Agriculture Improvement Act of 2018 Two-Year Administrative Funding Provision—Information Memorandum
|Date:||April 5, 2019|
|Subject:||FDPIR – Agriculture Improvement Act of 2018 Two-Year Administrative Funding Provision— Information Memorandum|
Food Distribution Directors
On Dec. 20, 2018, the Agriculture Improvement Act of 2018 (the 2018 Farm Bill) was signed into law. Section 4003 of the 2018 Farm Bill includes FDPIR specific provisions and modified Section 4(b) of the Food and Nutrition Act (FNA). This memorandum provides information on the new provision in Section 4(b)(7) of the FNA that requires FDPIR administrative funds to remain available for obligation at the Indian Tribal Organization (ITO) and state agency level for a period of two federal fiscal years (FY). This provision is self-executing.
Currently, FDPIR program regulations at 7 CFR 253.11(i)(2) require ITOs and state agencies administering FDPIR to return any unobligated funds to the Food and Nutrition Service (FNS) within ninety (90) days following the close of each federal fiscal year. Per this regulatory requirement, all FDPIR administrative grants have a period of performance of one federal fiscal year.
Section 4003 of the 2018 Farm Bill now requires all FDPIR administrative grants to remain available for obligation at the ITO and state agency level for a period of two fiscal years. As of Dec. 20, 2018, FDPIR administrative grants will now have a period of performance of two federal fiscal years. The following applies:
- FDPIR FY 2019 administrative grants will now have a period of performance across two federal fiscal years ending Sept. 30, 2020.
- There will be no recovery and reallocation process for FY 2019 funds.
- Any FY 2019 funds issued after Dec. 20, 2018 that remain unobligated after Sept. 30, 2019 will remain at the ITO/state agency level and carry over into FY 2020.
- Any FY 2019 funds issued after Dec. 20, 2018 that are not obligated by Sept. 30, 2020 will expire and will need to be returned to FNS.
- All ITOs and state agencies administering FDPIR will be responsible for entering their SF-425 quarterly reports into the Food Program Reporting System (FPRS) 30 days after the end of each quarter and a final report 90 days after the end of the fiscal year. The quarters and reporting due dates for FY 2019 FDPIR Administrative Grants are as follows:
- Quarter 1: Jan. 30, 2019
- Quarter 2: April 30, 2019
- Quarter 3: July 30, 2019
- Quarter 4: Oct. 30, 2019
- Quarter 5: Jan. 30, 2020
- Quarter 6: April 30, 2020
- Quarter 7: July 30, 2020
- Quarter 8: Oct. 30, 2020
- Final: Dec. 29, 2020*
*FPRS is set up to allow a FDPIR grantee to submit a final report any time after the end of the first fiscal year (i.e., after Quarter four). If, for example, an ITO expends all of its funds prior to the end of the period of performance, then the ITO can submit a final report without having to wait until December 29.
3. With the implementation of this 2018 Farm Bill provision, all future FDPIR Administrative Grants will continue to have a period of performance for two federal fiscal years. FDPIR grantees must spend their oldest funds first to ensure minimal to no expiration of funds. For example:
- FY 2019 FDPIR administrative funds should be drawn-down first before drawing down FY 2020 funds. Any program costs charged against the grant must have occurred within the period of performance of the grant.
FNS will be updating program regulations at 7 CFR 253 and all applicable instructions, handbooks, and policies to codify this 2018 Farm Bill provision.
FDPIR administering agencies with questions should contact their FNS regional offices, which may in turn contact the FNS national office at (703) 305-2680.
Food Distribution Division
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.