This memorandum and attachment provide the information needed to conduct the FY2014 reallocation of SAE funds. Reallocation is a formal process by which State agencies can: (1) request additional SAE funds above their initial authorized funding level; or (2) return SAE funds they do not need. All State agencies must also submit an SAE Funds Reallocation Report (FNS-525) to their respective USDA Food and NutritionService (FNS) Regional office even if the State agency is neither requesting nor returning funds.
In FY 2014, State agencies may request SAE reallocation funds for any allowable expense associated with the administration of the Child Nutrition Programs (CNPs) as described under 7 CFR 235.6.With justification, allowable expenses include general administrative expenses as well as special one-time only projects that will increase the integrity, effectiveness and efficiency of the administration of the CNPs. However, if funds are awarded for activities that will continue beyond the grant period, State agencies must provide a plan for how the activities will be funded after the grant period ends.