To
provide subsidies to schools and institutions to encourage the consumption
of fluid milk by children.
TYPES
OF ASSISTANCE:
Formula Grants. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Funds
are made available to State agencies to encourage the consumption
of fluid milk by children in public and private nonprofit schools
of high school grade and under, public and private nonprofit nursery
schools, child-care centers, settlement houses, summer camps, and
similar nonprofit institutions devoted to the care and training
of children, except Job Corps Centers, provided that these schools
and institutions do not participate in another meal service program
authorized under the National School Lunch Act or the Child Nutrition
Act of 1966. The Child Nutrition Amendments of 1986 expanded eligibility
in the program to include children in split session kindergarten
and pre-kindergarten programs in nonprofit schools and institutions
who do not have access to the Federal meal service program operating
in schools the children attend. Disbursement to States is made on
the basis of the number of half pints of milk served to non-needy
children, using a reimbursement rate specified by law. Milk served
free to eligible needy children is reimbursed at the average cost
of a half pint of milk.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Any State or U.S. Territory (except
territories subject to the requirements of the Compact of Free Association).
Any public and nonprofit private school or child care institution
of high school grade or under, except Job Corps Centers, may participate
in the Special Milk Program upon request if it does not participate
in another meal service program authorized under the National School
Lunch Act or the Child Nutrition Act of 1966. This generally includes
nonprofit nursery schools, child-care centers, settlement houses
and summer camps. Schools with split session kindergarten and pre-kindergarten
programs can receive subsidies for milk served to children in the
split session kindergartens and pre- kindergartens who do not have
access to another meal service program operating in the school.
All schools and child care institutions which participate must agree
to operate the program on a nonprofit basis for all children without
regard to race, sex, color, National origin, age or disability.
Beneficiary
Eligibility: All children attending schools
and institutions in which the Special Milk Program is in operation
may participate in the program.
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 standard application forms
as furnished by the State agency or Food and Nutrition Service,
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 a waiver designating
an alternate agency is approved. Appropriate forms may be obtained
from this agency. In most cases, nonprofit private schools and
institutions also apply to the State educational agency. However,
in some States, the State educational agency is prohibited by
State statute from disbursing Federal funds to nonprofit private
schools and institutions. In such instances, the application will
be referred to the appropriate alternate State agency or the appropriate
Food and Nutrition Service regional office.
Award
Procedure: State agency or Food and Nutrition
Service regional office, where applicable, reviews written application
of school or child care institution and upon determination of
eligibility makes written agreement with sponsor for participation
in the program.
Deadlines:
Federal/State agreement must be signed.
Range
of Approval/Disapproval Time: Agreements are
effective upon approval of the State Agency or Food and Nutrition
Service, where applicable.
Appeals:
None. State agencies or Food and Nutrition Service regional offices,
where applicable, are responsible for determining eligibility
of a school or institution.
Renewals:
Permanent, amended as necessary.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The reimbursement
rate for each paid half pint of milk served to children with household
income levels above 130 percent of the poverty line in schools and
institutions that participate in the Special Milk Program during
school year 2001-02 is 14.5 cents, and the reimbursement rate for
each 1/2 pint of milk served free (in pricing programs with a free
milk option) to children with household income levels at or below
130 percent of poverty is the average cost of 1/2 pint of milk.
This rate is adjusted each school year to correspond to the change
in the Producer Price Index for Fluid Milk Products published by
the Bureau of Labor Statistics. The statistical factor used for
beneficiary eligibility for free milk is 130 percent of the poverty
line and the source is the Federal income poverty guidelines. There
is no matching guideline. The cost of milk in excess of the Federal
reimbursement must be borne by sources within the States (7 CFR
Part 215). Disbursement to States is based on the number of half
pints served to children. This program has no maintenance of effort
(MOE) requirement.
Length
and Time Phasing of Assistance: For the period
covered by the agreement.
POST
ASSISTANCE REQUIREMENTS:
Reports:
State agencies, schools and institutions file monthly reports on
program operations to claim for reimbursement. Schools must submit
final claims to the State agency 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. For each fiscal year, States must submit final grant close
out reports to the Food and Nutrition Service not later than 120
days after the close 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 Nonprofit Organizations,"
State and local governments, and nonprofit 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 and institutions must maintain full and accurate records
of Special Milk Program operations. 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 as long as required for their resolution.
This program is subject to periodic audits.
FINANCIAL
INFORMATION:
Account
Identification: 12-3539-0-1-605.
Obligations:
(Grants) FY 01 $16,650,627; FY 02 est $16,891,000; and FY 03 est
$16,449,000.
Range
and Average of Financial Assistance:
For fiscal year 2001, average Federal assistance is 13.4 cents
for each half-pint of milk served to children with income levels
above 130 percent of poverty. State grants vary according to participation
in the program. Average Federal assistance for half-pints served
free is 17.0 cents.
In fiscal year 2001, 120.3 million half-pints of milk were served.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Regulations -- 7 CFR Part 215, "Special Milk Program for Children,"
and 7 CFR Part 245, "Determining Eligibility of Free and Reduced
Price Meals and Free Milk in Schools."
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. Contact: Stanley C. Garnett, Director. Telephone: (703)
305-2590.
