**Summer Meals for Kids**

**In Virginia**

**2003 Guide for**

**Preparation of the**

Claim for Reimbursement

Mid-Atlantic Regional Office

Food and Nutrition Service

U.S. Department of Agriculture

Mercer Corporate Park

300 Corporate Boulevard

Robbinsville, New Jersey 08691-1598

"In accordance with Federal law and U.S. Department of Agriculture
policy, this institution is prohibited from discriminating on the basis
of race, color, national origin, sex, age, or disability.

To file a complaint of discrimination, write USDA, Director, Office of
Civil Rights, Room 326-W, Whitten Building, 1400 Independence Avenue,
S.W., Washington, DC 20250-9410 or call (202) 720-5964 (voice and TDD). 
\"USDA is an equal opportunity provider and employer.\"

#### Revised December 2002

![](media/image1.wmf){width="2.0069444444444446in"
height="2.0215277777777776in"}

**Contents**

+-------------------------------------------------------+--------------+
|                                                       | **page**     |
+-------------------------------------------------------+--------------+
| **Introduction**                                      | 1            |
+-------------------------------------------------------+--------------+
| **The *Claim for Reimbursement* Form**                | 2            |
+-------------------------------------------------------+--------------+
| -   **The Actual Form**                               | 3            |
+-------------------------------------------------------+--------------+
| -   **Basics of SFSP Reimbursement**                  | 4            |
+-------------------------------------------------------+--------------+
| -   **Completing the *Claim* Form**                   | 5            |
+-------------------------------------------------------+--------------+
| **Regulatory Requirements on Reimbursement**          | 8            |
+-------------------------------------------------------+--------------+
| **Allowable & Unallowable Costs**                     | 11           |
+-------------------------------------------------------+--------------+
| **Program Income**                                    | 13           |
+-------------------------------------------------------+--------------+
| **Miscellaneous Reimbursement Reminders!**            | 14           |
+-------------------------------------------------------+--------------+
| **Attachments:**                                      | 14           |
+-------------------------------------------------------+--------------+
| I.  **FNS Instruction 796-4, REV. 4**                 |              |
|                                                       |              |
|     **Financial Management - Summer Food Service      |              |
|     Program for Children**                            |              |
+-------------------------------------------------------+--------------+
| II. **Virginia Policy - MEAL SERVICE AND MEAL         |              |
|     COUNTS**                                          |              |
+-------------------------------------------------------+--------------+

### 

### 

### 

### 

### Summer Meals for Kids in Virginia

### 2003

**Introduction**

We have prepared this *Guide* to help you complete the *Claim for
Reimbursement* form in order to receive the reimbursement to which you
are entitled. **This *Guide* is intended primarily for use by those who
will be preparing and completing the *Claims for Reimbursement* for the
SFSP.** We have put this *Guide* together to provide a reference to
those who complete the *Claim* form. Although we have discussed how to
complete the *Claim* form at past Sponsor Preparation Workshops, we have
found that frequently the preparer of the *Claim* forms is not the
person who attends the Workshops. Therefore, we strongly encourage those
of you who receive this *Guide* to make sure it gets to that person(s)
who is responsible for completing the *Claim for Reimbursement*. If you
need additional copies of the *Guide*, feel free to make copies or give
us a call and we will send you additional copies.

Finally, since we are trying to meet *your* needs in properly
administering and operating the SFSP, we welcome any comments or
suggestions you may have to improve this *Guide*.

We have updated this *Guide* again for the 2003 season. All changes have
been highlighted with shading.

+----------------+------------------------------------------------------+
| **The *Claim   |                                                      |
| for            |                                                      |
| Reimbursement* |                                                      |
| Form**         |                                                      |
+----------------+------------------------------------------------------+
|                | -   If you have a problem with ***receipt of         |
|                |     payment***, you should call **KITTY WADDELL at** |
|                |     **(609) 259­-5129**. Ms. Waddell is with our      |
|                |     Financial Management staff and can address       |
|                |     questions related to the status of your          |
|                |     reimbursements.                                  |
|                |                                                      |
|                |     e-mail: **<kitty.waddell@fns.usda.gov>**         |
|                |                                                      |
|                | -   If you have a question related to the            |
|                |     ***amount** of your reimbursement*, you should   |
|                |     call **GAIL MAGEE** of our SFSP staff at **(609) |
|                |     259-5137**.                                      |
|                |                                                      |
|                | e-mail: **<gail.magee@fns.usda.gov>**                |
|                |                                                      |
|                | **Fax: (609) 259-5196**                              |
+----------------+------------------------------------------------------+
| **Where to     | > **Summer Meals for Kids - SFSP**                   |
| Mail Your      | >                                                    |
| Completed      | > **Food & Nutrition Service, USDA**                 |
| Claim Form**   | >                                                    |
|                | > **Mercer Corporate Park**                          |
|                | >                                                    |
|                | > **300 Corporate Boulevard**                        |
|                | >                                                    |
|                | > **Robbinsville, New Jersey 08691-1598**            |
+----------------+------------------------------------------------------+

![](media/image2.wmf){width="0.9916666666666667in"
height="1.1277777777777778in"}

## 

## BASICS OF SFSP REIMBURSEMENT

-   USDA determines how much a sponsor is to be reimbursed. You will be
    reimbursed the **LOWER** of:

    1.  Actual costs incurred;

# OR

2.  Maximum allowed by Congress as determined by multiplying the number
    of meals **SERVED** to children by the per meal reimbursement rate;

# OR

3.  For *Administrative* reimbursement, your administrative budget is a
    third factor; if your budget were the lowest figure, you would be
    reimbursed at the budget level.

    -   With your application approval, we will send you a spreadsheet
        that will project for you the amount of funding you could earn
        based on your estimates of the number of children you may serve.

