Attachment G 7 CFR 225.7(d)(2)

Attachment G: 7 CFR 225.7(d)(2)

§225.7 Program monitoring and assistance.
(a) Training. Prior to the beginning of Program operations, each State agency shall make
available training in all necessary areas of Program administration to sponsor personnel, food
service management company representatives, auditors, and health inspectors who will participate
in the Program in that State. Prior to Program operations, the State agency shall ensure that the
sponsor's supervisory personnel responsible for the food service receive training in all necessary
areas of Program administration and operations. This training shall reflect the fact that individual
sponsors or groups of sponsors require different levels and areas of Program training. State
agencies are encouraged to utilize in such training, and in the training of site personnel, sponsor
personnel who have previously participated in the Program. Training should be made available at
convenient locations. State agencies are not required to conduct this training for sponsors operating
the Program during unanticipated school closures during the period from October through April (or at
any time of the year in an area with a continuous school calendar).
(b) Program materials. Each State agency shall develop and make available all necessary
Program materials in sufficient time to enable applicant sponsors to prepare adequately for the
Program.
(c) Food specifications and meal quality standards. With the assistance of the Department,
each State agency shall develop and make available to all sponsors minimum food specifications
and model meal quality standards which shall become part of all contracts between vended
sponsors and food service management companies.
(d) Program monitoring and assistance. The State agency shall conduct Program monitoring
and provide Program assistance according to the following provisions:
(1) Pre-approval visits. The State agency shall conduct pre-approval visits of sponsors and
sites, as specified below, to assess the applicant sponsor's or site's potential for successful Program
operations and to verify information provided in the application. The State agency shall visit prior to
approval:
(i) All applicant sponsors which did not participate in the program in the prior year. However, if a
sponsor is a school food authority, has been reviewed by the State agency under the National
School Lunch Program during the preceding 12 months, and had no significant deficiencies noted in
that review, a pre-approval visit may be conducted at the discretion of the State agency. In addition,
pre-approval visits of sponsors proposing to operate the Program during unanticipated school
closures during the period from October through April (or at any time of the year in an area with a
continuous school calendar) may be conducted at the discretion of the State agency;
(ii) All applicant sponsors which, as a result of operational problems noted in the prior year, the
State agency has determined need a pre-approval visit; and
(iii) All sites which the State agency has determined need a pre-approval visit.
(2) Sponsor and site reviews—(i) General. The State agency must review sponsors and sites to
ensure compliance with Program regulations, the Department's non-discrimination regulations (7
CFR part 15) and any other applicable instructions issued by the Department. In determining which
sponsors and sites to review, the State agency must, at a minimum, consider the sponsors' and
sites' previous participation in the Program, their current and previous Program performance, and
the results of previous reviews of the sponsor and sites. When the same school food authority

personnel administer this Program as well as the National School Lunch Program (7 CFR part 210),
the State agency is not required to conduct a review of the Program in the same year in which the
National School Lunch Program operations have been reviewed and determined to be satisfactory.
Reviews shall be conducted as follows:
(ii) Frequency and number of required reviews. State agencies shall:
(A) Conduct a review of every new sponsor at least once during the first year of operation;
(B) Annually review a number of sponsors whose program reimbursements, in the aggregate,
accounted for at least one-half of the total program meal reimbursements in the State in the prior
year;
(C) Annually review every sponsor which experienced significant operational problems in the
prior year;
(D) Review each sponsor at least once every three years; and
(E) As part of each sponsor review, conduct reviews of at least 10 percent of each sponsor's
sites, or one site, whichever number is greater.
(iii) Review of sponsor's operation. State agencies should determine if:
(A) Expenditures are allowable and consistent with FNS Instructions and guidance and all
funds accruing to the food service are properly identified and recorded as food service revenue;
(B) Expenditures are consistent with budgeted costs, and the previous year's expenditures
taking into consideration any changes in circumstances;
(C) Reimbursements have not resulted in accumulation of net cash resources as defined in
paragraph (f) of this section; and
(D) The level of administrative spending is reasonable and does not affect the sponsor's ability to
operate a nonprofit food service and provide a quality meal service.