7 CFR Part 225 — Summer Food Service Program

PART 225—SUMMER FOOD SERVICE PROGRAM Authority: Secs. 9, 13 and 14, Richard B. Russell National School Lunch Act, as amended (42 U.S.C. 1758, 1761 and 1762a). Source: 54 FR 18208, Apr. 27, 1989, unless otherwise noted. Subpart A—General § 225.1 General purpose and scope. This part establishes the regulations under which the Secretary will administer a Summer Food Service Program. Section 13 of the Act authorizes the Secretary to assist States through grants-in-aid to conduct nonprofit food service programs for children during the summer months and at other approved times. The primary purpose of the Program is to provide food service to children from needy areas during periods when area schools are closed for vacation. § 225.2 Definitions. 2 CFR part 200, Act Administrative costs Adult Advance payments Areas in which poor economic conditions exist (1) The attendance area of a school in which at least 50 percent of the enrolled children have been determined eligible for free or reduced-price school meals under the National School Lunch Program and the School Breakfast Program; (2) A geographic area where, based on the most recent census data available or information provided from a department of welfare or zoning commission, at least 50 percent of the children residing in that area are eligible for free or reduced-price school meals under the National School Lunch Program and the School Breakfast Program; (3) A geographic area where a site demonstrates, based on other approved sources, that at least 50 percent of the children enrolled at the site are eligible for free or reduced-price school meals under the National School Lunch Program and the School Breakfast Program; or (4) A closed enrolled site in which at least 50 percent of the enrolled children at the site are eligible for free or reduced-price school meals under the National School Lunch Program and the School Breakfast Program, as determined by approval of applications in accordance with § 225.15(f). Camps Children (1) Persons 18 years of age and under; and (2) Persons over 18 years of age who are determined by a State educational agency or a local public educational agency of a State to be mentally or physically disabled and who participate in a public or nonprofit private school program established for the mentally or physically disabled. Children's Health Insurance Program (CHIP) et seq. Closed enrolled site Conditional non-congregate site Congregate meal service Continuous school calendar Costs of obtaining food Current income Department Disclosure Documentation (1) The completion of the following information on a free meal application: (i) Names of all household members; (ii) Income received by each household member, identified by source of income (such as earnings, wages, welfare, pensions, support payments, unemployment compensation, social security and other cash income); (iii) The signature of an adult household member; and (iv) The last four digits of the Social Security number of the adult household member who signs the application, or an indication that the adult does not possess a Social Security number; or (2) For a child who is a member of a household receiving SNAP, FDPIR, or TANF benefits, “documentation” means completion of only the following information on a free meal application: (i) The name(s) and appropriate SNAP, FDPIR, or TANF case number(s) for the child(ren); and (ii) The signature of an adult member of the household. Excess funds Experienced site Experienced sponsor Family FDPIR household Fiscal year FNS FNSRO Food service management company Foster child Good standing Household Income accruing to the program Income standards Meals Medicaid et seq. Milk Needy children Net cash resources New site New sponsor Non-congregate meal service Nonprofit food service Nonprofit food service account NYSP NYSP feeding site OIG Open site Operating costs (1) Including the: (i) Cost of obtaining food; (ii) Labor directly involved in the preparation and service of food; (iii) Cost of nonfood supplies; (iv) Rental and use allowances for equipment and space; and (v) Cost of transporting children in rural areas to feeding sites in rural areas; (vi) Cost of delivering non-congregate meals in rural areas; but (2) Excluding: (i) The cost of the purchase of land, acquisition or construction of buildings; (ii) Alteration of existing buildings; (iii) Interest costs; (iv) The value of in-kind donations; and (v) Administrative costs. Private nonprofit Private nonprofit organization (a) Exercises full control and authority over the operation of the Program at all sites under the sponsorship of the organization; (b) Provides ongoing year-round activities for children or families; (c) Demonstrates that the organization has adequate management and the fiscal capacity to operate the Program; (d) Is an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code; and (e) Meets applicable State and local health, safety, and sanitation standards. Program Program funds Program payments Restricted open site Rural (1) Any area in a county which is not a part of a Metropolitan Statistical Area based on the Office of Management and Budget's Delineations of Metropolitan Statistical Areas; (2) Any area in a county classified as a non-metropolitan area based on USDA Economic Research Service's Rural-Urban Continuum Codes and Urban Influence Codes; (3) Any census tract classified as a non-metropolitan area based on USDA Economic Research Service's Rural-Urban Commuting Area codes; (4) Any area of a Metropolitan Statistical Area which is not part of a Census Bureau-defined urban area; (5) Any area of a State which is not part of an urban area as determined by the Secretary; (6) Any subsequent substitution or update of the aforementioned classification schemes that Federal governing bodies create; or (7) Any “pocket” within a Metropolitan Statistical Area which, at the option of the State agency and with FNSRO approval, is determined to be rural in character based on other data sources. School food authority Secretary Self-preparation site Self-preparation sponsor Session Site Site supervisor SNAP household Special account Sponsor Start-up payments State State agency TANF Termination for convenience (1) Termination of a State agency's participation in the Program in whole, or in part, when FNS and the State agency agree that the continuation of the Program would not produce beneficial results commensurate with the further expenditure of funds; or (2) Termination of a permanent operating agreement by a State agency or sponsor due to considerations unrelated to either party's performance of Program responsibilities under the agreement. Unaffiliated site Unanticipated school closure Unit of local, municipal, county or State government USDA implementing regulations Unused reimbursement Vended site (1) Public agencies or entities, such as a school food authority; (2) Private, nonprofit organizations; or (3) Private, for-profit companies, such as a commercial food distributor or food service management company. Vended sponsor Yogurt [54 FR 18208, Apr. 27, 1989, as amended at 54 FR 27153, June 28, 1989; 55 FR 13466, Apr. 10, 1990; 61 FR 25553, May 22, 1996; 64 FR 72483, Dec. 28, 1999; 64 FR 72895, Dec. 29, 1999; 66 FR 2202, Jan. 11, 2001; 71 FR 39518, July 13, 2006; 72 FR 10895, Mar. 12, 2007; 76 FR 22798, Apr. 25, 2011; 78 FR 13449, Feb. 28, 2013; 81 FR 66492, Sept. 28, 2016; 83 FR 25357, June 1, 2018; 87 FR 57355, Sept. 19, 2022; 87 FR 79213, Dec. 27, 2022; 88 FR 57849, Aug. 23, 2023; 88 FR 90347, Dec. 29, 2023] § 225.3 Administration. (a) Responsibility within the Department. (b) State administered programs. (c) Regional office administered programs. (d) Authority to waive statute and regulations. (2)(i) A State agency may submit a request for a waiver under paragraph (d)(1) of this section in accordance with section 12(l)(2) and the provisions of this part. (ii) A State agency may submit a request to waive specific statutory or regulatory requirements on behalf of eligible service providers that operate in the State. Any waiver where the State concurs must be submitted to the appropriate FNSRO. (3)(i) An eligible service provider may submit a request for a waiver under paragraph (e)(1) of this section in accordance with section 12(l) and the provisions of this part. Any waiver request submitted by an eligible service provider must be submitted to the State agency for review. A State agency must act promptly on such a waiver request and must deny or concur with a request submitted by an eligible service provider. (ii) If a State agency concurs with a request from an eligible service provider, the State agency must promptly forward to the appropriate FNSRO the request and a rationale, consistent with section 12(l)(2), supporting the request. By forwarding the request to the FNSRO, the State agency affirms: (A) The request meets all requirements for waiver submissions; and, (B) The State agency will conduct all monitoring requirements related to regular Program operations and the implementation of the waiver. (iii) If the State agency denies the request, the State agency must notify the requesting eligible service provider and state the reason for denying the request in writing within 30 calendar days of the State agency's receipt of the request. The State agency response is final and may not be appealed to FNS. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13466, Apr. 10, 1990; 64 FR 72483, Dec. 28, 1999; 87 FR 57356, Sept. 19, 2022; 88 FR 90348, Dec. 29, 2023; 90 FR 24048, June 6, 2025] Subpart B—State Agency Provisions § 225.4 Program management and administration plan. (a) Not later than February 15 of each year, each State agency shall submit to FNSRO a Program management and administration plan for that fiscal year. (b) Each plan shall be acted on or approved by March 15 or, if it is submitted late, within 30 calendar days of receipt of the plan. If the plan initially submitted is not approved, the State agency and FNS shall work together to ensure that changes to the plan, in the form of amendments, are submitted so that the plan can be approved within 60 calendar days following the initial submission of the plan. Upon approval of the plan, the State agency shall be notified of the level of State administrative funding which it is assured of receiving under § 225.5(a)(3). (c) Approval of the Plan by FNS shall be a prerequisite to the withdrawal of Program funds by the State from the Letter of Credit and to the donation by the Department of any commodities for use in the State's Program. (d) The Plan must include, at a minimum, the following information: (1) The State's administrative budget for the fiscal year, and the State's plan to comply with any standards prescribed by the Secretary for the use of these funds; (2) The State's plan for use of Program funds and funds from within the State to the maximum extent practicable to reach needy children; (3) The State's plans for providing technical assistance and training to eligible sponsors; (4) The State's plans for monitoring and inspecting sponsors, feeding sites, and food service management companies and for ensuring that such companies do not enter into contracts for more meals than they can provide effectively and efficiently; (5) The State's plan for timely and effective action against Program violators; (6) The State's plan for ensuring the fiscal integrity of sponsors not subject to auditing requirements prescribed by the Secretary; (7) The State's plan for ensuring compliance with the food service management company procurement monitoring requirements set forth at § 225.6(l); (8) An estimate of the State's need, if any, for monies available to pay for the cost of conducting health inspections and meal quality tests; (9) The State's plan to provide a reasonable opportunity for children to access meals across all areas of the State; and (10) The State's plan for Program delivery in areas that could benefit the most from the provision of non-congregate meals, including the State's plan to identify areas with no congregate meal service, and target priority areas for non-congregate meal service. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13466, Apr. 10, 1990; 64 FR 72483, Dec. 28, 1999; 87 FR 57356, Sept. 19, 2022; 88 FR 90349, Dec. 29, 2023] § 225.5 Payments to State agencies and use of Program funds. (a) State administrative funds Administrative funding formula. (i) 20 percent of the first $50,000 in Program funds properly payable to the State in the preceding fiscal year; (ii) 10 percent of the next $100,000 in Program funds properly payable to the State in the preceding fiscal year; (iii) 5 percent of the next $250,000 in Program funds properly payable to the State in the preceding fiscal year; and (iv) 2 1/2 Provided, however, (2) Use of State administrative funds. (3) Funding assurance. (4) Limitation. (5) Full use of Federal funds. (b) State administrative funds Letter of Credit. (2) Additional State administrative funds shall be made available upon the receipt and approval by FNS of the State's Program management and administration plan. The amount of such funds, plus the initial allocation, shall not exceed 80 percent of the State administrative funds determined by the formula set forth in paragraph (a)(1) of this section and based on the estimates set forth in the approved Program management and administration plan. (3) Any remaining State administrative funds shall be paid to each State agency as soon as practicable after the conduct of the funding assessment described in paragraph (c) of this section. However, regardless of whether such assessment is made, the remaining administrative funds shall be paid no later than September 1. The remaining administrative payment shall be in an amount equal to that determined to be needed during the funding evaluation or, if such evaluation is not conducted, the amount owed the State in accordance with paragraph (a)(1) of this section, less the amounts paid under paragraphs (b) (1) and (2) of this section. (c) Administrative funding evaluation. if (d) Letter of Credit for Program payments. (2) Based on the State agency's approved management and administration plan, FNS shall, if necessary, adjust the State's Letter of Credit to ensure that 65 percent of estimated current year Program operating and administrative funding needs is available. Such adjustment shall be made no later than May 15, or within 90 days of FNS receipt of the State agency's management and administration plan, whichever date is later. (3) Subsequent to the adjustment provided for in paragraph (d)(2) of this section, FNS will, if necessary, make one additional adjustment to ensure that the State agency's Letter of Credit contains at least 65 percent of the Program operating and administrative funds needed during the current fiscal year. Such adjustment may be based on the administrative funding assessment provided for in paragraph (c) of this section, if one is conducted, or on any additional information which demonstrates that the funds available in the Letter of Credit do not equal at least 65 percent of current year Program needs. In no case will such adjustments be made later than September 1. Funds made available in the Letter of Credit shall be used by the State agency to make Program payments to sponsors. (4) The Letter of Credit shall include sufficient funds to enable the State agency to make advance payments to sponsors serving areas in which schools operate under a continuous school calendar. These funds shall be made available no later than the first day of the month prior to the month during which the food service will be conducted. (5) FNS shall make available any remaining Program funds due within 45 days of the receipt of valid claims for reimbursement from sponsors by the State agency. However, no payment shall be made for claims submitted later than 60 days after the month covered by the claim unless an exception is granted by FNS. (6) Each State agency shall release to FNS any Program funds which it determines are unobligated as of September 30 of each fiscal year. Release of funds by the State agency shall be made as soon as practicable, but in no event later than 30 calendar days following demand by FNS, and shall be accomplished by an adjustment in the State agency's Letter of Credit. (e) Adjustment to Letter of Credit. (f) Health inspection funds. [54 FR 18208, Apr. 27, 1989, as amended at 76 FR 37982, June 29, 2011] § 225.6 State agency responsibilities. (a) General responsibilities. (2) By February 1 of each fiscal year, each State agency must announce the purpose, eligibility criteria, and availability of the Program throughout the State, through appropriate means of communication. As part of this effort, each State agency must: (i) Identify areas in which poor economic conditions exist to qualify for the Program and actively seek eligible applicant sponsors to serve: (A) Rural areas; (B) Indian Tribal territories; and (C) Areas with a concentration of migrant farm workers. (ii) The State agency must identify rural areas with no congregate meal service and encourage participating sponsors to provide non-congregate meals to eligible children in those areas. (iii) The State agency must target outreach efforts to priority outreach areas. (iv) For approval of closed enrolled sites, the State agency must establish criteria to ensure that operation of a closed enrolled site does not limit Program access for eligible children in the area where the site is located. (3) Each State agency shall require applicant sponsors submitting Program application site information sheets, Program agreements, or a request for advance payments, and sponsors submitting claims for reimbursement to certify that the information submitted on these forms is true and correct and that the sponsor is aware that deliberate misrepresentation or withholding of information may result in prosecution under applicable State and Federal statutes. (4) In addition to the warnings specified in paragraph (a)(3) of this section, State agencies may include the following information on applications and pre-application materials distributed to prospective sponsors: (i) The criminal penalties and provisions established in section 12(g) of the National School Lunch Act (42 U.S.C. 1760(g)) that states substantially: Whoever embezzles, willfully misapplies, steals, or obtains by fraud any funds, assets, or property that are the subject of a grant or other form of assistance under this Act or the Child Nutrition Act of 1966 (42 U.S.C. 1771 et seq. (ii) The procedures for termination from Program participation of any site or sponsor which is determined to be seriously deficient in its administration of the Program. In addition, the application may also state that appeals of sponsor or site terminations will follow procedures mandated by the State agency and will also meet the