    -   **Advances** on reimbursement are available and can be requested
        on your *Application for Sponsorship*.

    -   *Claim for Reimbursement* forms will be sent with your
        application approval.

    -   ***Claim* forms must be within 30 days** of the end of the month
        for which you are claiming reimbursement!

> ![](media/image3.wmf){width="0.96875in" height="1.0416666666666667in"}

-   ![](media/image4.wmf){width="1.5208333333333333in"
    height="1.1770833333333333in"}Reimbursement is sent to you via
    **E**lectronic **F**unds **T**ransfer. There are no checks. Once
    your *Claim for Reimbursement* arrives in our office, funds are
    usually transferred to your bank account electronically within
    **five** business days.

+----------------+------------------------------------------------------+
| **Completing   |                                                      |
| the *Claim*    |                                                      |
| Form**         |                                                      |
+----------------+------------------------------------------------------+
| **Block        | **Instruction**                                      |
| Number/Name**  |                                                      |
+----------------+------------------------------------------------------+
| **Adjusted     | This is a simple check-off block. You should check   |
| *Claim***      | this block **only** if you are submitting an         |
|                | *Adjusted Claim*; i.e., you have already submitted a |
|                | *Claim* and you are now submitting data that are     |
|                | different from the original submission.              |
|                |                                                      |
|                | [Notes]{.underline}:                                 |
|                |                                                      |
|                | -   All data fields must be completed on *Adjusted*  |
|                |     *Claims*, both those with original information   |
|                |     and those with revised information.              |
|                |                                                      |
|                | -   *Adjusted Claims* must report the same month(s)  |
|                |     as the original *Claim*. You may not separate or |
|                |     combine new months on the *Adjusted* *Claim*.    |
|                |                                                      |
|                | **If you are having trouble meeting the 30-day       |
|                | reporting requirement, submit a *Claim* with         |
|                | incomplete information in order to meet the 30-day   |
|                | reporting requirement. Then submit an *Adjusted*     |
|                | *Claim* when you have complete information within    |
|                | the maximum 60-day timeframe.**                      |
+----------------+------------------------------------------------------+
| 1.  **Sponsor  | This is a five-digit number starting with the number |
|     Number**   | "**5**" . This number will be assigned by our office |
|                | (for those of you continuing from year to year, it   |
|                | should remain the same). If your organization        |
|                | participated in the SFSP last year, this number will |
|                | be preprinted on your *Application* and *Claim*      |
|                | forms.                                               |
+----------------+------------------------------------------------------+
| 2.  **Name and | This should be the *mailing* name and address as     |
|     Address of | provided in your *Sponsor Application*. Again, if    |
|     Sponsor    | your organization participated in the SFSP last      |
|                | year, this number will be preprinted.                |
| Organization** |                                                      |
+----------------+------------------------------------------------------+
| 3.  **Month on | Since this may be a ***multiple***-month (or         |
|     this Claim | combined) *Claim*, you should enter the number of    |
|     with       | the month and year for the month on this *Claim*     |
|     Greatest   | with **greatest number of operating days**.          |
|     Number of  |                                                      |
|     Operating  | Example: July 2003 = **0 7 2 0 0 3**                 |
|     Days**     |                                                      |
|                | Month Year                                           |
+----------------+------------------------------------------------------+
| 4.  **Months   | You can submit more than one month's *Claim* on one  |
|     Covered by | form; this is generally referred to as a "combined"  |
|     This       | or "multiple-month" *Claim*. On a combined *Claim*,  |
|     Claim**    | there must be a primary month (i.e., the month with  |
|                | the greatest number of operating days) for which you |
|                | are submitting a *Claim* form. The additional months |
|                | (preceding and/or following) can have **no more than |
|                | ten operating days** in order to submit a combined   |
|                | *Claim*.                                             |
|                |                                                      |
|                | In other words, you can only combine months of **10  |
|                | days or less** with one full month of operation. If  |
|                | your SFSP operates for two or more months of 10 days |
|                | or more, **you must file separate *Claims* for those |
|                | months**.                                            |
+----------------+------------------------------------------------------+
| 5.  **Total    | For each month on this *Claim*, you should enter the |
|     Number of  | number of days during which meal service was         |
|     Days SFSP  | provided at one or more sites. On combined *Claims*, |
|     Meals      | make sure to correlate the number of meal service    |
|     Served     | days with the correct month.                         |
|     This       |                                                      |
|     Month**    |                                                      |
+----------------+------------------------------------------------------+
| Number of      | First, you must report only the number of meals      |
| Meals SERVED   | served to eligible children and that meet approved   |
| to Eligible    | meal pattern requirements.                           |
| Children       |                                                      |
|                | **You must report separately the number of meals you |
| 6.  Breakfasts | served as *firsts* and as *seconds* for each type of |
|                | meal for which you have been approved (i.e., 6.      |
| 7.  Lunches    | Breakfasts; 7. Lunches; 8. Suppers; 9.               |
|                | Supplements).**                                      |
| 8.  Suppers    |                                                      |
|                | **Seconds:** As indicated in SFSP regulations,       |
| 9              | "sponsors may claim reimbursement for a number of    |
| .  Supplements | second meals which does not exceed **two percent**   |
|                | of the number of first meals served to children for  |
|                | each meal type (i.e., breakfasts, lunches,           |
|                | supplements, or suppers) during the claiming         |
|                | period."                                             |
|                |                                                      |
|                | **Please note**: If you *report* more than the       |
|                | allowable two-percent seconds, we will accept the    |
|                | *Claim*, but reimburse you only **up to the          |
|                | allowable two-percent level**.                       |
+----------------+------------------------------------------------------+
| **Program      | Please remember to report ***ACTUAL*** costs         |
| Operating and  | incurred in the operation and administration of your |
| Administrative | SFSP. **Do NOT use the reimbursement rates to        |
| Costs and      | *"calculate"* costs.**                               |
| Income**       |                                                      |
|                | **THE REIMBURSEMENT CALCULATION IS USED BY THIS      |
|                | OFFICE TO ESTABLISH THE MAXIMUM THAT A SPONSOR CAN   |
|                | BE REIMBURSED.**                                     |
+----------------+------------------------------------------------------+
| 1              | Report the actual **Operating** costs you incurred   |
| 0. **Operating | in these categories during the *Claim* period for    |
|     Costs**    | which you have supporting documentation.             |
+----------------+------------------------------------------------------+
| a.  **Food**   | Enter all **food** costs including milk. Such costs  |
