Pricing of Adult Meals in National School Lunch and School Breakfast Programs1 (1)

UNITED STATES DEPARTMENT OF AGRICULTURE                          FNS INSTRUCTION 782-5
Food and Nutrition Service                                                    REV. 1
3101 Park Center Drive
Alexandria, VA 22302




ACTION BY:       Regional Directors
                 Special Nutrition Programs

SOURCE CITATION: Section 210.6 and 220.6

                 Pricing of Adult Meals in the National School Lunch
                            And School Breakfast Programs

This Instruction sets forth the policy on pricing of meals served to
adults under the National School Lunch, Commodity School and School
Breakfast Programs in participating schools and institutions which claim
reimbursement under Sections 4 and 11 of the National School Lunch Act and
Section 4 of the Child Nutrition Act. Since the expressed purpose of
Federal assistance is to safeguard the health and well-being of the
Nation’s children, meals served to adults are neither eligible under the
authorizing legislation and regulations for Federal cash reimbursement,
nor do they earn donated food assistance for the school food authority.

Since implementation of the cost accountability revisions of Public Law
97-35, program funds (other than severe need breakfast funds) are
available to school food authorities for use within their overall
nonprofit school food service operations, rather than being restricted
solely to the financing of program specific costs. Nevertheless, school
food authorities must ensure to the extent practicable, that the Federal
reimbursements, children’s payments, and other nondesignated nonprofit
food service revenues do not subsidize program meals served to adults.
Also, while FNS Instruction 770-1 allows donated foods to be used for
preparing food items served in adult meals, the current per-meal value of
entitlement and/or bonus donated foods must be taken into consideration in
establishing the price charged to adults for meals.

Breakfasts and lunches served to teachers, administrators, custodians and
other adults must be priced so that the adult payment in combination with
any per-lunch revenues from other sources designated specifically for the
support of adult meals (such as State or local fringe benefit or payroll
funds, or funding from voluntary agencies) is sufficient to cover the
overall cost of the lunch. Including the value of any USDA entitlement
and bonus donated foods used to prepare the meal. If cost data are not
available, the minimum adult payment should reflect the price charged to




 DISTRIBUTION:         MANUAL MAINTENANCE INSTRUCTIONS:     RESPONSIBLE FOR      Page 1
                                                            PREPARATION AND      6-6-88
 5,6,12                Remove FNS Instruction 782-5, from
                                                            MAINTENANCE:
                       Manual. Insert this Instruction.
                                                            CND-100


FORM FNS-620 (10-81)
                                                     FNS INSTRUCTION 782-5
                                                                    REV. 1



Students paying the school’s designated full price, plus the current value
of Federal cash and donated food assistance (entitlement and bonus) for
full price meals. In nonpricing programs, the adult charge should be at
least the amount of reimbursement received for a free lunch under Section
4 and 11 of the National School Lunch Act, plus the per-meal value of both
entitlement and bonus donated foods, or for breakfasts, the rate
established for free meals under Section 4 of the Child Nutrition Act,
plus the value of bonus commodities.

Meals served to adults who are directly involved in the operation and
administration of the school nutrition programs may, at the discretion of
the school food authority, be furnished at no charge. As such, their cost
may be fully attributed to and supported by the nonprofit food service
operation.

Meals served to these adults may not be claimed for reimbursement or
counted towards the donated foods entitlement. The determination of
individuals, positions involved, and the degree to which their services
are attributed to the nonprofit food service program operations is left to
State and local officials.




                                                                    Page 2
                                                                    6-6-88