minimum requirements of 7 CFR 225.13. (b) Approval of sponsor applications. (2) Each State agency shall inform potential sponsors of the procedure for applying for advance operating and administrative costs payments as provided for in § 225.9(c). Where applicable, each State agency shall inform sponsors of the procedure for applying for start-up payments provided for in § 225.9(a). (3) Within 30 days of receiving a complete and correct application, the State agency shall notify the applicant of its approval or disapproval. If an incomplete application is received, the State agency shall so notify the applicant within 15 days and shall provide technical assistance for the purpose of completing the application. Any disapproved applicant shall be notified of its right to appeal under § 225.13. (4) The State agency shall determine the eligibility of sponsors applying for participation in the Program in accordance with the applicant sponsor eligibility criteria outlined in § 225.14. However, State agencies may approve the application of an otherwise eligible applicant sponsor which does not provide a year-round service to the community which it proposes to serve under the Program only if it meets one or more of the following criteria: It is a residential camp; it proposes to provide a food service for the children of migrant workers; a failure to do so would deny the Program to an area in which poor economic conditions exist; a significant number of needy children will not otherwise have reasonable access to the Program; or it proposes to serve an area affected by an unanticipated school closure. In addition, the State agency may approve a sponsor for participation during an unanticipated school closure without a prior application if the sponsor participated in the program at any time during the current year or in either of the prior two calendar years. (5) The State agency must use the following priority system in approving applicants to operate sites that propose to serve the same area or the same enrolled children: (i) Public or nonprofit private school food authorities; (ii) Public agencies and private nonprofit organizations that have demonstrated successful program performance in a prior year; (iii) New public agencies; and (iv) New private nonprofit organizations. (v) If two or more sponsors that qualify under paragraph (b)(5)(ii) of this section apply to serve the same area, the State agency must determine on a case-by-case basis which sponsor or sponsors it will select to serve the needy children in the area. The State agency should consider the resources and capabilities of each applicant. (6) The State agency must not approve any sponsor to operate more than 200 sites or to serve more than an average of 50,000 children per day. However, the State agency may approve exceptions if: (i) The applicant demonstrates that it has the capability of managing a program larger than the limits in this paragraph (b)(6); and (ii) The State agency has the capacity to conduct reviews of at least 10 percent of the sponsor's sites, as described in § 225.7(e)(4)(v). (7) The State agency shall review each applicant's administrative budget as a part of the application approval process in order to assess the applicant's ability to operate in compliance with these regulations within its projected reimbursement. In approving the applicant's administrative budget, the State agency shall take into consideration the number of sites and children to be served, as well as any other relevant factors. A sponsor's administrative budget shall be subject to review for adjustments by the State agency if the sponsor's level of site participation or the number of meals served to children changes significantly. State agencies may exempt school food authorities applying to operate the SFSP from submitting a separate budget to the State agency, if the school food authority submits an annual budget for the National School Lunch Program and the submitted budget includes the operation of SFSP. (8) Applicants which qualify as camps and sponsors of conditional non-congregate sites must be approved for reimbursement only for meals served free to enrolled children who meet the Program's income standards. (9) The State agency shall not approve the application of any applicant sponsor identifiable through its organization or principals as a sponsor which has been determined to be seriously deficient as described in § 225.11(c). However, the State agency may approve the application of a sponsor which has been disapproved or terminated in prior years in accordance with this paragraph if the applicant demonstrates to the satisfaction of the State agency that it has taken appropriate corrective actions to prevent recurrence of the deficiencies. (10) If the sponsor's application to participate is denied, the official making the determination of denial must notify the applicant sponsor in writing stating all of the grounds on which the State agency based the denial. Pending the outcome of a review of a denial, the State agency shall proceed to approve other applicants in accordance with its responsibilities under paragraph (b)(5) of this section, without regard to the application under review. (11) The State agency shall not approve the application of any applicant sponsor which submits fraudulent information or documentation when applying for Program participation or which knowingly withholds information that may lead to the disapproval of its application. Complete information regarding such disapproval of an applicant shall be submitted by the State agency through FNSRO to OIG. (12) The State agency must not deny a sponsor's application based solely on the sponsor's intent to provide a non-congregate meal service. (c) Content of sponsor application Application form. (ii) At the discretion of the State agency, sponsors proposing to serve an area affected by an unanticipated school closure may be exempt from submitting a new application if they have participated in the Program at any time during the current year or in either of the prior two calendar years. (iii) Requirements for new sponsors and sponsors that have experienced significant operational problems in the prior year, as determined by the State agency, are found under paragraph (c)(2) of this section. (iv) Requirements for experienced sponsors are found under paragraph (c)(3) of this section. (2) Application requirements for new sponsors and sponsors that have experienced significant operational problems in the prior year. (i) A full management plan, as described in paragraph (e) of this section; (ii) A free meal policy statement, as described in paragraph (f) of this section; (iii) A site information sheet for each site where a food service operation is proposed, as described in paragraph (g)(1) of this section; (iv) Information in sufficient detail to enable the State agency to determine that the sponsor meets the criteria for participation in the Program, as described in § 225.14; (v) Information on the extent of Program payments needed, including a request for advance payments and start-up payments, if applicable; (vi) A staffing and monitoring plan; (vii) A complete administrative budget for State agency review and approval, which includes: (A) The projected administrative expenses that the sponsor expects to incur during the operation of the Program, and (B) Information in sufficient detail to enable the State agency to assess the sponsor's ability to operate the Program within its estimated reimbursement; (viii) A summary of how meals will be obtained at each site ( e.g., (ix) If an invitation for bid is required under § 225.15(m), a schedule for bid dates and a copy of the invitation for bid; (x) For each sponsor which seeks approval as a unit of local, municipal, county or State government under § 225.14(b)(3) or as a private nonprofit organization under § 225.14(b)(5), certification that the sponsor has administrative oversight, as required under § 225.14(d)(3); and (xi) Procedures that document meals are only distributed, to a reasonable extent, to eligible children and that duplicate meals are not distributed to any child, if the applicant sponsor is electing to use the non-congregate meal service options described in § 225.16(i)(1) and (2). (3) Application requirements for experienced sponsors. (i) A simplified or full management plan, as described in paragraph (e) of this section; (ii) A site information sheet for each site where a food service operation is proposed, as described under paragraph (g)(2) of this section; (iii) Information on the extent of Program payments needed, including a request for advance payments and start-up payments, if it is applicable; (iv) A staffing and monitoring plan; (v) A complete administrative budget for State agency review and approval, which includes: (A) The projected administrative expenses which a sponsor expects to incur during the operation of the Program; and (B) Information in sufficient detail to enable the State agency to assess the sponsor's ability to operate the Program within its estimated reimbursement. (vi) If the method of obtaining meals is changed, a summary of how meals will be obtained at each site ( e.g., (vii) If an invitation for bid is required under § 225.15(m), a schedule for bid dates, and a copy of the invitation for bid, if it is changed from the previous year; and (viii) Procedures that document meals are only distributed, to a reasonable extent, to eligible children and that duplicate meals are not distributed to any child, if the applicant sponsor is electing to use the non-congregate meal service options described in § 225.16(i)(1) and (2). (4) Applications for school food authorities and Child and Adult Care Food Program institutions. (d) Performance standards. (1) Performance standard 1. (i) Describe the community's need for summer meals and the sponsor's recruitment strategy: (A) Explain how the sponsor's participation will help ensure the delivery of Program benefits to otherwise unserved sites or children; and (B) Describe how the sponsor will recruit sites, consistent with any State agency requirements. (ii) Describe the sponsor's financial resources and financial history: (A) Show that the sponsor has adequate sources of funds available to operate the Program, pay employees and suppliers during periods of temporary interruptions in Program payments, and pay debts if fiscal claims are assessed against the sponsor; and (B) Provide audit documents, financial statements, and other documentation that demonstrate financial viability. (iii) Ensure that all costs in the sponsor's budget are necessary, reasonable, allowable, and appropriately documented. (2) Performance standard 2. (i) Have an adequate number and type of qualified staff to ensure the operation of the Program, consistent with this part; and (ii) Have written policies and procedures that assign Program responsibilities and duties and ensure compliance with civil rights requirements. (3) Performance standard 3. (i) Demonstrate that the sponsor has a financial system with management controls specified in written operational policies that will ensure that: (A) All funds and property received are handled with fiscal integrity and accountability; (B) All expenses are incurred with integrity and accountability; (C) Claims will be processed accurately, and in a timely manner; (D) Funds and property are properly safeguarded and used, and expenses incurred, for authorized Program purposes; and (E) A system of safeguards and controls is in place to prevent and detect improper financial activities by employees. (ii) Maintain appropriate records to document compliance with Program requirements, including budgets, approved budget amendments, accounting records, management plans, and site operations. (e) Management plan Compliance. (i) Requirements for new sponsors and sponsors that have experienced significant operational problems in the prior year, as determined by the State agency, are found under paragraph (e)(2) of this section. (ii) Requirements for experienced sponsors are found under paragraph (e)(3) of this section. (iii) Requirements for school food authorities in good standing in the National School Lunch Program or School Breakfast Program, as applicable, or institutions in good standing in the Child and Adult Care Food Program are found under paragraph (e)(4) of this section. (2) Requirements for new sponsors and sponsors that have experienced significant operational problems in the prior year. (i) Detailed information on the sponsor's management and administrative structure, including information that demonstrates the sponsor's financial viability and financial management described under paragraph (d)(1) of this section; (ii) Information that demonstrates compliance with each of the performance standards outlined under paragraph (d) of this section; (iii) A list or description of the staff assigned to perform Program monitoring required under § 225.15(d)(2) and (3); and (iv) For each sponsor which submits an application under paragraph (c)(1) of this section, information in sufficient detail to demonstrate that the sponsor will: (A) Provide adequate and not less than annual training of sponsor's staff and sponsored sites, as required under § 225.15(d)(1); (B) Perform monitoring consistent with § 225.15(d)(2) and (3), to ensure that all site operations are accountable and appropriate; (C) Accurately classify sites consistent with paragraphs (g)(1) and (2) of this section; (D) Demonstrate the sponsor's compliance with meal service, recordkeeping, and other operational requirements of this part; (E) Provide meals that meet the meal patterns set forth in § 225.16; (F) Have a food service that complies with applicable State and local health and sanitation requirements; (G) Comply with civil rights requirements; (H) Maintain complete and appropriate records on file; and (I) Claim reimbursement only for eligible meals. (3) Requirements for experienced sponsors. (4) Requirements for school food authorities in good standing in the National School Lunch Program or School Breakfast Program, as applicable, or institutions in good standing in the Child and Adult Care Food Program. (f) Free meal policy statement Nondiscrimination statement. (A) An assurance that all children are served the same meals and that there is no discrimination in the course of the food service; and (B) Except for camps and conditional non-congregate sites, a statement that the meals served are free at all sites. (ii) A school sponsor must submit the policy statement only once, with the initial application to participate as a sponsor. However, if there is a substantive change in the school's free and reduced price policy, a revised policy statement must be provided at the State agency's request. (iii) In addition to the information described in paragraph (i) of this section, the policy statement of all camps and conditional non-congregate sites that charge separately for meals must also include: (A) A statement that the eligibility standards conform to the Secretary's family size and income standards for reduced price school meals; (B) A description of the method to be used in accepting applications from families for Program meals that ensures that households are permitted to apply on behalf of children who are members of households receiving SNAP, FDPIR, or TANF benefits using the categorical eligibility procedures described in § 225.15(f); (C) A description of the method to be used for collecting payments from children who pay the full price of the meal while preventing the overt identification of children receiving a free meal; (D) An assurance that the sponsor will establish hearing procedures for families requesting to appeal a denial of an application for free meals. These procedures must meet the requirements set forth in paragraph (f)(2) of this section; (E) An assurance that, if a family requests a hearing, the child will continue to receive free meals until a decision is rendered; and (F) An assurance that there will be no overt identification of free meal recipients and no discrimination against any child on the basis of race, color, national origin, sex (including gender identity and sexual orientation), age, or disability. (2) Hearing procedures statement. (i) A simple, publicly announced method will be used for a family to make an oral or written request for a hearing; (ii) The family will have the opportunity to be assisted or represented by an attorney or other person (designated representative); (iii) The family or designated representative will have an opportunity to examine the documents and records supporting the decision being appealed, both before and during the hearing; (iv) The hearing will be reasonably prompt and convenient for the family or designated representative; (v) Adequate notice will be given to the family or designated representative of the time and place of the hearing; (vi) The family or designated representative will have an opportunity to present oral or documented evidence and arguments supporting its position; (vii) The family or designated representative will have an opportunity to question or refute any testimony or other evidence and to confront and cross-examine any adverse witnesses; (viii) The hearing will be conducted and the decision made by a hearing official who did not participate in the action being appealed; (ix) The decision will be based on the oral and documentary evidence presented at the hearing and made a part of the record; (x) The family or designated representative will be notified in writing of the decision; (xi) A written record will be prepared for each hearing, which includes the action being appealed, any documentary evidence and a summary of oral testimony presented at the hearing, the decision and the reasons for the decision, and a copy of the notice sent to the family or designated representative; and (xii) The written record will be maintained for a period of three years following the conclusion of the hearing and will be available for examination by the family or designated representative at any reasonable time and place. (g) Site information sheet. (1) New sites. (i) An organized and supervised system for serving meals to children; (ii) The estimated number of meals to be served, types of meals to be served, and meal service times; (iii) Whether the site is rural, as defined in § 225.2, or non-rural. Documentation supporting the rural designation is required. New documentation is required every 5 years, or earlier, if the State agency determines that an area's rural status has changed significantly since the last designation; (iv) Whether the meal service is congregate or non-congregate; (v) Whether the site is a self-preparation site or a vended site, as defined in § 225.2; (vi) Arrangements for delivery and holding of meals until meal service times and storing and refrigerating any leftover meals until the next day, within