|                | should include, in addition to the purchase price,   |
|                | the cost of processing, distributing, transporting,  |
|                | storing or handling of any purchased or donated food |
|                | including USDA donated commodities.                  |
+----------------+------------------------------------------------------+
| b.  **Labor**  | Enter **labor** costs that include all wages earned  |
|                | in connection with the food preparation, delivery    |
|                | and service. Include costs incurred during the month |
|                | covering payroll deductions for Social Security,     |
|                | withholding tax, insurance, retirement, etc. as well |
|                | as employer's contribution for employee benefits     |
|                | (salaries of site ***supervisors*** are an           |
|                | **operating** cost while salaries of site            |
|                | ***monitors*** that conduct site visits and reviews  |
|                | are an **administrative** cost).                     |
+----------------+------------------------------------------------------+
| a.  **Other**  | Enter program costs **other** than for food, labor   |
|                | and administration. These costs include service      |
|                | costs, e.g., rental fees for food service            |
|                | facilities, rental or use allowance of food service  |
|                | equipment, repairs to equipment eligible for use     |
|                | allowance, and utilities, and cost of supplies used, |
|                | such as cleaning materials, paper plates, plastic    |
|                | eating utensils, straws, etc. \[**DO NOT INCLUDE     |
|                | costs reported in items 10a. and 10b.** \]           |
+----------------+------------------------------------------------------+
| 11. **Total    | This must be the total of the three ***Operating***  |
|     Operating  | cost subcategories in item #10 (10a. **+** 10b.      |
|     Costs**    | **+** 10c.). **In order for us to process a *Claim*, |
|                | at least \$1.00 of Operating expenditure must be     |
|                | reported.**                                          |
+----------------+------------------------------------------------------+
| 12. **Total    | Report ***all*** actual **Administrative** costs you |
|                | incurred during the *Claim* period for which you     |
| Administrative | have supporting documentation. Enter administrative  |
|     Costs**    | costs related to planning, organizing, and managing  |
|                | the SFSP, and rental cost of office space and        |
|                | equipment.                                           |
+----------------+------------------------------------------------------+
| -   **NOTE**:  |                                                      |
|     For        |                                                      |
|     additional |                                                      |
|     guidance   |                                                      |
|     on         |                                                      |
|     Operating  |                                                      |
|     and        |                                                      |
|                |                                                      |
| Administrative |                                                      |
|     costs, see |                                                      |
|                |                                                      |
|    **Allowable |                                                      |
|     &          |                                                      |
|                |                                                      |
|    Unallowable |                                                      |
|     Costs**    |                                                      |
|     beginning  |                                                      |
|     on page    |                                                      |
|     13.        |                                                      |
+----------------+------------------------------------------------------+
| 13. **All      | Enter amount of funds received for food service from |
|     Non-USDA   | individual donations, State and local contributions, |
|     Income     | payments for adult meals, and reimbursement from     |
|     Received   | other Federal programs. Income can include, but not  |
|     for Food   | be limited to:                                       |
|     Service**  |                                                      |
|                | 1.  all other monies received from Federal, State or |
|                |     local governments for the SFSP,                  |
|                |                                                      |
|                | 2.  meal charges to adults,                          |
|                |                                                      |
|                | 3.  income from food sales, and                      |
|                |                                                      |
|                | 4.  cash donations or grants from organizations or   |
|                |     individuals used in the food service.            |
|                |                                                      |
|                | All income which is received must be properly        |
|                | documented. Do **not** include advance payments and  |
|                | monthly reimbursements from this office.             |
+----------------+------------------------------------------------------+
| 14.            | Enter the date you prepare the *Claim* form. The     |
|  **Preparation | preparation date should be ***after*** the date the  |
|     Date**     | last day of meal service                             |
+----------------+------------------------------------------------------+
| > **Name of    | The *Claim for Reimbursement* form should be signed  |
| > Authorized   | by the                                               |
| >              |                                                      |
| Representative |                                                      |
| >              |                                                      |
|  \[*Print*\]** |                                                      |
+----------------+------------------------------------------------------+
| > **Title**    | representative of your agency that signed the        |
|                | Sponsor Application.                                 |
|                |                                                      |
|                | First print the name of the Authorized               |
|                | Representative, provide this                         |
+----------------+------------------------------------------------------+
| > **Signature  | person's title and finally sign the document.        |
| > of           |                                                      |
| > Authorized   |                                                      |
| > Re           |                                                      |
| presentative** |                                                      |
+----------------+------------------------------------------------------+
| > **Contact    | You should indicate the telephone number of the      |
| > Telephone    | Authorized Representative in case we need to contact |
| > Number**     | that person if we have a question regarding your     |
|                | *Claim*.                                             |
+----------------+------------------------------------------------------+
| Other fields   |                                                      |
| at the bottom  |                                                      |
| of the *Claim* |                                                      |
| form (e.g.,    |                                                      |
| **Entry        |                                                      |
| Date**,        |                                                      |
| **Approval     |                                                      |
| Serial No**.,  |                                                      |
| **Paylist      |                                                      |
| Number** and   |                                                      |
| **Paylist      |                                                      |
| Date**) are    |                                                      |
| for FNS        |                                                      |
| personnel      |                                                      |
| only. You need |                                                      |
| not enter any  |                                                      |
| data into      |                                                      |
| these fields.  |                                                      |
+----------------+------------------------------------------------------+

