Federal Regulations
The Title 7, Code of Federal Regulations (7 CFR) governs nonprofit school food service cafeteria accounts. School food authorities participating in the National School Lunch (NSLP), School Breakfast (SBP), and Special Milk (SMP) Programs must establish a nonprofit school food service (cafeteria fund/account) [7 CFR 210.9(b)(1)]. All federal, State, and local revenues, payments, and program reimbursement must be deposited into the cafeteria account and are to be used solely for the operation and improvement of this service [7 CFR 210.14]. In addition, school nutrition program sponsors must comply with State and federal limitations on the use of cafeteria funds [7 CFR 210.9(b)(1)].
Public school districts and county offices of education that participate only in the State Meal Program or that do not participate in any reimbursable meal program still must observe all State laws (e.g., EC and PCC) relating to the operation of a food service program and the use of school food service program revenues. Food services include the preparation and service of regular and incidental meals, lunches, milk, and/or snacks in connection with school (or after school) activities, and food delivery.
Expenditures from the cafeteria fund/account are governed by both federal and State laws, specifically:
7 CFR parts 210, 220, 3015, 3016, and 3019
2 CFR parts 225 and 230 (formerly Office of Management and Budgets Circulars A-87 and A-122 respectively)
NOTE: CFRs can be accessed from the U.S. Government Printing Office CFR
[http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR] Web page
California Education Code (EC) sections can be accessed from the Official California Legislation Information California Law
[http://www.leginfo.ca.gov/calaw.html] Web page or from the California Legislation Information Code Search
[http://leginfo.legislature.ca.gov/faces/codes.xhtml] Web page.
California Public Contract Code (PCC) sections 20110–20118.4 can be accessed from the Official California Legislation Information California Law
[http://www.leginfo.ca.gov/calaw.html] Web page.
The California School Accounting Manual (CSAM) can be downloaded from the CDE’s Definitions, Instructions, and Procedures [http://www.cde.ca.gov/fg/ac/sa/] Web page.
The California Department of Education, Nutrition Services Division (NSD) strongly recommends that NSLP and SBP sponsors review the USDA indirect costs guidance manual with their business officers, accounting officials, and legal representatives.
The USDA indirect cost guidance is available at the USDA SP 41-2011 (PDF)
Web document.
Frequently Asked Questions (Coming Soon)
Management Bulletins
2013
Bulletin Number |
Bulletin Title and Subject |
Release Date |
|---|---|---|
NSD-SNP-07-2013 |
May 2013 |
|
NSD-SNP-09-2013 |
March 2013 |
|
NSD-SNP-04-2013 |
February 2013 |
2012
Bulletin Number |
Bulletin Title and Subject |
Release Date |
|---|---|---|
USDA-SNP-16-2012 |
October 2012 |
|
USDA-SNP-36-2012 |
September 2012 |
|
NSD-SNP-05-2012 |
May 2012 |
2011
Bulletin Number |
Bulletin Title and Subject |
Release Date |
|---|---|---|
USDA-SNP-22-2011 |
September 2011 |
2010
Bulletin Number |
Bulletin Title and Subject |
Release Date |
|---|---|---|
NSD-SNP-15-2010 |
July 2010 |
2009
Bulletin Number |
Bulletin Title and Subject |
Release Date |
|---|---|---|
NSD-SNP-01-2009 |
December 2009 |
|
USDA-SNP-16-2009 |
July 2009 |
|
NSD-SNP-05-2009 |
June 2009 |
|
USDA-SNP-02-2009 |
March 2009 |
SNP Presentations (CASBO) (Coming Soon)
Contact Information
If you have questions regarding cafeteria fund policy or regulations, please contact the School Nutrition Programs Unit at 800-952-5609 or you can submit your questions to SNPCafeFundQuestions@cde.ca.gov.
If you have questions about the CSAM or how to account for particular charges to the cafeteria fund, please contact the School Fiscal Services Division, Financial Accountability and Information Services Unit by phone at 916-322-1770 or by e-mail at sacsinfo@cde.ca.gov.
Related Content
- Fiscal Issues Relating to Budget Reductions and Flexibility Provisions [http://www.cde.ca.gov/fg/ac/co/documents/sbx34budgetflex.doc] (July 2009) Letter to county and district chief business officals and charter school administrators regarding fiscal issues relating to budget reductions and flexibility provisions resulting from trailer bill, Senate Bill 4 of the 2009–10 Third Extraordinary Session. Provides State Budget information through 2012–13, and broad guidance governing cafeteria fund uses.
- Limitations on the Transfer of Funds [http://www.cde.ca.gov/ls/nu/sn/mbnsdsnp072008.asp] (July 2008) Management Bulletin NSD-SNP-07-2008. Includes comprehensive federal and state cafeteria fund regulations; also includes guidance on loans and penalties.
- School Cafeteria Funds/Account Regulations; Clarification of AB 1754 [http://www.cde.ca.gov/ls/nu/sn/caffundguide.asp] (November 2004) Joint Nutrition Services Division and School Fiscal Services Division (SFSD) Letter to County/District Superintendents, Business Officials, and School Food Service Directors. Provides districts with information and instructions pertaining to federal and State statutes and regulations that govern school cafeteria accounts, and clarifies section 39(a) of Assembly Bill (AB) 1754.
- Cafeteria Fund Loan Guidance from the U.S. Department of Agriculture [http://www.cde.ca.gov/ls/nu/sn/documents/caffundguideusda.doc] (posted to CDE Web
June 3, 2004, as a link to above letter, and later added as link to MB NSD SNP-07-2008). Provides specific instructions as to when cafeteria fund loans can be used and how they must be repaid (with interest), and explains how the agreement for a loan must precede an actual fund transfer and be accompanied by documentation, such as a board policy.
- Use of Cafeteria Funds/Accounts [http://www.cde.ca.gov/ls/nu/sn/mb03125.asp] (December 2003) Management Bulletin 03-125: Assembly Bill (AB) 1754. Provides additional and specific guidance that clarifies federal laws that govern cafeteria funds, which conflict with AB 1754.
- Use of Cafeteria Funds Update [http://www.cde.ca.gov/ls/nu/sn/mb00109.asp] (March 2001) Management Bulletin 00-109. Provides specific cafeteria fund information and includes links to OMB Circulars and to 7 CFR.
- 2003–04 Budget: Flexibility Provisions [http://www.cde.ca.gov/fg/ac/co/budgetflex.asp] (November 12, 2003) SFSD letter to County/District Superintendents, Chief Business Officials, and Charter School Administrators. Explains the flexibility in AB 1754, and advises LEAs participating in school meal programs to exercise caution, “…so as to ensure program compliance and avoid a federal audit exception.”
- 2012–13 Approved Indirect Cost Rates [http://www.cde.ca.gov/fg/ac/co/icrate1213ltr.asp] and Indirect Cost Rates (ICR) [http://www.cde.ca.gov/fg/ac/ic/index.asp]. CDE Indirect Cost Guidance for LEAs. These Web pages provide extensive annual guidance for LEAs including the list of indirect cost rates for each LEA; explanation of how indirect cost rates are calculated and applied; and the annual statewide maximum indirect cost rate for Child Nutrition Programs.
- Indirect Cost Guidance Manual [http://www.cde.ca.gov/ls/nu/sn/mbusdasnp222011.asp] Management Bulletin USDA-SNP-22-2011: Indirect cost guidance manual.