No later than July 1, 2017, all school food authorities (SFAs) operating National School Lunch and/or School Breakfast Program must have a written policy in place to address situations where children participating at the reduced price or paid rate do not have money to cover the cost of a meal at the time of the meal service. SFAs have discretion in developing the specifics of their policies, and FNS expects charge policies will vary based on local circumstances and available resources. This webinar provides an overview of the local charge policy requirement and shares best practices for successful policy development.
This question and answer memorandum is designed to provide an overview of policies related to unpaid meal charges and to address common questions FNS has received from state agencies, school food authorities, and local program operators.
The purpose of this memorandum is to strongly encourage local educational agencies to accept eligibility determinations from a transferring student’s former LEA to minimize disruptions in meal benefits for low-income students and avoid student debt resulting from unpaid meal charges.
There has been confusion about how unpaid meal charges must be handled when all collection efforts have been exhausted. To help address these situations, this memorandum clarifies the processes of designating delinquent debt that has been determined to be uncollectable as bad debt and obtaining assistance to offset bad debt losses.