To
assist States, through cash grants and food donations, in making
the school lunch program available to school children and to encourage
the domestic consumption of nutritious agricultural commodities.
TYPES
OF ASSISTANCE:
Formula Grants. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Federally
appropriated National School Lunch Program funds are available to
each State agency to reimburse participating public and nonprofit
private schools, of high school grades or under, including residential
child care institutions, for lunches meeting the nutritional requirements
prescribed by the Secretary of Agriculture, served to eligible children.
Schools meeting eligibility criteria may be reimbursed for meal
snacks served to children enrolled in after school hour care programs.
Participating schools are reimbursed at rates that are adjusted
on an annual basis to reflect changes in the Food Away From Home
series of the Consumer Price Index for All Urban Consumers. For
the period July 1, 2001, through June 30, 2002, the rates of reimbursement
are 20.00 cents general cash assistance for paid lunches, 20.00
cents general cash assistance for free and reduced price lunches
plus an additional 1.49 cents special cash assistance for each reduced
price lunch and 1.89 cents for each free lunch. The maximum reduced
price charge for lunch is 40 cents. Schools that served 60 percent
or more free or reduced price lunches in the second preceding school
year received an additional 2 cents general cash assistance for
all lunches served. The reimbursement for snacks in after school
care programs is 57.00 cents for each free snacks, 28.00 cents for
each reduced price supplement and 5.00 cents for each paid supplement.
In addition to cash reimbursement, the national average value of
donated commodities for each lunch is 15.50 cents, for the period
July 1, 2001, through June 30, 2002, and is adjusted annually to
reflect changes in the Price Index for Food Used in Schools and
Institutions. All participating schools must agree to serve free
and reduced price meals to eligible children.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: State and U.S. Territory agencies
(except territories subject to the Compact of Free Association),
public and nonprofit private schools of high school grade and under;
public and nonprofit private residential child care institutions,
except Job Corps Centers, residential summer camps that participate
in the Summer Food Service Program for children and private foster
homes. Schools and residential child care institutions desiring
to participate must agree to operate a nonprofit food service that
is available to all children regardless of race, sex, color, National
origin, age, or disability.
Beneficiary
Eligibility: All children enrolled in schools
where the lunch program is operating may participate. Lunch is
served free to children who are determined by local school authorities
to have household income levels at or below 130, and at a reduced
price to children from households with incomes higher than 130
but at or below 185, percent of the poverty line respectively.
Such determinations are made in accordance with income eligibility
guidelines prescribed by the Secretary and cross reference household
income with household size. The Secretary announces these income
eligibility guidelines by July 1. The statistical source used
in making such revisions is the Federal Income Poverty Guidelines.
Children from households certified to receive food stamps, the
Food Distribution Program on Indian Reservations, in most cases,
Temporary Assistance for Needy Families (formerly Aid to Families
With Dependent Children) and some children in Head Start Programs
are automatically eligible for free meals.
Credentials/Documentation:
Applicant organizations must furnish evidence of nonprofit status.
Costs will be determined in accordance with USDA Uniform Federal
Assistance Regulations (7 CFR Part 3015 or 3016 and 3019).
Pre-application
Coordination: The application forms as furnished
by FNS or the State agency, as applicable, must be used for this
program. This program is eligible for coverage under E.O. 12372,
"Intergovernmental Review of Federal Programs." An applicant should
consult the office or official designated as the single point of
contact in his or her State for more information on the process
the State requires to be followed in applying for assistance.
Application
Procedure: Public schools in all States make
application to the State Educational Agency unless the State applies
and is approved for a waiver to designate an alternate agency.
Appropriate forms may be obtained from this agency. Nonprofit
private schools should also apply to the State Educational Agency
in most States. In some States, however, the State Educational
Agency is prohibited by statute from disbursing Federal funds
to nonprofit private schools. In such instances, the application
should be submitted to the alternate State agency or the appropriate
Food and Nutrition Service regional office.
Award
Procedure: The State Agency, or Food and Nutrition
Service Regional Office (FNSRO) where applicable, reviews the
written application of a school or a residential child care institution
and, upon determination of eligibility, makes a written agreement
with the school or institution for participation in the program.
Deadlines:
Federal/State Agreements must be signed.
Range
of Approval/Disapproval Time: Agreements become
effective upon approval by the State Educational Agency or FNSRO,
where applicable.
Appeals:
None. The State agency or FNSRO, where applicable, is responsible
for determining a school's eligibility.
