Appendix A2. 7 CFR 245.11

APPENDIX A.2
7 CFR 245.11

§ 245.11

7 CFR Ch. II (1–1–05 Edition)

reduced price policy statement has not
been submitted to, and approved by,
the State agency, or FNSRO where applicable, within 60 days following the
public announcement by the State
agency, reimbursement shall be suspended for any meals or milk served
after the end of the 60-day period. No
commodities donated by the Department shall be used in any school after
the end of the 60-day period, until such
time as the School Food Authority’s
free and reduced price policy statement
has been approved by the State agency,
or FNSRO where applicable. Reimbursement may be allowed at the discretion of the State agency, or FNSRO
where applicable, for eligible meals and
milk served during the period of suspension
once
the
School
Food
Authority’s free and reduced price policy statement has been approved by the
State agency, or FNSRO where applicable. Pending approval of a revision of a
policy statement, the existing statement shall remain in effect.
(Sec. 8, Pub. L. 95–627, 92 Stat. 3623 (42 U.S.C.
1758); sec. 5, Pub. L. 95–627, 92 Stat. 3619 (42
U.S.C. 1772); 44 U.S.C. 3506; sec. 803, Pub. L.
97–35, 95 Stat. 521–535 (42 U.S.C. 1758))
[35 FR 14065, Sept. 4, 1970, as amended at 38
FR 14958, June 7, 1973; Amdt. 6, 39 FR 30339,
Aug. 22, 1974; Amdt. 8, 40 FR 57208, Dec. 8,
1975; Admt. 13, 44 FR 33049, June 8, 1979; 47
FR 746, Jan. 7, 1982; 48 FR 12511, Mar. 25, 1983;
64 FR 50744, Sept. 20, 1999;64 FR 72474, Dec. 28,
1999]

§ 245.11 Action by State agencies and
FNSROs.
(a) Each State agency, or FNSRO
where applicable, shall, for schools
under its jurisdiction:
(1) As necessary, each State agency
or FNSRO, as applicable, shall issue a
prototype free and reduced price policy
statement and any other instructions
to ensure that each school food authority is fully informed of the provisions
of this part. If the State elects to establish for all schools a maximum
price for reduced price lunches that is
less than 40 cents, the State shall establish such price in its prototype policy. Such State shall then receive the
adjusted national average factor provided for in § 210.4(b); (2) prescribe and
publicly announce by July 1 of each fiscal year, in accordance with § 245.3(a),

family-size income standards. Any
standards prescribed by FNSRO with
respect to nonprofit private schools
shall be developed by FNSRO after consultation with the State agency.
(a–1) When a revision of the familysize income standards of the State
agency, or FNSRO where applicable, is
necessitated because of a change in the
Secretary’s income poverty guidelines
or because of other program changes,
the State agency shall publicly announce its revised family-size income
standards no later than 30 days after
the Secretary has announced such
change.
(b) State agencies, and FNSRO where
applicable, shall review the policy
statements submitted by school-food
authorities for compliance with the
provisions of this part and inform the
school-food authorities of any necessary changes or amendments required in any policy statement to bring
such statement into compliance. They
shall notify school-food authorities in
writing of approval of their policy
statements and shall direct them to
distribute promptly the public announcements required under the provisions of § 245.5.
(c) Each State agency, or FNSRO
where applicable, shall instruct School
Food Authorities under their jurisdiction that they may not alter or amend
the eligibility criteria set forth in an
approved policy statement without advance approval of the State agency, or
FNSRO where applicable.
(d) Not later than 10 days after the
State agency, or FNSRO where applicable, announces its family-size income
standards, it shall notify School Food
Authorities in writing of any amendment to their free and reduced price
policy statements necessary to bring
the family-sized income criteria into
conformance with the State agency’s
or FNSRO’s family-size income standards.
(e) Except as provided in § 245.10, the
State agency, or FNSRO where applicable, shall neither disburse any funds,
nor authorize the distribution of commodities donated by the Department to
any school unless the school food authority has an approved free and reduced price policy statement on file

