this chapter. Commodities 

received for Program meals must be based only on the number of eligible 

children's meals served. Sponsors may use funds from other Federally-

funded programs to supplement their meal service but must, in 

calculating their claim for reimbursement, deduct such funds from total 

operating and administrative costs in accordance with the definition of 

``income accruing to the Program'' at Sec. 225.2 and with the 

regulations at Sec. 225.9(d). Sponsors which are school food 

authorities may use facilities, equipment and personnel supported by 

funds provided under this part to support a nonprofit nutrition program 

for the elderly, including a program funded under the Older Americans 

Act of 1965 (42 U.S.C. 3001 et seq.).

    (3) No sponsor may contract out for the management responsibilities 

of the Program described in this section.

    (b) Meal Ordering. (1) Each sponsor shall, to the maximum extent 

feasible, utilize either its own food service facilities or obtain meals 

from a school food service facility. If the sponsor obtains meals from a 

school food service facility, the applicable requirements of this part 

shall be embodied in a written agreement between the sponsor and the 

school.

    (2) Upon approval of its application or any adjustment in the 

approved levels of meal service for its sites established under Sec. 

225.6(d)(2), vended sponsors shall inform their food service management 

company of the approved level at each site for which the food service 

management company will provide meals.

    (3) Sponsors shall plan for and prepare or order meals on the basis 

of participation trends with the objective of providing only one meal 

per child at each meal service. The sponsor shall make the adjustments 

necessary to achieve this objective using the results from its 

monitoring of sites. For sites for which approved levels of meal service 

have been established in accordance with Sec. 225.6(d)(2), the sponsor 

shall adjust the number of meals ordered or prepared with the objective 

of providing only one meal per child whenever the number of children 

attending the site is below the approved level. The sponsor shall not 

order or prepare meals for children at any site in excess of the site's 

approved level, but may order or prepare meals above the approved level 

if the meals are to be served to adults performing necessary food 

service labor in accordance with Sec. 225.9(d)(4). Records of 

participation and of preparation or ordering of meals shall be 

maintained to demonstrate positive action toward meeting this objective.

    (4) In recognition of the fluctuation in participation levels which 

makes it difficult to estimate precisely the number of meals needed and 

to reduce the resultant waste, sponsors may claim reimbursement for a 

number of second meals which does not exceed two percent of the number 

of first meals served to children for each meal type (i.e., breakfasts, 

lunches, supplements, or suppers) during the claiming period. The State 

agency shall disallow all claims for second meals if it determines that 

the sponsor failed to plan



[[Page 145]]



and prepare or order meals with the objective of providing only one meal 

per child at each meal service. Second meals shall be served only after 

all participating children at the site's meal service have been served a 

meal.

    (c) Records and claims. (1) Sponsors shall maintain accurate records 

which justify all costs and meals claimed. Failure to maintain such 

records may be grounds for denial of reimbursement for meals served and/

or administrative costs claimed during the period covered by the records 

in question. The sponsor's records shall be available at all times for 

inspection and audit by representatives of the Secretary, the 

Comptroller General of the United States, and the State agency for a 

period of three years following the date of submission of the final 

claim for reimbursement for the fiscal year.

    (2) Sponsors shall submit claims for reimbursement in accordance 

with this part. All final claims must be submitted to the State agency 

within 60 days following the last day of the month covered by the claim.

    (d) Training and monitoring. (1) Each sponsor shall hold Program 

training sessions for its administrative and site personnel and shall 

allow no site to operate until personnel have attended at least one of 

these training sessions. The State agency may waive these training 

requirements for operation of the Program during unanticipated school 

closures during the period from October through April (or at any time of 

the year in an area with a continuous school calendar). Training of site 

personnel shall, at a minimum, include: the purpose of the Program; site 

eligibility; recordkeeping; site operations; meal pattern requirements; 

and the duties of a monitor. Each sponsor shall ensure that its 

administrative personnel attend State agency training provided to 

sponsors, and sponsors shall provide training throughout the summer to 

ensure that administrative personnel are thoroughly knowledgeable in all 

required areas of Program administration and operation and are provided 

with sufficient information to enable them to carry out their Program 

responsibilities. Each site shall have present at each meal service at 

least one person who has received this training.

