FNS is aware that school food authorities and program operators may be operating NSLP, SBP, and other child nutrition programs, in a way that includes offering reimbursable meals and non-program foods (a la carte sales, catering, adult meals, etc.) using foods from popular franchise restaurants through a franchise agreement.
The purpose of this memorandum is to clarify for state and local operators of the school meal programs the permissible use of funds from the nonprofit school food service account to lower or eliminate reduced price student meal charges.
Today’s unpredictable economy has made it important to consider accounting for the fluctuating costs of goods and services that are beyond the control of either the school food authority or the vendor.
Recently, we have received numerous concerns regarding the improper application of the new procurement rule, Procurement Requirements for the National School Lunch, School Breakfast and Special Milk Program, which was published in the Federal Register on Oct. 31, 2007 and became effective on Nov. 30, 2007.
In accordance with the Older Americans Act Amendments of 2006, state or Area Agencies on Aging and Indian Tribal Organizations and their selected grantees may use funds received in the Nutrition Services Incentive Program to pay school food authorities participating in school meals programs to make food purchases.