314

VerDate Aug<04>2004

11:25 Jan 23, 2005

Jkt 205015

PO 00000

Frm 00314

Fmt 8010

Sfmt 8010

Y:\SGML\205015T.XXX

205015T

Food and Nutrition Service, USDA

§ 245.11

with the State Agency, or FNSRO
where applicable.
(f) Each State agency, or FNSRO
where applicable, shall, in the course of
its supervisory assistance, review and
evaluate the performance of School
Food Authorities and of schools in fulfilling the requirements of this part,
and shall advise School Food Authorities of any deficiencies found and any
corrective action required to be taken.
(g) The State agency must notify
FNS whether the TANF Program in
their State is comparable to or more
restrictive than the State’s Aid to
Families with Dependent Children Program that was in effect on June 1, 1995.
Automatic eligibility and direct certification for TANF households is allowed only in States in which FNS has
been assured that the TANF standards
are comparable to or more restrictive
than the program it replaced. State
agencies must inform FNS when there
is a change in the State’s TANF Program that would no longer make
households participating in TANF
automatically eligible for free school
meals.
(h) The State agency shall take action to ensure the proper implementation of Provisions 1, 2, and 3. Such action shall include:
(1) Notification. Notifying school food
authorities of schools implementing
Provision 2 and/or 3 that each Provision 2 or Provision 3 school must return to standard eligibility determination and meal counting procedures or
apply for an extension under Provision
2 or 3. Such notification must be in
writing, and be sent no later than February 15, or other date established by
the State agency, of the fourth year of
a school’s current cycle;
(2) Return to standard procedures. Returning the school to standard eligibility determination and meal counting procedures and fiscal action as required under § 210.19(c) of this chapter
if the State agency determines that
records were not maintained; and
(3) Technical assistance. Providing
technical assistance, adjustments to
the level of financial assistance for the
current school year, and returning the
school to standard eligibility determination and meal counting proce-

dures, as appropriate, if a State agency
determines at any time that:
(i) The school or school food authority has not correctly implemented Provision 1, Provision 2 or Provision 3;
(ii) Meal quality has declined because
of the implementation of the provision;
(iii) Participation in the program has
declined over time;
(iv) Eligibility determinations or the
verification procedures were incorrectly conducted; or
(v) Meal counts were incorrectly
taken or incorrectly applied.
(4) State agency recordkeeping. State
agencies shall retain the following information annually for the month of
October and, upon request, submit to
FNS:
(i) The number of schools using Provision 1, Provision 2 and Provision 3 for
NSLP;
(ii) The number of schools using Provision 2 and Provision 3 for SBP only;
(iii) The number of extensions granted to schools using Provision 2 and
Provision 3 during the previous school
year;
(iv) The number of extensions granted during the previous year on the
basis of Food Stamp/FDPIR data;
(v) The number of extensions granted
during the previous year on the basis of
Temporary Assistance for Needy Families (TANF) data;
(vi) The number of extensions granted during the previous year on the
basis of local data collected by a city
or county zoning and/or economic planning office;
(vii) The number of extensions granted during the previous year on the
basis of applications collected from enrolled students;
(viii) The number of extensions
granted during the previous year on
the basis of statistically valid surveys
of enrolled students; and
(ix) The number of extensions granted during the previous year on the
basis of alternate data as approved by
the State agency’s respective FNS Regional Office.
(5) State agency approval. Prior to approval for participation under Provision 2 or Provision 3, State agencies
shall ensure school and/or school food