    (2) Sponsors shall visit each of their sites at least once during 

the first week of operation under the Program and shall promptly take 

such actions as are necessary to correct any deficiencies.

    (3) Sponsors shall review food service operations at each site at 

least once during the first four weeks of Program operations, and 

thereafter shall maintain a reasonable level of site monitoring. 

Sponsors shall complete a monitoring form developed by the State agency 

during the conduct of these reviews.

    (e) Media Release. Each sponsor shall annually announce in the media 

serving the area from which it draws its attendance the availability of 

free meals. Camps and other programs not eligible under Sec. 225.2 

(paragraph (a) of ``areas in which poor economic conditions exist'') 

shall annually announce to all participants the availability of free 

meals for eligible children. All media releases issued by camps and 

other programs not eligible under Sec. 225.2 (paragraph (a) of ``areas 

in which poor economic conditions exist'') shall include: the 

Secretary's family-size and income standards for reduced price school 

meals labelled ``SFSP Income Eligibility Standards''; a statement that 

children who are members of households receiving food stamp, FDPIR, or 

TANF benefits are automatically eligible to receive free meal benefits 

at eligible program sites; and a statement that meals are available 

without regard to race, color, national origin, sex, age, or handicap.

    (f) Application for free Program meals.--(1) Purpose of application 

form. The application is used to determine the eligibility of children 

attending camps and the eligibility of sites that are not open sites as 

defined in paragraph (a) of the definition of ``areas in which poor 

economic conditions exist'', in Sec. 225.2. In these situations, 

parents or guardians of children enrolled in camps or these other sites 

must be given application forms to provide information described in 

paragraph (f)(2) or (f)(3) of this section, as applicable. Applications 

are not necessary if other information sources are available and can



[[Page 146]]



be used to determine eligibility of individual children in camps or 

sites.

    (2) Application procedures based on household income. The household 

member completing the application on behalf of the child enrolled in the 

Program must provide the following information:

    (i) The names of all children for whom application is made;

    (ii) The names of all other household members;

    (iii) The social security number of the adult household member who 

signs the application or an indication that the household member does 

not have a social security number;

    (iv) The income received by each household member identified by 

source of income;

    (v) The signature of an adult household member;

    (vi) The date the application is completed and signed.

    (3) Application based on the household's receipt of food stamp, 

FDPIR, or TANF benefits. Households may apply on the basis of receipt of 

food stamp, FDPIR, or TANF benefits by providing the following 

information:

    (i) The name(s) and food stamp, FDPIR, or TANF case number(s) of the 

child(ren) who are enrolled in the Program; and

    (ii) The signature of an adult household member.

    (4) Information or notices required on application forms. 

Application forms or descriptive materials given to households about 

applying for free meals must contain the following information:

    (i) The family-size and income levels for reduced price school meal 

eligibility with an explanation that households with incomes less than 

or equal to these values are eligible for free Program meals (Note: The 

income levels for free school meal eligibility must not be included on 

the application or in other materials given to the household).

    (ii) A statement that a child who is a member of a household that 

receives food stamp, FDPIR, or TANF benefits is automatically eligible 

to receive free meals in the Program;

    (iii) A statement that reads, ``In certain cases, foster children 

are eligible for free meals regardless of household income. If such 

children are living with you and you wish to apply for such meals, 

please contact us.'';

    (iv) The following statement that provides notice to the household 

member whose social security number is disclosed: ``Unless you include 

your child's case number for the Food Stamp Program, the Food 

Distribution Program on Indian Reservations (or other identifier for the 

Food Distribution Program on Indian Reservations) or the Temporary 

Assistance for Needy Families Program, you must include the social 

security number of the adult household member signing the application or 

indicate that the household member does not have a social security 

number. This is required by section 9 of the National School Lunch Act. 

The social security number is not mandatory, but the application cannot 

be approved if a social security number is not given or an indication is 

not made that the signer does not have a social security number. The 

social security number will be used in the administration and 

enforcement of the program.''

    (v) The statement used to inform the household about the use of 

social security numbers must comply with the Privacy Act of 1974 (Pub. 

L. 93-579). If a State or local agency plans to use the social security 

numbers for uses not described in paragraph (f)(4)(iv) of this section, 

the notice must be revised to explain those uses.

