Interest Earned on the Cafeteria Account/Fund

Nutrition Services Division Management Bulletin
Purpose: Policy, Beneficial Information
To: School Nutrition Program Sponsors	Number: USDA-SNP-16-2009
Attention: Food Service Director, Business Official	Date: July 2009
Subject: School Nutrition Program Interest Earned on the Cafeteria Account/Fund
Reference: Title 7, Code of Federal Regulations, Part 210.2

This Management Bulletin provides clarification on interest earned in non-profit cafeteria funds. On December 24, 2008, the California Department of Education (CDE) issued a letter informing local educational agencies (LEA) that interest received on federal funds must be remitted to the CDE.

Please be clear, the information in that letter does not apply to non-profit school food service funds. Therefore, the interest earned on those funds must not be returned to the CDE.

The cafeteria fund is governed by federal and State regulations that require LEAs to use these funds solely for the operation and/or improvement of the school food service. The United States Department of Agriculture (USDA) confirmed that interest earned on cafeteria funds is allowable under Title 7, Code of Federal Regulations (CFR), Section 210.2, where the definition of “revenue” includes earnings on investments and interest earned from cafeteria funds.

Also, 7 CFR, Section 210.14(a) states that school food service revenues are to be used only for the operation or improvement of such food service. Interest earned on cafeteria fund accounts is considered allowable revenue and must accrue to the nonprofit food service account.

Additional information regarding interest earned from the USDA may be found in Section 210.14(a) Resource Management ~~at the USDA National School Lunch Program Regulations Web page at http://www.fns.usda.gov/nslp/regulations~~ [Note, the preceding web address is no longer valid.]

If you have any questions, please contact the Resource Management Unit at SNPCafeFundQuestions@cde.ca.gov or 800-952-5609.

Questions: Resource Management Unit | 800-952-5609

Last Reviewed: Tuesday, August 05, 2025

Trending in Nutrition

Recently Posted in Nutrition

Expanded Capital Expenditure Approved List (added 12-May-2026)
The U.S. Department of Agriculture approved the California Department of Education’s (CDE) request to expand the Capital Expenditure Approved List. This expansion contains equipment commonly purchased by School Food Authorities (SFAs).
USDA Farm to School Grant Informational Webinars (added 12-May-2026)
School districts may apply for three federal grants that can support farm to school, the Farmers Market Promotion Program, the Local Food Promotion Program, and the Regional Food Systems Partnerships grant.
Updated Resources Whole Milk for Healthy Kids Act (added 06-May-2026)
Updated Resources Due to the Whole Milk for Healthy Kids Act of 2025.
USDA Grants to Support Farm to School (added 06-May-2026)
School districts may apply for three federal grants that can support farm to school, the Farmers Market Promotion Program, the Local Food Promotion Program, and the Regional Food Systems Partnerships grant.
Award Announcement for 2025 KIT and R&R Grants (added 04-May-2026)
Grant Award Announcement for 2025 Kitchen Infrastructure and Training (KIT) and Retention and Recruitment (R&R) Grants.

Child Nutrition Advisory Council - May 2026 (added 01-May-2026)
Meeting agenda for the State Superintendent of Public Instruction Child Nutrition Advisory Council (CNAC)
Final Rule: Fluid Milk Substitutions (added 30-Apr-2026)
This management bulletin provides regulatory updates regarding the allowability of accepting medical statements from registered dietitians (RD) as related to Fluid Milk Substitutions in School Nutrition Programs.
Modifications to Accommodate Disabilities (added 30-Apr-2026)
This management bulletin contains information on the requirements related to accommodating children with disabilities.
Income Eligibility Scales for School Year 2026–27 (added 24-Apr-2026)
Information related to Income Eligibility Guidelines for Free and Reduced-price Meals or Free Milk in Child Nutrition Programs.
School Lunch Hero Day 2026 (added 24-Apr-2026)
School Lunch Hero Day presents an opportunity to recognize, celebrate, and thank hardworking professionals who continue to make an extraordinary impact on the lives of students.