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FY 2009 Reallocation of State Administrative Expense Funds

EO Guidance Document #
FNS Document #
SP17 CACFP04-2009
Resource type
Policy Memos
Guidance Documents
Resource Materials
PDF Icon Policy Memo (124.58 KB)
DATE: March 5, 2009
MEMO POLICY: SP 17-2009 CACFP 04-2009
SUBJECT: Fiscal Year 2009 Reallocation of State Administrative Expense (SAE) Funds
TO: Regional Directors
Special Nutrition Programs
All Regions
State Directors
Child Nutrition Programs
Food Distribution Programs
All States

This memorandum and attachments provide the information needed to conduct the FY 2009 reallocation of SAE funds. Reallocation is a formal process by which state agencies (SAs) can: (1) request additional SAE funds above their initial authorized funding level; or (2) return SAE funds they do not need.

This year’s SAE Reallocation will be dedicated to funding Web Based Supply Chain Management (WBSCM) related proposals as submitted by state agencies that receive SAE to assist in the administration of food distribution for child nutrition programs. FNS’ intent this year is to utilize the full SAE reallocation towards WBSCM. Because states must implement WBSCM by the end of the year, we encourage them to be expeditious in submitting their requests. While we are not prohibiting SAs from submitting requests outside of WBSCM, we do not anticipate that funding will be available for such requests. State agencies should pay careful consideration to other funding options, i.e., the Administrative Review Grants to fund activities related to administrative reviews and the Direct Certification and Verification Grants to fund activities to implement direct certification and verification systems. Information technology projects that have an impact on CACFP audit review activities may be funded or receive further consideration under CACFP audit fund reallocation process.

We ask that all requesting agencies complete and submit Attachment C, the Compatibility and Deployment Fund Request document, in connection with their WBSCM related proposals, to their respective regional office in addition to the other documents that accompany reallocation requests (as explained in the accompanying guidance).

Attachments A and B provide a detailed description of the reallocation process. Attachment A discusses the major considerations and guidelines for conducting the reallocation of SAE funds. Attachment B describes the specific roles and responsibilities of the SAs, ROs, and headquarters in conducting reallocation of SAE funds.

SAs are asked to submit their WBSCM related requests for reallocation to their respective RO by March 26, 2009, to facilitate the reallocation process. Due to this year’s focus on WBSCM related projects, ROs should submit WBSCM requests directly to FNS Headquarters upon receipt but no later than March 27, 2009. FNS Headquarters will be responsible for the review and prioritization of all WBSCM related SAE reallocation requests. For all non-WBSCM related requests, we ask that ROs review and make recommendations prior to forwarding. All non WBSCM SAE reallocation requests are due to the ROs on March 26, 2009.

The SAE Funds Reallocation Report (FNS-525) form will be transmitted to each RO and may be returned to Food and Nutrition Service (FNS) Headquarters, Child Nutrition Division (CND) via e-mail. SAs should contact their RO with any questions.

Cynthia Long
Child Nutrition Division


Page updated: March 10, 2023

The contents of this guidance document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.