This question and answer memorandum is designed to provide an overview of policies related to unpaid meal charges and to address common questions FNS has received from state agencies, school food authorities, and local program operators.
The purpose of this memorandum is to strongly encourage local educational agencies to accept eligibility determinations from a transferring student’s former LEA to minimize disruptions in meal benefits for low-income students and avoid student debt resulting from unpaid meal charges.
There has been confusion about how unpaid meal charges must be handled when all collection efforts have been exhausted. To help address these situations, this memorandum clarifies the processes of designating delinquent debt that has been determined to be uncollectable as bad debt and obtaining assistance to offset bad debt losses.
This rule amends the regulations affecting the determination of children's eligibility for free meals under the National School Lunch Program and the School Breakfast Program by direct certification and categorical eligibility. Conforming changes and miscellaneous technical changes are also made, as appropriate, for the Special Milk Program for Children, the Child and Adult Care Food Program and the Summer Food Service Program.
The Child Nutrition and WIC Reauthorization Act authorizes FNS to award $9,000,000 in FY 2006 to be used to assist states in implementing mandatory direct certification and other provisions related to certification and verification of students’ eligibility to receive free and reduced price meal benefits in the school nutrition programs.