To
provide each State agency with funds for its administrative expenses
in supervising and giving technical assistance to local schools,
school districts and institutions in their conduct of Child Nutrition
Programs. State agencies that administer the distribution of USDA
donated commodities to schools or child or adult care institutions
are also provided with State administrative expense funds (SAE).
TYPES
OF ASSISTANCE:
Formula Grants. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
SAE
funds must be used for purposes specified in the legislation, consistent
with the cost principles and constraints on allowable and unallowable
costs, and indirect cost rates as prescribed in OMB Circular No.
A-87. These funds may be used, under certain conditions, for the
procurement of supplies, equipment, and services.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: State agencies responsible for
the conduct of Child Nutrition Programs, and agencies responsible
for the distribution of USDA donated commodities to schools or child
or adult care institutions including agencies in the U.S. Territories.
Beneficiary
Eligibility: State agencies responsible for
the conduct of Child Nutrition Programs, and agencies responsible
for the distribution of USDA donated commodities to schools, including
agencies in the U.S. Territories.
Credentials/Documentation:
Costs are to be determined and documented in accordance with agency
regulations (7 CFR 235) and USDA Uniform Federal Assistance Regulations
(7 CFR Parts 3015 or 3016 and 3019).
Pre-application
Coordination: 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, if the State has selected the program for review.
Application
Procedure: The State agency enters into a
written agreement with the Food and Nutrition Service (FNS) on
a form prescribed by the FNS. The standard application forms as
furnished by the Federal agency must be used for this program.
This program is excluded from coverage under OMB Circular No.
A-110.
Award
Procedure: Release of funds to a State agency
is contingent upon receipt and approval of their plan for disbursement
of SAE funds. A State agency must submit an initial Plan in fiscal
year 1997 and their estimated funding needs for the duration of
fiscal year 1997. Thereafter, in accordance with Public Law 104-193
which deleted the requirement for an annual plan unless there
are substantive changes, a State agency would only submit revisions
to the initial plan.
Deadlines:
In accordance with Public Law 104-193, a State agency must submit
a plan only when there are significant changes to the initial
plan submitted in fiscal year 1997 which was due by August 15,
1996. Data on additional funds needed or funds not needed and
to be returned as applicable, are due by May 1 of each year.
Range
of Approval/Disapproval Time: Not applicable.
Appeals:
Not applicable.
Renewals:
Annually.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: For the National
School Lunch Program, the School Breakfast Program, and the Special
Milk Program, funds are allocated on the basis of an amount equal
to one percent of the total funds used in the State for these programs
during the second preceding year based on FNS program and fiscal
data. No State receives less than $100,000 or the amount it received
in fiscal year 1981, whichever is larger. For the Child and Adult
Care Food Program a sliding grant is made based on FNS program and
fiscal data. In addition, the Secretary has discretionary authority
to provide funds to States for program improvement, based on FNS
program and fiscal data. The authorizing legislation which establishes
eligibility for SAE funds is the Child Nutrition Act of 1966, as
amended, Section 7 (42 U.S.C. 1776). This program has a Maintenance
of Effort (MOE) requirement. See funding agency for details. Any
reduction of funds from State sources below the fiscal year 1977
level will result in a withdrawal of Federal funds under this grant.
Length
and Time Phasing of Assistance: Funded each
fiscal year during the period covered by the agreement. A State
agency may carry over up to twenty percent of SAE funds allocated
to it for obligation and expenditure during the succeeding fiscal
year.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Each State agency shall submit quarterly financial status information
on SAE funds on forms provided by FNS and will continue to report
information on the use of SAE funds, after the end of the fiscal
year to which they pertain, until all unpaid obligations have been
liquidated.
Audits:
In accordance with the provisions of OMB Circular No. A- 133,
"Audits of States, Local Governments, and Non-profit Organizations,"
State governments, 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:
Each State agency shall keep records on administrative expenses
conforming with the applicable SAE plan and shall maintain current
accounting records of SAE funds that shall adequately identify
fund authorizations, obligations, unobligated balances, assets,
liabilities, outlays, and income.
FINANCIAL
INFORMATION:
Account
Identification: 12-3539-0-1-605.
Obligations:
(Grants) FY 01 $126,782,739; FY 02 est $129,581,000; and FY 03
est $133,598,000.
Range
and Average of Financial Assistance:
From $216,768 to $15,063,297; Average: $2,347,828.
The availability of SAE funds has enabled State agencies to be more
effective in meeting their administrative responsibilities under
the National School Lunch, School Breakfast, Special Milk, Child
and Adult Care Food Program, and Food Distribution Program.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Regulations 7 CFR Part 235, "State Administrative Expense Funds."
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.