standards prescribed by State or local health authorities; (vii) Access to a means of communication to make necessary adjustments in the number of meals delivered, based on changes in the number of children in attendance at each site; (viii) Arrangements for food service during periods of inclement weather; (ix) For open sites and restricted open sites: (A) Documentation supporting the eligibility of each site as serving an area in which poor economic conditions exist; (B) When school data are used, new documentation is required every 5 years; (C) When census data are used, new documentation is required every 5 years, or earlier, if the State agency determines that an area's socioeconomic status has changed significantly since the last census; and (D) At the discretion of the State agency, sponsors proposing to serve an area affected by an unanticipated school closure may be exempt from submitting new site documentation if the sponsor has participated in the Program at any time during the current year or in either of the prior 2 calendar years; (x) For closed enrolled sites: (A) The projected number of children enrolled and the projected number of children eligible for free and reduced price school meals for each of these sites; or documentation supporting the eligibility of each site as serving an area in which poor economic conditions exist; (B) When school data are used, new documentation is required every 5 years; and (C) When census data are used, new documentation is required every 5 years, or earlier, if the State agency determines that an area's socioeconomic status has changed significantly since the last census; (xi) For NYSP sites, certification from the sponsor that all of the children who will receive Program meals are enrolled participants in the NYSP; (xii) For camps, the number of children enrolled in each session who meet the Program's income standards. If such information is not available at the time of application, this information must be submitted as soon as possible thereafter, and in no case later than the filing of the camp's claim for reimbursement for each session; (xiii) For sites that will serve children of migrant workers: (A) Certification from a migrant organization, which attests that the site serves children of migrant workers; and (B) Certification from the sponsor that the site primarily serves children of migrant workers, if non-migrant children are also served; and (xiv) For conditional non-congregate sites, the number of children enrolled who meet the Program's income standards. If such information is not available at the time of application, this information must be submitted as soon as possible thereafter, and in no case later than the filing of the sponsor's claim for reimbursement. (2) Experienced sites. (i) The estimated number of meals, types of meals to be served, and meal service times; (ii) Whether the site is rural, as defined in § 225.2, or non-rural. Documentation supporting the rural designation is required. New documentation is required every 5 years, or earlier, if the State agency determines that an area's rural status has changed significantly since the last designation; (iii) Whether the meal service is congregate or non-congregate; (iv) For open sites and restricted open sites: (A) Documentation supporting the eligibility of each site as serving an area in which poor economic conditions exist; (B) When school data are used, new documentation is required every 5 years; (C) When census data are used, new documentation is required every 5 years, or earlier, if the State agency determines that an area's socioeconomic status has changed significantly since the last census; and (D) Any site that a sponsor proposes to serve during an unanticipated school closure, which has participated in the Program at any time during the current year or in either of the prior 2 calendar years, is considered eligible without new documentation; (v) For closed enrolled sites: (A) The projected number of children enrolled and the projected number of children eligible for free and reduced price school meals for each of these sites; or documentation supporting the eligibility of each site as serving an area in which poor economic conditions exist; (B) When school data are used, new documentation is required every 5 years; and (C) When census data are used, new documentation is required every 5 years, or earlier, if the State agency determines that an area's socioeconomic status has changed significantly since the last census; (vi) For NYSP sites, certification from the sponsor that all of the children who will receive Program meals are enrolled participants in the NYSP; (vii) For camps, the number of children enrolled in each session who meet the Program's income standards. If such information is not available at the time of application, this information must be submitted as soon as possible thereafter, and in no case later than the filing of the camp's claim for reimbursement for each session; and (viii) For conditional non-congregate sites, the number of children enrolled who meet the Program's income standards. If such information is not available at the time of application, this information must be submitted as soon as possible thereafter, and in no case later than the filing of the sponsor's claim for reimbursement. (h) Approval of sites. (i) If not a camp or a conditional non-congregate site, the proposed site serves an area in which poor economic conditions exist, as defined by § 225.2; (ii) The area which the site proposes to serve is not or will not be served in whole or in part by another site, unless it can be demonstrated to the satisfaction of the State agency that each site will serve children not served by any other site in the same area for the same meal; (iii) The site is approved to serve no more than the number of children for which its facilities are adequate; and (iv) If it is a site proposed to operate during an unanticipated school closure, it is a non-school site. (2) When approving the application of a site which will serve meals prepared by a food service management company, the State agency must establish for each meal service an approved level for the maximum number of children's meals which may be served under the Program. These approved levels must be established in accordance with the following provisions: (i) The initial maximum approved level must be based upon the historical record of the number of meals served at the site if such a record has been established in prior years and the State agency determines that it is accurate. The State agency must develop a procedure for establishing initial maximum approved levels for sites when no accurate record from prior years is available. The State agency may consider participation at other similar sites located in the area, documentation of programming taking place at the site, statistics on the number of children residing in the area, and other relevant information. (ii) The maximum approved level must be adjusted, if warranted, based upon information collected during site reviews. If the number of meals served at the site on the day of the review is significantly below the site's approved level, the State agency should consider making a downward adjustment in the approved level with the objective of providing only one meal per child. (iii) The sponsor may seek an upward adjustment in the approved level for its sites by requesting a site review or by providing the State agency with evidence that the number of meals served exceeds the sites' approved levels. The sponsor may request an upward adjustment at any point prior to submitting the claim for the impacted reimbursement period. (iv) Whenever the State agency establishes or adjusts approved levels of meal service for a site, it must document the action in its files, and it shall provide the sponsor with immediate written confirmation of the approved level. (v) Upon approval of its application or any adjustment to its maximum approved levels, the sponsor must inform the food service management company with which it contracts of the approved level for each meal service at each site served by the food service management company. This notification of any adjustments in approved levels must take place within the time frames set forth in the contract for adjusting meal orders. Whenever the sponsor notifies the food service management company of the approved levels or any adjustments to these levels for any of its sites, the sponsor must clearly inform the food service management company that an approved level of meal service represents the maximum number of meals which may be served at a site and is not a standing order for a specific number of meals at that site. When the number of children being served meals is below the site's approved level, the sponsor must adjust meal orders with the objective of serving only one meal per child as required under § 225.15(b)(3). (3) When approving the application of a site that will provide a non-congregate meal service, the State agency must ensure that the proposed site: (i) Meets the requirements described in paragraphs (h)(1) and (2) of this section. (ii) Is rural, as defined in § 225.2. (iii) Will not serve an area where children would receive the same meal at an approved congregate meal site, unless it can be demonstrated to the satisfaction of the State agency that the site will serve a different group of children who may not be otherwise served. (iv) Serves an area in which poor economic conditions exist or is approved for reimbursement only for meals served free to enrolled children who meet the Program's income standards. (v) Distributes up to the allowable number of reimbursable meals that would be provided over a 10-calendar day period. The State agency may establish a shorter calendar day period on a case-by-case basis and without regard to sponsor type. (4) When approving the application of a site which will provide both congregate and non-congregate meal services, the State agency must ensure that: (i) The proposed site meets the requirements in paragraphs (h)(1) through (3) of this section. (ii) The proposed site will only conduct a non-congregate meal service when the site is not providing a congregate meal service. (iii) The sponsor proposes an organized and supervised system which prevents overlap between meal services and reasonably ensures children are not receiving more than the daily maximum allowance of meals as required in § 225.16(b)(3). (i) State-sponsor agreement. (1) Operate a nonprofit food service during the period specified, as follows: (i) From May through September for children on school vacation; (ii) At any time of the year, in the case of sponsors administering the Program under a continuous school calendar system; or (iii) During the period from October through April, if it serves an area affected by an unanticipated school closure due to a natural disaster, major building repairs, court orders relating to school safety or other issues, labor-management disputes, or, when approved by the State agency, a similar cause. (2) For school food authorities, offer meals which meet the requirements and provisions set forth in § 225.16 during times designated as meal service periods by the sponsor and offer the same meals to all children. (3) For all other sponsors, serve meals which meet the requirements and provisions set forth in § 225.16 during times designated as meal service periods by the sponsor and serve the same meals to all children. (4) Serve meals without cost to all children, except that camps and conditional non-congregate sites may charge for meals served to children who are not served meals under the Program. (5) Issue a free meal policy statement in accordance with paragraph (c) of this section. (6) Meet the training requirement for its administrative and site personnel, as required under § 225.15(d)(1). (7) Claim reimbursement only for the types of meals specified in the agreement that are served: (i) Without charge to children at approved sites, except camps and conditional non-congregate sites, during the approved meal service time; (ii) Without charge to children who meet the Program's income standards in camps and conditional non-congregate sites; (iii) Within the approved level for the maximum number of children's meals that may be served, if a maximum approved level is required under paragraph (h)(2) of this section; (iv) At the approved meal service time, unless a change is approved by the State agency, as required under § 225.16(c); and (v) At the approved site, unless the requirements in § 225.16(g) are met. (8) Submit claims for reimbursement in accordance with procedures established by the State agency, and those stated in § 225.9. (9) In the storage, preparation and service of food, maintain proper sanitation and health standards in conformance with all applicable State and local laws and regulations. (10) Accept and use, in quantities that may be efficiently utilized in the Program, such foods as may be offered as a donation by the Department. (11) Have access to facilities necessary for storing, preparing, and serving food. (12) Maintain a financial management system as prescribed by the State agency. (13) Maintain on file documentation of site visits and reviews in accordance with § 225.15(d) (2) and (3). (14) Upon request, make all accounts and records pertaining to the Program available to State, Federal, or other authorized officials for audit or administrative review, at a reasonable time and place. The records shall be retained for a period of 3 years after the end of the fiscal year to which they pertain, unless audit or investigative findings have not been resolved, in which case the records shall be retained until all issues raised by the audit or investigation have been resolved. (15) For approved congregate meal service, maintain children on site while meals are consumed. Sponsors may allow a child to take one fruit, vegetable, or grain item off-site for later consumption if the requirements in § 225.16(h) are met. (16) Retain final financial and administrative responsibility for its program. (j) Special Account. (k) Food service management company registration. (l) Monitoring of food service management company procurements. (2) Each State agency shall develop a standard form of contract for use by sponsors in contracting with food service management companies. Sponsors that are public entities, sponsors with exclusive year-round contracts with a food service management company, and sponsors that have no food service management company contracts exceeding the simplified acquisition threshold in 2 CFR part 200, as applicable, may use their existing or usual form of contract, provided that such form of contract has been submitted to and approved by the State agency. The standard contract developed by the State agency shall expressly and without exception provide that: (i) All meals prepared by a food service management company shall be unitized, with or without milk or juice, unless the State agency has approved, pursuant to paragraph (l)(3) of this section, a request for exceptions to the unitizing requirement for certain components of a meal; (ii) A food service management company entering into a contract with a sponsor under the Program shall not subcontract for the total meal, with or without milk, or for the assembly of the meal; (iii) The sponsor shall provide to the food service management company a list of State agency approved food service sites, along with the approved level for the number of meals which may be claimed for reimbursement for each site, established under § 225.6(h)(2), and shall notify the food service management company of all sites which have been approved, cancelled, or terminated subsequent to the submission of the initial approved site list and of any changes in the approved level of meal service for a site. Such notification shall be provided within the time limits mutually agreed upon in the contract; (iv) The food service management company shall maintain such records (supported by invoices, receipts, or other evidence) as the sponsor will need to meet its responsibilities under this part, and shall submit all required reports to the sponsor promptly at the end of each month, unless more frequent reports are required by the sponsor; (v) The food service management company must have State or local health certification for the facility in which it proposes to prepare meals for use in the Program. It must ensure that health and sanitation requirements are met at all times. In addition, the food service management company must ensure that meals are inspected periodically to determine bacteria levels present in the meals and that the bacteria levels found to be present in the meals conform with the standards set by local health authorities. The results of the inspections must be submitted promptly to the sponsor and to the State agency. (vi) The meals served under the contract shall conform to the cycle menus and meal quality standards and food specifications approved by the State agency and upon which the bid was based; (vii) The books and records of the food service management company pertaining to the sponsor's food service operation shall be available for inspection and audit by representatives of the State agency, the Department and the U.S. Government Accountability Office at any reasonable time and place for a period of 3 years from the date of receipt of final payment under the contract, except that, if audit or investigation findings have not been resolved, such records shall be retained until all issues raised by the audit or investigation have been resolved; (viii) The sponsor and the food service management company shall operate in accordance with current Program regulations; (ix) The food service management company shall be paid by the sponsor for all meals delivered in accordance with the contract and this part. However, neither the Department nor the State agency assumes any liability for payment of differences between the number of meals delivered by the food service management company and the number of meals served by the sponsor that are eligible for reimbursement; (x) Meals shall be delivered in accordance with a delivery schedule prescribed in the contract; (xi) Increases and decreases in the number of meals ordered shall be made by the sponsor, as needed, within a prior notice period mutually agreed upon; (xii) All meals served under the Program shall meet the requirements of § 225.16; (xiii) In cases of nonperformance or noncompliance on the part of the food service management company, the company shall pay the sponsor for any excess costs which the sponsor may incur by obtaining meals from another source; (xiv) If the State agency requires the sponsor to establish a special account for the deposit of operating costs payments in accordance with the conditions set forth in § 225.6(j), the contract shall so specify; (xv) The food service management company shall submit records of all costs incurred in the sponsor's food service operation in sufficient time to allow the sponsor to prepare and submit the claim for reimbursement to meet the 60-day submission deadline; and (xvi) The food service management company shall comply with the appropriate bonding requirements, as set forth in § 225.15(m)(5) through (7). (3) All meals prepared by a food service management company shall be unitized, with or without milk or juice, unless the sponsor submits to the State agency a request for exceptions to the unitizing requirement for certain components of a meal. These requests shall be submitted to the State agency in writing in sufficient time for the State agency to respond prior to the sponsor's advertising for bids. The State agency shall notify the sponsor in writing of its determination in a timely manner. (4) Each State agency shall have a representative present at all food service management company procurement bid openings when sponsors are expected to receive more than $100,000 in Program payments. (5) Copies of all contracts between sponsors and food service management companies, along with a certification of independent price determination, shall be submitted to the State agency prior to the beginning of Program operations. Sponsors shall also submit to the State agency copies of all bids received and their reason for selecting the food service management company chosen. (6) All bids in an amount which exceeds the lowest bid shall be submitted to the State agency for approval before acceptance. All bids totaling $100,000 or more shall be submitted to the State agency for approval before acceptance. State agencies shall respond to a request for approval of such bids within 5 working days of receipt. (7) The contract between a sponsor and food service management company shall be no longer than 1 year; and options for the yearly renewal of a contract may not exceed 4 additional years. All contracts shall include a termination clause whereby either party may cancel for cause or for convenience with up to 60-day notification. (8) Failure by a sponsor to comply with the provisions of this paragraph or § 225.15(m) shall be sufficient grounds for the State agency to terminate participation by the sponsor in accordance with § 225.18(b). (m) Meal pattern exceptions. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13467, Apr. 10, 1990; ; 64 FR 72484, Dec. 28, 1999; 64 FR 72896, Dec. 29, 1999; 72 FR 10895, Mar. 12, 2007; 76 FR 22798, Apr. 25, 2011; 78 FR 13450, Feb. 28, 2013; 83 FR 25357, June 1, 2018; 84 FR 15501, Apr. 16, 2019; 87 FR 57356, Sept. 19, 2022; 88 FR 57849, Aug. 23, 2023; 88 FR 90349, Dec. 29, 2023] § 225.7 Program monitoring and assistance. (a) Training. (b) Program materials. (c) Food specifications and meal quality standards. (d) Pre-approval visits. (1) The State agency must visit, prior to approval: (i) All applicant sponsors that did not participate in the program in the prior year; (ii) All applicant sponsors that had operational problems noted in the prior year; and (iii) All sites that the State agency has determined need a pre-approval visit. (2) If a sponsor is a school food authority or Child and Adult Care Food Program institution and was reviewed by the State agency under their respective programs during the preceding 12 months, and had no significant deficiencies noted in that review, a pre-approval visit may be conducted at the discretion of the State agency. (3) Pre-approval visits of sponsors proposing to operate the Program during unanticipated school closures may be conducted at the discretion of the State agency. (4) Each State agency must establish a process to determine which sites need pre-approval visits. Characteristics that must be considered include, but are not limited to: (i) Sites that did not participate in the program in the prior year; (ii) Existing sites that are new to non-congregate meal service; and (iii) Existing sites that exhibited operational problems in the prior year. (e) Sponsor and site reviews Purpose. (2) Sample selection. (3) School food authorities. (4) Frequency and number of required reviews. (i) Conduct a review of every new sponsor at least once during the first year of operation; (ii) Annually review every sponsor that experienced significant operational problems in the prior year; (iii) Review each sponsor at least once every 3 years; (iv) Review more frequently those sponsors that, in the determination of the State agency, require additional technical assistance; and (v) As part of each sponsor review, conduct reviews of at least 10 percent of each reviewed sponsor's sites, or one site, whichever number is greater. The review sample must include sites representative of all meal service models operated by the sponsor. (5) Site selection criteria. (A) The maximum number of meals approved to serve under § 225.6(h)(1) and (2); (B) Method of obtaining meals ( i.e., (C) Time since last site review by State agency; (D) Type of site ( e.g., (E) Type of physical location ( e.g., (F) Rural designation ( i.e., (G) Type of meal service ( i.e., (H) If non-congregate, meal distribution method ( e.g., (I) Affiliation with the sponsor, as defined in § 225.2. (ii) The State agency may use additional criteria to select sites including, but not limited to: recommendations from the sponsor; findings from other audits or reviews; or any indicators of potential error in daily meal counts ( e.g., (6) Meal claim validation. (i) The State agency must develop a record review process. This process must include, at a minimum, reconciliation of delivery receipts, daily meal counts from sites, and the comparison of the sponsor's claim consolidation spreadsheet with the meals claimed for reimbursement by the sponsor for the period under review. (ii) For the purposes of this paragraph (e)(6), the percent error includes both overclaims and underclaims. Claims against sponsors as a result of meal claim validation should be assessed after the conclusion of the meal claim validation process in accordance with § 225.12. (iii) In determining the sample size for each step of this process, fractions must be rounded up (≥0.5) or down (<0.5) to the nearest whole number. (iv) State agencies must at a minimum follow the process to conduct the meal claim validation as described in table 1. (v) In determining the percentage of error, under paragraphs (e)(6)(i) through (iv) of this section, fractions must be rounded up (≥0.5) or down (<0.5) to the nearest whole number. Percentage of error is calculated for each step as follows: (A) Determining the meal counting and claiming discrepancy for each site validated. (B) Calculating total discrepancy. (C) Calculating percent error. (vi) The State agency may expand the validation of meal claims beyond the review period or to include additional sites if the State agency has reason to believe that the sponsor has engaged in unlawful acts in connection with Program operations. (vii) In lieu of the meal claim validation process described in table 1 to paragraph (e)(6)(iv) of this section, the State agency may complete a validation which includes all meals served on all operating days for all sites under a sponsor for the review period. (7) Review of sponsor operations. (i) Expenditures are allowable and consistent with FNS Instructions and guidance and all funds accruing to the food service are properly identified and recorded as food service revenue; (ii) Expenditures are consistent with budgeted costs, and the previous year's expenditures taking into consideration any changes in circumstances; (iii) Reimbursements have not resulted in accumulation of net cash resources as defined in paragraph (m) of this section; and (iv) The level of administrative spending is reasonable and does not affect the sponsor's ability to operate a nonprofit food service and provide a quality meal service. (f) Follow-up reviews. (g) Monitoring system. (h) Records. (i) Meal preparation facility reviews. (1) Each State agency must establish an order of priority for visiting facilities at which food is prepared for the Program. The facility review must be conducted at least one time within the appropriate review cycle for each vended sponsor. If multiple vended sponsors use the same food service management company and are being reviewed in the same review cycle, a single facility review will fulfill the review requirements for those vended sponsors. (2) The State agency must respond promptly to complaints concerning facilities. If the food service management company fails to correct violations noted by the State agency during a review, the State agency must notify the sponsor and the food service management company that reimbursement must not be paid for meals prepared by the food service management company after a date specified in the notification. (3) Funds provided in § 225.5(f) may be used for conducting meal preparation facility reviews. (j) Forms for reviews by sponsors. (1) The time of the reviewer's arrival and departure; (2) The site supervisor's printed name and signature; (3) A certification statement to be signed by the monitor; (4) The number of meals prepared or delivered; (5) Whether the meal service is congregate or non-congregate; (6) The number of meals served to children; (7) The deficiencies noted; (8) The corrective actions taken by the sponsor; and (9) The date of such actions. (k) Corrective actions. (l) Other facility inspections and meal quality tests. (m) Financial management. (1) The sponsor's net cash resources exceed the limits included in this paragraph (m) for the sponsor's nonprofit food service or such other amount as may be approved in accordance with this paragraph; (2) The ratio of administrative to operating costs (as defined in § 225.2) is high; (3) There is significant use of alternative funding for food and/or other costs; or (4) A significant portion of the food served is privately donated or purchased at a very low price. (n) Nondiscrimination. (2) Complaints of discrimination filed by applicants or participants must be referred to FNS or the Secretary of Agriculture, Washington, DC 20250. A State agency which has an established grievance or complaint handling procedure may resolve sex and disability discrimination complaints before referring a report to FNS. (o) Sponsor site visit. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13468, Apr. 10, 1990; 64 FR 72485, Dec. 28, 1999; 64 FR 72898, Dec. 29, 1999; 71 FR 39518, July 13, 2006; 76 FR 22798, Apr. 25, 2011; 81 FR 66492, Sept. 28, 2016; 83 FR 25358, June 1, 2018; 87 FR 57360, Sept. 19, 2022; 88 FR 90352, Dec. 29, 2023] § 225.8 Records and reports. (a) Each State agency shall maintain complete and accurate current accounting records of its Program operations which will adequately identify funds authorizations, obligations, unobligated balances, assets, liabilities, income, claims against sponsors and efforts to recover overpayments, and expenditures for administrative and operating costs. These records shall be retained for a period of three years after the date of the submission of the final Program Operations and Financial Status Report (FNS-777), except that, if audit findings have not been resolved, the affected records shall be retained beyond the three year period until such time as any issues raised by the audit findings have been resolved. The State agency shall also retain a complete record of each review or appeal conducted, as required under § 225.13, for a period of three years following the date of the final determination on the review or appeal. Records may be kept in their original form or on microfilm. (b) Each State agency shall submit to FNS a final report on the Summer Food Service Program Operations (FNS-418) for each month no more than 90 days following the last day of the month covered by the report. States shall not receive Program funds for any month for which the final report is not postmarked and/or submitted within this time limit unless FNS grants an exception. Upward adjustments to a State's report shall not be made after 90 days from the month covered by the report unless authorized by FNS. Downward adjustments shall always be made without FNS authorization, regardless of when it is determined that such adjustments need to be made. Adjustments to a State's report shall be reported to FNS in accordance with procedures established by FNS. Each State agency shall also submit to FNS a quarterly Financial Status Report (FNS-777) on the use of Program funds. Such reports shall be submitted no later than 30 days after the end of each fiscal year quarter. Obligations shall be reported only for the fiscal year in which they occur. Action may be taken against the State agency, in accordance with § 225.5(a)(1), for failure to submit accurate and timely reports. (c) The State agency must submit to FNS a final Financial Status Report no later than 120 days after the end of the fiscal year, on a form (FNS-777) provided by FNS. Any requested increase in reimbursement levels for a fiscal year resulting from corrective action taken after submission of the final Program Operations and Financial Status Reports shall be submitted to FNS for approval. The request shall be accompanied by a written explanation of the basis for the adjustment and the actions taken to minimize the need for such adjustments in the future. If FNS approves such an increase, it will make payment, subject to availability of funds. Any reduction in reimbursement for that fiscal year resulting from corrective action taken after submission of the final fiscal year Program Operations and Financial Status Reports shall be handled in accordance with the provisions of § 225.12(d), except that amounts recovered may not be used to make Program payments. (d)(1) By May 1 of each year, State agencies must submit to the appropriate FNSRO a list of potential private nonprofit organization sponsors. The list must include the following information for each applicant sponsor: (i) Name and address; (ii) Geographical area(s) proposed to be served; (iii) Proposed number of sites; and (iv) Any available details of each proposed site including address, dates of operation, and estimated daily attendance. (2) State agencies must also notify the appropriate FNSRO within 5 working days after they approve each private nonprofit organization to participate as a SFSP sponsor. When State agencies notify the FNSRO of sponsor approval, they must provide the following information: (i) Any changes to site locations, dates of operation, and estimated daily attendance that was previously provided; (ii) The hours and type(s) of approved meal service at each site; (iii) The type of site approval—open, restricted open, closed enrolled, conditional non-congregate, or camp; and (iv) Any other important details about each site that would help the FNSRO plan reviews, including whether the site is rural or urban, congregate or non-congregate, or vended or self-preparation. (e) By June 30 of each year, or a later date approved by the appropriate FNSRO, the State agency must submit to FNS a list of open site locations and their operational details and provide a minimum of two updates during the summer operational period. State agencies are encouraged to submit updates weekly if there are any changes to their data. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13469, Apr. 10, 1990; 64 FR 72485, Dec. 28, 1999; 65 FR 82251, Dec. 28, 2000; 81 FR 66492, Sept. 28, 2016; 88 FR 90353, Dec. 29, 2023] § 225.9 Program assistance to sponsors. (a) Start-up payments. (b) Commodity assistance. (2) Not later than June 1 of each year, State agencies shall prepare a list of the sponsors which are eligible to receive commodities and the average daily number of eligible meals to be served by each of these sponsors. If the State agency does not handle the distribution of commodities donated by the Department, this list shall be forwarded to the agency of the State responsible for the distribution of commodities. The State agency shall be responsible for promptly revising the list to reflect additions or terminations of sponsors and for adjusting the average daily participation data as it deems necessary. (c) Advance payments. (1) Payments. (ii) To determine the amount of the advance payment to any sponsor, the State agency shall employ whichever of the following methods will result in the larger payment: (A) The total reimbursement paid to the sponsor for the same calendar month in the preceding year; or (B) For vended sponsors, 50 percent of the amount determined by the State agency to be needed that month for meals, or, for self-preparation sponsors, 65 percent of the amount determined by the State agency to be needed that month for meals. (2) Advance payment estimates. (3) Limit. (4) Deductions from advance payments. (5) Withholding of advance payments. (6) Repayment of excess advance payments. (d) Reimbursements. (1) School food authorities that operate the Program, and operate more than one child nutrition program under a single State agency, must use a common claim form (as provided by the State agency) for claiming reimbursement for meals served under those programs. (2) No reimbursement may be issued until the sponsor certifies that it operated all sites for which it is approved and that there has been no significant change in its projected expenses since its preceding claim and, for a sponsor receiving an advance payment for only one month, that there has been no significant change in its projected expenses since its initial advance payment. (3) Sponsors must submit a monthly claim or a combined claim within 60 days of the last day of operation. Sponsors may not submit a combined claim for meal reimbursements that crosses fiscal years. In addition, State agencies must ensure that the correct reimbursement rates are applied for meals claimed for months when different reimbursement rates are in effect. With approval from the State agency, sponsors have the flexibility to combine the claim for reimbursement in the following ways: (i) For 10 operating days or less in their initial month of operations with the claim for the subsequent month; (ii) For 10 operating days or less in their final month of operations with the claim for the preceding month; or (iii) For 3 consecutive months, as long as this combined claim only includes 10 operating days or less from each of the first and last months of program operations. (4) The State agency must forward reimbursements within 45 calendar days of receiving valid claims. If a claim is incomplete, invalid, or potentially unlawful per paragraph (d)(10) of this section, the State agency must return the claim to the sponsor within 30 calendar days with an explanation of the reason for disapproval and how such claim must be revised for payment. If the sponsor submits a revised claim, final action must be completed within 45 