Financial Management for School Nutrition Programs

Allowable Expenditures


School food authorities (SFAs) must ensure that expenditures of nonprofit school food service account (NSFSA) revenues meet all federal and state requirements. The guidance below assists SFAs with meeting these requirements, ensuring that funds are used appropriately to support the operation and improvement of the school nutrition programs.

 

Indirect Costs  |   Capital Expenditure Requests/Equipment Approvals  |   Nonprogram Foods


Indirect Costs

Indirect costs are costs incurred for the benefit of multiple programs, functions, or other cost objectives that cannot be identified readily and specifically with a particular program or other cost objective. Indirect costs typically support administrative overhead functions such as fringe benefits, accounting, payroll, purchasing, facilities management, and utilities. SFAs must follow fair and consistent methodologies to identify and allocate allowable indirect costs to the NSFSA.

Capital Expenditure Requests and Equipment Approvals

SFAs must properly procure all capital expenditures and equipment according to 2 CFR 200, 7 CFR 210, and local procurement policies. Local procurement policies are often more stringent than these federal requirements.

Nonprogram Foods

Section 7 CFR 210.14 (f) of the NSLP regulations requires that the revenue from the sale of nonprogram foods covers the cost of the food and is not subsidized though federal reimbursement. “Nonprogram foods” include any nonreimbursable foods and beverages purchased using funds from the NSFSA. This encompasses all foods and beverages sold in schools such as a la carte items (e.g., milk, juice, entrées, and snack foods), second student meals, adult meals, foods sold outside of school hours, and any foods used for catering or vending activities. For most SFAs, a la carte foods offered during meal service account for the largest share of nonprogram foods.