+----------------+------------------------------------------------------+
| **Regulatory   |                                                      |
| Requirements   |                                                      |
| on             |                                                      |
| R              |                                                      |
| eimbursement** |                                                      |
+----------------+------------------------------------------------------+
| The provisions | \(d\) **Reimbursements**. Sponsors shall not be      |
| of the SFSP    | eligible for reimbursements for operating and        |
| regulations    | administrative costs unless they have executed an    |
| relating to    | agreement with the State agency. All reimbursements  |
| reimbursement  | shall be in accordance with the terms of this        |
| of sponsors    | agreement. Reimbursements shall not be paid for      |
| are            | meals served at a site before the sponsor has        |
| articulated at | received written notification that the site has been |
| **Section      | approved for participation in the Program. Income    |
| 225.9(d)**.    | accruing to a sponsor\'s program shall be deducted   |
|                | from combined operating and administrative costs.    |
| ![](medi       | The State agency may make full or partial            |
| a/image5.wmf){ | reimbursement upon receipt of a claim for            |
| width="1.54513 | reimbursement, but shall first make any necessary    |
| 88888888888in" | adjustments in the amount to be paid. The following  |
| he             | requirements shall be observed in submitting and     |
| ight="1.360416 | paying claims:                                       |
| 6666666666in"} |                                                      |
|                | (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              |
|                |     administrative costs 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              |
|                |     administrative costs since its initial advance   |
|                |     administrative costs payment.                    |
|                |                                                      |
|                | (3) Sponsors which operate less than 10 days in the  |
|                |     final month of operations shall submit a         |
|                |     combined claim for the final month and the       |
|                |     immediate preceding month within 60 days of the  |
|                |     last day of operation.                           |
|                |                                                      |
|                | (4) The State agency shall forward reimbursements    |
|                |     within 45 days of receiving valid claims. If a   |
|                |     claim is incomplete or invalid, the State agency |
|                |     shall return the claim to the sponsor within 30  |
|                |     days with an explanation of the reason for       |
|                |     disapproval. If the sponsor submits a revised    |
|                |     claim, final action shall be completed within 45 |
|                |     days of receipt.                                 |
|                |                                                      |
|                | (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 . . . 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 served     |
|                |     and/or administrative costs claimed during the   |
|                |     period covered by the records in question. The   |
|                |     costs of meals served 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 and/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 . |
|                |     . .                                              |
+----------------+------------------------------------------------------+
| **Virginia     | For the Virginia SFSP, we have established a         |
| Policy**       | **30-day submission deadline** to ensure that        |
|                | sponsors do not run afoul of the regulatory 60-day   |
| ![](medi       | deadline, beyond which we may not be able to         |
| a/image6.wmf){ | reimburse sponsors. You should make sure that you    |
| width="1.54652 | send in your *Claim* form ***within 30 days of the   |
| 77777777777in" | end of the month for which you are claiming          |
| he             | reimbursement***. After 60 days, we cannot pay you   |
| ight="0.931944 | at all. Even if you have incomplete data, you should |
| 4444444445in"} | submit a *Claim* form to meet the time submission    |
|                | deadline. You can *always* submit an adjusted        |
|                | *Claim*.                                             |
|                |                                                      |
|                | For combined/multiple month *Claims*, you should     |
|                | submit the *Claim* form within 30 days of the last   |
|                | operating day. For example, if you are claiming for  |
|                | the period June 28 through August 3 on one *Claim*   |
|                | form, your *Claim* should be submitted by September  |
|                | 2 (since August has 31 days).                        |
|                |                                                      |
|                | Many sponsors indicate that their *Claims* are not   |
|                | submitted on time because they sponsors receive cost |
|                | or meal count information late. Our advise is to     |
|                | **submit the *Claim* even though it may contain      |
|                | incomplete information. You may submit, within 60    |
|                | days after the month covered by the *Claim*, an      |
|                | *Adjusted* *Claim* and receive the full amount of    |
|                | reimbursement to which you are entitled**.           |
|                |                                                      |
|                | Some sponsors wait for USDA reviewers to come out    |
|                | and help firm up your meal count and cost records.   |
|                | **Don't wait for us!** Submit the *Claim*!           |
+----------------+------------------------------------------------------+
| ***How* You    | Most importantly, **your reimbursement will be       |
| Get            | calculated by USDA, based on the rates in effect**.  |
| Reimbursed**   | Your reimbursement will be based on the following    |
|                | rules:                                               |
| *Again,        |                                                      |
| Section        | (7) Payments to a sponsor for ***operating costs***  |
| 225.9(d) of    |     must equal the **LESSER** of the following       |
| the SFSP       |     totals:                                          |
| regulations    |                                                      |
| addresses the  | ```{=html}                                           |
| methods by     | <!-- -->                                             |
| which sponsors | ```                                                  |
| are            | (i) The actual operating costs incurred by the       |
| reimbursed.*   |     sponsor; or                                      |
|                |                                                      |
| ![](media/i    | (ii) The sum of the amounts derived by multiplying   |
| mage7.wmf){wid |      the number of meals, by type, actually served   |
| th="1.18125in" |      under the sponsor\'s program to eligible        |
| he             |      children by the current rates for each meal     |
| ight="1.266666 |      type, as adjusted in accordance with paragraph  |
| 6666666666in"} |      (d)(9) of this section.                         |
|                |                                                      |
|                | ```{=html}                                           |
|                | <!-- -->                                             |
|                | ```                                                  |
|                | (8) Payments to a sponsor for ***administrative      |
|                |     costs*** must equal the **LOWEST** of the        |
|                |     following totals:                                |
|                |                                                      |
|                | ```{=html}                                           |
|                | <!-- -->                                             |
|                | ```                                                  |
|                | (i) The amount estimated in the **sponsor\'s         |
|                |     approved administrative budget** (taking into    |
|                |     account any amendments);                         |
|                |                                                      |
|                | (ii) The **actual administrative costs** incurred by |
|                |      the sponsor; or                                 |
|                |                                                      |
|                | (iii) The **sum of the amounts derived by            |
|                |       multiplying the number of meals, by type,      |
|                |       actually served** under the sponsor\'s program |
|                |       to eligible children by the current            |
|                |       administrative rates for each meal type, as    |
|                |       adjusted in accordance with paragraph (d)(9)   |
|                |       of this section. Sponsors must be eligible to  |
|                |       receive additional administrative              |
|                |       reimbursement for each meal served to          |
|                |       participating children at rural or             |
|                |       self-preparation sites, and the rates for such |
|                |       additional administrative reimbursement must   |
|                |       be adjusted in accordance with paragraph       |
|                |       (d)(9) of this section.                        |
|                |                                                      |
|                | Any Income reported on the *Claim* form will be      |
|                | deducted proportionately from the Operating and      |
|                | Administrative costs reported in order to calculate  |
|                | your reimbursement. Please remember to report        |
|                | ***actual*** costs incurred. Do NOT use the          |
|                | reimbursement rates to *calculate* costs (a common   |
|                | mistake). The reimbursement calculation is used by   |
|                | this office to establish the maximum a sponsor can   |
|                | be reimbursed.                                       |
+----------------+------------------------------------------------------+
| *              | (9) Each January 1, or as soon thereafter or as      |
| *Establishment |     practicable, FNS will publish a notice in the    |
| of             |     Federal Register announcing any adjustment to    |
| Reimbursement  |     the reimbursement rates described in paragraphs  |
| Rates**        |     (d)(7)(ii) and (d)(8)(iii) of this section.      |
|                |     Adjustments will be based upon changes in the    |
|                |     series for food away from home of the Consumer   |
|                |     Price Index (CPI) for all urban consumers since  |
|                |     the establishment of the rates. Higher rates     |
|                |     will be established for Alaska and Hawaii, based |
|                |     on the CPI for those States.                     |
+----------------+------------------------------------------------------+
| *              | (10) Sponsors of camps shall be reimbursed only for  |
| *Reimbursement |      meals served to children in camps whose         |
| for Meals      |      eligibility for Program meals is documented.    |
| Served by      |      Sponsors of NYSP sites shall only claim         |
| Camps**        |      reimbursement for meals served to children      |
|                |      enrolled in the NYSP.                           |
+----------------+------------------------------------------------------+
| **No           | (11) If a State agency has reason to believe that a  |
| Reimbursement  |      sponsor or food service management company has  |
| for Cause**    |      engaged in unlawful acts in connection with     |
|                |      Program operations, evidence found in audits,   |
|                |      reviews, or investigations shall be a basis for |
|                |      nonpayment of the applicable sponsor\'s claims  |
|                |      for reimbursement.                              |
+----------------+------------------------------------------------------+
| *              | \(e\) The sponsor may claim reimbursement for any    |
| *Reimbursement | meals which are examined for meal quality by the     |
| for Tested     | State agency, auditors, or local health authorities  |
| Meals**        | and found to meet the meal pattern requirements.     |
+----------------+------------------------------------------------------+
| **No           | \(f\) The sponsor shall not claim reimbursement for  |
| Reimbursement  | meals served to children at any site in excess of    |
| for Meals Over | the site\'s approved level of meal service, if one   |
| Approved       | has been established under §225.6(d)(2). However,    |
| Maximum**      | the total number of meals for which operating costs  |
|                | are claimed may exceed the approved level of meal    |
|                | service if the meals exceeding this level were       |
|                | served to adults performing necessary food service   |
|                | labor in accordance with paragraph (d)(5) of this    |
|                | section. In reviewing a sponsor\'s claim, the State  |
|                | agency shall ensure that reimbursements for second   |
|                | meals are limited to the percentage tolerance        |
|                | established in §225.15(b)(4).                        |
+----------------+------------------------------------------------------+

