[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR220.9]

[Page 102-103]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 220_SCHOOL BREAKFAST PROGRAM--Table of Contents
 
Sec.  220.9  Reimbursement payments.

    (a) State agencies, or FNSRO's where applicable, shall make 
reimbursement payments to schools only in connection with breakfasts 
meeting the requirements of Sec.  220.8, and reported in accordance with 
Sec.  220.11(b) of this part. School Food Authorities shall plan for and 
prepare breakfasts on the basis of participation trends, with the 
objective of providing one breakfast per child per day. Production and 
participation records shall be maintained to demonstrate positive action 
toward this objective. In recognition of the fluctuation in 
participation levels which makes it difficult to precisely estimate the 
number of breakfasts needed and to reduce the resultant waste, any 
excess breakfasts that are prepared may be served to eligible children 
and may be claimed for reimbursement unless the

[[Page 103]]

State agency, or FNSRO where applicable, determines that the School Food 
Authority has failed to plan and prepare breakfasts with the objective 
of providing one breakfast per child per day. In no event shall the 
School Food Authority claim reimbursement for free and reduced price 
breakfasts in excess of the number of children approved for free and 
reduced price meals.
    (b) The rates of reimbursement for breakfasts served to eligible 
children in schools not in severe need are the applicable national 
average payment factors for breakfasts. The maximum rates of 
reimbursement for breakfasts served to eligible children in schools 
determined to be in severe need are those prescribed by the Secretary. 
National average payment factors and maximum rates of reimbursement for 
the School Breakfast Program shall be prescribed annually by the 
Secretary in the Federal Register.
    (c) The total reimbursement for breakfasts served to eligible 
children in schools not in severe need, and schools in severe need 
during the school year shall not exceed the sum of the products obtained 
by multiplying the total numbers of such free, reduced price and paid 
breakfasts, respectively, by the applicable rate of reimbursement for 
each type of breakfast as prescribed for the school year.
    (d) The State agency, or FNSRO where applicable, shall determine 
whether a school is in severe need based on the following eligibility 
criteria:
    (1) The school is participating in or desiring to initiate a 
breakfast program; and
    (2) At least 40 percent of the lunches served to students at the 
school in the second preceding school year were served free or at a 
reduced price. Schools that did not serve lunches in the second 
preceding year and that would like to receive reimbursement at the 
severe need rate may apply to their administering State agency. The 
administering State agency shall approve or deny such requests in 
accordance with guidance, issued by the Secretary, that determines that 
the second preceding school year requirement would otherwise have been 
met.

(Sec. 6, Pub. L. 95-627, 92 Stat. 3620 (42 U.S.C. 1776; secs. 801, 803, 
812; Pub. L. 97-35, 95 Stat. 521-535, 42 U.S.C. 1753, 1759(a), 1758, 
1773; sec. 819, Pub. L. 97-35, 95 Stat. 533 (42 U.S.C. 1759a, 1773 and 
1757); 44 U.S.C. 3506))

[Amdt. 25, 41 FR 34760, Aug. 17, 1976, as amended by Amdt. 29, 44 FR 
48159, Aug. 17, 1979; Amdt. No. 38, 46 FR 50928, Oct. 16, 1981; 46 FR 
51368, Oct. 20, 1981; 47 FR 746, Jan. 7, 1982; 47 FR 31375, July 20, 
1982; 48 FR 40196, 40197, Sept. 6, 1983; 60 FR 31222, June 13, 1995; 65 
FR 26923, May 9, 2000; 70 FR 66249, Nov. 2, 2005]