277.4—Funding.

(a) General. This section sets allowable cost standards for activities of State agencies in administering the Food Stamp Program and Food Distribution Program on Indian Reservations.
(b) Federal reimbursement rate. The base percentage for Federal payment shall be 50 percent of State agencies' allowable Food Stamp Program administrative costs. This rate includes reimbursement for food stamp informational activities but not for recruitment activities. Recruitment activities are those activities designed to persuade an individual who has made an informed choice not to apply for food stamps to change his or her decision and apply.
(1) Funding of demonstration projects approved by FNS will be at a rate agreed to by FNS in accordance with the requirements outlined in part 282.
(2) The reimbursement of administrative costs to State agencies administering the program on Indian reservations shall be in accordance with the requirements of parts 281 and 283.
(3) the federally funded share of administrative costs, as identified in paragraph (b) of this section may be decreased based upon its payment error rate as described in § 275.23. The rates of Federal funding for the activities identified in paragraphs (b)(1) and (b)(2) of this section shall not be reduced based upon the agency's payment error rate.
(4) Employment and training program grants, as outlined in § 273.7(d) shall be 100 percent federally-funded.
(c) Matching costs. State agency costs for Federal matching funds may consist of:
(1) Charges reported on a cash or accrual basis by the State agency as project costs.
(2) Project costs financed with cash contributed or donated to the State agency by other non-Federal public agencies and institutions.
(3) Project costs represented by services and real or personal property donated by other non-Federal public agencies and institutions.
(d) All cash or in-kind contributions except as provided in paragraph (e) of this section shall be allowable as part of the State agency's share of program costs when such contributions:
(1) Are verifiable;
(2) Are not contributed for another federally-assisted program, unless authorized by Federal legislation;
(3) Are necessary and reasonable for accomplishment of project objectives;
(4) Are charges that would be allowable under this part;
(5) Are not paid by the Federal Government under another assistance agreement unless authorized under the other agreement and its subject laws and regulations; and
(6) Are in the approved budget.
(e) The value of services rendered by volunteers or the value of goods contributed by third parties, exclusive of the State and Federal agencies, are unallowable for reimbursement purposes under the Food Stamp Program. The value of services rendered by volunteers shall be allowable only to meet any matching administrative costs requirements for the Food Distribution Program on Indian Reservations.
(f) The expenses (e.g. travel, lodging, meals) of persons working with volunteer or nonprofit organizations which receive training and assistance pursuant to § 272.4(d)(2) are not allowable.
(g) Investigations of authorized retail or wholesale food concerns when performed in coordination with the USDA Office of Inspector General and FNS shall be funded at the 50 percent Federal reimbursement rate.

Code of Federal Regulations

[Amdt. 188, 45 FR 85702, Dec. 30, 1980]

Code of Federal Regulations

Editorial Note: For Federal Register citations affecting § 277.4 , see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.fdsys.gov.