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U.S. Code as of:
01/19/04
Section 1776. State administrative expenses
(a) Amount available; formula for computation of payment; improved
program integrity and meal quality; use for costs of
administration of programs for which allocation made; retention
of funds by Secretary
(1) Each fiscal year, the Secretary shall make available to the
States for their administrative costs an amount equal to not less
than 1 1/2 percent of the Federal funds expended under sections 4,
11, and 17 of the Richard B. Russell National School Lunch Act [42
U.S.C. 1753, 1759a, 1766] and 1772 and 1773 of this title during
the second preceding fiscal year. The Secretary shall allocate the
funds so provided in accordance with paragraphs (2), (3), and (4)
of this subsection. There are hereby authorized to be appropriated
such sums as may be necessary to carry out the purposes of this
section.
(2) The Secretary shall allocate to each State for administrative
costs incurred in any fiscal year in connection with the programs
authorized under the Richard B. Russell National School Lunch Act
[42 U.S.C. 1751 et seq.] or under this chapter, except for the
programs authorized under section 13 or 17 of the Richard B.
Russell National School Lunch Act [42 U.S.C. 1761, 1766] or under
section 1786 of this title, an amount equal to not less than 1
percent and not more than 1 1/2 percent of the funds expended by
each State under sections 4 and 11 of the Richard B. Russell
National School Lunch Act [42 U.S.C. 1753, 1759a] and sections 1772
and 1773 of this title during the second preceding fiscal year. In
no case shall the grant available to any State under this
subsection be less than the amount such State was allocated in the
fiscal year ending September 30, 1981, or $100,000, whichever is
larger.
(3) The Secretary shall allocate to each State for its
administrative costs incurred under the program authorized by
section 17 of the Richard B. Russell National School Lunch Act [42
U.S.C. 1766] in any fiscal year an amount, based upon funds
expended under that program in the second preceding fiscal year,
equal to (A) 20 percent of the first $50,000, (B) 10 percent of the
next $100,000, (C) 5 percent of the next $250,000, and (D) 2 1/2
percent of any remaining funds. If an agency in the State other
than the State educational agency administers such program, the
State shall ensure that an amount equal to no less than the funds
due the State under this paragraph is provided to such agency for
costs incurred by such agency in administering the program, except
as provided in paragraph (5). The Secretary may adjust any State's
allocation to reflect changes in the size of its program.
(4) The remaining funds appropriated under this section shall be
allocated among the States by the Secretary in amounts the
Secretary determines necessary for the improvement in the States of
the administration of the programs authorized under the Richard B.
Russell National School Lunch Act [42 U.S.C. 1751 et seq.] and this
chapter, except for section 1786 of this title, including, but not
limited to, improved program integrity and the quality of meals
served to children.
(5)(A) Not more than 25 percent of the amounts made available to
each State under this section for the fiscal year 1991 and 20
percent of the amounts made available to each State under this
section for the fiscal year 1992 and for each succeeding fiscal
year may remain available for obligation or expenditure in the
fiscal year succeeding the fiscal year for which such amounts were
appropriated.
(B) Reallocation of funds. -
(i) Return to secretary. - For each fiscal year, any amounts
appropriated that are not obligated or expended during the fiscal
year and are not carried over for the succeeding fiscal year
under subparagraph (A) shall be returned to the Secretary.
(ii) Reallocation by secretary. - The Secretary shall allocate,
for purposes of administrative costs, any remaining amounts among
States that demonstrate a need for the amounts.
(6) Use of administrative funds. - Funds available to a State
under this subsection and under section 13(k)(1) of the Richard B.
Russell National School Lunch Act (42 U.S.C. 1761(k)(1)) may be
used by the State for the costs of administration of the programs
authorized under this chapter (except for the programs authorized
under sections 1786 and 1790 of this title) and the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) without
regard to the basis on which the funds were earned and allocated.