calendar days of receipt unless the State agency has reason to believe the claim is unlawful per paragraph (d)(10) in this section. If the State agency disallows partial or full payment for a claim for reimbursement, it must notify the sponsor which submitted the claim of its right to appeal under § 225.13(a). (5) Claims for reimbursement shall report information in accordance with the financial management system established by the State agency, and in sufficient detail to justify the reimbursement claimed and to enable the State agency to provide the Reports of Summer Food Service Program Operations required under § 225.8(b). In submitting a claim for reimbursement, each sponsor shall certify that the claim is correct and that records are available to support this claim. Failure to maintain such records may be grounds for denial of reimbursement for meals claimed during the period covered by the records in question. The costs of meals to adults performing necessary food service labor may be included in the claim. Under no circumstances may a sponsor claim the cost of any disallowed meals as operating costs. (6) A final Claim for Reimbursement shall be postmarked or submitted to the State agency not later than 60 days after the last day of the month covered by the claim. State agencies may establish shorter deadlines at their discretion. Claims not filed within the 60 day deadline shall not be paid with Program funds unless FNS determines that an exception should be granted. The State agency shall promptly take corrective action with respect to any Claim for Reimbursement as determined necessary through its claim review process or otherwise. In taking such corrective action, State agencies may make upward adjustments in Program funds claimed on claims filed within the 60 day deadline if such adjustments are completed within 90 days of the last day of the month covered by the claim and are reflected in the final Program Operations Report (FNS-418). Upward adjustments in Program funds claimed which are not reflected in the final FNS-418 for the month covered by the claim cannot be made unless authorized by FNS. Downward adjustments in Program funds claimed shall always be made without FNS authorization, regardless of when it is determined that such adjustments are necessary. (7) Payments to a sponsor must equal the amount derived by multiplying the number of eligible meals, by type, actually served under the sponsor's program to eligible children by the current applicable reimbursement rate for each meal type. Sponsors must be eligible to receive additional reimbursement for each meal served to participating children at rural or self-preparation sites. (8) On each January 1, or as soon thereafter or as practicable, FNS will publish a notice in the Federal Register (9) Sponsors of camps are reimbursed only for meals served to children in camps whose eligibility for Program meals is documented. (10) Sponsors of NYSP sites are reimbursed only for meals served to children enrolled in the NYSP. (11) Sponsors of conditional non-congregate sites are reimbursed only for meals served to children whose eligibility for Program meals is documented. (12) If a State agency has reason to believe that a sponsor or food service management company has engaged in unlawful acts in connection with Program operations, evidence found in audits, reviews, or investigations must be a basis for nonpayment of the applicable sponsor's claims for reimbursement. The State agency may be exempt from the requirement stated in paragraph (d)(4) of this section that final action on a claim must be complete within 45 calendar days of receipt of a revised claim if the State agency determines that a thorough examination of potentially unlawful acts would not be possible in the required timeframe. The State agency must notify the appropriate FNSRO of its election to take the exemption from the requirement stated in paragraph (d)(4) of this section by submitting to the FNSRO a copy of the claim disapproval at the same time as it is provided to the sponsor. (e) The sponsor may claim reimbursement for any meals which are examined for meal quality by the State agency, auditors, or local health authorities and found to meet the meal pattern requirements. (f) Meal claiming. (g) Unused reimbursement. (1) If a sponsor does not return to participate in the Program the following year and does not operate any other Child Nutrition Programs, the sponsor is not required to return the unused reimbursement to the State agency. (2) [Reserved] [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13469, Apr. 10, 1990; 64 FR 72485, Dec. 28, 1999; 83 FR 25358, June 1, 2018; 84 FR 15501, Apr. 16, 2019; 87 FR 57364, Sept. 19, 2022; 88 FR 90353, Dec. 29, 2023] § 225.10 Audits and management evaluations. (a) Audits. (b) Management evaluations. (2) The State agency shall fully respond to any recommendations made by FNSRO pursuant to the management evaluation. (3) FNSRO may require the State agency to submit on 20 days notice a corrective action plan regarding serious problems observed during any phase of the management evaluation. (c) Disregards. [54 FR 18208, Apr. 27, 1989, as amended at 71 FR 39518, July 13, 2006; 81 FR 66492, Sept. 28, 2016] § 225.11 Corrective action procedures. (a) Purpose. (b) Investigations. (c) Denial of applications and termination of sponsors. (1) Noncompliance with the applicable bid procedures and contract requirements of Federal child nutrition program regulations; (2) The submission of false information to the State agency; (3) Failure to return to the State agency any start-up or advance payments which exceeded the amount earned for serving meals in accordance with this part, or failure to submit all claims for reimbursement in any prior year, provided that failure to return any advance payments for months for which claims for reimbursement are under dispute from any prior year shall not be grounds for disapproval in accordance with this paragraph; and (4) Program violations at a significant proportion of the sponsor's sites. Such violations include, but are not limited to, the following: (i) Noncompliance with the meal service time restrictions set forth at § 225.16(c), as applicable; (ii) Failure to maintain adequate records; (iii) Failure to adjust meal orders to conform to variations in the number of participating children; (iv) For congregate meal service operations, the simultaneous service of more than one meal to any child; (v) The claiming of Program payments for meals not served to participating children; (vi) For non-congregate meal service operations, distributing more than the daily meal limit when multi-day service is used; (vii) Service of a significant number of meals which did not include required quantities of all meal components; (viii) For congregate meal service operations, excessive instances of off-site meal consumption; (ix) Continued use of food service management companies that are in violation of health codes. (d) Meal service restriction. (i) Any food service site which is determined to be in violation of the time restrictions for meal service set forth at § 225.16(c) when corrective action is not taken within a reasonable time as determined by the State agency; and (ii) All sites under a sponsor if more than 20 percent of the sponsor's sites are determined to be in violation of the time restrictions set forth at § 225.16(c). (2) If this action results in children not receiving meals under the Program, the State agency must make reasonable effort to locate another source of meal service for these children. (e) Meal disallowances. (2) If the State agency observes meal service violations during the conduct of a site review, the State agency shall disallow as meals served to children all of the meals observed to be in violation. (3) The State agency shall also disallow children's meals which are in excess of a site's approved level established under § 225.6(h)(2). (f) Corrective action and termination of sites. (2) The State agency shall terminate the participation of a sponsor's site if the sponsor fails to take action to correct the Program violations noted in a State agency review report within the timeframes established by the corrective action plan. (3) The State agency shall immediately terminate the participation of a sponsor's site if during a review it determines that the health or safety of the participating children is imminently threatened. (4) If the site is vended, the State agency shall within 48 hours notify the food service management company providing meals to the site of the site's termination. (g) Technical assistance for improved meal service. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13469, Apr. 10, 1990; 83 FR 25360, June 1, 2018; 87 FR 57364, Sept. 19, 2022; 88 FR 90353, Dec. 29, 2023] § 225.12 Claims against sponsors. (a) The State agency shall disallow any portion of a claim for reimbursement and recover any payment to a sponsor not properly payable under this part, except as provided for in § 225.10(c). State agencies shall consider claims for reimbursement not properly payable if a sponsor's records do not support all meals claimed and include all costs associated with the Program sufficient to justify that reimbursements were spent only on allowable Child Nutrition Program costs. However, the State agency shall notify the sponsor of the reasons for any disallowance or demand for repayment. (b) Minimum State agency collection procedures for unearned payments shall include: (1) Written demand to the sponsor for the return of improper payments; (2) If after 30 calendar days the sponsor fails to remit full payment or agree to a satisfactory repayment schedule, a second written demand for the return of improper payments, sent by certified mail, return receipt requested; (3) If after 60 calendar days following the original written demand, the sponsor fails to remit full payment or agree to a satisfactory repayment schedule, a third written demand for the return of improper payments, sent by certified mail, return receipt requested; (4) If after 90 calendar days following the original written demand, the sponsor fails to remit full payment or agree to a satisfactory repayment schedule, the State agency shall refer the claim against the sponsor to the appropriate State or Federal authorities for pursuit of legal remedies. (c) If FNS does not concur with the State agency's action in paying a sponsor or in failing to collect an overpayment, FNS shall notify the State agency of its intention to assert a claim against the State agency. In all such cases, the State agency shall have full opportunity to submit evidence concerning the action taken. The State agency shall be liable to FNS for failure to collect an overpayment unless FNS determines that the State agency has conformed with this part in issuing the payment and has exerted reasonable efforts in accordance with paragraph (b) of this section to recover the improper payment. (d) The amounts recovered by the State agency from sponsors may be utilized to make Program payments to sponsors for the period for which the funds were initially available and/or to repay the State for any of its own funds used to make payments on claims for reimbursement. Any amounts recovered which are not so utilized shall be returned to FNS in accordance with the requirements of this part. [54 FR 18208, Apr. 27, 1989, as amended at 83 FR 25360, June 1, 2018] § 225.13 Appeal procedures. (a) Each State agency shall establish a procedure to be followed by an applicant appealing: A denial of an application for participation; a denial of a sponsor's request for an advance payment; a denial of a sponsor's claim for reimbursement (except for late submission under § 225.9(d)(6)); a State agency's refusal to forward to FNS an exception request by the sponsor for payment of a late claim or a request for an upward adjustment to a claim; a claim against a sponsor for remittance of a payment; the termination of the sponsor or a site; a denial of a sponsor's application for a site; a denial of a food service management company's application for registration, if applicable; or the revocation of a food service management company's registration, if applicable. Appeals shall not be allowed on decisions made by FNS with respect to late claims or upward adjustments under § 225.9(d)(6). (b) At a minimum, appeal procedures shall provide that: (1) The sponsor or food service management company be advised in writing of the grounds upon which the State agency based the action. The notice of action shall also state that the sponsor or food service management company has the right to appeal the State's action. The notice is considered to be received by the sponsor or food service management company when it is delivered by certified mail, return receipt (or the equivalent private delivery service), by facsimile, or by email. If the notice is undeliverable, it is considered to be received by the sponsor or food service management company five days after being sent to the addressee's last known mailing address, facsimile number, or email address; (2) The sponsor or food service management company be advised in writing that the appeal must be made within a specified time and must meet the requirements of paragraph (b)(4) of this section. The State agency shall establish this period of time at not less than one week nor more than two weeks from the date on which the notice of action is received; (3) The appellant be allowed the opportunity to review any information upon which the action was based; (4) The appellant be allowed to refute the charges contained in the notice of action either in person or by filing written documentation with the review official. To be considered, written documentation must be submitted by the appellant within seven days of submitting the appeal, must clearly identify the State agency action being appealed, and must include a photocopy of the notice of action issued by the State agency; (5) A hearing be held by the review official in addition to, or in lieu of, a review of written information submitted by the appellant only if the appellant so specifies in the letter appealing the action. The appellant may retain legal counsel or may be represented by another person. Failure of the appellant's representative to appear at a scheduled hearing shall constitute the appellant's waiver of the right to a personal appearance before the review official, unless the review official agrees to reschedule the hearing. A representative of the State agency shall be allowed to attend the hearing to respond to the appellant's testimony and written information and to answer questions from the review official; (6) If the appellant has requested a hearing, the appellant and the State agency shall be provided with at least 5 days advance written notice, sent by certified mail, return receipt requested, of the time and place of the hearing; (7) The hearing be held within 14 days of the date of the receipt of the request for review, but, where applicable, not before the appellant's written documentation is received in accordance with paragraphs (b) (4) and (5) of this section; (8) The review official be independent of the original decision-making process; (9) The review official make a determination based on information provided by the State agency and the appellant, and on Program regulations; (10) Within 5 working days after the appellant's hearing, or within 5 working days after receipt of written documentation if no hearing is held, the reviewing official make a determination based on a full review of the administrative record and inform the appellant of the determination of the review by certified mail, return receipt requested; (11) The State agency's action remain in effect during the appeal process. However, participating sponsors and sites may continue to operate the Program during an appeal of termination, and if the appeal results in overturning the State agency's decision, reimbursement shall be paid for meals served during the appeal process. However, such continued Program operation shall not be allowed if the State agency's action is based on imminent dangers to the health or welfare of children. If the sponsor or site has been terminated for this reason, the State agency shall so specify in its notice of action; and (12) The determination by the State review official is the final administrative determination to be afforded to the appellant. (c) The State agency shall send written notification of the complete appeal procedures and of the actions which are appealable, as specified in paragraph (a) of this section, to each potential sponsor applying to participate and to each food service management company applying to register in accordance with § 225.6(k). (d) A record regarding each review shall be kept by the State agency, as required under § 225.8(a). The record shall document the State agency's compliance with these regulations and shall include the basis for its decision. [54 FR 18208, Apr. 27, 1989, as amended at 64 FR 72486, Dec. 28, 1999; 78 FR 13450, Feb. 28, 2013; 83 FR 25360, June 1, 2018; 87 FR 57364, Sept. 19, 2022] Subpart C—Sponsor and Site Provisions § 225.14 Requirements for sponsor participation. (a) Applications. (b) Sponsor eligibility. (1) Public or nonprofit private school food authorities; (2) Public or nonprofit private residential summer camps; (3) Units of local, municipal, county, or State governments; (4) Public or private nonprofit colleges or universities which are currently participating in the National Youth Sports Program; and (5) Private nonprofit organizations as defined in § 225.2, as determined annually. (c) General requirements. (1) Demonstrates financial and administrative capability for Program operations and accepts final financial and administrative responsibility for total Program operations at all sites at which it proposes to conduct a food service in accordance with the performance standards described under § 225.6(d) of this part. (i) In general, an applicant sponsor which is a school food authority in good standing in the National School Lunch Program or an institution in good standing in the Child and Adult Care Food Program applying to operate the Program at the same sites where they provide meals through the aforementioned Programs, is not required to submit a management plan as described under § 225.6(e) or further demonstrate financial and administrative capability for Program operations. (ii) If the State agency has reason to believe that financial or administrative capability would pose significant challenges for an applicant sponsor which is a school food authority in the National School Lunch Program or School Breakfast Program, as applicable, or an institution in the Child and Adult Care Food Program, the State agency may request a Management plan or additional evidence of financial and administrative capability sufficient to