[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: 7CFR246.14]



[Page 371-374]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 246_SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND 

CHILDREN--Table of Contents

 

                    Subpart E_State Agency Provisions

 

Sec. 246.14  Program costs.



    (a) General. (1) The two kinds of allowable costs under the Program 

are ``food costs'' and ``nutrition services and administration costs.'' 

In general, costs necessary to the fulfillment of Program objectives are 

to be considered allowable costs. The two types of nutrition services 

and administration costs are:

    (i) Direct costs. Those direct costs that are allowable under 7 CFR 

part 3016.

    (ii) Indirect costs. Those indirect costs that are allowable under 7 

CFR part 3016. When computing indirect costs, food costs may not be used 

in the base to which the indirect cost rate is applied. In accordance 

with the provisions of 7 CFR part 3016, a claim for indirect costs shall 

be supported by an approved allocation plan for the determination of 

allowable indirect costs.

    (2) Except as provided in paragraph (e) of this section and 

Sec. Sec. 246.16(g) and 246.16(h) of this part, funds allocated by FNS 

for food purchases may not be used to pay nutrition services and 

administration costs. However, nutrition services and administration 

funds may be used to pay for food costs.

    (b) What costs may I charge to the food grant? (1) The State agency 

may use food funds for costs of:



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    (i) Acquiring supplemental foods provided to State or local agencies 

or participants, whichever receives the supplemental food first;

    (ii) Warehousing supplemental foods; and

    (iii) Purchasing and renting breast pumps.

    (2) For costs to be allowable, the State agency must ensure that 

food costs do not exceed the customary sales price charged by the 

vendor, home food delivery contractor, or supplier in a direct 

distribution food delivery system. In addition, food costs may not 

exceed the price limitations applicable to the vendor.

    (c) Specified allowable nutrition services and administration costs. 

Allowable nutrition services and administration (NSA) costs include the 

following:

    (1) The cost of nutrition education and breastfeeding promotion and 

support which meets the requirements of Sec. 246.11. During each fiscal 

year, each State agency shall expend, for nutrition education activities 

and breastfeeding promotion and support activities, an aggregate amount 

that is not less than the sum of one-sixth of the amount expended by the 

State agency for costs of NSA and an amount equal to its proportionate 

share of the national minimum expenditure for breastfeeding promotion 

and support activities. The amount to be spent on nutrition education 

shall be computed by taking one-sixth of the total fiscal year NSA 

expenditures. The amount to be spent by a State agency on breastfeeding 

promotion and support activities shall be an amount that is equal to at 

least its proportionate share of the national minimum breastfeeding 

promotion expenditure as specified in paragraph (c)(1) of this section. 

The national minimum expenditure for breastfeeding promotion and support 

activities shall be equal to $21 multiplied by the number of pregnant 

and breastfeeding women in the Program, based on the average of the last 

three months for which the Department has final data. On October 1, 1996 

and each October 1 thereafter, the $21 will be adjusted annually using 

the same inflation percentage used to determine the national 

administrative grant per person. If the State agency's total reported 

nutrition education and breastfeeding promotion and support expenditures 

are less than the required amount of expenditures, FNS will issue a 

claim for the difference. The State agency may request prior written 

permission from FNS to spend less than the required portions of its NSA 

grant for either nutrition education or for breastfeeding promotion and 

support activities. FNS will grant such permission if the State agency 

has sufficiently documented that other resources, including in-kind 

resources, will be used to conduct these activities at a level 

commensurate with the requirements of this paragraph (c)(1). However, 

food costs used to purchase or rent breast pumps may not be used for 

this purpose. Nutrition education costs are limited to activities which 

are distinct and separate efforts to help participants understand the 

importance of nutrition to health. The cost of dietary assessments for 

the purpose of certification, the cost of prescribing and issuing 

supplemental foods, the cost of screening for drug and other harmful 

substance use and making referrals to drug and other harmful substance 

abuse services, and the cost of other health-related screening shall not 

be applied to the expenditure requirement for nutrition education and 

breastfeeding promotion and support activities. The Department shall 

advise State agencies regarding methods for minimizing documentation of 

the nutrition education and breastfeeding promotion and support 

expenditure requirement. Costs to be applied to the one-sixth minimum 

amount required to be spent on nutrition education and the target share 

of funds required to be spent on breastfeeding promotion and support 

include, but need not be limited to--

    (i) Salary and other costs for time spent on nutrition education and 

breastfeeding promotion and support consultations whether with an 

individual or group;

    (ii) The cost of procuring and producing nutrition education and 

breastfeeding promotion and support materials including handouts, flip 

charts, filmstrips, projectors, food models or other teaching aids, and 

the cost of mailing nutrition education or



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breastfeeding promotion and support materials to participants;

    (iii) The cost of training nutrition or breastfeeding promotion and 

support educators, including costs related to conducting training 

sessions and purchasing and producing training materials;

    (iv) The cost of conducting evaluations of nutrition education or 

breastfeeding promotion and support activities, including evaluations 

conducted by contractors;

    (v) Salary and other costs incurred in developing the nutrition 

education and breastfeeding promotion and support portion of the State 

Plan and local agency nutrition education and breastfeeding promotion 

and support plans; and

    (vi) The cost of monitoring nutrition education and breastfeeding 

promotion and support activities.

