42 U.S.C. § 1776 : US Code - Section 1776: State administrative expenses

Search 42 U.S.C. § 1776 : US Code - Section 1776: State administrative expenses

(a) Amount and allocation of funds
(1) Amount available
(A) In general
Except as provided in subparagraph (B), each fiscal year, the
Secretary shall make available to the States for their
administrative costs an amount equal to not less than 1 1/2
percent of the Federal funds expended under sections 4, 11, and
17 of the Richard B. Russell National School Lunch Act [42
U.S.C. 1753, 1759a, 1766] and 1772 and 1773 of this title
during the second preceding fiscal year.
(B) Minimum amount
In the case of each of fiscal years 2005 through 2007, the
Secretary shall make available to each State for administrative
costs not less than the initial allocation made to the State
under this subsection for fiscal year 2004.
(C) Allocation
The Secretary shall allocate the funds so provided in
accordance with paragraphs (2), (3), and (4) of this
subsection.
(2) Expense grants
(A) In general
Subject to subparagraph (B), the Secretary shall allocate to
each State for administrative costs incurred in any fiscal year
in connection with the programs authorized under the Richard B.
Russell National School Lunch Act [42 U.S.C. 1751 et seq.] or
under this chapter, except for the programs authorized under
section 13 or 17 of the Richard B. Russell National School
Lunch Act [42 U.S.C. 1761, 1766] or under section 1786 of this
title, an amount equal to not less than 1 percent and not more
than 1 1/2 percent of the funds expended by each State under
sections 4 and 11 of the Richard B. Russell National School
Lunch Act [42 U.S.C. 1753, 1759a] and sections 1772 and 1773 of
this title during the second preceding fiscal year.
(B) Minimum amount
(i) In general
In no case shall the grant available to any State under
this paragraph be less than the amount such State was
allocated in the fiscal year ending September 30, 1981, or
$200,000 (as adjusted under clause (ii),(!1) whichever is
larger.
(ii) Adjustment
On October 1, 2008, and each October 1 thereafter, the
minimum dollar amount for a fiscal year specified in clause
(i) shall be adjusted to reflect the percentage change
between -
(I) the value of the index for State and local government
purchases, as published by the Bureau of Economic Analysis
of the Department of Commerce, for the 12-month period
ending June 30 of the second preceding fiscal year; and
(II) the value of that index for the 12-month period
ending June 30 of the preceding fiscal year.
(3) The Secretary shall allocate to each State for its
administrative costs incurred under the program authorized by
section 17 of the Richard B. Russell National School Lunch Act [42
U.S.C. 1766] in any fiscal year an amount, based upon funds
expended under that program in the second preceding fiscal year,
equal to (A) 20 percent of the first $50,000, (B) 10 percent of the
next $100,000, (C) 5 percent of the next $250,000, and (D) 2 1/2
percent of any remaining funds. If an agency in the State other
than the State educational agency administers such program, the
State shall ensure that an amount equal to no less than the funds
due the State under this paragraph is provided to such agency for
costs incurred by such agency in administering the program, except
as provided in paragraph (5). The Secretary may adjust any State's
allocation to reflect changes in the size of its program.
(4) The remaining funds appropriated under this section shall be
allocated among the States by the Secretary in amounts the
Secretary determines necessary for the improvement in the States of
the administration of the programs authorized under the Richard B.
Russell National School Lunch Act [42 U.S.C. 1751 et seq.] and this
chapter, except for section 1786 of this title, including, but not
limited to, improved program integrity and the quality of meals
served to children.
(5)(A) Not more than 25 percent of the amounts made available to
each State under this section for the fiscal year 1991 and 20
percent of the amounts made available to each State under this
section for the fiscal year 1992 and for each succeeding fiscal
year may remain available for obligation or expenditure in the
fiscal year succeeding the fiscal year for which such amounts were
appropriated.
(B) Reallocation of funds. -
(i) Return to secretary. - For each fiscal year, any amounts
appropriated that are not obligated or expended during the fiscal
year and are not carried over for the succeeding fiscal year
under subparagraph (A) shall be returned to the Secretary.
(ii) Reallocation by secretary. - The Secretary shall allocate,
for purposes of administrative costs, any remaining amounts among
States that demonstrate a need for the amounts.
(6) Use of administrative funds. - Funds available to a State
under this subsection and under section 13(k)(1) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1761(k)(1)) may be
used by the State for the costs of administration of the programs
authorized under this chapter (except for the programs authorized
under sections 1786 and 1790 of this title) and the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) without
regard to the basis on which the funds were earned and allocated.