+----------------+------------------------------------------------------+
| **Allowable &  |                                                      |
| Unallowable    |                                                      |
| Costs**        |                                                      |
|                |                                                      |
| **[Note]{      |                                                      |
| .underline}**: |                                                      |
| For sponsors   |                                                      |
| to realize     |                                                      |
| their maximum  |                                                      |
| reimbursement, |                                                      |
| it is          |                                                      |
| essential to   |                                                      |
| establish a    |                                                      |
| procedure to   |                                                      |
| collect        |                                                      |
| documentation  |                                                      |
| of actual      |                                                      |
| operating and  |                                                      |
| administrative |                                                      |
| costs **as     |                                                      |
| they occur**   |                                                      |
| throughout the |                                                      |
| program.       |                                                      |
| Reimbursement  |                                                      |
| may not be     |                                                      |
| claimed        |                                                      |
| without        |                                                      |
| supporting     |                                                      |
| receipts and   |                                                      |
| records.       |                                                      |
+----------------+------------------------------------------------------+
| **Operating    | ***Operating*** costs are expenses incurred when     |
| Costs**        | preparing, delivering and serving meals for the      |
|                | SFSP. To figure out the allowable operating costs,   |
| ![](medi       | total all actual allowable costs. These costs        |
| a/image8.wmf){ | include, but are not limited to:                     |
| width="1.37013 |                                                      |
| 88888888888in" | -   **Food** - purchasing, storing and obtaining     |
| h              |                                                      |
| eight="1.20763 | -   **Non-food supplies** - involved in preparation, |
| 8888888889in"} |     serving and clean-up only                        |
|                |                                                      |
|                | -   **Labor** - preparing, delivering, serving and   |
|                |     clean-up (e.g., site supervisors)                |
|                |                                                      |
|                | -   **Facilities** - rental of food service          |
|                |     facilities and equipment, utilities, repairs     |
|                |     involved in food preparation, serving and        |
|                |     clean-up                                         |
|                |                                                      |
|                | -   **Transportation** of food                       |
|                |                                                      |
|                | -   **Transportation** of children - rural only      |
|                |                                                      |
|                | -   See *Administrative Guidance for Sponsors* for   |
|                |     additional guidance and examples of allowable    |
|                |     operating costs.                                 |
|                |                                                      |
|                | **Camp sponsors** must remember that they can only   |
|                | report a *portion* of their operating costs on the   |
|                | *Claim for Reimbursement*. Only the ***cost*** of    |
|                | meals served to children eligible for                |
|                | free-or-reduced-price meals and Program adults are   |
|                | allowable; the cost of meals served to others is     |
|                | considered unallowable. For each reporting period,   |
|                | the sponsor should calculate the percentage of       |
|                | operating costs to be submitted. **This factor is    |
|                | NOT applied to Program administrative costs.**       |
|                |                                                      |
|                | Operating costs also include the cost of producing   |
|                | meals served to program adults who are performing    |
|                | meal service labor.                                  |
|                |                                                      |
|                | If the sponsor chooses to serve meals to adults, the |
|                | following rules must be observed:                    |
|                |                                                      |
|                | -   If the number of meals is limited, *all children |
|                |     must be fed **first***.                          |
|                |                                                      |
|                | -   Income from the sale of adult meals and/or       |
|                |     non-program funds used to pay for adult meals    |
|                |     must be reported as income to the program on the |
|                |     *Claim* form to offset reported costs.           |
|                |                                                      |
|                | -   Meals served to children, program adults, and    |
|                |     non-program adults must be counted and recorded  |
|                |     separately on the daily meal count form.         |
|                |                                                      |
|                | -   A decision to serve meals to adults may require  |
|                |     additional site staff to maintain program safety |
|                |     and integrity.                                   |
+----------------+------------------------------------------------------+
| **             | ***Administrative*** costs are expenses incurred     |
| Administrative | when managing or administering the program. To       |
| Costs**        | figure the actual allowable administrative costs,    |
|                | total all allowable costs. These costs include, but  |
| ![](medi       | are not limited to:                                  |
| a/image9.wmf){ |                                                      |
| width="1.05208 | -   **Labor** - administrative, clerical,            |
| 33333333333in" |     monitoring, bookkeeping (e.g., monitors who do   |
| he             |     required site reviews).                          |
| ight="0.949305 |                                                      |
| 5555555555in"} | -   **Establishing the eligibility** of children for |
|                |     free or reduced price school meals               |
|                |                                                      |
|                | -   **Facilities** - rental of office space,         |
|                |     equipment and vehicles not owned by the sponsor. |
|                |                                                      |
|                | -   **Use allowance** - for office equipment         |
|                |                                                      |
|                | -   **Office supplies**                              |
|                |                                                      |
|                | -   **Vehicle allowance** - mileage, parking expense |
|                |                                                      |
|                | -   **Communications** - telephone, postage,         |
|                |     advertising                                      |
|                |                                                      |
|                | -   **Insurance** and indemnification                |
|                |                                                      |
|                | -   **Audits**                                       |
|                |                                                      |
|                | -   See *Administrative Guidance for Sponsors* for   |
|                |     additional guidance and examples of allowable    |
|                |     administrative costs.                            |
|                |                                                      |
|                | You should only be charging that portion of the      |
|                | administrative cost incurred that benefits the SFSP. |
|                | If equipment or services are purchased for the sole  |
|                | use of the SFSP, then 100 percent would be allocable |
|                | to the SFSP. If, however, the purchase is to benefit |
|                | several objectives, then only the appropriate        |
|                | percentage should be charged to the SFSP. For        |
|                | example, you may use time cards to document the      |
|                | appropriate amount of salaries and benefits charged  |
|                | to the SFSP and cost allocation plans to establish   |
