By ensuring accurate reporting under each ALN and adhering to the guidelines provided by the U.S. Department of Agriculture, Texas Department of Agriculture, and the Texas Education Agency, school districts can maintain compliance and avoid potential audit issues.
The Schedule of Expenditures of Federal Awards (SEFA) is a critical document that Texas school districts must prepare annually to ensure compliance with federal audit requirements. For the fiscal year 2024, particular attention must be paid to the various Assistance Listing Numbers (ALNs) related to Child Nutrition Programs, given their significance in federal funding and the intricacies involved in accurate reporting.
For FY 2024, Texas school districts must report on various ALNs related to Child Nutrition Programs.
These include:
Included in the Child Nutrition Cluster:
1. ALN 10.553: School Breakfast Program (SBP) & Summer Seamless Option (SSO)
- Pass-through Agency: Texas Education Agency
- Identifying Number: 71402401
- The SBP provides reimbursements to schools for providing nutritious breakfasts to students. Accurate reporting of expenditures under this program is critical, as it often involves large sums of federal funding.
- Fund: 240
2. ALN 10.555: National School Lunch Program (NSLP); & Summer Seamless Option (SSO)
- Pass-through Agency: Texas Education Agency
- Identifying Number: 71402401
- The NSLP is one of the largest federal nutrition programs and includes regular school lunches, after-school snacks, and meal supplements. Districts must ensure all components are correctly reported.
- Fund: 240
3. ALN 10.555: USDA Commodities & Supply Chain Assistance (SCA)
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifier: NT4XL1YGLGC5
- The SCA funds aim to support school food authorities (SFAs) in purchasing domestic, unprocessed, or minimally processed food products. These funds help schools deal with issues such as unanticipated cancellations of food contracts, reduced availability of certain foods, unexpected substitutions, and price fluctuations. The USDA commodities program for Texas school districts is designed to support school meal programs by providing nutritious, American-grown foods. This program supplies schools with a variety of foods, including fruits, vegetables, meats, and grains. These foods help schools create appealing and nutritious meals while managing costs.
- Fund: 240
4. ALN 10.556: Special Milk Program for Children (SMP)
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifying Number: NT4XL1YGLGC5
- This program provides federal reimbursement for milk served to children in schools that do not participate in other federal meal service programs. Proper segregation of expenditures for this program is essential for accurate SEFA reporting.
- Fund: 240 (not common in Texas ISDs)
5. ALN 10.559: Summer Food Service Program (SFSP)
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifying Number: NT4XL1YGLGC5
- The SFSP reimburses schools for meals served to children during the summer months when school is not in session. Given the seasonal nature of this program, careful tracking and reporting of expenditures are necessary.
- Fund: 242
6. ALN 10.582: Fresh Fruit and Vegetable Program (FFVP)
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifying Number: NT4XL1YGLGC5
- This program provides funding to schools for providing fresh fruits and vegetables to students outside of regular meal programs. Reporting under this ALN should reflect the specific use of funds as per program guidelines.
- Fund: 240
Not included in the Child Nutrition Cluster:
1. ALN 10.185: Local Food for Schools Cooperative
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifying Number: NT4XL1YGLGC5
- The purpose of the Local Food for Schools (LFS) program is to support local and regional food systems, with a focus on historically underserved and small businesses. LFS funds can be used to pay for the direct purchase, transportation, and storage of unprocessed or minimally processed foods.
- Fund: Not common for ISDs
2. ALN 10.558: Child and Adult Food Care Program (CACFP)
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifying Number: NT4XL1YGLGC5
- The CACFP reimburses childcare centers, day care home providers, adult day care centers, and afterschool at-risk programs for part of the cost associated with serving approved meals and snacks to children and adults in Texas.
- Fund: 240
3. ALN 10.560: State Administrative Expense (SAE) Funds
- Pass-through Agency: Texas Department of Agriculture (TDA)
- Identifying Number: NT4XL1YGLGC5
- Prescribes the methods for making payments of funds to State agencies for use for administrative expenses incurred in supervising and giving technical assistance in connection with activities undertaken by them under the National School Lunch, School Breakfast, Special Milk, Child and Adult Care Food Program, and Food Distribution Program.
- Fund: 240
Additional notes
- For all funds passed through Texas Department of Agriculture (TDA), use NT4XL1YGLGC5 as the pass-through entity identifying number on the SEFA.
- TDA is reimbursing districts 30 cents for each reduced-price breakfast for the 2023-2024 and 2024-2025 years. These are state grant funds and not reported on the SEFA.
Also, when claiming indirect costs for the Child Nutrition program, ensure that you refer to the calculation described TDA’s Administrator’s Reference Manual Section 16 Financial System. The primary risks when claiming indirect costs are (1) not removing distorting items the direct cost base and (2) if TDA determines that indirect costs claimed by the Districts for its federal funds were not done in an equitable manner. For example, if a District only claims indirect costs for Child Nutrition and no other federal program, the indirect costs in the Child Nutrition Program will be disallowed.
The preparation of the SEFA for FY 2024 requires meticulous attention to detail, particularly for Child Nutrition Programs. By ensuring accurate reporting under each ALN and adhering to the guidelines provided by the U.S. Department of Agriculture, Texas Department of Agriculture, and the Texas Education Agency, school districts can maintain compliance and avoid potential audit issues. The SEFA is not just a regulatory requirement; it reflects a district's stewardship of federal funds and its commitment to transparency and accountability.
