Supporting statement for SFSP proposed rule Final to PRAB 5-10-13

Simplified Cost Accounting and Other Actions to Reduce Paperwork in the Summer Food Service Program and National School Lunch Notice Procedures

OMB CLEARANCE NUMBER 0584-0280

RIN 0584-AD84

SUPPORTING STATEMENT

Bramaramba. J. Kowtha, Program Analyst

Child Nutrition Division

Food and Nutrition Service, USDA

Program Analysis and Monitoring Branch

Special Nutrition Program

3101 Park Center Drive

Alexandria, VA 22302

Phone: 703-605-4390

[email protected]

1. Explain the circumstances that make the collection of information necessary. Identify any legal or administrative requirements that necessitate the collection. Attach a copy of the appropriate section of each statute and regulation mandating or authorizing the collection of information.

This is a revision of a currently approved information collection associated with rulemaking. The Summer Food Service Program (SFSP or “the Program”) is authorized under section 13 of the Richard B. Russell National School Lunch Act (NSLA), 42 U.S.C. 1761. Its primary purpose is to provide free, nutritious meals to children from low-income areas during periods when schools are closed for vacation. It is locally operated by approved sponsors, which may include public or private non-profit school food authorities (SFAs), public or private non-profit residential summer camps, or units of local, municipal, county or State governments or other private non-profit organizations that develop a special summer or other school vacation program providing food service similar to that available to children during the school year under the National School Lunch Program (NSLP) and the School Breakfast Program (SBP). The Department is committed to reducing barriers to SFSP participation. As indicated in the proposed rule: Simplified Cost Accounting and Other Actions to Reduce Paperwork in the Summer Food Service Program and National School Lunch Notice Procedures (0584-AD84), one such barrier identified by Program operators is the paperwork burden involved in administering the Program. To address this issue, the Department has explored ways to streamline the administrative paperwork burden of SFSP sponsors and State agencies so more time and resources are directed toward increasing access, providing quality meal service to benefit eligible children, and ensuring Program integrity. To that end, this rule proposes to codify the nondiscretionary simplified cost accounting and reporting procedures established in the Consolidated Appropriations Act, 2008 (Public Law 110-161), and make discretionary changes to the SFSP regulations to improve management of the Program and reduce paperwork requirements.

2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate how the agency has actually used the information received from the current collection.

This information is required to administer and operate this program in accordance with the NSLA. State agencies enter into agreements with organizations for local level program operation (sponsors, camps and other site levels) and delivery of program benefits and services to eligible children. Program operators must submit monthly claims using FNS- 418 to its administering agency to receive reimbursement. All meals claimed for reimbursement must meet Federal requirements and be served to eligible children. While all SFSP meals are served at no charge, the sponsors of certain types of feeding sites must make individual determinations of eligibility for free or reduced price meals. The intended effect of this proposed rule is to simplify and streamline administration while ensuring the integrity of the Program.

3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, e.g. permitting electronic submission of responses, and the basis for the decision for adopting this means of collection. Also, describe any consideration of using information technology to reduce burden.

FNS is committed to complying with the E-Government Act of 2002 to promote the use of the Internet and other information technologies to provide increased opportunities for citizen access to Government information and services. All program operation information and materials are available to agencies by downloading from the FNS website. FNS estimates that approximately 100% of the State agencies will submit reporting (FNS-418) data electronically through FNS’ Food Programs Reporting System (FPRS) at https://fprs.fns.usda.gov/Home/Reminder.aspx. Burden associated with this form is currently approved under this information collection (OMB No. 0584-0280; Expiration date: 3/31/2016). In addition, each state agency maintains its own website to communicate electronically with sponsors, camps, other sites, and households in their state.

4. Describe efforts to identify duplication. Show specifically why any similar information already available cannot be used or modified for use for the purposes described in Question 2.

There is no similar information data collection available. The SFSP is administered solely by FNS.

5. If the collection of information impacts small businesses or other small entities (Item 5 of OMB Form 83-I), describe any methods used to minimize burden.

Some local agencies and institutions meet the definition of “small organizations.” Information being requested or required has been held to the minimum required for the intended use. Although smaller State Agencies, Camps and Sponsors are involved in this data collection effort, they deliver the same program benefits and perform the same functions as larger ones. Thus, they maintain the same kinds of information on file. FNS estimates that 50% of sponsors or 2,377 sponsors, and 100% of camps, approximately 791 camps, are considered small entities. An estimated 3,168 of the respondents are small entities.

6. Describe the consequence to Federal program or policy activities if the collection is not conducted, or is conducted less frequently, as well as any technical or legal obstacles to reducing burden.

