[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: 7CFR240.4]



[Page 281-282]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 240_CASH IN LIEU OF DONATED FOODS--Table of Contents

 

Sec. 240.4  Cash in lieu of donated foods for nonresidential child and 

adult care institutions.



    (a) For each school year any State agency may, upon application to 

FNS prior to the beginning of the school year, elect to receive cash in 

lieu of donated foods for use in nonresidential child care or adult care 

institutions participating in the Child and Adult Care Food Program. FNS 

shall pay each State agency making such election, at a minimum, an 

amount calculated by multiplying the number of lunches and suppers 

served in the State's nonresidential child and adult care institutions 

which meet the meal pattern requirements prescribed in the regulations 

for the Child and Adult Care Food Program under part 226 of this chapter 

by the national average value of donated food prescribed in section 

6(e)(1) of the Act. However, if a State agency has elected to receive a 

combination of donated foods and cash, the required amount shall be 

reduced based upon the number of such lunches and suppers served for 

which the State receives donated foods.

    (b) Notwithstanding any other provision of this section in any State 

in which FNS administers the Child Care Food Program in any 

nonresidential child care institution, FNS shall withhold from the funds 

payable to such State under this section an amount equal to the ratio of 

the number of lunches and suppers served in such institutions in which 

the program is administered by the FNS and for which cash payments are 

provided to the



[[Page 282]]



total number of lunches and suppers served in that program and for which 

cash in lieu of payments are received, in all nonresidential child care 

institutions in the State.



[47 FR 15982, Apr. 13, 1982, as amended at 58 FR 39120, July 22, 1993]