|                | and charge the appropriate amounts for other         |
|                | purchases.                                           |
+----------------+------------------------------------------------------+
| **Unallowable  | Examples of ***Unallowable*** costs include, but are |
| Costs**        | not limited to:                                      |
|                |                                                      |
| ![](media      | -   the cost to purchase ***food*** (including       |
| /image10.wmf){ |     coffee, etc.) ***for use outside the SFSP***;    |
| width="1.24722 |                                                      |
| 22222222222in" | -   the costs of ***meals served to**                |
| he             |     **administrative adult personnel***, or any      |
| ight="2.084027 |     other adults that are not food service workers;  |
| 7777777776in"} |                                                      |
|                | -   ***more than one meal served to a food           |
| ![](media      |     service/Program adult***;                        |
| /image11.wmf){ |                                                      |
| width="1.36180 | -   ***contributions and donations*** - money,       |
| 55555555555in" |     supplies and food from other groups (including   |
| he             |     USDA commodities);                               |
| ight="1.480555 |                                                      |
| 5555555556in"} | -   ***meals served in violation of Program          |
|                |     regulations***; e.g., meals served outside       |
|                |     approved serving time, meals or components       |
|                |     consumed off-site, second meals served in excess |
|                |     of the 2% tolerance;                             |
|                |                                                      |
|                | -   ***interest*** on loans, bond discounts, costs   |
|                |     of financing and refinancing operations,         |
|                |     including legal and professional fees in         |
|                |     connection therewith;                            |
|                |                                                      |
|                | -   ***entertainment***; e.g., costs of amusements,  |
|                |     social activities, and incidental related costs  |
|                |     such as meals, beverages, lodging, rentals,      |
|                |     transportation, gratuities, etc.;                |
|                |                                                      |
|                | -   ***donated labor***; e.g., volunteer labor or    |
|                |     labor funded through other Federal, State, or    |
|                |     local government programs;                       |
|                |                                                      |
|                | -   costs of ***spoiled or damaged meals***;         |
|                |                                                      |
|                | -   repayment of ***overclaims*** and other Federal  |
|                |     debts;                                           |
|                |                                                      |
|                | -   contributions to a ***contingency reserve*** or  |
|                |     any similar provision for unseen events; e.g.    |
|                |     lawyer;                                          |
|                |                                                      |
|                | -   ***fines or penalties*** resulting from          |
|                |     violations of, or failure to comply with         |
|                |     Federal, State, or local laws or regulations;    |
|                |                                                      |
|                | -   ***bad debts*** which are losses arising from    |
|                |     uncollectible accounts and other claims and      |
|                |     related costs;                                   |
|                |                                                      |
|                | -   ***administrative costs not included in the      |
|                |     approved budget***;                              |
|                |                                                      |
|                | -   ***capital expenditures***, including            |
|                |     nonexpendable equipment;                         |
|                |                                                      |
|                | -   ***fund raising expenses***; e.g., financial     |
|                |     campaigns, endowment drives, solicitation of     |
|                |     gifts and bequests, and similar expenses         |
|                |     incurred to raise capital or obtain              |
|                |     contributions;                                   |
|                |                                                      |
|                | -   ***rental or leasing costs for buildings***,     |
|                |     facilities, or equipment if the rental agreement |
|                |     includes option-to-purchase, or for periods      |
|                |     beyond the close-out date for Program            |
|                |     operations;                                      |
|                |                                                      |
|                | -   ***rental or leasing costs*** may not be charged |
|                |     to the Program for buildings, food service       |
|                |     equipment, or vehicles *owned by the sponsor*;   |
|                |                                                      |
|                | -   ***rental for the use of land or buildings used  |
|                |     only to serve meals***;                          |
|                |                                                      |
|                | -   ***rental or leasing fees*** may not be charged  |
|                |     to the Program ***if fees exceed those normally  |
|                |     charged*** in the sponsor\'s locality for        |
|                |     comparable buildings, food service equipment,    |
|                |     and vehicles;                                    |
|                |                                                      |
|                | -   costs of ***purchasing land***, acquiring or     |
|                |     constructing buildings, or making alterations to |
|                |     existing buildings, or any charges for the use   |
|                |     of land or buildings;                            |
|                |                                                      |
|                | -   ***repairs which materially increase the value   |
|                |     or useful life of capital assets*** (rebuilding  |
|                |     of equipment worth \$500 or more). Improvements  |
|                |     to facilities when those improvements are of a   |
|                |     permanent nature or when the benefits derived    |
|                |     from those improvements exceed the duration of   |
|                |     Program operations;                              |
|                |                                                      |
|                | -   ***maintenance costs*** of keeping rented        |
|                |     facilities in a clean and efficient operating    |
|                |     condition *if already reflected in rental fees*; |
|                |                                                      |
|                | -   ***depreciation or use allowance*** for publicly |
|                |     owned buildings and improvements;                |
|                |                                                      |
|                | -   for vended sponsors:                             |
|                |                                                      |
|                | ```{=html}                                           |
|                | <!-- -->                                             |
|                | ```                                                  |
|                | -   the cost of ***meals delivered by an FSMC to a   |
|                |     non-approved site***;                            |
|                |                                                      |
|                | -   ***meals not delivered within the agreed upon    |
|                |     delivery time;***                                |
|                |                                                      |
|                | -   ***meals served in excess of the approved        |
|                |     CAP***;                                          |
|                |                                                      |
|                | -   ***spoiled or unwholesome meals***, or           |
|                |                                                      |
|                | -   ***meals which do not meet meal requirements or  |
|                |     quality standards***.                            |
+----------------+------------------------------------------------------+
| **IMPORTANT:   |                                                      |
| No Program     |                                                      |
| ADMINISTRATIVE |                                                      |
| cost may be    |                                                      |
| claimed as an  |                                                      |
| OPERATING cost |                                                      |
| or vice        |                                                      |
| versa.**       |                                                      |
+----------------+------------------------------------------------------+