The SFSP has a short operating period and State agencies and sponsors would lose operating funds if claims for reimbursement are not submitted in a timely manner. In order to receive reimbursement for eligible meals served, sponsors must submit a claim for reimbursement within 60 days of the last day of operation and State agencies have 90 days to submit final claims from the last day of operation. The consequence for not collecting the information is the inability to proficiently operate the SFSP program.

7. Explain any special circumstances that would cause an information collection to be conducted in a manner:

• requiring respondents to report information to the agency more often than quarterly;

• requiring respondents to prepare a written response to a collection of information in fewer than 30 days after receipt of it;

• requiring respondents to submit more than an original and two copies of any document;

• requiring respondents to retain records, other than health, medical, government contract, grant-in-aid, or tax records for more than three years;

• in connection with a statistical survey, that is not designed to produce valid and reliable results that can be generalized to the universe of study;

• requiring the use of a statistical data classification that has not been reviewed and approved by OMB;

• that includes a pledge of confidentiality that is not supported by authority established in statute or regulation, that is not supported by disclosure and data security policies that are consistent with the pledge, or which unnecessarily impedes sharing of data with other agencies for compatible confidential use; or

• requiring respondents to submit proprietary trade secret, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information's confidentiality to the extent permitted by law.

This collection requires respondents to report information to the agency more often than quarterly. Sponsors must submit a claim for reimbursement within 60 days of the last day of operation and State agencies have 90 days to submit final claims from the last day of operation. This information collection allows state agencies and sponsors to make discretionary changes to SFSP regulations, improve management of the program and reduce paperwork requirements. There are no other special circumstances. The collection of information is conducted in a manner consistent with the guidelines in 5 CFR 1320.5.

8. If applicable, provide a copy and identify the date and page number of publication in the Federal Register of the agency's notice, required by 5 CFR 1320.8 (d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken by the agency in response to these comments.

A 60-day notice was embedded in the Proposed Rule, “ Simplified Cost Accounting and Other Actions to Reduce Paperwork in the Summer Food Service Program and National School Lunch Notice Procedures” and published in the Federal Register at 77 FR XXX. Public comments will be addressed with the final rule.

Describe efforts to consult with persons outside the agency to obtain their views on the availability of data, frequency of collection, the clarity of instructions and recordkeeping, disclosure, or reporting form, and on the data elements to be recorded, disclosed, or reported.

FNS consults with Regional Offices regarding any proposed changes as the result of legislative, regulatory or administrative changes. Regional offices are in contact with State agencies, which provide feedback on FNS processes and procedures for this information collection.

9. Explain any decision to provide any payment or gift to respondents, other than re-enumeration of contractors or grantees.

No payment or gift will be provided to respondents.

10. Describe any assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy.

The Department will comply with the Privacy Act of 1974 (5 USC 552a), which requires the safeguarding of individuals against invasion of privacy. No confidential information is associated with this information collection.

11. Provide additional justification for any questions of a sensitive nature, such as sexual behavior or attitudes, religious beliefs, and other matters that are commonly considered private. This justification should include the reasons why the agency considers the questions necessary, the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent.

There are no questions of a sensitive nature included in this data collection.

12. Provide estimates of the hour burden of the collection of information. The statement should include:

Indicate the number of respondents, frequency of response, annual hour burden, and an explanation of how the burden was estimated. If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in Item 13 of OMB Form 83-I.

This is a revision of currently approved collection. As a result of this proposed rule, several discretionary changes were made to improve administrative efficiency and reduce paperwork in management of the SFSP. This collection was renewed recently and the new expiration date is 3/31/2016. As a result of changes in the proposed rule, burden was reduced by 27,184 (175,391-148,207) hours. The attached burden table reflects the estimated burden associated with this information collection for each type of respondent.

ESTIMATED ANNUAL BURDEN FOR

SIMPLIFIED COST ACCOUNTING AND OTHER ACTIONS TO REDUCE PAPERWORK

IN THE SUMMER FOOD SERVICE PROGRAM AND NATIONAL SCHOOL LUNCH NOTICE PROCEDURES (Part of 0584-0280 Collection)

