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FNS Instruction 796-2, Rev. 3

EO Guidance Document #
Resource type
Guidance Documents
Resource Materials
PDF Icon 01 Information (23.17 KB)
PDF Icon 02 Costs (22.55 KB)
PDF Icon 03 Non-profits (23.36 KB)
PDF Icon 04 Approval (23.32 KB)
PDF Icon 05 Labor (23.97 KB)
PDF Icon 06 Categories (23.33 KB)
PDF Icon 07 Equipment (22.07 KB)
PDF Icon 08 Legal (22.35 KB)
PDF Icon 09 Rental (23.01 KB)
PDF Icon 10 Lease (23.56 KB)
PDF Icon 11 Interest (23.54 KB)
PDF Icon 12 Support (22.40 KB)
PDF Icon 13 Travel (23.65 KB)
PDF Icon 14 Disclosure (22.93 KB)
PDF Icon 15 Allocation (22.53 KB)
PDF Icon 16 Income (22.31 KB)
PDF Icon 17 Index (22.14 KB)
PDF Icon 18 Glossary (23.32 KB)

FNS Instruction 796-2, Revision 3 establishes standards, principles and guidelines for financial management to:

  1. Assure the costs charged to the nonprofit food service are allowable, necessary and reasonable for effective and efficient program operations.
  2. Assist state administering agencies and institutions in developing and maintaining financial management systems that comply with CACFP requirements.
  3. Provide, to the extent possible, all institutions of similar type doing the same work, with the same requirements.

FNS Instruction 796-2, Revision 3 consists of 12 Parts and 8 Exhibits:

I. Purpose
II. Authority
III. Abbreviations
IV. Scope
V. Definitions
VI. Monitoring Nonprofit Food Service Status
VII. Basic Guidelines for Determining Allowability of Costs
VIII. Standards for Allowable Costs
IX. Basic Guidelines for CACFP Payments and Use of Funds
X. Food Donation
XI. Implementation
XII. Office of Management and Budget Approval


A. Glossary
B. Food Cost
C. Index
D. Recording Equipment and Depreciation Format
E. Cost of Goods Used Format
F. Purchases Record Format
G. Inventory Reconciliation Format
H. Inventory Record Format 

Updated: 06/01/2001

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.