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Lunch Program Regulations Web page at http://www.fns.usda.gov/nslp/regulations~~ [Note, the preceding web address is no longer valid.]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, September 22, 2020

This institution is an equal opportunity provider.
Esta institución es un proveedor que ofrece igualdad de oportunidades.

Share this Page

Share via Email

Trending in Nutrition

Recently Posted in Nutrition

Feeding Adults, Children, and Infants in the CACFP (added 21-Oct-2020)
The California Department of Education is pleased to share the following new Child and Adult Care Food Program (CACFP) resources from the U.S. Department of Agriculture (USDA) Team Nutrition (TN).
Federal Approval of Major Disaster Declaration (added 21-Oct-2020)
On October 16, 2020, Governor Gavin Newsom announced that the President has approved California’s request for a Major Disaster Declaration to bolster the state’s emergency response to wildfires across the state and support impacted residents.
2020–21 Seamless Summer Site Application Updates (added 19-Oct-2020)
On Friday, October 9, 2020, the U.S. Department of Agriculture announced the extension of twelve Nationwide COVID-19 waivers. The CDE NSD recognizes that these extensions will require SFAs to once again update SNP site applications in CNIPS.
USDA Q&As Relating to the Nationwide Waiver (added 19-Oct-2020)
On October 14, 2020, the USDA issued Policy Memorandum SP 01-2021, CACFP 01-2021, SFSP 01-2021: Q&As Relating to the Nationwide Waiver to Allow SFSP and SSO Operations through School Year 2020–2021 – EXTENSION – Q&As #2.
Legislative Update – Assembly Bill 827 (added 14-Oct-2020)
Assembly Bill 827 updates mandatory commercial recycling (AB 341) and mandatory organics recycling (AB 1826) requirements regarding student and staff access to recycling bins and organics recycling bins.

Public Safety Power Shutoff Event October 14, 2020 (added 14-Oct-2020)
On October 13, 2020 PG&E announced that public safety power shutoffs are under consideration due to extreme weather and fire danger. If these conditions persist, PG&E may need to turn off power to local customers for safety.
Extension of COVID-19 Meal Service Waivers (added 09-Oct-2020)
The CDE NSD is pleased to announce that the USDA has extended twelve nationwide COVID-19 waivers. These waivers extend existing flexibilities through June 30, 2021.
Providing Safe Physical Activity During COVID-19 (added 06-Oct-2020)
CDE NSD is pleased to share two resources that child care providers can use to learn more about providing a safe environment for physical activity for young children during the Novel Coronavirus (COVID-19) pandemic.
2021 Census Bureau Data for Area Eligibility (added 06-Oct-2020)
U.S. Department of Agriculture Food and Nutrition Service has announced that the 2021 Child and Adult Care Food Program, Seamless Summer Option, and Summer Food Service Program participant Area Eligibility data are now available.
Discover MyPlate (added 06-Oct-2020)
Six interactive nutrition lessons for kindergarteners including mini books, food cards, recipes, student workbooks, parent handouts, and a poster to help develop healthy food choices and to promote a physically active lifestyle.