Reporting
Burden Activities	Section	Estimated Number of Respondents	Frequency of Response	Average Annual Responses	Average Burden per Response	Annual Burden Hours	Current OMB Approved Burden	Due to Program Change
SA, by November 1 of each fiscal year, notify USDA if it intends to administer the Summer Food Service Program	225.3(b)	53	1	53	0.25	13.25	13.25	0
SAs, by Feb. 15 of each year, submit to FNSRO a Program Management and Administration Plan for that fiscal year	225.4(a)	53	1	53	1	53	53	0
SAs, within 5 days of approval of sponsors, must notify FNSROs of sponsors, approved sites, locations, and days of operation and estimated daily attendance	225.8(d)(2)	53	90	4770	1	4,770	4,770	0
SAs submit to FNS a final report on SFSP operations for each month of operations (FNS-418)	225.8(b)	53	3	159	2	318	318	0
SAs submit to FNSRO a list of names and addresses of potential private nonprofit organizations and for each site, the address, first day of operation, and estimated daily attendance by May 1 each year.	225.8(d)(1)	53	1	53	1	53	53	0
SAs prepare and submit a list sponsors eligible to receive commodities and daily number of eligible means to be served by each sponsor by June 1	225.9(b)(2)	53	1	53	1	53.00	53	0
SAs forward reimbursements for valid claims.	225.9(d)(4)	53	270	14310	0.50	7,155	7,155	0
SAs establish claims against sponsors and recover payment not properly payable	225.12(a)	53	9	477	4	1,908	1,908	0
SAs notify terminated sponsors in writing	225.18(b)(2)	53	5	265	1	265	265	0
State Agency Level Totals		53	381.00	20,193	0.722441	14,588	14,588.25	0
Sponsors submit written application to SAs for participation in SFSP	225.6 (c)(1) 225.6 (b)(7)	4,754	1	4,754	2.00	9,508	15,688.20	(6,180)
Sponsors submit site information for each site where a food service operation is proposed	225.6(c)(2)	4,754	1	4,754	1.00	4,754	4,754	0
Sponsors must submit a statement of its policy for serving free meals	225.6(c)(3)	475	1	475	0.01	5	5	0
Sponsors approved for participation in SFSP enter into written agreements with SAs to operate program in accordance with regulatory requirements	225.6(e), 225.6(b)(7)	475	1	475	1.00	475	58	417
Sponsors provide FSMC with a list of approved sites.	225.6(h)(2)(iii)	1,426	1	1,426	0.50	713	713	0
Sponsors submit requests to SAs for exception to unitizing requirement for certain components of a meal	225.6(h)(3)	47	1	47	0.50	23.50	23.50	0
Sponsors submit to SAs copies of contracts with FSMC, bids received, and reason for selection on FSMC chosen	225.6(h)(5) 225.6 (h)(2)	1,426	1	1,426	5.00	7,130	28,520	(21,390)
Sponsor Level Totals		4,754	2.80963	13,357	1.69261	22,608.25	49,761.7	(27,154)
Camps submit copy of hearing procedures.	225.6(c)(5)	791	1	791	0.25	197.75	197.75	0
Camps Level Totals		791	1	791	0.25	197.75	197.75	0
Households read instructions, complete free meal and return to camps and sites.	225.15(f)	100,589	1	100,589	.50	50,295	50,295	0
Households provide written consent for sponsors to use or disclose information.	225.15(j)	100,589	1	100,589	.25	25,147	25,147	0
Household Level Totals		100,589	2.00	201,178	0.37500	75,441.75	75,441.75	0
Reporting Level Totals		106,187	2.21796	235,519	.47909	112,836	139,989.6	(27,154)
Total Reporting Burden for Part 225 with Revisions		106,187	2.21796	235,519	.47909	112,836	139,989.6	(27,154)
Total Existing Reporting Burden for Part 225		106,187	-	235,519	-	139,989	-	-
Total Burden Difference Due to Proposed Rule		0	-	0	-	(27,154)	-	-

Reporting Burden Summary:

Affected Public	Estimated No. Respondents	Frequency of Response	Average Annual Responses	Average Burden per Response	Annual Burden Hours
State Agencies	53	381	20,193	.72244	14,588
Sponsors	4,754	2.80963	13,357	1.6926	22,608
Camps and other sites	791	1.0	791	.25000	197.75
Households	100,589	2.0000	201,178	.37500	75,442
TOTAL	106,187	2.22	235,519	.48	112,836
Current OMB Burden Inventory					139,990
Difference					(27,154)

Recordkeeping
	Section	Estimated Number of Respondents	Frequency of Response	Average Annual Responses	Average Burden per Response	Annual Burden Hours	Current OMB approved Burden	Difference Due to Program Change
SAs maintain complete and accurate accounting records appeals for three years.	225.8(a) 225.13(d) 225.7(d)
Reviews Appeals Accounting		53	30	1590	.085	135.150	165.36	30.210
		53	2	106	.08	8.480	8.48	0
		53	90	4770	.08	381.6	381.6	0
State Agency Level Totals		53	122	6,466	.081229	525.230	555.44	30.210
Sponsors must maintain records which justify all costs and meals claimed	225.15 (c), 225.15 (a), 225.9(g)	4,754	1	4,754	.08	380	380	0
Camps and sponsors must maintain copies of the documentation establishing the eligibility of child receiving meals and all other meal service requirement information.	225.16(b)	4754	90	427,860	.08	34,229	34,229	0
Sponsor Level Totals		4754	91	432,614	.08	34,609	34,609
Camps must maintain a written record of hearing for 3 years.	225.6(c)(5)(xii)	791	1	791	0.3	237	237
Camps and Other sites Totals		791	1	791	0.30000	237	237
Recordkeeping Totals		5598	78.58	439,871	.08	35,372	35,402	(30)
Total Recordkeeping Burden for Part 225 with Proposed Rule		5598	78.58	439,871	.08	35,372	35,402	(30)
Total Existing Recordkeeping Burden for Part 245		5598	-	440,348	-	35,402	-	-
Total Burden Difference Due to Interim Rule		0	-	(477)		(30)