+----------------+------------------------------------------------------+
| **PROGRAM      |                                                      |
| INCOME**       |                                                      |
+----------------+------------------------------------------------------+
| ![](media      | ***Income*** is all funds, other than SFSP           |
| /image12.wmf){ | reimbursement and advance funds, including cash      |
| width="1.48402 | donations and grants, accruing to, transferred to,   |
| 77777777777in" | or collected by a sponsor and designated to be used  |
| he             | by a sponsor in its SFSP food service program. For   |
| ight="1.338194 | example, income from the sale of adult meals and/or  |
| 4444444445in"} | non-program funds used to pay for adult meals must   |
|                | be reported as income to the program on the *Claim*  |
|                | form to offset reported costs.                       |
|                |                                                      |
|                | Any credits or income accruing to the program, other |
|                | than reimbursement for the SFSP meals, must be       |
|                | recorded as income. Credits and income include, but  |
|                | are not limited to:                                  |
|                |                                                      |
|                | -   income from the sale of adult meals and/or       |
|                |     non-program funds used to pay for adult meals    |
|                |     must be reported to offset reported costs.       |
|                |                                                      |
|                | -   purchase discounts;                              |
|                |                                                      |
|                | -   rebates or allowances;                           |
|                |                                                      |
|                | -   recovery or indemnity on losses;                 |
|                |                                                      |
|                | -   receipt of incidental services;                  |
|                |                                                      |
|                | -   adjustments for overpayment or erroneous         |
|                |     charges;                                         |
|                |                                                      |
|                | -   payments from food sales to non-program adults;  |
|                |                                                      |
|                | -   donations of cash; and                           |
|                |                                                      |
|                | -   funds received from Federal (other than SFSP     |
|                |     reimbursement from the State agency), State or   |
|                |     local government units for the sponsor's food    |
|                |     services.                                        |
+----------------+------------------------------------------------------+