    (vi) Examples of income that should be provided on the application, 

including: Earnings, wages, welfare benefits, pensions, support 

payments, unemployment compensation, social security, and other cash 

income;

    (vii) A notice placed immediately above the signature block stating 

that the person signing the application certifies that all information 

provided is correct, that the household is applying for Federal benefits 

in the form of free Program meals, that Program officials may verify the 

information on the application, and that purposely providing untrue or 

misleading statements may result in prosecution under State or Federal 

criminal laws; and

    (viii) A statement that if food stamp, FDPIR, or TANF case numbers 

are provided, they may be used to verify the



[[Page 147]]



current food stamp, FDPIR, or TANF certification for the children for 

whom free meals benefits are claimed.

    (5) Verifying information on Program applications. Households 

selected to verify information on their Program applications must be 

notified in writing. State agencies must ensure that the notice of 

information about the use of social security numbers provided on 

applications complies with section 7 of Pub. L. 93-579 (Privacy Act of 

1974). Households must be informed of the following:

    (i) They must provide a social security number for each adult 

household member, or indicate that an adult household member does not 

have a social security number, or provide proof that they are receiving 

food stamp, FDPIR, or TANF benefits;

    (ii) They will lose Program benefits or be terminated from 

participation if they do not cooperate with the verification process;

    (iii) Social security numbers may be used to determine the 

correctness of information on applications and continued eligibility for 

Program benefits;

    (iv) They will be given the name and phone number of an official who 

can assist in the verification process;

    (v) Verification may occur during program reviews, audits, and 

investigations;

    (vi) Verification may include contacting employers, food stamp or 

welfare offices, or State employment offices to determine the accuracy 

of statements on the application about income, receipt of food stamp, 

FDPIR, TANF, or unemployment benefits; and

    (vii) They may lose benefits or face claims or legal action if 

incorrect information is reported on the application.

    (g) Disclosure of program eligibility information to State Medicaid 

(Medicaid) and the State Children's Health Insurance Program (SCHIP). 

Program eligibility information about children eligible for free and 

reduced price meals may be disclosed to Medicaid and SCHIP as described 

in this section.

    (1) Who decides whether to disclose program eligibility information 

to Medicaid and/or SCHIP? The State agency may elect to allow sponsors 

to disclose children's free and reduced price meal eligibility 

information to Medicaid and SCHIP. Sponsors may then elect to do so. 

Children's program eligibility information may only be disclosed to 

Medicaid or SCHIP when both the State agency and the sponsor so elect, 

the parent/guardian does not decline to have their eligibility 

information disclosed as described in paragraph (g)(5), and the 

requirements in this paragraph (g) are met. y

    (2) What information may we disclose for use by Medicaid and SCHIP? 

The State agency or sponsor, as appropriate, may disclose children's 

names, eligibility status (whether they are eligible for free or reduced 

price meals), and any other eligibility information obtained through the 

free and reduced price meal application or obtained through direct 

certification to persons directly connected with the administration of 

Medicaid or SCHIP.

    (3) Who are persons ``directly connected'' with the administration 

of Medicaid and SCHIP? State employees and persons authorized under 

Federal and State Medicaid and SCHIP requirements to carry out initial 

processing of Medicaid or SCHIP applications or to make eligibility 

determinations are persons directly connected with the administration of 

Medicaid and SCHIP for purposes of disclosure of children's free and 

reduced price meal eligibility information.

    (4) What are the restrictions on how Medicaid and SCHIP use 

children's free and reduced price meal eligibility information? Medicaid 

and SCHIP agencies and health insurance program operators receiving 

children's free and reduced price meal eligibility information may only 

use the information to enroll children in Medicaid or SCHIP. The 

Medicaid and SCHIP enrollment process may include targeting and 

identifying children from low-income households who are potentially 

eligible for Medicaid or SCHIP for the purpose of seeking to enroll them 

in Medicaid or SCHIP.

    (5) What are the requirements for notifying households of potential 

disclosure to Medicaid or SCHIP? The State agency or sponsor, as 

appropriate, must notify parents/guardians that their children's free or 

reduced price meal eligibility



[[Page 148]]



information will be disclosed to Medicaid and/or SCHIP unless the 

parent/guardian elects not to have their information disclosed. 

