[Federal Register Volume 82, Number 42 (Monday, March 6, 2017)]
[Notices]
[Pages 12533-12535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-04227]


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DEPARTMENT OF AGRICULTURE

Food and Nutrition Service


Summer Food Service Program; 2017 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 2017 reimbursement rates are presented as a combined set 
of rates to highlight simplified cost accounting procedures. The 2017 
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, 2017.

FOR FURTHER INFORMATION CONTACT: Jessica Saracino, Program Monitoring 
and Operational Support Division, Child Nutrition Programs, Food and 
Nutrition Service, United States Department of Agriculture, 3101 Park 
Center Drive, Suite 628, Alexandria, Virginia 22302, 703-305-1620.

SUPPLEMENTARY INFORMATION: The Summer Food Service Program (SFSP) 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. 
(See 2 CFR part 415 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.

[[Page 12534]]

    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 SFSP regulations.

Background

    This notice informs the public of the annual adjustments to the 
reimbursement rates for meals served in SFSP. In accordance with 
sections 12(f) and 13, 42 U.S.C. 1760(f) and 1761, of the Richard B. 
Russell National School Lunch Act (NSLA) and SFSP regulations under 7 
CFR part 225, the United States Department of Agriculture announces the 
adjustments in SFSP payments for meals served to participating children 
during calendar year 2017.
    The 2017 reimbursement rates are presented as a combined set of 
rates to highlight simplified cost accounting procedures. Reimbursement 
is based solely on a ``meals times rate'' 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. 
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 cost categories 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 2.3 percent increase in this series for the 12-month 
period, from November 2015 through November 2016 (from 258.805 in 
November 2015 to 264.699 in November 2016).

Table of 2017 Reimbursement Rates

    Presentation of the 2017 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, 2017 through December 
31, 2017.

                                                  Summer Food Service Program 2017 Reimbursement Rates
                                                                       [Combined]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                           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
--------------------------------------------------------------------------------------------------------------------------------------------------------
Breakfast...............................................          2.1875          2.1450          3.5400          3.4725          2.5500          2.5025
Lunch or Supper.........................................          3.8325          3.7700          6.2075          6.1075          4.4850          4.4125
Snack...................................................          0.9075          0.8875          1.4700          1.4375          1.0550          1.0300
--------------------------------------------------------------------------------------------------------------------------------------------------------

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)(iii) of the NSLA, 42 U.S.C. 
1759a(a)(3)(B)(iii).

                   Summer Food Service Program Operating Component of 2017 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
----------------------------------------------------------------------------------------------------------------
Breakfast.......................................................            1.99            3.22            2.32
Lunch or Supper.................................................            3.47            5.62            4.06
Snack...........................................................            0.81            1.31            0.94
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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.

[[Page 12535]]



                                    Summer Food Service Program Administrative Component of 2017 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
--------------------------------------------------------------------------------------------------------------------------------------------------------
Breakfast...............................................          0.1975          0.1550          0.3200          0.2525          0.2300          0.1825
Lunch or Supper.........................................          0.3625          0.3000          0.5875          0.4875          0.4250          0.3525
Snack...................................................          0.0975          0.0775          0.1600          0.1275          0.1150          0.0900
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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: February 27, 2017.
Jessica Shahin,
Acting Administrator, Food and Nutrition Service.
[FR Doc. 2017-04227 Filed 3-3-17; 8:45 am]
 BILLING CODE 3410-30-P