§ 210.5 - Payment process to States.

§ 210.5 Payment process to States.

Cross Reference

Link to an amendment published at 88 FR 57844, Aug. 23, 2023.

(a) Grant award. FNS will specify the terms and conditions of the State agency's grant in a grant award document and will generally make payments available by means of a Letter of Credit issued in favor of the State agency. The State agency shall obtain funds for reimbursement to participating school food authorities through procedures established by FNS in accordance with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415. State agencies shall limit requests for funds to such times and amounts as will permit prompt payment of claims or authorized advances. The State agency shall disburse funds received from such requests without delay for the purpose for which drawn. FNS may, at its option, reimburse a State agency by Treasury Check. FNS will pay by Treasury Check with funds available in settlement of a valid claim if payment for that claim cannot be made within the grant closeout period specified in paragraph (d) of this section.

(b) Cash-in-lieu of donated foods. All Federal funds to be paid to any State in place of donated foods will be made available as provided in part 240 of this chapter.

(c) Recovery of funds. FNS will recover any Federal funds made available to the State agency under this part which are in excess of obligations reported at the end of each fiscal year in accordance with the reconciliation procedures specified in paragraph (d) of this section. Such recoveries shall be reflected by a related adjustment in the State agency's Letter of Credit.

(d) Substantiation and reconciliation process. Each State agency shall maintain Program records as necessary to support the reimbursement payments made to school food authorities under §§ 210.7 and 210.8 and the reports submitted to FNS under this paragraph. The State agency shall ensure such records are retained for a period of 3 years or as otherwise specified in § 210.23(c).

(1) Monthly report. Each State agency shall submit a final Report of School Program Operations (FNS–10) to FNS for each month. The final reports shall be limited to claims submitted in accordance with § 210.8 of this part. For the month of October, the final report shall include the total number of children approved for free lunches, the total number of children approved for reduced price lunches, and the total number of children enrolled in participating public schools, private schools, and residential child care institutions, respectively, as of the last day of operation in October. The final reports shall be postmarked and/or submitted no later 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 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 to a State's report shall always be made regardless of when it is determined that such adjustments are necessary. FNS authorization is not required for downward adjustments. Any adjustments to a State's report shall be reported to FNS in accordance with procedures established by FNS.

(2) Quarterly report. Each State agency administering the National School Lunch Program shall must submit quarterly reports to FNS as follows:

(i) Each State agency shall submit to FNS

a quarterly Financial Status Report (FNS–777) on the use of Program funds. Such reports

shall

must be postmarked and/or submitted no later than 30 days after the end of each fiscal year quarter.

(

ii)

3) End of year reports.

(i) Each State agency

shall also submit a quarterly report, as specified by FNS,

must submit an annual report detailing the disbursement of performance-based cash assistance described in § 210.4(b)(1).

Such

The report

shall

must be submitted no later than 30 days after the end of each fiscal year

quarter

.

State agencies will no longer be required to submit the quarterly report once all SFAs in the State have been certified.

The report

shall

must include the total number of school food authorities in the State and the names of certified school food authorities.

(3) End of year report.

If all school food authorities in the State have been certified, the State agency is no longer required to submit the report.

(ii) Each State agency

shall

must submit a final Financial Status Report (FNS–777) for each fiscal year. This final fiscal year grant closeout report

shall

must be postmarked

and/

or submitted to FNS within 120 days after the end of each fiscal year or part thereof that the State agency administered the Program. Obligations

shall

must be reported only for the fiscal year in which they occur. FNS will not be responsible for reimbursing Program obligations reported later than 120 days after the close of the fiscal year in which they were incurred. Grant closeout procedures are to be carried out in accordance with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415.

[53 FR 29147, Aug. 2, 1988, as amended at 54 FR 12580, Mar. 28, 1989; 56 FR 32939, July 17, 1991; 71 FR 39516, July 13, 2006; 77 FR 25034, Apr. 27, 2012; 79 FR 330, Jan. 3, 2014; 81 FR 50185, July 29, 2016; 81 FR 66488, Sept. 28, 2016; 88 FR 57844, Aug. 23, 2023]