[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: 7CFR235.4]



[Page 268-270]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 235_STATE ADMINISTRATIVE EXPENSE FUNDS--Table of Contents

 

Sec. 235.4  Allocation of funds to States.



    (a) Nondiscretionary SAE Funds. For each fiscal year, FNS shall 

allocate the following:

    (1) To each State which administers the National School Lunch, 

School Breakfast or Special Milk Programs an amount equal to one (1) 

percent of the funds expended by such State during the second preceding 

fiscal year under sections 4 and 11 of the National School Lunch Act, as 

amended, and sections 3, 4 and 17A of the Child Nutrition Act of 1966, 

as amended. However, the total amount allocated to any State under this 

paragraph shall not be less than $100,000 or the amount allocated to the 

State in the fiscal year ending September 30, 1981, whichever is 

greater.

    (2) To each State which administers the Child and Adult Care Food 

Program an amount equal to the sum of: Twenty percent of the first 

$50,000; ten percent of the next $100,000; five percent of the next 

$250,000; and two and one-half percent of any remaining funds expended 

within the State under section 17 of the National School Lunch Act, as 

amended, during the second preceding fiscal year. FNS may adjust the 

amount of any such allocation in accordance with changes in the size of 

the Child and Adult Care Food Program in a State.

    (b) Discretionary SAE Funds. For each fiscal year, FNS shall provide 

the following additional allocations:

    (1) Allocate $30,000 to each State which administers the Child and 

Adult Care Food Program (7 CFR part 226).

    (2) $30,000 to each State which administers the Food Distribution 

Program (part 250 of this chapter) in schools and/or institutions which 

participate in programs under parts 210, 220, 226 of this chapter.

    (3) Amounts derived by application of the following four-part 

formula to each State agency which is allocated funds under paragraph 

(a) of this section:

    (i) One equal share of forty (40) percent of the funds designated by 

FNS for the reviews conducted under Sec. 210.18 of this title.

    (ii) The ratio of the number of School Food Authorities 

participating in the National School Lunch or Commodity School Programs 

under the jurisdiction of the State agency to such School Food 

Authorities in all States times twenty (20) percent of the funds 

designated by FNS for reviews conducted under Sec. 210.18 or of this 

title.

    (iii) The ratio of the number of free and reduced price meals served 

in School Food Authorities under the jurisdiction of the State agency 

during the second preceding fiscal year to the number of free and 

reduced price meals served in all States in the second preceding fiscal 

year times twenty (20) percent of the funds designated by FNS for 

reviews conducted under Sec. 210.18 of this title.

    (iv) Equal shares of twenty (20) percent of the funds designated by 

FNS for



[[Page 269]]



reviews conducted under Sec. 210.18 of this title for each School Food 

Authority under the jurisdiction of the State agency participating in 

the National School Lunch or Commodity School Programs which has an 

enrollment of 40,000 or more; Provided, however, That for State agencies 

with fewer than two School Food Authorities with enrollments of 40,000 

or more, an equal share shall be provided to the State agency, for 

either, or both, of the two largest School Food Authorities which have 

enrollments of more than 2,000; and Provided, further, That State 

agencies with only one School Food Authority, regardless of size, shall 

be provided with one equal share. For each fiscal year, the amount of 

State Administrative Expense Funds designated by FNS for reviews 

conducted under Sec. 210.18 of this title and subject to allocation 

under this paragraph shall be equal to or greater than the amount 

designated by FNS for program management improvements for the fiscal 

year ending September 30, 1980.

    (4) Funds which remain after the allocations required in paragraphs 

(a)(1), (a)(2), (b)(1), (b)(2) and (b)(3) of this section, and after any 

payments provided for under paragraph (c) of this section, as determined 

by the Secretary, to those States which administer the Food Distribution 

Program (part 250 of this chapter) in schools and/or institutions which 

participate in programs under parts 210, 220, or 226 of this chapter and 

to those States which administer part 226 of this chapter. The amount of 

funds to be allocated to each State for the Food Distribution Program 

for any fiscal year shall bear the same ratio to the total amount of 

funds made available for allocation to the State for the Food 

Distribution Program under this paragraph as the value of USDA donated 

foods delivered to the State for schools and institutions participating 

in programs under parts 210, 220 and 226 of this chapter during the 

second preceding fiscal year bears to the value of USDA donated foods 

delivered to all the States for such schools and institutions during the 

second preceding fiscal year. The amount of funds to be allocated to 

each State which administers the Child and Adult Care Food Program for 

any fiscal year shall bear the same ratio to the total amount of funds 

made available for allocation to all such States under this paragraph as 

the amount of funds allocated to each State under paragraph (a)(2) of 

this section bears to the amount allocated to all States under that 

paragraph.