(7) Where the Secretary is responsible for the administration of
programs under this chapter or the Richard B. Russell National
School Lunch Act [42 U.S.C. 1751 et seq.], the amount of funds that
would be allocated to the State agency under this section and under
section 13(k)(1) of the Richard B. Russell National School Lunch
Act [42 U.S.C. 1761(k)(1)] shall be retained by the Secretary for
the Secretary's use in the administration of such programs.
(8) In the fiscal year 1991 and each succeeding fiscal year, in
accordance with regulations issued by the Secretary, each State
shall ensure that the State agency administering the distribution
of commodities under programs authorized under this chapter and
under the Richard B. Russell National School Lunch Act [42 U.S.C.
1751 et seq.] is provided, from funds made available to the State
under this subsection, an appropriate amount of funds for
administrative costs incurred in distributing such commodities. In
developing such regulations, the Secretary may consider the value
of commodities provided to the State under this chapter and under
the Richard B. Russell National School Lunch Act.
(9)(A) If the Secretary determines that the administration of any
program by a State under this chapter (other than section 1786 of
this title) or under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.)(including any requirement to provide
sufficient training, technical assistance, and monitoring of the
child and adult care food program under section 17 of that Act (42
U.S.C. 1766)), or compliance with a regulation issued pursuant to
either this chapter or such Act, is seriously deficient, and the
State fails to correct the deficiency within a specified period of
time, the Secretary may withhold from the State some or all of the
funds allocated to the State under this section or under section
13(k)(1) or 17 of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1761(k)(1) or 1766).
(B) On a subsequent determination by the Secretary that the
administration of any program referred to in subparagraph (A), or
compliance with the regulations issued to carry out the program, is
no longer seriously deficient and is operated in an acceptable
manner, the Secretary may allocate some or all of the funds
withheld under such subparagraph.
(b) Funds, usage: compensation, benefits, and travel expenses of
personnel; support services; office equipment; staff development
Funds paid to a State under subsection (a) of this section may be
used to pay salaries, including employee benefits and travel
expenses, for administrative and supervisory personnel; for support
services; for office equipment; and for staff development.
(c) Fund adjustment; State administered programs
If any State agency agrees to assume responsibility for the
administration of food service programs in nonprofit private
schools or child care institutions that were previously
administered by the Secretary, an appropriate adjustment shall be
made in the administrative funds paid under this section to the
State not later than the succeeding fiscal year.
(d) Unused funds; availability for obligation and expenditure, and
reallocation to other States
Notwithstanding any other provision of law, funds made available
to each State under this section shall remain available for
obligation and expenditure by that State during the fiscal year
immediately following the fiscal year for which such funds were
made available. For each fiscal year the Secretary shall establish
a date by which each State shall submit to the Secretary a plan for
the disbursement of funds provided under this section for each such
year, and the Secretary shall reallocate any unused funds, as
evidenced by such plans, to other States as the Secretary considers
appropriate.
(e) Plans for use of administrative expense funds
(1) In general
Each State shall submit to the Secretary for approval by
October 1 of the initial fiscal year a plan for the use of State
administrative expense funds, including a staff formula for State
personnel, system level supervisory and operating personnel, and
school level personnel.
(2) Updates and information management systems
(A) In general
After submitting the initial plan, a State shall be required
to submit to the Secretary for approval only a substantive
change in the plan.
(B) Plan contents
Each State plan shall, at a minimum, include a description of
how technology and information management systems will be used
to improve program integrity by -
(i) monitoring the nutrient content of meals served;
(ii) training local educational agencies, school food
authorities, and schools in how to use technology and
information management systems (including verifying
eligibility for free or reduced price meals using program
participation or income data gathered by State or local
agencies); and
(iii) using electronic data to establish benchmarks to
compare and monitor program integrity, program participation,
and financial data.
(3) Training and technical assistance
Each State shall submit to the Secretary for approval a plan
describing the manner in which the State intends to implement
subsection (g) of this section and section 22(b)(3) of the
Richard B. Russell National School Lunch Act [42 U.S.C.
1769c(b)(3)].
(f) State funding requirement
Payments of funds under this section shall be made only to States
that agree to maintain a level of funding out of State revenues,
for administrative costs in connection with programs under this
chapter (except section 1786 of this title) and the Richard B.
