[Federal Register Volume 75, Number 12 (Wednesday, January 20, 2010)]
[Notices]
[Pages 3197-3199]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-978]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Summer Food Service Program; 2010 Reimbursement Rates

AGENCY: Food and Nutrition Service, USDA.

ACTION: Notice.

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SUMMARY: This notice informs the public of the annual adjustments to 
the reimbursement rates for meals served in the Summer Food Service 
Program for Children. These adjustments address changes in the Consumer 
Price Index, as required under the Richard B. Russell National School 
Lunch Act. The 2010 reimbursement rates are presented as a combined set 
of rates to highlight simplified cost accounting procedures that are 
extended nationwide by enactment of the Fiscal Year 2008 Consolidated 
Appropriations Act. The 2010 rates are also presented individually, as 
separate operating and administrative rates of reimbursement,

[[Page 3198]]

to show the effect of the Consumer Price Index adjustment on each rate.

DATES: Effective Date: January 1, 2010.

FOR FURTHER INFORMATION CONTACT: Julie Brewer, Head, CACFP and SFSP 
Section, Policy and Program Development Branch, Child Nutrition 
Division, Food and Nutrition Service, United States Department of 
Agriculture, 3101 Park Center Drive, Room 640, Alexandria, Virginia 
22302, 703-305-2590.

SUPPLEMENTARY INFORMATION: This Program is listed in the Catalog of 
Federal Domestic Assistance under No. 10.559 and is subject to the 
provisions of Executive Order 12372 which requires intergovernmental 
consultation with State and local officials (7 CFR Part 3015, Subpart 
V, and final rule-related notice published at 48 FR 29114, June 24, 
1983).
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3501-3518), no new recordkeeping or reporting requirements have been 
included that are subject to approval from the Office of Management and 
Budget.
    This notice is not a rule as defined by the Regulatory Flexibility 
Act (5 U.S.C. 601-612) and thus is exempt from the provisions of that 
Act. Additionally, this notice has been determined to be exempt from 
review by the Office of Management and Budget under Executive Order 
12866.

Definitions

    The terms used in this notice have the meaning ascribed to them 
under 7 CFR Part 225 of the Summer Food Service Program regulations.

Background

    This notice informs the public of the annual adjustments to the 
reimbursement rates for meals served in the Summer Food Service Program 
(SFSP). As required under sections 12 (42 U.S.C. 1760(f)) and 13 (42 
U.S.C. 1761) of the Richard B. Russell National School Lunch Act 
(NSLA), and SFSP regulations in 7 CFR Part 225, the United States 
Department of Agriculture (USDA) announces the adjustments in SFSP 
payments for meals served to participating children during calendar 
year 2010.
    The 2010 reimbursement rates are presented as a combined set of 
rates to highlight simplified cost accounting procedures. Section 738 
of the Consolidated Appropriations Act, 2008, Public Law 110-161, 
enacted on December 26, 2007, extends these procedures to all States. 
Since January 1, 2008, reimbursement has been based solely on a ``meals 
times rates'' calculation, without comparison to actual or budgeted 
costs.
    Sponsors receive reimbursement that is determined by the number of 
reimbursable meals served multiplied by the combined rates for food 
service operations and administration. However, the combined rate is 
based on separate operating and administrative rates of reimbursement, 
each of which is adjusted differently for inflation.

Calculation of Rates

    The combined rates are constructed from individually authorized 
operating and administrative reimbursements. Simplified procedures 
provide flexibility, enabling sponsors to manage their reimbursements 
to pay for any allowable cost, regardless of the cost category. 
Although the requirement to categorize costs as ``operational'' or 
``administrative'' has been eliminated, this does not diminish the 
sponsors' responsibility for ensuring proper administration of the 
Program, while providing the best possible nutrition benefit to 
children.
    The operating and administrative rates are calculated separately. 
However, the calculations of adjustments for both are based on the same 
set of changes in the Food Away From Home series of the Consumer Price 
Index for All Urban Consumers, published by the Bureau of Labor 
Statistics of the United States Department of Labor. They represent a 
2.1 percent increase in this series for the 12 month period, from 
November 2008 through November 2009 (from 220.043 in November 2008 to 
224.633 in November 2009).