    (c) SAE Funds for the Child and Adult Care Food Program. If a State 

elects to have a separate State agency administer the adult care 

component of the Child and Adult Care Food Program, such separate State 

agency shall receive a pro rata share of the SAE funds allocated to the 

State under paragraphs (a)(2), (b)(1), and (b)(4) of this section which 

is equal to the ratio of funds expended by the State for the adult care 

component of the Child and Adult Care Food Program during the second 

preceding fiscal year to the funds expended by the State for the entire 

Child and Adult Care Food Program during the second preceding fiscal 

year. The remaining funds shall be allocated to the State agency 

administering the child care component of the Child and Adult Care Food 

Program.

    (d) SAE Start-up Cost Assistance for State Administration of Former 

ROAPs. For any State agency which agrees to assume responsibility for 

the administration of food service programs in nonprofit private schools 

or child and adult care institutions that were previously administered 

by FNS, an appropriate adjustment in the administrative funds paid under 

this part to the State shall be made by FNS not later than the 

succeeding fiscal year. Such an adjustment shall consist of an amount of 

start-up cost assistance, negotiated with the State agency, of no less 

than $10,000 and not exceeding $100,000, per State.

    (e) SAE Funding Reduction Upon State Agency Termination of a Food 

Service Program. For any State agency which terminates its 

administration of any food service program for which State 

administrative expense funds are provided under this part, a reduction 

in the amount of such funds, negotiated with the State agency, shall be 

made by FNS.

    (f) SAE Funds for ROAPs. FNS shall have available to it the 

applicable



[[Page 270]]



amounts provided for in paragraphs (a)(1), (a)(2), and (b)(1) of this 

section, and part 225 of this title, when it is responsible for the 

administration of a program or programs within a State.

    (g) Reallocation. Funds allotted to State agencies under this 

section shall be subject to the reallocation provisions of Sec. 

235.5(d).

    (h) Withholding SAE funds. The Secretary may withhold some or all of 

the funds allocated to the State agency under this section if the 

Secretary determines that the State agency is seriously deficient in the 

administration of any program for which State administrative expense 

funds are provided under this part or in the compliance of any 

regulation issued pursuant to those programs. On a subsequent 

determination by the Secretary that State agency administration of the 

programs or compliance with regulations is no longer seriously deficient 

and is operated in an acceptable manner, the Secretary may allocate some 

or all of the funds withheld.



(Sec. 14, Pub. L. 95-166, 91 Stat. 1338 (42 U.S.C. 1776); sec. 7, Pub. 

L. 95-627, 92 Stat. 3621 (42 U.S.C. 1776); sec. 7(a), Pub. L. 95-627, 92 

Stat. 3622 (42 U.S.C. 1751); Pub. L. 96-499, secs. 201 and 204, 94 Stat. 

2599; secs. 805, 812, 814 and 819, Pub. L. 97-35, 95 Stat. 521-535 (42 

U.S.C. 1754, 1759a, 1774 and 1776); E.O. 12372 (July 14, 1982, 47 FR 

30959); sec. 401(b) Intergovernmental Cooperation Act of 1968 (31 U.S.C. 

6506(c))



[44 FR 48957, Aug. 21, 1979, as amended at 44 FR 51185, Aug. 31, 1979; 

44 FR 53489, Sept. 14, 1979; 45 FR 3566, Jan. 18, 1980; Amdt. 11, 48 FR 

27892, June 17, 1983; Amdt. 14, 51 FR 27151, July 30, 1986; Amdt. 15, 51 

FR 33862, Sept. 24, 1986; Amdt. 17, 55 FR 1378, Jan. 16, 1990; 56 FR 

32949, July 17, 1991; 58 FR 42489, Aug. 10, 1993; 60 FR 15462, Mar. 24, 

1995; 64 FR 50743, Sept. 20, 1999]