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Sponsoring organizations of FDCHs are allowed to carry over 10 percent of their CACFP administrative reimbursement from one Federal fiscal year to the next, these are referred to as carryover funds. Carryover funds are available only when the administrative payments exceed actual expenses. Carryover funds in excess of 10% will be recuperated. Once accepted, carryover funds and expenses must be tracked separately from administrative revenue and expenses.
Prior to accepting FY 2023 carryover funds, sponsors must review all FY 2023 CACFP administrative expenditures entered in CNPweb (October 2022 through September 2023) and verify the accuracy of information in CNPweb to their organizations financial management system reports. If any errors are identified, sponsors must revise the CNPweb claim(s) and resubmit for ODE CNP approval.
On August 23,2023 FNS released the final rule on Child Nutrition Program Integrity which includes two new regulations regarding carryover of administrative funds. 226.7(g)(2) and 226.12(a)(3) were added to 7 CFR 226. Based on these regulations ODE CNP has added a new step to the carryover fund approval process.
After verifying CNPweb administrative expenditures reflect accurately, sponsors must submit a report from their financial management system that identifies the amount of unspent CACFP reimbursement earned in FY 2023. The due date for revising FY 2023 administrative expenditures and submitting the financial report is December 22, 2023. ODE CNP will review the information submitted and provide approval of the amount of carryover funds allowed.
After receiving approval from ODE CNP, sponsors must then apply FY 23 carryover funds to FY 24 administrative expenses. The USDA policy is ‘first in, first out’ which means sponsors will need to apply the carryover funds starting with the October 2023 claim and continuing to the next month, if necessary, until all carryover funds are all spent. Sponsor financial records must be adjusted to note the specific FY 2024 administrative costs that were charged to FY 2023 carryover funds.
By January 3, 2024, FDCH sponsors will have access to the CNPweb Carryover Expense Report which is in the Claims tab. The report identifies the allowable FY 2023 carryover amount, reported carryover expenses and net funds to return to ODE, if applicable. FDCH sponsors must certify and submit the report to ODE CNP after applying all carryover funds to FY 2024 administrative costs.
If you have questions, please contact Teresa Murray at 971-240-0237 or teresa.murray@ode.oregon.gov
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