Recordkeeping Summary:

Affected Public	Estimated No. Respondents	Frequency of Response	Average Annual Responses	Average Burden per Response	Annual Burden Hours
State Agencies	53	122	6,466	.08	525
Sponsors	4754	91	432,614	.1	34,609
Camps and Other Sites	791	1	791	.3	237
TOTAL	5,598	78.58	439,871	.08041	35,372

Burden Summary (Reporting and Recordkeeping):

Affected Public: State agencies, Sponsors, Camps and Other sites, Households

Estimated Number of Respondents: 111,785

Estimated Number of Responses per Respondent: 6.04187

Estimated Total Annual Responses: 675,390

Estimated Time per Response: .21944

Estimate Total Annual Burden on Respondents: 148,207

Current OMB Inventory For Part 245: 175,391

Burden Revision Requested: -27,184

• Provide estimates of annualized cost to respondents for the hour burdens for collections of information, identifying and using appropriate wage rate categories.

The estimate of respondent cost is based on the burden estimates and utilizes the U.S. Department of Labor, Bureau of Labor Statistics, May 2011 National Occupational and Wage Statistics, Occupational Group (25-0000) (http://www.bls.gov/bls/wages.htm). The hourly mean wage (for education-related occupations) for functions performed by State agency and local education agency staff are estimated at $24.46 per staff hour.

TOTAL COST TO PUBLIC = 148,207 hours X $24.46 per hour = $ 3,625,143.22

13. Estimate of other total annual cost burden to respondents or record keepers. Provide estimates of the total annual cost burden to respondents or record keepers resulting from the collection of information (do not include the cost of any hour burden shown in items 12 and 14). The cost estimates should be split into two components: (a) a total capital and start-up cost component annualized over its expected useful life; and (b) a total operation and maintenance and purchase of services component.

There is no start-up or annual maintenance costs for this collection of information.

13. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost and any other expense that would not have been incurred without this collection of information.

The Federal cost of collecting and processing data under Part 225, issuing Program regulations, guidance, and monitoring compliance with the regulations is presented below. FNS used the following procedure to estimate this cost:

1. FNS identified functions performed by FNSRO and Headquarters staff that benefits the SFSP and obtained estimates of the total number of staff hours spent performing these functions. For Headquarters and FNSRO, staff obtained estimates from personnel who perform the functions.

FEDERAL COSTS OF SFSP - PERSONNEL
(1)	(2)	(3)	(4)	(5)
FUNCTION	DONE BY	TOTAL STAFF HOURS	SFSP ALLOCATION PERCENTAGE	PORTION TO SFSP (3X4)
Professional Assistance to State agencies	FNS Regional Office	22,880 hours	20%	4,576 hours
Drafting/Clearing Regulations	HQ	14,560 hours	40%	5,824 hours
Policy Development Guidance	HQ	14,560 hours	40%	5,824 hours
TOTAL				16,224

Using the 2012 Federal Wage Salary Tables, we estimated the salary rate is $30.00 per hour (the average hourly salary for a GS 11/12 which is the grade level of staff who performs these functions). Our computations are:

FEDERAL SALARIES

Salaries (16,224 hours @ $30.00) $486,720.00

10 % for Administrative overhead $48,672.00.

Federal Cost $535,392

15. Explain the reasons for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-1.

This is a revision of a currently approved collection. As a result of discretionary changes related to the proposed rule, this revision will reduce 27,184 burden hours in the OMB information collection inventory. Program changes were due to rulemaking that reduced burden via the simplification of program applications and standard contract procedures. There is an additional burden reduction in recordkeeping, due to a reduction in the number of records required to be maintained.

16. For collections of information, whose results are planned to be published,

Outline plans for tabulation and publication.

This collection does not employ statistical methods and there are no plans to publish the

results of this collection for statistical use.

17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate.

We are not seeking approval concerning the display of the expiration date.

18. Explain each exception to the certification statement identified in Item 19

"Certification for Paperwork Reduction Act."

There are no exceptions to the certification statement.