[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: 7CFR247.23]

[Page 420]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec.  247.23  State provision of administrative funds to local agencies.

    (a) How much of the administrative funds must State agencies provide 
to local agencies for their use? The State agency must provide to local 
agencies for their use all administrative funds it receives, except that 
the State agency may retain for its own use the amount determined by the 
following formula:
    (1) 15 percent of the first $50,000 received;
    (2) 10 percent of the next $100,000 received;
    (3) 5 percent of the next $250,000 received; and
    (4) A maximum of $30,000, if the administrative grant exceeds 
$400,000.
    (b) May a State agency request to retain more than the amount 
determined by the above formula in the event of special needs? Yes, the 
State agency may request approval from FNS to retain a larger amount 
than is allowed under the formula prescribed in paragraph (a) of this 
section. However, in making its request, the State agency must provide 
justification of the need for the larger amount at the State level, and 
must ensure that local agencies will not suffer undue hardship as a 
result of a reduction in administrative funds.
    (c) How must the State agency distribute funds among local agencies? 
The State agency must distribute funds among local agencies on the basis 
of their respective needs, and in a manner that ensures the funds will 
be used to achieve program objectives.

(Approved by the Office of Management and Budget under control number 
0584-0293)