[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: 7CFR226.9]



[Page 206-207]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 226_CHILD AND ADULT CARE FOOD PROGRAM--Table of Contents

 

                      Subpart D_Payment Provisions

 

Sec. 226.9  Assignment of rates of reimbursement for centers.





    (a) The State agency shall assign rates of reimbursement, not less 

frequently than annually, on the basis of family-size and income 

information reported by each institution. Assigned rates of 

reimbursement may be changed more frequently than annually if warranted 

by changes in family-size and income information. Assigned rates of 

reimbursement shall be adjusted annually to reflect changes in the 

national average payment rates.

    (b) The State agency shall either:

    (1) Require that institutions submit each month's figures for meals 

served daily to participants from families meeting the eligibility 

standards for free meals, to participants from families meeting the 

eligibility standards for reduced-price meals, and to participants from 

families not meeting such guidelines; or

    (2) Establish claiming percentages, not less frequently that 

annually, for each institution on the basis of the number of enrolled 

participants eligible for free, reduced-price, and paid meals; or

    (3) Determine a blended per-meal rate of reimbursement, not less 

frequently than annually, by adding the products obtained by multiplying 

the applicable national average payment rate of reimbursement for each 

category (free, reduced-price, paid) by the claiming percentage for that 

category.

    (c) States have two methods of reimbursing institutions. The method 

chosen by the State agency must be applied to all institutions 

participating in the Program in that State. These methods are:



[[Page 207]]



    (1) Meals times rates payment, which involves reimbursing an 

institution for meals served at the assigned rate for each meal. This 

method entails no comparison to the costs incurred by the institution 

for the meal service; and,

    (2) Meals times rates or actual costs, whichever is the lesser, 

which involves reimbursing an institution for meals served at the 

assigned rate for each meal or at the level of the costs actually 

incurred by the institution for the meal service. This method does 

entail a comparison of the costs incurred to the meal rates, with the 

costs being a limiting factor on the level of reimbursement an 

institution may receive.

    (d) In those States where the State agency has chosen the option to 

implement a meals times rates payment system State-wide, the State 

agency may elect to pay an institution's final claim for reimbursement 

for the fiscal year at higher reassigned rates of reimbursement for 

lunches and suppers; however, the reassigned rates may not exceed the 

applicable maximum rates of reimbursement established under Sec. 

210.11(b) of the National School Lunch Program regulations. In those 

States which use the method of comparing meals times rates or actual 

costs, whichever is lesser, the total payments made to an institution 

shall not exceed the total net costs incurred for the fiscal year.



[47 FR 36527, Aug. 20, 1982, as amended at 48 FR 21530, May 13, 1983; 53 

FR 52590, Dec. 28, 1988; Amdt. 22, 55 FR 1378, Jan. 14, 1990]