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.
It has come to our attention that there may be some confusion concerning fluid milk, and how it is offered in reimbursable lunches. Under all menu planning approaches, fluid milk is a separate food component/menu item.