ensure that the school food authority or institution has the ability and resources to operate the Program. (iii) If the State agency approving the application for the Program is not responsible for the administration of the National School Lunch Program or the Child and Adult Care Food Program, the State agency must develop a process for sharing information with the agency responsible for approving these programs in order to receive documentation of the applicant sponsor's financial and administrative capability. (2) Has not been seriously deficient in operating the Program; (3) Will conduct a regularly scheduled food service for children from areas in which poor economic conditions exist, or qualifies as a camp or a conditional non-congregate site; (4) Has adequate supervisory and operational personnel for overall monitoring and management of each site, including a site supervisor, and adequate personnel to conduct the visits and reviews required in § 225.15(d)(2) and (3), as demonstrated in the management plan submitted with the program application described under § 225.6(e); (5) Provides an ongoing year-round service to the community which it proposes to serve under the Program, except as provided for in § 225.6(b)(4); (6) Certifies that all sites have been visited and have the capability and the facilities to provide the meal service planned for the number of children anticipated to be served; and (7) Enters into a written agreement with the State agency upon approval of its application, as required in § 225.6(i). (d) Requirements specific to sponsor types. (2) If the sponsor administers the Program at sites that provide summer school sessions, it must ensure that these sites are open to children enrolled in summer school and to all children residing in the area served by the site. (3) Sponsors which are units of local, municipal, county, or State government, and sponsors which are private nonprofit organizations, will only be approved to administer the Program at sites where they have administrative oversight. Administrative oversight means that the sponsor shall be responsible for: (i) Maintaining contact with meal service staff, ensuring that there is adequately trained meal service staff on site, monitoring the meal service throughout the period of Program participation, and terminating meal service at a site if staff fail to comply with Program regulations; and (ii) Exercising management control over Program operations at sites throughout the period of Program participation by performing the functions specified in § 225.15. (4) If the sponsor administers NYSP sites, it must ensure that all children at these sites are enrolled participants in the NYSP. (5) If the sponsor is a private nonprofit organization, it must certify that it: (i) Exercises full control and authority over the operation of the Program at all sites under the sponsorship of the organization; (ii) Provides ongoing year-round activities for children or families; (iii) Demonstrates that the organization has adequate management and the fiscal capacity to operate the Program; (iv) Is an organization described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under 501(a) of that Code; and (v) Meets applicable State and local health, safety, and sanitation standards. (6) If the sponsor operates a non-congregate meal service that will deliver meals directly to a child's residence, it must obtain written parental consent prior to providing meals to children in that household. (7) If the sponsor operates a conditional non-congregate site, it must certify that it will collect information to determine children's Program eligibility to support its claim for reimbursement. (8) If the sponsor is not a school food authority, it must enter into a written agreement or Memorandum of Understanding (MOU) with the State agency or school food authority if it chooses to receive school data for the purposes of identifying eligible children and determining children's Program eligibility, as required under § 225.15(k). [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13469, Apr. 10, 1990; 64 FR 72486, Dec. 28, 1999; 64 FR 72898, Dec. 29, 1999; 65 FR 50128, Aug. 17, 2000; 78 FR 13450, Feb. 28, 2013; 83 FR 25360, June 1, 2018; 87 FR 57364, Sept. 19, 2022; 88 FR 90353, Dec. 29, 2023] § 225.15 Management responsibilities of sponsors. (a) General. (2) Sponsors shall not claim reimbursement under parts 210, 215, 220, or 226 of this chapter. In addition, the sponsor must ensure that records of any site serving homeless children accurately reflect commodity allotments received as a “charitable institution”, as defined in §§ 250.3 and 250.41 of this chapter. Commodities received for Program meals must be based only on the number of eligible children's meals served. Sponsors may use funds from other Federally-funded programs to supplement their meal service but must, in calculating their claim for reimbursement, deduct such funds from total operating and administrative costs in accordance with the definition of “income accruing to the Program” at § 225.2 and with the regulations at § 225.9(d). Sponsors which are school food authorities may use facilities, equipment and personnel supported by funds provided under this part to support a nonprofit nutrition program for the elderly, including a program funded under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq. (3) No sponsor may contract out for the management responsibilities of the Program described in this section. (4) Sponsors must maintain documentation of a nonprofit food service including copies of all revenues received and expenses paid from the nonprofit food service account. Program reimbursements and expenditures may be included in a single nonprofit food service account with funds from any other Child Nutrition Programs authorized under the Richard B. Russell National School Lunch Act or the Child Nutrition Act of 1966, except the Special Supplemental Nutrition Program for Women, Infants, and Children. All Program reimbursement funds must be used solely for the conduct of the nonprofit food service operation. The net cash resources of the nonprofit food service of each sponsor participating in the Program may not exceed one month's average expenditures for sponsors operating only during the summer months and three months' average expenditures for sponsors operating Child Nutrition Programs throughout the year. State agency approval shall be required for net cash resources in excess of the requirements set forth in this paragraph (a)(4). Sponsors shall monitor Program costs and, in the event that net cash resources exceed the requirements outlined, take action to improve the meal service or other aspects of the Program. (b) Meal Ordering. (2) Upon approval of its application or any adjustment in the approved levels of meal service for its sites established under § 225.6(h)(2), vended sponsors shall inform their food service management company of the approved level at each site for which the food service management company will provide meals. (3) All sponsors must plan for and prepare or order meals on the basis of participation trends with the objective of providing only one meal per child at each meal service. (i) The sponsor must make the adjustments necessary to achieve this objective using the results from its monitoring of sites. (ii) The sponsor must adjust the number of meals ordered or prepared whenever the number of children receiving meals is below the maximum approved level of meal service. (iii) The sponsor must not order or prepare meals for children at any site in excess of the site's approved level, but may order or prepare meals above the approved level if the meals are to be served to adults performing necessary food service labor in accordance with § 225.9(d)(5). (iv) Records of participation and of preparation or ordering of meals must be maintained to demonstrate positive action toward meeting the objective of this paragraph (b)(3). (4) In recognition of the fluctuation in participation levels which makes it difficult to estimate precisely the number of meals needed and to reduce the resultant waste, sponsors may claim reimbursement for a number of second meals which does not exceed 2 percent of the number of first meals served to children for each meal type ( i.e., (c) Records and claims. (2) Sponsors shall submit claims for reimbursement in accordance with this part. All final claims must be submitted to the State agency within 60 days following the last day of the month covered by the claim. (d) Training and monitoring. (i) Training of site personnel must, at a minimum, include: the purpose of the Program; site eligibility; recordkeeping; site operations, including both congregate and non-congregate meal services; meal pattern requirements; and the duties of a monitor. (ii) Each sponsor must ensure that its administrative personnel attend State agency training provided to sponsors, and sponsors must provide training throughout the summer to ensure that administrative personnel are thoroughly knowledgeable in all required areas of Program administration and operation and are provided with sufficient information to enable them to carry out their Program responsibilities. (iii) Each site must have present at each meal service at least one person who has received this training. (2) Sponsors must conduct pre-operational visits for new sites, sites that experienced operational problems the previous year, and existing sites that are new to non-congregate meal service, to determine that the sites have the capacity to provide meal service for the anticipated number of children in attendance and the capability to conduct the proposed meal service. (3) Sponsors must visit each of their sites, as specified in paragraphs (d)(3)(i) through (iv) of this section, at least once during the first two weeks of program operations and must promptly take such actions as are necessary to correct any deficiencies. In cases where the site operates for seven calendar days or fewer, the visit must be conducted during the period of operation. Sponsors must conduct these visits for: (i) All new sites; (ii) All existing sites that are new to providing non-congregate meal service; (iii) All sites that have been determined by the sponsor to need a visit based on criteria established by the State agency pertaining to operational problems noted in the prior year, as set forth in § 225.7(o); and (iv) Any other sites that the State agency has determined need a visit. (4) Sponsors must conduct a full review of food service operations at each site at least once during the first four weeks of Program operations, and thereafter must maintain a reasonable level of site monitoring. Sponsors must complete a monitoring form developed by the State agency during the conduct of these reviews. Sponsors may conduct a full review of food service operations at the same time they are conducting a site visit required under paragraph (d)(3) of this section. (e) Notification to the community. (f) Application for free Program Purpose of application form. (2) Application procedures based on household income. (i) The names of all children for whom application is made; (ii) The names of all other household members; (iii) The last four digits of the social security number of the adult household member who signs the application or an indication that the household member does not have a social security number; (iv) The income received by each household member identified by source of income; (v) The signature of an adult household member; (vi) The date the application is completed and signed. (3) Application based on the household's receipt of SNAP, FDPIR, or TANF benefits. (i) The name(s) and SNAP, FDPIR, or TANF case number(s) of the child(ren) who are enrolled in the Program; and (ii) The signature of an adult household member. (4) Information or notices required on application forms. (i) The family-size and income levels for reduced price school meal eligibility with an explanation that households with incomes less than or equal to these values are eligible for free Program meals ( Note: (ii) A statement that a foster child who is a member of a household that receives SNAP, FDPIR, or TANF benefits is automatically eligible to receive free meals in the Program; (iii) A statement informing households of how information provided on the application will be used. Each application for free meals must include substantially the following statement: (A) “The Richard B. Russell National School Lunch Act requires the information on this application. You do not have to give the information, but if you do not, we cannot approve your child for free or reduced-price meals. You must include the last four digits of the social security number of the adult household member who signs the application. The last four digits of the social security number are not required when you apply on behalf of a foster child or you list a Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF) Program or Food Distribution Program on Indian Reservations (FDPIR) case number or other FDPIR identifier for your child or when you indicate that the adult household member signing the application does not have a social security number. We MAY share your eligibility information with education, health, and nutrition programs to help them evaluate, fund, or determine benefits for their programs, and with auditors for program reviews and law enforcement officials to help them look into violations of program rules.” (B) When the State agency or sponsor, as appropriate, plans to use or disclose children's eligibility information for non-program purposes, additional information, as specified in paragraph (i) of this section, must be added to the statement. State agencies and sponsors are responsible for drafting the appropriate notice. (iv) The statement used to inform the household about the use of social security numbers must comply with the Privacy Act of 1974 (Pub. L. 93-579). If a State or local agency plans to use the social security numbers for uses not described in paragraph (f)(4)(iv) of this section, the notice must be revised to explain those uses. (v) Examples of income that should be provided on the application, including: Earnings, wages, welfare benefits, pensions, support payments, unemployment compensation, social security, and other cash income; (vi) A notice placed immediately above the signature block stating that the person signing the application certifies that all information provided is correct, that the household is applying for Federal benefits in the form of free Program meals, that Program officials may verify the information on the application, and that purposely providing untrue or misleading statements may result in prosecution under State or Federal criminal laws; and (vii) A statement that if SNAP, FDPIR, or TANF case numbers are provided, they may be used to verify the current SNAP, FDPIR, or TANF certification for the children for whom free meals benefits are claimed. (5) Verifying information on Program applications. (i) They will lose Program benefits or be terminated from participation if they do not cooperate with the verification process; (ii) They will be given the name and phone number of an official who can assist in the verification process; (iii) Verification may occur during program reviews, audits, and investigations; (iv) Verification may include contacting employers, SNAP or welfare offices, or State employment offices to determine the accuracy of statements on the application about income, receipt of SNAP, FDPIR, TANF, or unemployment benefits; and (v) They may lose benefits or face claims or legal action if incorrect information is reported on the application. (g) Disclosure of children's free and reduced price meal eligibility information to certain programs and individuals without parental consent. (1) Persons authorized to receive eligibility information. (2) Disclosure of children's names and free or reduced price meal eligibility status. (i) A Federal education program; (ii) A State health program or State education program administered by the State or local education agency; (iii) A Federal, State, or local means-tested nutrition program with eligibility standards comparable to the National School Lunch Program (i.e., food assistance programs for households with incomes at or below 185 percent of the Federal poverty level); or (3) Disclosure of all eligibility information. (i) Persons directly connected with the administration or enforcement of programs authorized under the Richard B. Russell National School Lunch Act or the Child Nutrition Act of 1966. This means that all eligibility information obtained for the Summer Food Service Program may be disclosed to persons directly connected with administering or enforcing regulations under the National School Lunch Program, Special Milk Program, School Breakfast Program, Child and Adult Care Food Program, and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC) (parts 210, 215, 220, 226 and 246, respectively, of this chapter); (ii) The Comptroller General of the United States for purposes of audit and examination; and (iii) Federal, State, and local law enforcement officials for the purpose of investigating any alleged violation of the programs listed in paragraphs (g)(2) and (g)(3) of this section. (4) Use of free and reduced price meals eligibility information by programs other than Medicaid or the Children's Health Insurance Program (CHIP). (h) Disclosure of children's free or reduced price meal eligibility information to Medicaid and/or CHIP, unless parents decline. (1) The State agency must ensure that: (i) The sponsors and health insurance program officials have a written agreement that requires the health insurance program agency to use the eligibility information to seek to enroll children in Medicaid and CHIP; and (ii) Parents/guardians are notified that their eligibility information may be disclosed to Medicaid or CHIP and given an opportunity to decline to have their children's eligibility information disclosed, prior to any disclosure. (2) Use of children's free and reduced price meal eligibility information by Medicaid/CHIP. (i) Notifying households of potential uses and disclosures of children's free and reduced price meal eligibility information. (1) For disclosures to programs, other than Medicaid or the Children's Health Insurance Program (CHIP), that are permitted access to children's eligibility information, without parental/guardian consent, the State agency or sponsor, as appropriate, must notify parents/guardians at the time of application that their children's free or reduced price meal eligibility information may be disclosed. The State agency or sponsor, as appropriate, must add substantially the following statement to the statement required under paragraph (f)(4)(iv) of this section, “We may share your eligibility information with education, health, and nutrition