[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: 7CFR251.9]



[Page 503-504]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 251_THE EMERGENCY FOOD ASSISTANCE PROGRAM--Table of Contents

 

Sec. 251.9  Matching of funds.



    (a) State matching requirement. The State must provide a cash or in-

kind contribution equal to the amount of TEFAP administrative funds 

received under Sec. 251.8 and retained by the State agency for State-

level costs or made available by the State agency directly to eligible 

recipient agencies that are not emergency feeding organizations as 

defined in Sec. 251.3(e). The State agency will not be required to 

match any portion of the Federal grant passed through for administrative 

costs incurred by emergency feeding organizations or directly expended 

by the State agency for such costs in accordance with Sec. 251.8(e)(4) 

of this part.

    (b) Exceptions. In accordance with the provisions of 48 U.S.C. 

1469a, American Samoa, Guam, the Virgin Islands and the Northern Mariana 

Islands shall be exempt from the matching requirements of paragraph (a) 

of this section if their respective matching requirements are under 

$200,000.

    (c) Applicable contributions. States shall meet the requirements of 

paragraph (a) of this section through cash or in-kind contributions from 

sources other than Federal funds which are prohibited by law from being 

used to meet a Federally mandated State matching requirement. Such 

contributions shall meet the requirements set forth in 7 CFR 3016.24. In 

accordance with part 3016 or 3019, as applicable, the matching 

requirement shall not be met by contributions for costs supported by 

another Federal grant, except as provided by Federal statute. Allowable 

contributions are only those contributions for costs which would 

otherwise



[[Page 504]]



be allowable as State or local-level administrative costs.

    (1) Cash. An allowable cash contribution is any cash outlay of the 

State agency for a specifically identifiable allowable State- or local-

level administrative cost, including the outlay of money contributed to 

the State agency by other public agencies and institutions, and private 

organizations and individuals. Examples of cash contributions include, 

but are not limited to, expenditures for office supplies, storage space, 

transportation, loading facilities and equipment, employees' salaries, 

and other goods and services specifically identifiable as State- or 

local-level administrative costs for which there has been a cash outlay 

by the State agency.

    (2) In-kind. (i) Allowable in-kind contributions are any 

contributions, which are non-cash outlays, of real property and non-

expendable personal property and the value of goods and services 

specifically identifiable with allowable State administrative costs or, 

when contributed by the State agency to an eligible recipient agency, 

allowable local-level administrative costs. Examples of in-kind 

contributions include, but are not limited to, the donation of office 

supplies, storage space, vehicles to transport the commodities, loading 

facilities and equipment such as pallets and forklifts, and other non-

cash goods or services specifically identifiable with allowable State-

level administrative costs or, when contributed by the State agency to 

an eligible recipient agency, allowable local-level administrative 

costs. In-kind contributions shall be valued in accordance with part 

3016 or 3019, as applicable.

    (ii) In order for a third-party in-kind contribution to qualify as a 

State-level administrative cost for purposes of meeting the match, all 

of the following criteria shall be met:

    (A) In its administration of food assistance programs, the State has 

performed this type of function over a sustained period of time in the 

past;

    (B) The function was not previously performed by the State on behalf 

of eligible recipient agencies; and

    (C) The State would normally perform the function as part of its 

responsibility in administering TEFAP or related food assistance 

programs if it were not provided as an in-kind contribution.

    (d) Assessment fees. States shall not assess any fees for the 

distribution of donated foods to eligible recipient agencies.

    (e) Reporting requirements. State agencies shall identify their 

matching contribution on the FNS-667, Report of TEFAP Administrative 

Costs, in accordance with Sec. 251.10(d).

    (f) Failure to match. If, during the course of the fiscal year, the 

quarterly FNS-667 indicates that the State is or will be unable to meet 

the matching requirements in whole or in part, the Department shall 

suspend or disallow the unmatched portion of Federal funds subject to 

the provisions of paragraph (a) of this section. If, upon submission of 

the final FNS-667 for the fiscal year, the Department determines that 

the State has not met the requirements of paragraph (a) of this section 

in whole or in part, the unmatched portion of Federal funds subject to 

the requirements of paragraph (a) of this section shall be subject to 

disallowance by FNS.



[52 FR 17934, May 13, 1987, as amended at 59 FR 16975, Apr. 11, 1994; 64 

FR 72906, Dec. 29, 1999]