Additionally, the State agency or sponsor, as appropriate, must give 

parents/guardians an opportunity to elect not to have their information 

disclosed to Medicaid or SCHIP. Only the parent or guardian who is a 

member of the household or family for purposes of the free and reduced 

price meal or free milk application may decline the disclosure of 

eligibility information. The notification must inform parents/guardians 

that they are not required to consent to the disclosure, that the 

information, if disclosed, will be used to identify children eligible 

for and seek to enroll children in a health insurance program, and that 

their decision will not affect their children's eligibility for free or 

reduced price meals. The notification may be included in the letter/

notice to parents/guardians that accompanies the free and reduced price 

application, on the application itself or in a separate notice provided 

to parents/guardians. The notice must give parents/guardians adequate 

time to respond. For children determined eligible through direct 

certification, the notice of potential disclosure may be included in the 

document informing parents/guardians of their children's eligibility for 

free meals through direct certification.

    (6) May social security numbers be disclosed? The State agency or 

sponsor, as appropriate, may disclose social security numbers to any 

programs or persons authorized to receive all program eligibility 

information under this paragraph (g), provided parents/guardians have 

not declined to have their information disclosed. However, State 

agencies and sponsors that plan to disclose social security numbers must 

give notice of the planned use of the social security number. This 

notice must be in accordance with section 7(b) of the Privacy Act of 

1974 (5 U.S.C. 552a note). The application must include substantially 

the following language for disclosures of social security numbers to 

Medicaid or SCHIP: ``The social security number may also be disclosed to 

Medicaid and the State Children's Health Insurance Program for the 

purpose of identifying and seeking to enroll eligible children in one of 

these health insurance programs.'' This language is in addition to the 

notice required in paragraph (f)(4)(iv) of this section. State agencies 

and sponsors are responsible for drafting the appropriate notice for 

disclosures of social security numbers.

    (7) Are agreements required before disclosing program eligibility 

information? The State agency or sponsor, as appropriate, must have a 

written agreement with the State or local agency or agencies 

administering Medicaid or SCHIP prior to disclosing children's free and 

reduced price eligibility information. At a minimum, the agreement must:

    (i) Identify the health insurance program or health agency receiving 

children's eligibility information;

    (ii) Describe the information that will be disclosed;

    (iii) Require that the Medicaid or SCHIP agency use the information 

obtained and specify that the information must only be used to seek to 

enroll children in Medicaid or SCHIP;

    (iv) Describe how the information will be protected from 

unauthorized uses and disclosures;

    (v) Describe the penalties for unauthorized disclosure; and

    (vi) Be signed by both the Medicaid or SCHIP program or agency and 

the State agency or sponsor, as appropriate.

    (8) What are the penalties for unauthorized disclosure or misuse of 

information? In accordance with section 9(b)(2)(C)(v) of the Richard B. 

Russell National School Lunch Act (42 U.S.C. 1758(b)(2)(C)(v)), any 

individual who publishes, divulges, discloses or makes known in any 

manner, or to any extent not authorized by statute or this section, any 

information obtained under this paragraph (g) will be fined not more 

than $1,000 or imprisoned for up to 1 year, or both.

    (9) What are the State agency's responsibilities regarding 

disclosures? State agencies that elect to allow disclosure of children's 

free and reduced price meal eligibility information to Medicaid or 

SCHIP, as provided in this paragraph (g), must ensure that any sponsor 

acting in accordance with that option:



[[Page 149]]



    (i) Has a written agreement with the State or local agency or 

agencies administering health insurance programs for children under 

titles XIX and XXI of the Social Security Act (42 U.S.C. 1396 et seq. 

and 1397aa et seq.) that requires the health agencies to use children's 

free and reduced price meal eligibility information to seek to enroll 

children in those health insurance programs; and

    (ii) Notifies each household of the information that will be 

disclosed, that the information disclosed will be used only to seek to 

enroll children in Medicaid or SCHIP and provides each parent/guardian 

with an opportunity to elect not to have the information disclosed.

    (h) Food service management companies. (1) Failure by a sponsor to 

comply with the provisions of this section shall be sufficient grounds 

for the State agency to terminate that sponsor's participation in 

accordance with Sec. 225.18.

