| Nutrition Services Division Information Alert |
|
| To: National School Lunch Program Sponsors |
Number: USDA-SNP-03-2009 |
| Attention: Food Program (or Service) Director |
Date: April 2009 |
| Subject: Funding Application Now Available for the National School Lunch Program Equipment Grant from American Recovery and Reinvestment Act of 2009 | |
The Nutrition Services Division (NSD) recently notified School Food Authorities (SFAs) of the availability of $12.8 million in equipment grant funding from the American Recovery and Reinvestment Act of 2009 (ARRA). The goal of this funding is to improve the health of children, increase participation in the school lunch programs, and provide safe meals at schools while stimulating the economy.
Eligibility
All SFAs participating in the National School Lunch Program (NSLP) are eligible to apply for grant funding. Consistent with the requirements in the ARRA, the NSD will award funding to schools through a competitive grant process whereby funding priority will be given to sites in which at least 50 percent of the students are eligible for free or reduced-price meals. SFAs may not use a district/agency-wide percentage of free and reduced-price eligibility instead of an individual site’s percentage. SFAs must use the month of October 2008 to determine their site’s percentage of free and reduced-price eligibility (annual percentage is not allowed). SFAs may not round up when calculating percentages.
Eligible Equipment
SFAs may request funding for any item of equipment that addresses one or more of the focus areas described below and meets the definition of equipment. For the purposes of this grant, the United States Department of Agriculture (USDA) defines equipment as an article of nonexpendable, tangible personal property, with a useful life of more than one year and a per unit acquisition cost of $5,000 or greater. SFAs may use the lesser of $5,000 or the capitalization threshold set by their local school board. (Note: Nothing prevents a School Board from adopting a lower capitalization threshold for food service equipment.) The USDA initially indicated that SFAs would be allowed to group items of the same equipment in order to meet the capitalization thresholds; however, the USDA recently clarified that this form of “bundling” is unallowable. SFAs that do not use capitalization thresholds must use the federal definition of equipment. Items such as school lunch trays, knives, and other utensils will not be approved, as it is unlikely that these items would fit the definition of equipment.
Equipment Focus Areas
In order to be competitive for available funding, it is important that SFAs focus funding requests on equipment that addresses one or more of these four key areas identified by the USDA:
- Improves the quality of reimbursable meals that meet the dietary guidelines (e.g., purchasing an equipment alternative to a deep fryer)
- Improves the safety of food served in the school meal programs (e.g., cold/hot holding equipment, dish washing equipment, refrigeration, milk coolers, freezers, blast chillers, etc.)
- Improves the overall energy efficiency of the food service operations (e.g., an energy-efficient walk-in freezer that replaces an outdated, energy-demanding freezer)
- Supports expanding participation in a school meal program (e.g., equipment for serving meals in a non-traditional setting or to better utilize cafeteria space)
Equipment must be purchased primarily for use in the NSLP; however, it may also be used in the School Breakfast Program, After School Snacks, Fresh Fruit and Vegetable Program, and the Summer Food Service Program. Schools may purchase used equipment as long as it meets the intent of the grant and definition of equipment.
SFAs requesting grant funds for equipment that requires the approval of the California Department of General Services' Division of State Architect (DSA) (e.g., some walk-in freezers) should not be concerned about their ability to encumber the funds within three months of award. The DSA is prioritizing their workload, with the first priority going to reviewing and approving project applications where 1) the agency has all funds necessary to support the project and 2) work will begin within 75 days of the DSA's approval. The DSA has posted additional information to their Web site and a letter to district Superintendents informing districts of the steps to take for expedited approvals: http://www.documents.dgs.ca.gov/dsa/other/ShovelReadyProjectsLetter_K-12_04-08-09.pdf (Outside Source).
Procurement
SFAs must follow all federal, state, and local procurement laws when purchasing equipment with this grant. A competitive bid process is required and a minimum of three price quotes must be obtained for each piece of equipment. A formal bid process is not required unless the purchase exceeds the small purchase threshold. The threshold for public schools and County Offices of Education is $76,700 and for all other SFAs (e.g., charter schools, private schools, and Residential Child Care Institutions) it is either their own threshold or the federal threshold, which is $100,000. All credits and rebates resulting from the purchase must accrue to the benefit of the grant account.
Funding
SFAs may request equipment for more than one school within the same district and/or for all the schools served by a centralized kitchen. If funding is available within your district/agency to assist with equipment purchases, include this information in your district’s/agency’s application (please note that there is no cost-matching requirement). In the Equipment Budget section of the application, include the actual cost of the equipment plus tax, shipping and handling, and installation. When requesting Point of Sale equipment, include these same costs plus the cost of hardware, software, and training. Do not include the cost of vendor related travel as this is an unallowable expense. Repair costs for capital equipment, including parts and labor, are also allowable charges to this grant. Per USDA guidance, indirect costs may not be charged to this grant.
The CDE plans to use the following proposed SFA funding limits (based on enrollment) in the event that grant requests exceed available funding. CDE may adjust these target levels based on the number and spread of grant requests received. Given that funding is limited, it is critical that SFAs request only the funding they critically need so that as many SFAs as possible can receive funds for their critical needs. The table below represents our proposed funding limits.