programs to help them evaluate, fund, or determine benefits for their programs; auditors for program reviews; and law enforcement officials to help them look into violations of program rules.” For children determined eligible for free meals through the direct certification, the notice of potential disclosure may be included in the document informing parents/guardians of their children's eligibility for free meals through direct certification. (2) For disclosure to Medicaid or CHIP, the State agency or sponsor, as appropriate, must notify parents/guardians that their children's free or reduced price meal eligibility information will be disclosed to Medicaid and/or CHIP unless the parent/guardian elects not to have their information disclosed and notifies the State agency or sponsor, as appropriate, by a date specified by the State agency or sponsor, as appropriate. Only the parent or guardian who is a member of the household or family for purposes of the free and reduced price meal application may decline the disclosure of eligibility information to Medicaid or CHIP. The notification must inform parents/guardians that they are not required to consent to the disclosure, that the information, if disclosed, will be used to identify eligible children and seek to enroll them in Medicaid or CHIP, and that their decision will not affect their children's eligibility for free or reduced price meals. The notification may be included in the letter/notice to parents/guardians that accompanies the free and reduced price meal application, on the application itself or in a separate notice provided to parents/guardians. The notice must give parents/guardians adequate time to respond if they do not want their information disclosed. The State agency or sponsor, as appropriate, must add substantially the following statement to the statement required under paragraph (f) of this section, “We may share your information with Medicaid or the Children's Health Insurance Program, unless you tell us not to. The information, if disclosed, will be used to identify eligible children and seek to enroll them in Medicaid or CHIP.” For children determined eligible for free meals through direct certification, the notice of potential disclosure and opportunity to decline the disclosure may be included in the document informing parents/guardians of their children's eligibility for free meals through direct certification process. (j) Other disclosures. (1) The consent must identify the information that will be shared and how the information will be used. (2) There must be a statement informing parents and guardians that failing to sign the consent will not affect the child's eligibility for free meals and that the individuals or programs receiving the information will not share the information with any other entity or program. (3) Parents/guardians must be permitted to limit the consent only to those programs with which they wish to share information. (4) The consent statement must be signed and dated by the child's parent or guardian who is a member of the household for purposes of the free and reduced price meal application. (k) Agreements with programs/individuals receiving children's free or reduced price meal eligibility information. (1) The State agency or sponsor, as appropriate, should have a written agreement or MOU with programs or individuals receiving eligibility information, prior to disclosing children's free and reduced price meal eligibility information. The agreement or MOU should include information similar to that required for disclosures to Medicaid and CHIP specified in paragraph (k)(2) of this section. (2) For disclosures to Medicaid or CHIP, the State agency or sponsor, as appropriate, must have a written agreement with the State or local agency or agencies administering Medicaid or CHIP prior to disclosing children's free or reduced price meal eligibility information to those agencies. At a minimum, the agreement must: (i) Identify the health insurance program or health agency receiving children's eligibility information; (ii) Describe the information that will be disclosed; (iii) Require that the Medicaid or CHIP agency use the information obtained and specify that the information must be used to seek to enroll children in Medicaid or CHIP; (iv) Require that the Medicaid or CHIP agency describe how they will use the information obtained; (v) Describe how the information will be protected from unauthorized uses and disclosures; (vi) Describe the penalties for unauthorized disclosure; and (vii) Be signed by both the Medicaid or CHIP program or agency and the State agency or sponsor, as appropriate. (l) Penalties for unauthorized disclosure or misuse of children's free and reduced price meal eligibility information. (m) Food service management companies. (2) Any sponsor may contract with a food service management company to manage the sponsor's food service operations and/or for the preparation of unitized meals with or without milk or juice. Exceptions to the unitizing requirement may only be made in accordance with the provisions set forth at § 225.6(l)(3). (3) Any vended sponsor shall be responsible for ensuring that its food service operation is in conformity with its agreement with the State agency and with all the applicable provisions of this part. (4) In addition to any applicable State or local laws governing bid procedures, and with the exceptions identified in this paragraph, each sponsor which contracts with a food service management company shall comply with the competitive bid procedures described in this paragraph. Sponsors that are schools or school food authorities and have an exclusive contract with a food service management company for year-round service, and sponsors whose total contracts with food service management companies will not exceed the simplified acquisition threshold in 2 CFR part 200, as applicable, shall not be required to comply with these procedures. These exceptions do not relieve the sponsor of the responsibility to ensure that competitive procurement procedures are followed in contracting with any food service management company. Each sponsor whose proposed contract is subject to the specific bid procedures set forth in this paragraph shall ensure, at a minimum, that: (i) All proposed contracts are publicly announced at least once, not less than 14 calendar days prior to the opening of bids, and the announcement includes the time and place of the bid opening; (ii) The bids are publicly opened; (iii) The State agency is notified, at least 14 calendar days prior to the opening of the bids, of the time and place of the bid opening; (iv) The invitation to bid does not specify a minimum price; (v) The invitation to bid contains a cycle menu approved by the State agency upon which the bid is based; (vi) The invitation to bid contains food specifications and meal quality standards approved by the State agency upon which the bid is based; (vii) The invitation to bid does not specify special meal requirements to meet ethnic or religious needs unless such special requirements are necessary to meet the needs of the children to be served; (viii) Neither the invitation to bid nor the contract provides for loans or any other monetary benefit or term or condition to be made to sponsors by food service management companies; (ix) Nonfood items are excluded from the invitation to bid, except where such items are essential to the conduct of the food service; (x) Copies of all contracts between sponsors and food service management companies, along with a certification of independent price determination, are submitted to the State agency prior to the beginning of Program operations; (xi) Copies of all bids received are submitted to the State agency, along with the sponsor's reason for choosing the successful bidder; and (xii) All bids in an amount which exceeds the lowest bid and all bids totaling the amount specified in the small purchase threshold in 2 CFR part 200, as applicable, or more are submitted to the State agency for approval before acceptance. State agencies shall respond to a request for approval of such bids within 5 working days of receipt. (5) Each food service management company which submits a bid exceeding the simplified acquisition threshold in 2 CFR part 200, as applicable, shall obtain a bid bond in an amount not less than 5 percent nor more than 10 percent, as determined by the sponsor, of the value of the contract for which the bid is made. A copy of the bid bond shall accompany each bid. (6) Each food service management company which enters into a food service contract exceeding the small purchase threshold in 2 CFR part 200, as applicable, with a sponsor shall obtain a performance bond in an amount not less than 10 percent nor more than 25 percent of the value of the contract for which the bid is made, as determined by the State agency. Any food service management company which enters into more than one contract with any one sponsor shall obtain a performance bond covering all contracts if the aggregate amount of the contracts exceeds the simplified acquisition threshold in 2 CFR part 200, as applicable. Sponsors shall require the food service management company to furnish a copy of the performance bond within ten days of the awarding of the contract. (7) Food service management companies shall obtain bid bonds and performance bonds only from surety companies listed in the current Department of the Treasury Circular 570. No sponsor or State agency shall allow food service management companies to post any “alternative” forms of bid or performance bonds, including but not limited to cash, certified checks, letters of credit, or escrow accounts. (n) Other responsibilities. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13470, Apr. 10, 1990; 61 FR 25553, May 22, 1996; 64 FR 72486, Dec. 28, 1999; 64 FR 72898, Dec. 29, 1999; 65 FR 82251, Dec. 28, 2000; 66 FR 2202, Jan. 11, 2001; 72 FR 10895, Mar. 12, 2007; 76 FR 22798, Apr. 25, 2011; 78 FR 13450, Feb. 28, 2013; 83 FR 25360, June 1, 2018; 84 FR 15501, Apr. 16, 2019; 87 FR 57355, 57364, Sept. 19, 2022; 88 FR 90354, Dec. 29, 2023] § 225.16 Meal service requirements. (a) Sanitation. (b) Meal services. (1) Camps. (i) Each day a camp may serve up to three meals or two meals and one snack; (ii) Residential camps are not subject to the time restrictions for meal service set forth at paragraphs (c) (1) and (2) of this section; and (iii) A camp shall be approved to serve these meals only if it has the administrative capability to do so; if the service period of the different meals does not coincide or overlap; and, where applicable, if it has adequate food preparation and holding facilities. (2) NYSP Sites. (3) Restrictions on the number and type of meals served. (i) One meal each day, a breakfast, a lunch, or snack; or (ii) Two meals each day, if one is a lunch and the other is a breakfast or a snack. (4) Sites which serve children of migrant families. (5) Non-congregate meal service. (i) Obtain prior written parental consent, if meals are to be delivered to a child's home, as described in § 225.14(d)(6). (ii) Serve meals as described in paragraph (b)(3) of this section. (iii) Comply with meal service time requirements described in paragraphs (c)(1), (4), and (5) of this section. (iv) Claim reimbursement for all eligible meals served to children at sites in areas in which poor economic conditions exist, as defined in § 225.2. At all other sites, only the non-congregate meals served to children who meet the eligibility standards for this Program may be reimbursed. (c) Meal service times. (i) Established by sponsors for each site; (ii) Included in the sponsor's application; and (iii) Approved by the State agency. Approval of meal service times must be in accordance with the State agency or sponsor's capacity to monitor the full meal service during a review. (2) Except for non-congregate meal service, breakfast meals must be served at or close to the beginning of a child's day. Three component meals served after a lunch or supper meal service are not eligible for reimbursement as a breakfast. (3) At all sites except residential camps and non-congregate meal service, meal services must start at least one hour after the end of the previous meal or snack. (4) Meals served outside the approved meal service time: (i) Are not eligible for reimbursement; and (ii) May be approved for reimbursement by the State agency only if an unanticipated event, outside of the sponsor's control, occurs. The State agency may request documentation to support approval of meals claimed when an unanticipated event occurs. (5) The State agency must approve any permanent or planned changes in meal service time. (6) If congregate meals are not prepared on site: (i) Meal deliveries must arrive before the approved meal service time; and (ii) Meals must be delivered within one hour of the start of the meal service if the site does not have adequate storage to hold hot or cold meals at the temperatures required by State or local health regulations. (d) Meal patterns. (1) Breakfast. Table 1 to Paragraph ( d Meal components Minimum amount Vegetables and Fruits Vegetable(s) and/or fruit(s) 1 2 1 Full-strength vegetable or fruit juice or an equivalent quantity of any combination of vegetable(s), fruit(s), and juice 1 2 Bread and Bread Alternates 2 Bread or 1 slice. Cornbread, biscuits, rolls, muffins, etc. or 1 serving. 3 Cold dry cereal or 3 4 4 Cooked cereal or cereal grains or 1 2 Cooked pasta or noodle products or an equivalent quantity of any combination of bread/bread alternate 1 2 Milk 5 Milk, fluid 1 cup ( 1 2 Meats/Meat Alternates (Optional) Lean meat or poultry or fish or 1 ounce. Alternate protein product 6 1 ounce. Cheese or 1 ounce. Egg (large) or 1 2 Cooked dry beans, peas, or lentils or 1 4 Peanut butter or 2 tablespoons. Yogurt, plain or flavored, unsweetened or sweetened or an equivalent quantity of any combination of meats/meat alternates 4 ounces or 1 2 1 2 3 4 5 6 (2) Lunch or supper. Table 2 to Paragraph ( d Meal components Minimum amount Meats/Meat Alternates Lean meat or poultry or fish or 2 ounces. Alternate protein products 1 2 ounces. Cheese or 2 ounces. Egg (large) or 1. Cooked dry beans, peas, or lentils or 1 2 2 Peanut butter or soynut butter or other nut or seed butters or 4 tablespoons. Peanuts or soynuts or tree nuts or seeds 3 2 ounces. Yogurt, plain or flavored, unsweetened or sweetened or an equivalent quantity of any combination of the above meats/meat alternates 8 ounces or 1 cup. Vegetables and Fruits Vegetables and/or fruits 4 3 4 Bread and Bread Alternatives 5 Bread or 1 slice. Cornbread, biscuits, rolls, muffins, etc. or 1 serving. 6 Cooked pasta or noodle products or 1 2 Cooked cereal grains or an equivalent quantity of any combination of bread or bread alternate 1 2 Milk Milk, fluid, served as a beverage 1 cup ( 1 2 1 2 3 4 5 6 (3) Snacks. Table 3 to Paragraph ( d Meal components Minimum amount Meats/Meat Alternates Lean meat or poultry or fish or 1 ounce. Alternate protein products 1 1 ounce. Cheese or 1 ounce. Egg (large) or 1 2 Cooked dry beans, peas, or lentils or 1 4 2 Peanut butter or soynut butter or other nut or seed butters or 2 tablespoons. Peanuts or soynuts or tree nuts or seeds 3 1 ounce. Yogurt, plain or flavored, unsweetened or sweetened or an equivalent quantity of any combination of the above meats/meat alternates 4 ounces or 1 2 Vegetables and Fruits Vegetable(s) and/or fruit(s) or 3 4 Full-strength vegetable or fruit juice or an equivalent quantity or any combination of vegetable(s), fruit(s), and juice 3 4 Bread and Bread Alternates 4 Bread or 1 slice. Cornbread, biscuits, rolls, muffins, etc. or 1 serving. 5 Cold dry cereal or 3 4 6 Cooked cereal or 1 2 Cooked cereal grains or an equivalent quantity of any combination of bread/bread alternate 1 2 Milk 7 Milk, fluid 1 cup ( 1 2 1 2 3 4 5 6 7 (e) Meat or meat alternate. (1) The required quantity of meat or meat alternate shall be the quantity of the edible portion as served. These foods must be served in a main dish, or in a main dish and one other menu item. (2) Cooked dry beans, peas, and lentils may be used as a meat alternate or as a vegetable, but they may not be used to meet both component requirements in a meal. (3) Enriched macaroni with fortified protein may be used to meet part but not all of the meat/meat alternate requirement. The Department will provide guidance to State agencies on the part of the meat/meat alternate requirement which these foods may be used to meet. If enriched macaroni with fortified protein is served as a meat alternate it shall not be counted toward the bread requirement. (4) If the sponsor determines that the recommended portion size of any meat or meat alternate is too large to be appealing to children, the sponsor may reduce the portion size of that meat or meat alternate and supplement it with another meat or meat alternate to meet the full requirement. (5) Nuts and seeds and their butters are allowed as meats/meat alternates. Acorns, chestnuts, and coconuts do not credit as meat alternates due to their low protein content. Nut and seed meals or flours may credit only if they meet the requirements for alternate protein products established in appendix A to this part. (f) Exceptions to and variations from the meal pattern Meals provided by school food authorities Meal pattern substitution. (ii) Offer versus serve. (A) Provide meal service consistent with the National School Lunch Program, as described in part 210 of this chapter. (B) Provide breakfast meals by offering four items from all three components specified in the meal pattern in paragraph (d)(1) of this section. Children may be permitted to decline one item. (C) Provide lunch or supper meals by offering five food items from all four components specified in the meal pattern in paragraph (d)(2) of this section. Children may be permitted to decline two components. (2) Children under 6. (3) Bread and bread alternative substitutions. (4) Individual substitutions. (5) Special variations. (6) Temporary unavailability of milk. (7) Continuing unavailability of milk. (8) Additional foods. (g) Meals served away from approved locations. (i) The sponsor notifies the State agency in advance that meals will be served away from the approved site; (ii) The State agency has determined that all Program requirements in this part will be met, including applicable State and local health, safety, and sanitation standards; (iii) The meals are served at the approved meal service time, unless a change is approved by the State agency, as required under paragraph (c) of this section; and (iv) Sponsors of open sites continue operating at the approved location. If not possible, the State agency may permit an open site to close, in which case the sponsor must notify the community of the change in meal service and provide information about alternative open sites. (2) The State agency may determine that meals