[Federal Register Volume 77, Number 22 (Thursday, February 2, 2012)]
[Notices]
[Pages 5228-5229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2358]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Summer Food Service Program; 2012 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 2012 reimbursement rates are presented as a combined set 
of rates to highlight simplified cost accounting procedures. The 2012 
rates are also presented individually, as separate operating and 
administrative rates of reimbursement, to show the effect of the 
Consumer Price Index adjustment on each rate.

DATES: Effective Date: January 1, 2012.

FOR FURTHER INFORMATION CONTACT: Tina Namian, 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 
formal 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). In accordance with sections 12(f) (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 2012.
    The 2012 reimbursement rates are presented as a combined set of 
rates to highlight simplified cost accounting procedures. Reimbursement 
is 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. Program 
sponsors remain responsible, however, 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 
2.87 percent increase in this series for the 12 month period, from 
November 2010 through November 2011 (from 227.512 in November 2010 to 
234.046 in November 2011).

Table of 2012 Reimbursement Rates

    Presentation of the 2012 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, 2012 through December 
31, 2012.

                                           Summer Food Service Program
                                      [2012 Reimbursement rates (combined)]
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                                    All states except Alaska           Alaska                    Hawaii
                                           and Hawaii        ---------------------------------------------------
    Per meal rates in whole or     --------------------------
     fractions of U.S. dollars        Rural or    All other     Rural or    All other     Rural or    All other
                                     self-prep     types of    self-prep     types of    self-prep     types of
                                       sites        sites        sites        sites        sites        sites
----------------------------------------------------------------------------------------------------------------
Breakfast.........................       1.9350       1.8975       3.1325       3.0725       2.2650       2.2225
Lunch or Supper...................       3.3800       3.3250       5.4900       5.4000       3.9650       3.9000
Snack.............................       0.7975       0.7800       1.3000       1.2725       0.9325       0.9100
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[[Page 5229]]

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. 1759a(a)(3)(B)).

                       Summer Food Service Program
            [Operating component of 2012 reimbursement rates]
------------------------------------------------------------------------
                                    All states
 Operating rates in U.S. dollars,     except
rounded down to the nearest whole   Alaska and     Alaska       Hawaii
               cent                   Hawaii
------------------------------------------------------------------------
Breakfast........................         1.76         2.85         2.06
Lunch or Supper..................         3.06         4.97         3.59
Snack............................         0.71         1.16         0.83
------------------------------------------------------------------------

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 2012 reimbursement rates]
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                                    All states except Alaska           Alaska                    Hawaii
                                           and Hawaii        ---------------------------------------------------
   Administrative rates in U.S.    --------------------------
 dollars, adjusted, up or down, to    Rural or    All other     Rural or    All other     Rural or    All other
     the nearest quarter-cent        self-prep     types of    self-prep     types of    self-prep     types of
                                       sites        sites        sites        sites        sites        sites
----------------------------------------------------------------------------------------------------------------
Breakfast.........................       0.1750       0.1375       0.2825       0.2225       0.2050       0.1625
Lunch or Supper...................       0.3200       0.2650       0.5200       0.4300       0.3750       0.3100
Snack.............................       0.0875       0.0700       0.1400       0.1125       0.1025       0.0800
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    Authority:  Sections 9, 13, and 14, Richard B. Russell National 
School Lunch Act (42 U.S.C. 1758, 1761, and 1762a, respectively).

    Dated: January 24, 2012.
Audrey Rowe,
Administrator.
[FR Doc. 2012-2358 Filed 2-1-12; 8:45 am]
BILLING CODE 3410-30-P