(7) Where the Secretary is responsible for the administration of
programs under this chapter or the Richard B. Russell National
School Lunch Act [42 U.S.C. 1751 et seq.], the amount of funds that
would be allocated to the State agency under this section and under
section 13(k)(1) of the Richard B. Russell National School Lunch
Act [42 U.S.C. 1761(k)(1)] shall be retained by the Secretary for
the Secretary's use in the administration of such programs.
(8) In the fiscal year 1991 and each succeeding fiscal year, in
accordance with regulations issued by the Secretary, each State
shall ensure that the State agency administering the distribution
of commodities under programs authorized under this chapter and
under the Richard B. Russell National School Lunch Act [42 U.S.C.
1751 et seq.] is provided, from funds made available to the State
under this subsection, an appropriate amount of funds for
administrative costs incurred in distributing such commodities. In
developing such regulations, the Secretary may consider the value
of commodities provided to the State under this chapter and under
the Richard B. Russell National School Lunch Act.
(9)(A) If the Secretary determines that the administration of any
program by a State under this chapter (other than section 1786 of
this title) or under the Richard B. Russell National School Lunch
Act (42 U.S.C. 1751 et seq.)(including any requirement to provide
sufficient training, technical assistance, and monitoring of the
child and adult care food program under section 17 of that Act (42
U.S.C. 1766)), or compliance with a regulation issued pursuant to
either this chapter or such Act, is seriously deficient, and the
State fails to correct the deficiency within a specified period of
time, the Secretary may withhold from the State some or all of the
funds allocated to the State under this section or under section
13(k)(1) or 17 of the Richard B. Russell National School Lunch Act
(42 U.S.C. 1761(k)(1) or 1766).
(B) On a subsequent determination by the Secretary that the
administration of any program referred to in subparagraph (A), or
compliance with the regulations issued to carry out the program, is
no longer seriously deficient and is operated in an acceptable
manner, the Secretary may allocate some or all of the funds
withheld under such subparagraph.
(b) Funds, usage: compensation, benefits, and travel expenses of
personnel; support services; office equipment; staff development
Funds paid to a State under subsection (a) of this section may be
used to pay salaries, including employee benefits and travel
expenses, for administrative and supervisory personnel; for support
services; for office equipment; and for staff development.
(c) Fund adjustment; State administered programs
If any State agency agrees to assume responsibility for the
administration of food service programs in nonprofit private
schools or child care institutions that were previously
administered by the Secretary, an appropriate adjustment shall be
made in the administrative funds paid under this section to the
State not later than the succeeding fiscal year.
(d) Unused funds; availability for obligation and expenditure, and
reallocation to other States
Notwithstanding any other provision of law, funds made available
to each State under this section shall remain available for
obligation and expenditure by that State during the fiscal year
immediately following the fiscal year for which such funds were
made available. For each fiscal year the Secretary shall establish
a date by which each State shall submit to the Secretary a plan for
the disbursement of funds provided under this section for each such
year, and the Secretary shall reallocate any unused funds, as
evidenced by such plans, to other States as the Secretary considers
appropriate.
(e) State plan; use of funds
Each State shall submit to the Secretary for approval by October
1 of the initial fiscal year a plan for the use of State
administrative expense funds, including a staff formula for State
personnel, system level supervisory and operating personnel, and
school level personnel. After submitting the initial plan, a State
shall be required to submit to the Secretary for approval only a
substantive change in the plan.
(f) State funding requirement
Payments of funds under this section shall be made only to States
that agree to maintain a level of funding out of State revenues,
for administrative costs in connection with programs under this
chapter (except section 1786 of this title) and the Richard B.
Russell National School Lunch Act [42 U.S.C. 1751 et seq.] (except
section 13 of that Act [42 U.S.C. 1761]), not less than the amount
expended or obligated in fiscal year 1977, and that agree to
participate fully in any studies authorized by the Secretary.
(g) Authorization of appropriations
For the fiscal year beginning October 1, 1977, and each
succeeding fiscal year ending before October 1, 2003, there are
hereby authorized to be appropriated such sums as may be necessary
for the purposes of this section.
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