[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: 7CFR240.9]



[Page 283]

 

                          TITLE 7--AGRICULTURE

 

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

 

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

 

Sec. 240.9  Use of funds.



    (a) Funds made available to school food authorities (for program 

schools), service institutions and nonresidential child care 

institutions under this part shall be used only to purchase United 

States agricultural commodities and other foods for use in their food 

service under the National School Lunch Program, Child Care Food 

Program, or Summer Food Service Program for Children, as applicable. 

Such foods shall be limited to those necessary to meet the requirements 

set forth in Sec. 210.10 of part 210 of this chapter, Sec. 225.10 of 

part 225 of this chapter and Sec. 226.10 of part 226 of this chapter, 

respectively. On or before disbursing funds to school food authorities 

(for program schools), service institutions and nonresidential child 

care institutions, State agencies and FNSRO's shall notify them of the 

reason for special disbursement, the purpose for which these funds may 

be used, and, if possible, the amount of funds they will receive.

    (b) Cash payments received under Sec. 240.5 of this part shall be 

used only to pay donated-food processing and handling expenses of 

commodity schools.

    (c) Funds provided under this part shall be subject to the 

Department's Uniform Federal Assistance Regulations (7 CFR part 3015).