315

VerDate Aug<04>2004

11:25 Jan 23, 2005

Jkt 205015

PO 00000

Frm 00315

Fmt 8010

Sfmt 8010

Y:\SGML\205015T.XXX

205015T

§ 245.12

7 CFR Ch. II (1–1–05 Edition)

authority program compliance as required under §§ 210.19(a)(4) and 220.13(k)
of this chapter.
(i) No later than March 1, 2005 and by
March 1st each year thereafter, each
State agency must collect annual
verification data from each school food
authority as described in § 245.6a(c) and
in accordance with guidelines provided
by FNS. Each State agency must analyze these data, determine if there are
potential problems, and formulate corrective actions and technical assistance activities that will support the
objective of certifying only those children eligible for free or reduced price
meals. No later than April 15, 2005 and
by April 15 each year thereafter, each
State agency must report to FNS the
verification information in a consolidated electronic file that has been reported to it as required under
§ 245.6a(c), by school food authority,
and any ameliorative actions the State
agency has taken or intends to take in
school food authorities with high levels
of
applications
changed
due
to
verification. Contingent upon new
funding to support this purpose, FNS
will also require each State agency to
report the aggregate number of students who were terminated as a result
of verification but who were reinstated
as of February 15th. The first report
containing this data element would be
required in the school year beginning
July 1, 2005 and each school year thereafter. State agencies are encouraged to
collect
and
report
any
or
all
verification data elements before the
required dates.
(Secs. 801, 803, 812; Pub. L. 97–35, 95 Stat. 521–
535 (42 U.S.C. 1753, 1758, 1759(a), 1773, 1778))
[35 FR 14065, Sept. 4, 1970, as amended at 38
FR 14958, June 7, 1973; Amdt. 8, 40 FR 57208,
Dec. 8, 1975; 44 FR 1364, Jan. 5, 1979; 46 FR
51368, Oct. 20, 1981; 48 FR 12511, Mar. 25, 1983;
52 FR 19276, May 22, 1987; 64 FR 50744, Sept.
20, 1999; 64 FR 72474, Dec. 28, 1999; 66 FR 48333,
Sept. 20, 2001; 68 FR 53490, Sept. 11, 2003]
EFFECTIVE DATE NOTE: At 68 FR 53490,
Sept. 11, 2003, § 245.11(i) was added. This paragraph contains information collection and
recordkeeping requirements and will not become effective until approval has been given
by the Office of Management and Budget.

§ 245.12 Fraud penalties.
(a) Whoever embezzles, willfully
misapplies, steals, or obtains by fraud
any funds, assets, or property provided
under this part, whether received directly or indirectly from the Department, shall—
(1) If such funds, assets, or property
are of a value of $100 or more, be fined
not more than $25,000 or imprisoned not
more than five years of both; or
(2) If such funds, assets, or property
are of a value of less than $100, be fined
not more than $1,000 or imprisoned not
more than one year or both.
(b) Whoever receives, conceals, or retains to his use or gain funds, assets, or
property provided under this part,
whether received directly or indirectly
from the Department, knowing such
funds, assets, or property have been
embezzled, willfully misapplied, stolen,
or obtained by fraud, shall be subject
to the same penalties provided in paragraph (a) of this section.
(Sec. 10(a), Pub. L. 95–627, 92 Stat. 3623 (42
U.S.C. 1760); sec. 14, Pub. L. 95–627, 92 Stat.
3625–3626)
[Amdt. 14, 44 FR 37901, June 29, 1979, as
amended at 64 FR 50744, Sept. 20, 1999]

§ 245.13 Information collection/recordkeeping—OMB assigned control
numbers.
7 CFR section where requirements are described

Current
OMB control
number

245.3 (a), (b) ......................................................
245.4 ..................................................................
245.5 (a), (b) ......................................................
245.6 (a), (b), (c), (e) .........................................
245.7(a) ..............................................................
245.9 (a), (b), (c) ...............................................
245.10 (a), (d), (e) .............................................
245.11 (a), (a–1), (b), (c), (d), (f) .......................
245.13(a)–(c) .....................................................

[50 FR 53258, Dec. 31, 1985. Redesignated at 64
FR 50744, Sept. 20, 1999]

PART 246—SPECIAL SUPPLEMENTAL
NUTRITION
PROGRAM
FOR
WOMEN, INFANTS AND CHILDREN
Subpart A—General
Sec.
246.1
246.2

General purpose and scope.
Definitions.

316

VerDate Aug<04>2004

11:25 Jan 23, 2005

Jkt 205015

PO 00000

Frm 00316

Fmt 8010

0584–0026
0584–0026
0584–0026
0584–0026
0584–0026
0584–0026
0584–0026
0584–0026
0584–0026

Sfmt 8010

Y:\SGML\205015T.XXX

205015T