+-----------------------------------------------------------------------+
| **Miscellaneous Reimbursement Reminders!**                            |
+-----------------------------------------------------------------------+
| -   Sponsors of residential ***camps*** or sites serving              |
|     ***migrant*** children may be reimbursed for up to **three** (3)  |
|     meals per day.                                                    |
+-----------------------------------------------------------------------+
| -   Residential **camps** are reimbursed **only** for meals served to |
|     children who are eligible for free-or-reduced-price meals under   |
|     the National School Lunch or School Breakfast Programs.           |
+-----------------------------------------------------------------------+
| -   Food service sites that primarily serve children from **migrant   |
|     families** will receive reimbursement for *all* eligible meals    |
|     served to children at these sites.                                |
+-----------------------------------------------------------------------+
| -   **Other sponsors** may serve up to **two** meals a day. These     |
|     sponsors are reimbursed for *all* eligible meals served.          |
+-----------------------------------------------------------------------+

**ATTACHMENTS**

+-----------------------------------------------------------------------+
| ##### FNS Instruction 796-4, REV. 4                                   |
|                                                                       |
| > **Financial Management - Summer Food Service Program for Children** |
+-----------------------------------------------------------------------+
| II. **Virginia Policy - MEAL SERVICE AND MEAL COUNTS**                |
+-----------------------------------------------------------------------+

**Attachment II**

**MEAL SERVICE AND MEAL COUNTS**

**RELEVANT REGULATION CITATIONS**

-   **§225.9 - Program assistance to sponsors.**

> (d)(4) 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).
>
> \(e\) 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.
>
> \(f\) ***The sponsor shall not claim reimbursement for meals served to
> children at any site in excess of the site\'s approved level of meal
> service***, if one has been established under §225.6(d)(2). However,
> the total number of meals for which operating costs are claimed may
> exceed the approved level of meal service if the meals exceeding this
> level were served to adults performing necessary food service labor in
> accordance with paragraph (d)(4) of this section. In reviewing a
> sponsor\'s claim, the State agency shall ensure that reimbursements
> for second meals are limited to the percentage tolerance established
> in §225.15(b)(4).

-   **§225.15 - Management responsibilities of sponsors.**

> \(b\) **Meal Ordering.**
>
> \(3\) Sponsors shall 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***. The sponsor shall make the
> adjustments necessary to achieve this objective using the results from
> its monitoring of sites. For sites for which approved levels of meal
> service have been established in accordance with §225.6(d)(2), the
> sponsor shall adjust the number of meals ordered or prepared with the
> objective of providing only one meal per child whenever the number of
> children attending the site is below the approved level. ***The
> sponsor shall 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)(4). Records of participation and of preparation or ordering
> of meals shall be maintained to demonstrate positive action toward
> meeting this objective.
>
> \(4\) 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 two percent of the
> number of first meals served to children for each meal type (i.e.,
> breakfasts, lunches, supplements, or suppers) during the claiming
> period***. The State agency shall disallow all claims for second meals
> if it determines that the sponsor failed to plan and prepare or order
> meals with the objective of providing only one meal per child at each
> meal service. Second meals shall be served only after all
> participating children at the site\'s meal service have been served a
> meal.

**ADMINISTRATIVE GUIDANCE FOR SPONSORS**

**Meal Counts** \[Page 68\]

All sponsors will use daily site records in order to document the number
of Program meals they have served to children. The sponsor must provide
all necessary record sheets to the sites. Site supervisors are then
responsible for keeping the records each day. ***The site personnel must
complete the records based on actual counts taken at each site for each
meal service on each day of operation.*** Site personnel must be sure
that they record all required counts. These counts should include:

***\[NOTE:** While nowhere is it specifically required that sponsors
conduct a \"**point-of-service count**\" of the meals, we have always
**strongly** advocated the use of a \"point-of-service count\" as the
best way of achieving the accuracy that is required. Through the use of
a \"point-of-service count,\" site personnel are able to observe the
actual service of each meal and thus make an accurate meal count. Also,
when counting the meals at the actual point of service to children, it
allows site personnel to observe the meals and ensure that the children
receive complete meals.**\]***

-   the number of meals delivered or prepared, by type (breakfast,
    snack, lunch, supper). Vended programs must support this information
    with a signed delivery receipt. A designated member of the site
    staff must verify the adequacy and number of meals delivered by
    checking the meals when they are delivered to the site.

-   the number of complete first meals served to children, by type;

-   the number of complete second meals served to children, by type;

-   the number of excess meals or meals leftover;

-   the number of nonreimbursable meals;

-   the number of meals served to Program adults, if any; and

-   the number of meals served to non-Program adults, if any.

***Sponsors should collect these site records at least every week***.
Sponsors may have their monitors pick up site reports on designated
days, or sponsors may ask site supervisors to mail the records to the
sponsor\'s office. When deciding how they will collect site records,
sponsors must try to minimize the chances of losing the records. When
they collect the site records, sponsors should check for the site
supervisor\'s signature. Any sponsor serving vended meals must be sure
that the figure entered as the number of meals delivered on the site
record is the same as that entered on the vendor\'s report. If there is
any discrepancy between the numbers, the sponsor should immediately
contact the vendor and site supervisor and resolve the problem. The
sponsor should make a permanent note of the discrepancy as well as the
action that was taken to resolve it. A sample *Daily Meal Count Form* is
included in the Reference Section \[of the *Administrative Guidance for
Sponsors*\] as Attachment 19 and a *Meal Count - Consolidation Form* as
Attachment 21.