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.
- USDA Memo: SP 60-2016: Indirect Cost Guidance
- Indirect Costs: Guidance for State Agencies & School Food Authorities (USDA)
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.
- Capital Expenditure Approved List for School Food Authority Equipment Purchases (CSDE): SFAs may properly procure equipment on this list without prior CSDE approval. However, as required by 2 CFR 200.439, SFAs must receive prior approval from the CSDE for any capital expenditure requests for equipment with a unit cost of $5,000 or greater that is not included on this list. Any used equipment with a purchase price of $5,000 or greater also requires CSDE approval.
- Capital Expenditure Request Form: Completed in the CSDE’s Online Application and Claiming System for Child Nutrition Programs (CNP System).
- Cost Allocation Plan Form for School Nutrition Programs (CSDE): For any expenditures that benefit other programs (such as cafeteria furniture, lunch aides, and utilities), this form must be submitted to the CSDE in the CNP System with one or both of the forms below.
- Plan to Reduce Excess Operating Balance for School Nutrition Programs
- Capital Expenditure Request Form (refer to CSDE's Instructions for Completing the Capital Expenditure Request Form for School Nutrition Programs)
- USDA Memo SP 39-2016: State Agency Prior Approval Process for School Food Authority (SFA) Equipment Purchases
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.
- A la Carte Food Cost and Price Charged Comparison Worksheet (CSDE): This Excel worksheet determines if the a la carte price for a food or beverage item covers the cost of producing that item.
- Nonprogram Pricing Worksheets for Adult Meals (CSDE): This Excel document contains two worksheets to determine the breakfast and lunch price for adult meals: Worksheet 1: Pricing of Adult Meals in School Nutrition Programs; and Worksheet 2: Pricing of Adult Meals in Community Eligibility Provision (CEP) Schools.
- Pricing Worksheet for A La Carte Sales in School Nutrition Programs (CSDE): This Excel worksheet determines the correct pricing of a la carte items to meet a SFA's desired food cost percentage.
- Nonprogram Revenue Calculator (USDA): This Excel worksheet helps SFAs ensure that revenue from the sale of nonprogram foods covers the cost of the food and is not subsidized though federal reimbursement.
- USDA Memos
- USDA Memo SP 20-2016: Nonprofit School Food Service Account Nonprogram Food Revenue Requirements
- USDA Memo SP 13-2014: School Food Service Account Revenue from the Sale of Nonprogram Foods
- USDA Memo SP 39-2011 Revised: Guidance on Paid Lunch Equity and Revenue from Nonprogram Foods