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Lunch Program Regulations Web page at http://www.fns.usda.gov/nslp/regulations~~ [Note, the preceding web address is no longer valid.]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: Monday, March 06, 2023

Trending in Nutrition

Recently Posted in Nutrition

Non-Congregate Meal Service in Rural Areas Q&A #2 (added 18-Apr-2024)
The USDA announced the release of an updated policy memorandum, SFSP 08- 2024, SP 15-2024: Non-Congregate Meal Service in Rural Areas Questions and Answers #2.
President Biden Approves Disaster Relief (added 16-Apr-2024)
President Biden approves California disaster for Butte, Glenn, Los Angeles, Monterey, San Luis Obispo, Santa Barbara, Santa Cruz, Sutter, and Ventura counties.
Child Nutrition Database, Release 27 (added 15-Apr-2024)
Notification to agencies about the release of the Child Nutrition Database, Release 27 availability.
FDP Contract Packet Update for SY 2024–25 (added 15-Apr-2024)
Food Distribution Program Contract Packet Update in CNIPS for SY 2024–25.
Rural Non-congregate Meals Listening Session (added 11-Apr-2024)
The CDE will host a Listening Session on Tuesday, April 30 from 1:00 pm - 2:30 pm on the rural non-congregate meal service option for summer meal programs.

Summer Meals Turnip the Beet Award Winners 2023 (added 09-Apr-2024)
The U.S. Department of Agriculture announced the 2023 Turnip the Beet award winners on March 13, 2024.
2022 KIT $15 Million Funding Award Available (added 09-Apr-2024)
Announcement regarding the availability of the 2022 Kitchen Infrastructure and Training fund, $15 million residual award amounts, including information on the timing of payment, accounting information, and use of funds.
School Lunch Hero Day—May 3, 2024 (added 05-Apr-2024)
The School Food Hero Day is May 3, 2024. This month is the perfect time to celebrate and recognize the role that food service professionals play in supporting student health, school meals, and learning.
S-EBT Notification for CALPADS Administrators (added 04-Apr-2024)
CALPADS Flash #269 sent on March 19, 2024. This Flash provides information for CALPADS administrators about the process of collecting data for the upcoming 2024 Summer EBT Program (also known as SUNBucks).
Summer Feeding Options for Summer 2024 Operations (added 04-Apr-2024)
As many school food authorities begin planning for summer 2024 operations, the CDE is providing this communication to highlight the differences between various summer feeding options.