Proposed SFA Funding Limits
ENROLLMENT LIMITS |
Maximum Funding Per Student |
|---|---|
≥ 500,000 |
$3.00 |
100,000 to 499,999 |
$4.75 |
60,000 to 99,999 |
$6.00 |
50,000 to 59,999 |
$6.50 |
40,000 to 49,999 |
$6.75 |
25,000 to 39,999 |
$7.00 |
20,000 - 24,999 |
$7.25 |
16,000 - 19,999 |
$7.75 |
12,000 - 15,999 |
$8.25 |
8,000 - 11,999 |
$9.00 |
5,000 - 7,999 |
$9.50 |
1 to 4,999 |
$10.00 |
Application
The grant application and instructions are located on CDE’s Available Funding Web page at www.cde.ca.gov/fg/fo/af. [Note, the preceding Web address is no longer valid.]
Download the application to your personal computer and print the application instructions. Please read the application instructions carefully as each situation is different and they will assist your district/agency in successfully applying for this grant. The application consists of five parts:
- SFA Information - (pages 1 and 2) - complete only one copy.
- Site Information - (page 3) - complete one copy for each site for which you are requesting funding.
- Site Equipment List - (page 4) - complete as many copies as are necessary to designate the equipment that will be purchased for each site. Each site must have its own equipment list.
- Central Kitchen Site List - (page 5) - complete one copy for the central kitchen, listing all the sites (including those sites for which you are not requesting grant funds) that will benefit from the equipment that will be purchased and placed in the central kitchen. Complete the Site Equipment Needs List and attach it to the Central Kitchen Site List.
- Equipment Budget - (pages 6 and 7) - complete this form for each piece of equipment you plan to purchase. Each page has enough space for two items of equipment. Make additional copies as necessary.
Compete the application electronically, print a copy, and have it signed by the appropriate staff member. Submit one original to:
If submitting via U.S. Mail (do not use U.S. Mail overnight service for delivery to this address):
Rae Vant, School Nutrition Programs Specialist
Nutrition Services Division
California Department of Education
1430 N Street, Suite 1500
Sacramento, CA 95814
If hand delivering or submitting via UPS or FedEx (do not use U.S. Mail overnight service for delivery to this address):
Rae Vant, School Nutrition Programs Specialist
Nutrition Services Division
California Department of Education
560 J Street, Suite 270
Sacramento, CA 95814
Applications are due no later than 5:00 p.m. Wednesday, May 27, 2009. Applications received after that date WILL NOT be considered for funding.
Awards
Sites will be scored based on the enclosed scoring criteria, which consists of two parts:
- Up to 65 points for the percentage of students eligible for free and reduced-price meals, the number of students impacted by the equipment purchases, and need for additional funding assistance, and
- Up to 35 points for how the equipment proposed at each school meets criteria.
Per USDA guidance, the CDE is giving priority to applicants who can purchase the equipment within three months of award. If you want to request funding for equipment you cannot purchase within three months of award, please explain the circumstances and provide an estimated purchase date.
Once CDE selects an SFA to receive an equipment grant, a Grant Award Notification (GAN) letter will be issued, pending the Legislature's appropriation of ARRA funds (target date: June 2009), which you must immediately sign and return. Ninety percent of the grant funding will be paid as soon as the CDE receives the signed GAN with the remaining ten percent paid upon completion of the grant requirements. The CDE cannot release funding without a signed copy of the GAN.
Once you have been notified, it is critical that you encumber your funds within three months of award. If you are unable to encumber funds for a piece of equipment within three months, you may want to consider a different piece of equipment. If you want to request funding for equipment you cannot encumber by September 2009, you must justify why you need more time.
If any portion of awarded funds will not be needed, the SFA must return unused funds to the CDE by September 1, 2009, so that the funds can be reallocated to other California SFAs for encumbrance by September 30, 2009. The USDA may sweep grant funds that are not encumbered by September 30, 2009.
Reporting Requirements
The federal government requires that state agencies and SFAs track and report these funds separately; they cannot be co-mingled with other program funds. We are awaiting USDA guidance on reporting requirements and will post them to the CDE’s Web page as soon as guidance is received.
For More Information
Please visit the CDE Web page at http://www.cde.ca.gov/ls/nu/sn/equipgrant.asp for the most up-to-date information, including:
- SP 18-2009: 2009 Equipment Assistance Grants for School Food Authorities
- SP 20-2009: Equipment Assistance Grants for School Food Authorities - Questions and Answers
- SP 23-2009: Additional 2009 Equipment Assistance Grants for School Food Authorities Questions and Answers
- SP 24-2009: Equipment Specifications for the 2009 Equipment Assistance Grants for School Food Authorities
SFAs are encouraged to send questions regarding this funding opportunity via e-mail to equipmentgrant@cde.ca.gov. All questions received via this e-mail will be answered promptly. Frequently asked questions are posted to the CDE Web page at http://www.cde.ca.gov/ls/nu/sn/equipgrant.asp.
Questions also can be directed to DJ Sandhu, School Nutrition Programs Specialist, Nutrition Services Division, California Department of Education, by phone at 916-322-1454 or by e-mail at DJSandhu@cde.ca.gov.