Russell National School Lunch Act [42 U.S.C. 1751 et seq.] (except
section 13 of that Act [42 U.S.C. 1761]), not less than the amount
expended or obligated in fiscal year 1977, and that agree to
participate fully in any studies authorized by the Secretary.
(g) State training
(1) In general
At least annually, each State shall provide training in
administrative practices (including training in application,
certification, verification, meal counting, and meal claiming
procedures) to local educational agency and school food authority
administrative personnel and other appropriate personnel, with
emphasis on the requirements established by the Child Nutrition
and WIC Reauthorization Act of 2004 and the amendments made by
that Act.
(2) Federal role
The Secretary shall -
(A) provide training and technical assistance to a State; or
(B) at the option of the Secretary, directly provide training
and technical assistance described in paragraph (1).
(3) Required participation
In accordance with procedures established by the Secretary,
each local educational agency or school food authority shall
ensure that an individual conducting or overseeing administrative
procedures described in paragraph (1) receives training at least
annually, unless determined otherwise by the Secretary.
(h) Funding for training and administrative reviews
(1) Funding
(A) In general
On October 1, 2004, and on each October 1 thereafter, out of
any funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the Secretary of
Agriculture to carry out this subsection $4,000,000, to remain
available until expended.
(B) Receipt and acceptance
The Secretary shall be entitled to receive, shall accept, and
shall use to carry out this subsection the funds transferred
under subparagraph (A), without further appropriation.
(2) Use of funds
(A) In general
Except as provided in subparagraph (B), the Secretary shall
use funds provided under this subsection to assist States in
carrying out subsection (g) of this section and administrative
reviews of selected local educational agencies carried out
under section 22 of the Richard B. Russell National School
Lunch Act (42 U.S.C. 1769c).
(B) Exception
The Secretary may retain a portion of the amount provided to
cover costs of activities carried out by the Secretary in lieu
of the State.
(3) Allocation
The Secretary shall allocate funds provided under this
subsection to States based on the number of local educational
agencies that have demonstrated a high level of, or a high risk
for, administrative error, as determined by the Secretary, taking
into account the requirements established by the Child Nutrition
and WIC Reauthorization Act of 2004 and the amendments made by
that Act.
(4) Reallocation
The Secretary may reallocate, to carry out this section, any
amounts made available to carry out this subsection that are not
obligated or expended, as determined by the Secretary.
(i) Technology infrastructure improvement
(1) In general
Each State shall submit to the Secretary, for approval by the
Secretary, an amendment to the plan required by subsection (e) of
this section that describes the manner in which funds provided
under this section will be used for technology and information
management systems.
(2) Requirements
The amendment shall, at a minimum, describe the manner in which
the State will improve program integrity by -
(A) monitoring the nutrient content of meals served;
(B) providing training to local educational agencies, school
food authorities, and schools on the use of technology and
information management systems for activities including -
(i) menu planning;
(ii) collection of point-of-sale data; and
(iii) the processing of applications for free and reduced
price meals; and
(C) using electronic data to establish benchmarks to compare
and monitor program integrity, program participation, and
financial data across schools and school food authorities.
(3) Technology infrastructure grants
(A) In general
Subject to the availability of funds made available under
paragraph (4) to carry out this paragraph, the Secretary shall,
on a competitive basis, provide funds to States to be used to
provide grants to local educational agencies, school food
authorities, and schools to defray the cost of purchasing or
upgrading technology and information management systems for use
in programs authorized by this chapter (other than section 1786
of this title) and the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.).
(B) Infrastructure development plan
To be eligible to receive a grant under this paragraph, a
school or school food authority shall submit to the State a
plan to purchase or upgrade technology and information
management systems that addresses potential cost savings and
methods to improve program integrity, including -
(i) processing and verification of applications for free
and reduced price meals;
(ii) integration of menu planning, production, and serving
data to monitor compliance with section 9(f)(1) of the
Richard B. Russell National School Lunch Act (42 U.S.C.
1758(f)(1)); and
(iii) compatibility with statewide reporting systems.
(4) Authorization of appropriations
There are authorized to be appropriated to carry out this
subsection such sums as are necessary for each of fiscal years
2005 through 2009, to remain available until expended.
(j) Authorization of appropriations
For the fiscal year beginning October 1, 1977, and each
succeeding fiscal year ending before October 1, 2009, there are
hereby authorized to be appropriated such sums as may be necessary
for the purposes of this section.