Renewals:
Permanent, amended as necessary.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The funding formula
for the general cash for food assistance phase of the program is
set forth in Section 4 of the National School Lunch Act, as amended;
the formula for special cash assistance is described in Section
11 of the Act. The program is funded on a performance basis. For
every lunch served during the applicable fiscal year, the State
receives a payment from funds made available under Section 4. In
addition, the State receives a payment from Section 11 funds for
each lunch served to a child eligible for free or reduced price
lunches. The amounts of such per-lunch payments are determined by
"National Average Payment" (NAP) factors. The amount due the State
under this program is obtained by: (1) multiplying the total number
of eligible paid lunches and free and reduced price lunches served
during the fiscal year by the Section 4 NAP factor for lunches;
(2) multiplying the number of free lunches served by the Section
11 NAP factor for free lunches; (3) multiplying the number of lunches
served at reduced price by the Section 11 NAP factor for reduced
price lunches; (4) multiplying the total number of lunches served
during the fiscal year in school food authorities which served 60percent
or more free or reduced price lunches in the second preceding school
year by $ .02; and (5) adding together the four products obtained
thereby. The NAP factors are prescribed by the Secretary in accordance
with Sections 4 and 11, respectively, of the Act; the numbers of
lunches are obtained from programmatic reports submitted to Food
and Nutrition Service. In addition, the funding formula for snacks
in after school care programs is described in Section 17 A of the
Act. Section 11(a)(3) of the Act requires that the NAP factors be
adjusted annually, according to changes in the Food Away From Home
series of the Consumer Price Index for All Urban Consumers; the
source is the Bureau of Labor Statistics. Each State must appropriate
from State revenues and use, for program purposes, an amount equal
to 30 percent of the Section 4 funds made available to the State
in the 1980-81 school year. Also, commodity schools are eligible
to receive donated commodities equal in value to the sum of section
6 and section 4 assistance rates, except that up to 5 cents of this
amount may be received in cash for processing and handling commodities.
In addition, commodity schools are eligible for Section 11 free
and reduced price meal reimbursements.
Length
and Time Phasing of Assistance: For the period
covered by the agreement on a fiscal-year basis.
POST
ASSISTANCE REQUIREMENTS:
Reports:
State agencies and schools file monthly reports on the number of
meals served, by type, to claim program funds. School food authorities
must submit final meal claims to the State no later than 60 days
after the claiming month, and States must submit final program reports
to Food and Nutrition Service no later than 90 days after the claiming
month. States must submit final fiscal year grant close out reports
to Food and Nutrition Service within 120 days after the end of the
fiscal year to which they pertain.
Audits:
In accordance with the provisions of OMB Circular No. A- 133,
"Audits of States, Local Governments, and Non-profit Organizations,"
State and local governments, and non-profit organizations that
expended $300,000 or more under Federal awards within any fiscal
year shall have either a single audit or (in certain cases) a
program specific audit made for that year. Audits may be conducted
less frequently under conditions specified in A-133.
Records:
Schools must maintain full and accurate records of their lunch
programs. Such records shall be retained for a period of 3 years
after the end of the fiscal year to which they pertain, except
that if audit findings have not been resolved, the records shall
be retained beyond the 3 year period as long as required for the
resolution of audit findings.
FINANCIAL
INFORMATION:
Account
Identification: 12-3539-0-1-605.
Obligations:
(Grants) FY 01 $5,734,724,676; FY 02 est $6,077,314,000; and FY
03 est $6,417,396,603. (Value of food commodities including bonus
commodities) FY 01 $862,995,000; FY 02 est $806,994,000; and FY
03 est $839,876,000.
Range
and Average of Financial Assistance:
Average Federal cash and for school year 2001 was 121.2 cents
per meal and ranged from 5.0 cents for "paid" snacks to 219.00
cents for free lunches in school districts serving more than 60
percent free and reduced price lunches. State grants vary according
to participation in the program.
In fiscal year 2001, 4,543 million lunches were served and this
is expected to increase by another 67 million in fiscal year 2002.
Since 1995, school lunches have been required to provide, over a
school week, 1/3 at the Recommended Dietary Allowance For Key Nutrients
and 1/3 of the calories needed by growing children. They also must
conform to the recommendations of The Dietary Guideline for Americans,
including limitations on calories from fat (no more that 30 percent
of total calories) and saturated fat (less than 10 percent of total
calories) averaged over the school week. Recognizing that simply
updating standards would not improve children's diets and health,
USDA has established Team Nutrition to implement the new regulations
to provide nutrition education and technical assistance for children,
their families and local school food service professionals.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Regulations: 7 CFR, Part 210 - National School Lunch Program regulations;
Part 245 -Determining Eligibility for Free and Reduced Price Meals
and Free Milk in Schools; "National School Lunch Program,"FCS-78,
a fact sheet - no charge.
INFORMATION
CONTACTS:
Regional
or Local Office: See Appendix IV of the Catalog.
Headquarters
Office: Director, Child Nutrition Division,
Food and Nutrition Service, Department of Agriculture, Alexandria,
VA 22302. Telephone: (703) 305-2590. Contact: Stanley C. Garnett,
Director.