    (2) The cost of Program certification, nutrition assessment and 

procedures and equipment used to determine nutritional risk, including 

the following:

    (i) Laboratory fees incurred for up to two hematological tests for 

anemia per individual per certification period. The first test shall be 

to determine anemia status. The second test may be performed only in 

follow up to a finding of anemia when deemed necessary for health 

monitoring as determined by the WIC State agency;

    (ii) Expendable medical supplies;

    (iii) Medical equipment used for taking anthropometric measurements, 

such as scales, measuring boards, and skin fold calipers; and for blood 

analysis to detect anemia, such as spectrophotometers, 

hematofluorometers and centrifuges; and

    (iv) Salary and other costs for time spent on nutrition assessment 

and certification.

    (3) The cost of outreach services.

    (4) The cost of administering the food delivery system, including 

the cost of transporting food.

    (5) The cost of translators for materials and interpreters.

    (6) The cost of fair hearings, including the cost of an independent 

medical assessment of the appellant, if necessary.

    (7) The cost of transporting rural participants to clinics when 

prior approval for using Program funds to provide transportation has 

been granted by the State agency and documentation that such service is 

considered essential to assure Program access has been filed at the 

State agency. Direct reimbursement to participants for transportation 

cost is not an allowable cost.

    (8) The cost of monitoring and reviewing Program operations.

    (9) The cost, exclusive of laboratory tests, of screening for drug 

and other harmful substance use and making referrals for counseling and 

treatment services.

    (10) The cost of breastfeeding aids which directly support the 

initiation and continuation of breastfeeding.

    (d) Costs allowable with approval. The following costs are allowable 

only with the prior approval of FNS:

    (1) Automated information systems which are required by a State or 

local agency except for those used in general management and payroll, 

including acquisition of automatic data processing hardware or software 

whether by outright purchase, rental-purchase agreement or other method 

of acquisition. Approval shall be granted by FNS if the proposed system 

meets the requirements of this part, A-130, and 7 CFR part 3016. At the 

time the State agency decides to seek computerization, except for use in 

general management or payroll, it shall inform FNS and seek approval, if 

required.

    (2) Capital expenditures over $2,500.00, such as the cost of 

facilities, equipment, including medical equipment, other capital assets 

and any repairs that materially increase the value of useful life of 

capital assets.

    (3) Management studies performed by agencies or departments other 

than the State or local agency or those performed by outside consultants 

under contract with the State or local agency.

    (e) How and when may I use my funds recovered from vendors and 

participants? (1) The State agency may keep funds collected through the 

recovery of claims assessed against food vendors or participants. 

Recovered funds include those withheld from a vendor as a result of 

reviews of food instruments



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prior to payment. Recovered funds may be used for either food or NSA 

costs.

    (2) These recovered funds may be used in the fiscal year:

    (i) In which the initial obligation was made;

    (ii) In which the claim arose;

    (iii) In which the funds are collected; or

    (iv) after the funds are collected.

    (3) The State agency may not credit any recoveries until:

    (i) In the case of a vendor claim, the vendor has had the 

opportunity to correct or justify the error or apparent overcharge in 

accordance with Sec. 246.12(k)(3); or

    (ii) In the case of a participant, any administrative hearing 

requested in accordance with Sec. 246.9 has been completed.

    (4) The State agency must report vendor and participant recoveries 

to FNS through the normal reporting process;

    (5) The State agency must keep documentation supporting the amount 

and use of these vendor and participant recoveries.



[50 FR 6121, Feb. 13, 1987, as amended at 52 FR 21237, June 4, 1987; 53 

FR 25314, July 6, 1988; 54 FR 18091, Apr. 27, 1989; 58 FR 11507, Feb. 

26, 1993; 59 FR 11503, Mar. 11, 1994; 63 FR 63974, Nov. 18, 1998; 64 FR 

67999, Dec. 6, 1999; 64 FR 70178, Dec. 16, 1999; 65 FR 83286, Dec. 29, 

2000]