Table of 2010 Reimbursement Rates

    Presentation of the 2010 maximum per meal rates for meals served to 
children in SFSP combines the results from the calculations of 
operational and administrative payments, which are further explained in 
this notice. The total amount of payments to State agencies for 
disbursement to SFSP sponsors will be based upon these adjusted 
combined rates and the number of meals of each type served. These 
adjusted rates will be in effect from January 1, 2010 through December 
31, 2010.

                                            Summer Food Service Program--2010 Reimbursement Rates (Combined)
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                                                           All states except Alaska and               Alaska                          Hawaii
                                                                      Hawaii             ---------------------------------------------------------------
  Per meal rates in whole or fractions of U.S. dollars   --------------------------------
                                                          Rural or self-     All other    Rural or self-     All other    Rural or self-     All other
                                                            prep sites    types of sites    prep sites    types of sites    prep sites    types of sites
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Breakfast...............................................          1.8475          1.8125          3.0000          2.9450          2.1650          2.1250
Lunch or Supper.........................................          3.2475          3.1950          5.2675          5.1825          3.8000          3.7375
Snack...................................................          0.7625          0.7450          1.2450          1.2175          0.8975          0.8775
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Operating Rates

    The portion of the SFSP rates for operating costs is based on 
payment amounts set in section 13(b)(1) of the NSLA (42 
U.S.C.1761(b)(1)). They are rounded down to the nearest whole cent, as 
required by section 11(a)(3)(B) of the NSLA (42 U.S.C. 1759(a)(3)(B)).

                  Summer Food Service Program--Operating Component of 2010 Reimbursement Rates
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                                                                    All states
  Operating rates in U.S. dollars, rounded down to the nearest     except Alaska      Alaska          Hawaii
                           whole cent                               and Hawaii
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Breakfast.......................................................            1.68            2.73            1.97
Lunch or Supper.................................................            2.94            4.77            3.44

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Snack...........................................................            0.68            1.11            0.80
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Administrative Rates

    The administrative cost component of the reimbursement is 
authorized under section 13(b)(3) of the NSLA (42 U.S.C. 1761(b)(3)). 
Rates are higher for sponsors of sites located in rural areas and for 
``self-prep'' sponsors that prepare their own meals, at the SFSP site 
or at a central facility, instead of purchasing them from vendors. The 
administrative portion of SFSP rates are adjusted, either up or down, 
to the nearest quarter-cent.

                                    Summer Food Service Program--Administrative Component of 2010 Reimbursement Rates
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                                                           All states except Alaska and               Alaska                          Hawaii
                                                                      Hawaii             ---------------------------------------------------------------
  Administrative rates in U.S. dollars, adjusted, up or  --------------------------------
            down, to the nearest quarter-cent             Rural or self-     All other    Rural or self-     All other    Rural or self-     All other
                                                            prep sites    types of sites    prep sites    types of sites    prep sites    types of sites
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Breakfast...............................................          0.1675          0.1325          0.2700          0.2150          0.1950          0.1550
Lunch or Supper.........................................          0.3075          0.2550          0.4975          0.4125          0.3600          0.2975
Snack...................................................          0.0825          0.0650          0.1350          0.1075          0.0975          0.0775
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    Authority:  Sections 9, 13, and 14, Richard B. Russell National 
School Lunch Act, as amended (42 U.S.C. 1758, 1761, and 1762a, 
respectively).

    Dated: January 13, 2010.
Julia Paradis,
Administrator.
[FR Doc. 2010-978 Filed 1-19-10; 8:45 am]
BILLING CODE 3410-30-P