served away from the approved site location are not reimbursable if the sponsor did not provide notification in advance of the meal service. The State agency may establish guidelines for the amount of advance notice needed. (h) Off-site consumption of food items. (i) Non-congregate meal service options. (1) Multi-day meal issuance. (2) Parent or guardian pick-up of meals. (3) Bulk meal components. (i) Required food components for each reimbursable meal are served, as described in paragraph (d) of this section. (ii) All food items that contribute to a reimbursable meal are clearly identifiable. (ii) Menus are provided and clearly indicate the food items and portion sizes for each reimbursable meal. (iv) Food preparation, such as heating or warming, is minimal. Sponsors may offer food items that require further preparation only with State agency and FNSRO approval. (v) The maximum number of reimbursable meals provided to a child does not exceed the number of meals that could be provided over a 5-calendar day period. The State agency may establish a shorter or longer time period, which may not exceed the time period for which the sponsor is approved for multi-day meal issuance, on a case-by-case basis. [54 FR 18208, Apr. 27, 1989, as amended at 54 FR 27153, June 28, 1989; Amdt. 2, 55 FR 1377, Jan. 14, 1990; 55 FR 13470, Apr. 10, 1990; 61 FR 37672, July 19, 1996; 62 FR 10191, Mar. 6, 1997; 64 FR 72487, Dec. 28, 1999; 64 FR 72487, Dec. 28, 1999; 65 FR 12437, Mar. 9, 2000; 65 FR 82251, Dec. 28, 2000; 87 FR 57365, Sept. 19, 2022; 87 FR 79213, Dec. 27, 2022; 88 FR 90354, Dec. 29, 2023; 89 FR 32085, Apr. 25, 2024] Subpart D—General Administrative Provisions § 225.17 Procurement standards. (a) State agencies and sponsors shall comply with the requirements of 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415, as applicable, concerning the procurement of supplies, food, equipment and other services with Program funds. These requirements ensure that such materials and services are obtained for the program efficiently and economically and in compliance with applicable laws and executive orders. Sponsors may use their own procedures for procurement with Program funds to the extent that: (1) Procurements by public sponsors comply with applicable State or local laws and the standards set forth in 2 CFR part 200, subpart F and USDA implementing regulations 2 CFR part 400 and part 415; and (2) Procurements by private nonprofit sponsors comply with standards set forth in 2 CFR part 200, subpart F and USDA implementing regulations 2 CFR part 400 and part 415. (b) The State agency shall make available to sponsors information on 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415, as applicable. (c) Sponsors may use their own procurement procedures which reflect applicable State and local laws and regulations, provided that procurements made with Program funds conform with provisions of this section, as well as with procurement requirements which may be established by the State agency, with approval of FNS, to prevent fraud, waste, and Program abuse. (d) The State agency shall ensure that each sponsor is aware of the following practices specified in 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415, as applicable, with respect to minority business enterprises: (1) Including qualified minority business enterprises on solicitation lists, (2) Soliciting minority business enterprises whenever they are potential sources, (3) When economically feasible, dividing total requirements into smaller tasks or quantities so as to permit maximum participation by minority business enterprises, (4) Establishing delivery schedules which will assist minority business enterprises to meet deadlines, and (5) Using the services and assistance of the Small Business Administration, and the Office of Minority Business Enterprise of the Department of Commerce as required. (e) Geographic preference. (2) For the purpose of applying the optional geographic preference in paragraph (e)(1) of this section, “unprocessed locally grown or locally raised agricultural products” means only those agricultural products that retain their inherent character. The effects of the following food handling and preservation techniques shall not be considered as changing an agricultural product into a product of a different kind or character: Cooling; refrigerating; freezing; size adjustment made by peeling, slicing, dicing, cutting, chopping, shucking, and grinding; forming ground products into patties without any additives or fillers; drying/dehydration; washing; packaging (such as placing eggs in cartons), vacuum packing and bagging (such as placing vegetables in bags or combining two or more types of vegetables or fruits in a single package); addition of ascorbic acid or other preservatives to prevent oxidation of produce; butchering livestock and poultry; cleaning fish; and the pasteurization of milk. (f) All contracts in excess of $10,000 must contain a clause allowing termination for cause or for convenience by the sponsor including the manner by which it will be effected and the basis for settlement. [54 FR 18208, Apr. 27, 1989, as amended at 71 FR 39518, July 13, 2006; 76 FR 22607, Apr. 22, 2011; 81 FR 66492, Sept. 28, 2016; 83 FR 25361, June 1, 2018; 87 FR 57365, Sept. 19, 2022; 89 FR 32087, Apr. 25, 2024] § 225.18 Miscellaneous administrative provisions. (a) Grant closeout procedures. (b) Termination for cause. (2) A State agency shall terminate a sponsor's participation in the Program by written notice whenever it is determined by the State agency that the sponsor has failed to comply with the conditions of the Program. (3) When participation in the Program has been terminated for cause, any funds paid to the State agency or a sponsor or any recoveries by FNS from the State agency or by the State agency from a sponsor shall be in accordance with the legal rights and liabilities of the parties. (c) Termination for convenience. (d) Maintenance of effort. (e) Program benefits. (f) State requirements. (g) Fraud penalty. (h) Claims adjustment authority. (i) Data collection related to sponsors. (i) The name of each sponsor; (ii) The city in which each participating sponsor was headquartered and the name of the state; (iii) The amount of funds provided to the participating organization, i.e., the sum of the amount of federal funds reimbursed for operating and administrative cost; and (iv) The type of participating organization, e.g., government agency, educational institution, non-profit organization/secular, non-profit organization/faith-based, and “other.” (2) On or before August 31, 2007, and each subsequent year through 2010, State agencies must report to FNS data as specified in paragraph (i)(1) of this section for the prior Federal fiscal year. State agencies must submit this data in a format designated by FNS. (j) Program evaluations. (k) Fines. (i) Failed to correct severe mismanagement of the Program; (ii) Disregarded a Program requirement of which the sponsor or its site had been informed; or (iii) Failed to correct repeated violations of Program requirements. (2) FNS may direct the State agency to establish a fine against any sponsor when it has determined that the sponsor or its site has committed one or more acts under paragraph (k)(1) of this section. (3) Funds used to pay a fine established under this paragraph must be derived from non-Federal sources. In calculating an assessment, the State agency must calculate the fine based on the amount of Program reimbursement earned by the sponsor or its site for the most recent fiscal year for which full year data is available, provided that the fine does not exceed the equivalent of: (i) For the first fine, 1 percent of the amount of meal reimbursement earned for the fiscal year; (ii) For the second fine, 5 percent of the amount of meal reimbursement earned for the fiscal year; and (iii) For the third or subsequent fine, 10 percent of the amount of meal reimbursement earned for the fiscal year. (4) The State agency must inform FNS at least 30 days prior to establishing the fine under this paragraph. The State agency must send the sponsor written notification of the fine established under this paragraph and provide a copy of the notification to FNS. The notification must: (i) Specify the violations or actions which constitute the basis for the fine and indicate the amount of the fine; (ii) Inform the institution that it may appeal the fine and advise the sponsor of the appeal procedures established under § 225.13; (iii) Indicate the effective date and payment procedures should the sponsor not exercise its right to appeal within the specified timeframe. (5) Any sponsor subject to a fine under paragraph (k)(1) of this section may appeal the State agency's determination. In appealing a fine, the sponsor must submit to the State agency any pertinent information, explanation, or evidence addressing the Program violations identified by the State agency. Any sponsor seeking to appeal the State agency determination must follow State agency appeal procedures. (6) The decision of the State agency review official is final and not subject to further administrative or judicial review. Failure to pay a fine established under this paragraph may be grounds for suspension or termination. (7) Money received by the State agency as a result of a fine established under this paragraph against a sponsor and any interest charged in the collection of these fines must be remitted to FNS, and then remitted to the United States Treasury. (l) Updates to data sources. [54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13471, Apr. 10, 1990; 64 FR 72488, Dec. 28, 1999; 71 FR 39518, July 13, 2006; 72 FR 24183, May 2, 2007; 76 FR 37982, June 29, 2011; 78 FR 13450, Feb. 28, 2013; 81 FR 66492, Sept. 28, 2016; 88 FR 57850, Aug. 23, 2023; 88 FR 90355, Dec. 29, 2023] § 225.19 Program information. Persons seeking information about this Program should contact their State administering agency or the appropriate FNSRO. The FNS website has contact information for State agencies at https://www.fns.usda.gov/contacts https://www.fns.usda.gov/fns-regional-offices. [88 FR 57850, Aug. 23, 2023] § 225.20 Information collection/recordkeeping—OMB assigned control numbers. 7 CFR section where requirements are described Current OMB control No. 225.3-225.4. 0584-0280 225.6-225.10 0584-0280 225.12-225.13 0584-0280 225.15-225.18 0584-0280 [61 FR 25554, May 22, 1996] Appendix A to Part 225—Alternate Foods for Meals Alternate Protein Products A. What Are the Criteria for Alternate Protein Products Used in the Summer Food Service Program? 1. An alternate protein product used in meals planned under the provisions in § 225.16 must meet all of the criteria in this section. 2. An alternate protein product whether used alone or in combination with meat or other meat alternates must meet the following criteria: a. The alternate protein product must be processed so that some portion of the non-protein constituents of the food is removed. These alternate protein products must be safe and suitable edible products produced from plant or animal sources. b. The biological quality of the protein in the alternate protein product must be at least 80 percent that of casein, determined by performing a Protein Digestibility Corrected Amino Acid Score (PDCAAS). c. The alternate protein product must contain at least 18 percent protein by weight when fully hydrated or formulated. (“When hydrated or formulated” refers to a dry alternate protein product and the amount of water, fat, oil, colors, flavors or any other substances which have been added). d. Manufacturers supplying an alternate protein product to participating schools or institutions must provide documentation that the product meets the criteria in paragraphs A. 2. a through c of this appendix. e. Manufacturers should provide information on the percent protein contained in the dry alternate protein product and on an as prepared basis. f. For an alternate protein product mix, manufacturers should provide information on: (1) The amount by weight of dry alternate protein product in the package; (2) Hydration instructions; and (3) Instructions on how to combine the mix with meat or other meat alternates. B. How Are Alternate Protein Products Used in the Summer Food Service Program? 1. Schools, institutions, and service institutions may use alternate protein products to fulfill all or part of the meat/meat alternate component discussed in § 225.20. 2. The following terms and conditions apply: a. The alternate protein product may be used alone or in combination with other food ingredients. Examples of combination items are beef patties, beef crumbles, pizza topping, meat loaf, meat sauce, taco filling, burritos, and tuna salad. b. Alternate protein products may be used in the dry form (nonhydrated), partially hydrated or fully hydrated form. The moisture content of the fully hydrated alternate protein product (if prepared from a dry concentrated form) must be such that the mixture will have a minimum of 18 percent protein by weight or equivalent amount for the dry or partially hydrated form (based on the level that would be provided if the product were fully hydrated). C. How Are Commercially Prepared Products Used in the Summer Food Service Program? Schools, institutions, and service institutions may use a commercially prepared meat or meat alternate products combined with alternate protein products or use a commercially prepared product that contains only alternate protein products. [65 FR 12439, Mar. 9, 2000] Appendix B to Part 225 [Reserved] Appendix C to Part 225—Child Nutrition (CN) Labeling Program 1. The Child Nutrition (CN) Labeling Program is a voluntary technical assistance program administered by the Food and Nutrition Service (FNS) in conjunction with the Food Safety and Inspection Service (FSIS) and Agricultural Marketing Service (AMS) of the U.S. Department of Agriculture (USDA), and National Marine Fisheries Service of the U.S. Department of Commerce (USDC) for the Child Nutrition Programs. This program essentially involves the review of a manufacturer's recipe or product formulation to determine the contribution a serving of a commercially prepared product makes toward meal pattern requirements and a review of the CN label statement to ensure its accuracy. CN labeled products must be produced in accordance with all requirements set forth in this rule. 2. Products eligible for CN labels are as follows: (a) Commercially prepared food products that contribute significantly to the meat/meat alternate component of meal pattern requirements of 7 CFR 210.10, 225.16, and 226.20 and are served in the main dish. (b) Juice drinks and juice drink products that contain a minimum of 50 percent full strength juice by volume. 3. For the purpose of this appendix the following definitions apply: (a) CN label (b) The CN logo (c) The CN label statement (1) The product identification number (assigned by FNS); (2) The statement of the product's contribution toward meal pattern requirements of 7 CFR 210.10, 220.8, 225.16, and 226.20. The statement shall identify the contribution of a specific portion of a meat/meat alternate product toward the meat/meat alternate, bread/bread alternate, and/or vegetable/fruit component of the meal pattern requirements. For juice drinks and juice drink products the statement shall identify their contribution toward the vegetable/fruit component of the meal pattern requirements. (3) Statement specifying that the use of the CN logo and CN statement was authorized by FNS, and (4) The approval date. For example: (d) Federal inspection 4. Food processors or manufacturers may use the CN label statement and CN logo as defined in paragraph 3 (b) and (c) under the following terms and conditions: (a) The CN label must be reviewed and approved at the national level by the Food and Nutrition Service and appropriate USDA or USDC Federal agency responsible for the inspection of the product. (b) The CN labeled product must be produced under Federal inspection by USDA or USDC. The Federal inspection must be performed in accordance with an approved partial or total quality control program or standards established by the appropriate Federal inspection service. (c) The CN label statement must be printed as an integral part of the product label along with the product name, ingredient listing, the inspection shield or mark for the appropriate inspection program, the establishment number where appropriate and the manufacturer's or distributor's name and address. (1) The inspection marking for CN labeled non-meat, non-poultry, and non-seafood products with the exception of juice drinks and juice drink products is established as follows: (d) Yields for determining the product's contribution toward meal pattern requirements must be calculated using the Food Buying Guide for Child Nutrition Programs (Program Aid Number 1331). 5. In the event a company uses the CN logo and CN label statement inappropriately, the company will be directed to discontinue the use of the logo and statement and the matter will be referred to the appropriate agency for action to be taken against the company. 6. Products that bear a CN label statement as set forth in paragraph 3(c) carry a warranty. This means that if a food service authority participating in the child nutrition programs purchases a CN labeled product and uses it in accordance with the manufacturer's directions, the school or institution will not have an audit claim filed against it for the CN labeled product for noncompliance with the meal pattern requirements of 7 CFR 210.10, 220.8, 225.16, and 226.20. If a State or Federal auditor finds that a product that is CN labeled does not actually meet the meal pattern requirements claimed on the label, the auditor will report this finding to FNS. FNS will prepare a report on the findings and send it to the appropriate divisions of FSIS and AMS of the USDA, National Marine Fisheries Service of the USDC, Food and Drug Administration, or the Department of Justice for action against the company. Any or all of the following courses of action may be taken: (a) The company's CN label may be revoked for a specific period of time; (b) The appropriate agency may pursue a misbranding or mislabeling action against the company producing the product; (c) The company's name will be circulated to regional FNS offices; and (d) FNS will require the food service program involved to notify the State agency of the labeling violation. 7. FNS is authorized to issue operational policies, procedures, and instructions for the CN Labeling Program. To apply for a CN label and to obtain additional information on CN label application procedures, write to: CN Labels, U.S. Department of Agriculture, Food and Nutrition Service, Nutrition and Technical Services Division, 3101 Park Center Drive, Alexandria, Virginia 22302.

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