Financial Management - Summer Food Service Program for Children

I. PURPOSE

This Instruction establishes standards, principles, and guidelines to assist SAs and FNSROs in the development and maintenance of financial management systems, including accounting information systems which are to be maintained by sponsors, thereby assuring that:

A. All costs claimed in the program are necessary and reasonable.

B. Program funds are expended efficiently, economically, and in accordance with applicable laws and regulations.

Funding for the SFSP is provided to assist states in initiating and maintaining nonprofit food service programs for children during the summer months and all other approved times. The food service provided under the SFSP is similar to that provided under the National School Lunch and School Breakfast Programs and is intended primarily to serve children from needy areas when, area schools are closed for vacation.

II. AUTHORITY

The SFSP is authorized by section 13 of the National School Lunch Act, as amended. Program regulations issued by the Department are found in 7 CFR 225.

Principles for determining applicable costs and factors affecting allowability of costs for management of grant programs are as provided for in 7 CFR 3015, Uniform Federal Assistance Regulations, and a number of OMB Circulars governing cost principles (A-87 and A-122), financial management requirements (A-102 and A-110) and audits (A-125 and A-133).