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Indirect Cost Guidance Manual

Nutrition Services Division Management Bulletin

Purpose: Policy, Beneficial Information

To: School Nutrition Programs Sponsors

Number: USDA-SNP-22-2011

Attention: Food Service Director

Date: September 2011

Subject: Indirect Cost Guidance Manual

Reference: United States Department of Agriculture, Food and Nutrition Service, Policy Memo SP 41-2011

This Management Bulletin notifies National School Lunch Program (NSLP) and School Breakfast Program (SBP) sponsors that on July 7, 2011, the U.S. Department of Agriculture (USDA) issued guidance on program rules pertaining to indirect costs.


On December 13, 2010, President Obama signed the Healthy, Hunger-Free Kids Act of 2010, reauthorizing the legislation that governs all child nutrition programs. Section 307(a) (Public Law 111-296) requires the USDA, Food and Nutrition Service to provide guidance on program rules regarding indirect costs.

Action Required

Due to the complexity of this issue, 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’s indirect cost guidance is available on the USDA Web site at

Please submit all questions and comments regarding the guidance manual to the Resource Management Unit by e-mail to

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Monday, January 26, 2015

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