Skip to main content
California Department of Education Logo

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.

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, May 07, 2019
Recently Posted in Nutrition
  • Webinar: Tuesdays @ 2 School Nutrition Town Hall (added 22-May-2020)
    The CDE NSD is hosting virtual town hall events every two weeks to provide an opportunity for schools to discuss their plans and best practices for reopening their food service operations while mitigating COVID-19 risks.
  • P-EBT Phase 2: Online Application Now Open (added 22-May-2020)
    The Pandemic Electronic Benefit Transfer (P-EBT) Online Application is now open. Families with children who are eligible for Free or Reduced-Price meals that have not yet received a P-EBT card in the mail, can now apply for P-EBT benefits online.
  • FFVP Operations: Questions and Answers #2 (added 22-May-2020)
    Policy Memorandum SP 19-2020 FFVP during COVID-19 Questions and Answers #2 provides clarification on questions related to the administration of the FFVP during unanticipated school closures during the COVID-19 public health emergency.
  • USDA Child Nutrition Responses #21–25 (added 20-May-2020)
    The USDA released several Policy Memorandums that announced Child Nutrition Responses which include five waivers that are intended to provide clarification to state agencies and CNP operators during COVID-19 public health emergency.
  • Health and Safety Supplies Needs Assessment Survey (added 14-May-2020)
    To assist our sponsoring agencies who are serving their community during this health crisis, the CDE NSD is assessing the emergency supply needs for program operators who have been providing meals during the COVID-19 unanticipated school closures.

  • Pandemic EBT Frequently Asked Questions (added 14-May-2020)
    The California Department of Education (CDE) and Department of Social Services (CDSS) are partnering on the administration of Pandemic-EBT (P-EBT) in California.
  • CNIPS Application Requirement Reminder (added 08-May-2020)
    The CDE NSD CNPU would like to remind SFSP and SSO sponsors to keep meal service site information and meal service dates and times entered in their Child Nutrition Information and Payment System (CNIPS) site applications updated and current.
  • COVID-19: USDA Child Nutrition Responses (added 08-May-2020)
    Policy Memorandums announcing Child Nutrition Responses which include four waivers and one questions and answers document. These are intended to provide clarification to state agencies and CNP operators during the COVID-19 public health emergency.
  • COVID-19: CDE Handout and Fact Sheets (added 06-May-2020)
    The CDE NSD is providing additional resources to support local educational agencies during the coronavirus (COVID-19) pandemic.
  • Waiver of NSLP Triennial Assessment (added 05-May-2020)
    On April 23, 2020, the U.S. Department of Agriculture issued COVID-19: Child Nutrition Response #18, Nationwide Waiver of Local School Wellness Policy Triennial Assessment in the National School Lunch and School Breakfast Program.