    (2) Any sponsor may contract with a food service management company 

to manage the sponsor's food service operations and/or for the 

preparation of unitized meals with or without milk or juice. Exceptions 

to the unitizing requirement may only be made in accordance with the 

provisions set forth at Sec. 225.6(h)(3).

    (3) Any vended sponsor shall be responsible for ensuring that its 

food service operation is in conformity with its agreement with the 

State agency and with all the applicable provisions of this part.

    (4) In addition to any applicable State or local laws governing bid 

procedures, and with the exceptions identified in this paragraph, each 

sponsor which contracts with a food service management company shall 

comply with the competitive bid procedures described in this paragraph. 

Sponsors which are schools or school food authorities and which have an 

exclusive contract with a food service management company for year-round 

service, and sponsors whose total contracts with food service management 

companies will not exceed $10,000, shall not be required to comply with 

these procedures. These exceptions do not relieve the sponsor of the 

responsibility to ensure that competitive procurement procedures are 

followed in contracting with any food service management company. Each 

sponsor whose proposed contract is subject to the specific bid 

procedures set forth in this paragraph shall ensure, at a minimum, that:

    (i) All proposed contracts are publicly announced at least once, not 

less than 14 calendar days prior to the opening of bids, and the 

announcement includes the time and place of the bid opening;

    (ii) The bids are publicly opened;

    (iii) The State agency is notified, at least 14 calendar days prior 

to the opening of the bids, of the time and place of the bid opening;

    (iv) The invitation to bid does not specify a minimum price;

    (v) The invitation to bid contains a cycle menu approved by the 

State agency upon which the bid is based;

    (vi) The invitation to bid contains food specifications and meal 

quality standards approved by the State agency upon which the bid is 

based;

    (vii) The invitation to bid does not specify special meal 

requirements to meet ethnic or religious needs unless such special 

requirements are necessary to meet the needs of the children to be 

served;

    (viii) Neither the invitation to bid nor the contract provides for 

loans or any other monetary benefit or term or condition to be made to 

sponsors by food service management companies;

    (ix) Nonfood items are excluded from the invitation to bid, except 

where such items are essential to the conduct of the food service;

    (x) Copies of all contracts between sponsors and food service 

management companies, along with a certification of independent price 

determination, are submitted to the State agency prior to the beginning 

of Program operations;

    (xi) Copies of all bids received are submitted to the State agency, 

along with the sponsor's reason for choosing the successful bidder; and

    (xii) All bids in an amount which exceeds the lowest bid and all 

bids totaling $100,000 or more are submitted to the State agency for 

approval before



[[Page 150]]



acceptance. State agencies shall respond to a request for approval of 

such bids within 5 working days of receipt.

    (5) Each food service management company which submits a bid over 

$100,000 shall obtain a bid bond in an amount not less than five (5) 

percent nor more than ten (10) percent, as determined by the sponsor, of 

the value of the contract for which the bid is made. A copy of the bid 

bond shall accompany each bid.

    (6) Each food service management company which enters into a food 

service contract for over $100,000 with a sponsor shall obtain a 

performance bond in an amount not less than ten (10) percent nor more 

than twenty-five (25) percent of the value of the contract, as 

determined by the State agency, of the value of the contract for which 

the bid is made. Any food service management company which enters into 

more than one contract with any one sponsor shall obtain a performance 

bond covering all contracts if the aggregate amount of the contracts 

exceeds $100,000. Sponsors shall require the food service management 

company to furnish a copy of the performance bond within ten days of the 

awarding of the contract.

    (7) Food service management companies shall obtain bid bonds and 

performance bonds only from surety companies listed in the current 

Department of the Treasury Circular 570. No sponsor or State agency 

shall allow food service management companies to post any 

``alternative'' forms of bid or performance bonds, including but not 

limited to cash, certified checks, letters of credit, or escrow 

accounts.

    (i) Other responsibilities. Sponsors shall comply with all of the 

meal service requirements set forth in Sec. 225.16.



[54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13470, Apr. 10, 1990; 

61 FR 25553, May 22, 1996; 64 FR 72486, Dec. 28, 1999; 64 FR 72898, Dec. 

29, 1999; 65 FR 82251, Dec. 28, 2000; 66 FR 2202, Jan. 11, 2001]