[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: 7CFR248.12]



[Page 435-436]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 248_WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP)--Table of Contents

 

                    Subpart E_State Agency Provisions

 

Sec. 248.12  FMNP costs.



    (a) General.--(1) Composition of allowable costs. In general, a cost 

item will be deemed allowable if it is reasonable and necessary for FMNP 

purposes and otherwise satisfies allowability criteria set forth in 7 

CFR 3016.22 and this part. FMNP purposes include the administration and 

operation of the FMNP. Program costs supported by State matching 

contributions must meet the same criteria for allowability as costs 

supported by Federal funds. Allowable FMNP costs may be classified as 

follows:

    (i) Food costs and administrative costs. Food costs are the costs of 

food benefits provided to FMNP recipients. Administrative costs are the 

costs associated with providing FMNP benefits and



[[Page 436]]



services to recipients and generally administering the FMNP. Specific 

examples of allowable administrative costs are listed in paragraph (b) 

of this section. Except as provided in Sec. 248.14(g) of this part, a 

State agency's administrative costs under the FMNP may not exceed 17 

percent of its total FMNP costs. Any costs incurred for food and/or 

administration above the Federal grant level will be the State agency's 

responsibility.

    (ii) Market development or technical assistance costs. Market 

development or technical assistance costs are those costs under Sec. 

248.14(h) incurred to promote the development of farmers' markets in 

socially or economically disadvantaged areas, or remote rural areas, 

where individuals eligible for participation in the program have limited 

access to locally grown fruits and vegetables. Subject to a 

determination by the Secretary under Sec. 248.14(h), a State agency 

may, during any fiscal year, use not more than 2 percent of total 

program funds for such market development or technical assistance.

    (iii) Direct and indirect costs. Direct costs are food and 

administrative costs incurred specifically for the FMNP. Indirect costs 

are administrative costs that benefit multiple programs or activities, 

and cannot be identified to any one without effort disproportionate to 

the results achieved. In accordance with the provisions of 7 CFR part 

3016, a claim for reimbursement of indirect costs shall be supported by 

an approved allocation plan for the determination of such costs. An 

indirect cost rate developed through such an allocation plan may not be 

applied to a base that includes food costs.

    (2) Costs allowable with prior approval. A State or local agency 

must obtain prior approval in accordance with 7 CFR 3016.22 before 

charging to the FMNP any capital expenditures and other cost items 

designated by 7 CFR 3016.22 as requiring such approval.

    (3) Unallowable costs. Costs that are not reasonable and necessary 

for FMNP purposes, or that do not otherwise satisfy the cost principles 

of 7 CFR 3016.22, are unallowable. Notwithstanding any other provision 

of part 3016 or this part, the cost of constructing or operating a 

farmers' market is unallowable. Unallowable costs may never be claimed 

for Federal reimbursement or counted toward the State matching 

requirement.

    (b) Specified allowable administrative costs. Allowable 

administrative costs include the following:

    (1) The costs associated with the provision of nutrition education 

which meets the requirements of Sec. 248.9 of this part.

    (2) The costs of FMNP coupon issuance, or recipient education 

covering proper coupon redemption procedures.

    (3) The cost of outreach services.

    (4) The costs associated with the food delivery process, such as 

printing FMNP coupons, processing redeemed coupons, and training market 

managers on the food delivery system.

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

    (6) The cost of FMNP training.

    (7) The cost of required reporting and recordkeeping.

    (8) The cost of determining which local WIC sites will be utilized.

    (9) The cost of recruiting and authorizing farmers/farmers' markets 

to participate in the FMNP.

    (10) The cost of preparing contracts for farmers/farmers' markets 

and local WIC providers.

    (11) The cost of developing a data processing system for redemption 

and reconciliation of FMNP coupons.

    (12) The cost of designing program training and informational 

materials.

    (13) The cost of coordinating FMNP implementation responsibilities 

between designated administering agencies.



[59 FR 11517, Mar. 11, 1994, as amended at 60 FR 49747, Sept. 27, 1995]