Grants and Other Financial Assistance Programs: FY2010

National School Lunch Program (NSLP) Equipment Assistance Competitive Grant Program
Fund Code: 721

MEMORANDUM

Recent federal legislation provides a one-time appropriation for equipment assistance to School Food Authorities (SFA). Through the American Recovery and Reinvestment Act (ARRA) of 2009, the Massachusetts Department of Elementary and Secondary Education will receive $1,404,025 for distribution to participating schools. Grants will be awarded by June, 8, 2009 and must be obligated by September 30, 2009. Priority will be given to individual schools where 50% or more of the students are eligible for free or reduced-priced meals based on October 2008 eligibility figures.

The program application package, which includes the ARRA school level information and budget forms, is available online at www.doe.mass.edu/cnp and at www.doe.mass.edu/arra.

This is an opportunity to purchase equipment to increase participation in the program and to address the school district's equipment needs. In the proposal narrative on the ARRA Application, please indicate how the National School Lunch Program (NSLP) equipment assistance will address one or more of the following focus areas for ensuring effective use of this program:

1. Equipment that allows the SFA to support and sustain expanded participation in the NSLP;

2. Equipment that lends itself to improving the quality of school food service meals;

3. Equipment that improves the safety of food served in the NSLP; and

4. Equipment that improves overall energy efficiency of the food service operation.

As described in the United States Department of Agriculture (USDA) guidance Memo, SP 18-2009, "Equipment requests may include new equipment, renovation of equipment, or replacement of equipment. USDA regulations at 7 CFR 3016.3 and Office of Management and Budget Circular A-87 define equipment for the purpose of NSLP equipment assistance grants as articles of nonexpendable, tangible personal property with a useful life of more than one year and a per unit acquisition cost of $5,000 (or such lesser amount as the SFA uses when reporting equipment as assets in its financial statements). As with all Federal grant funds, equipment procured using NSLP equipment assistance grant funds must be reasonable and allowable. Generally, then, using NSLP equipment assistance grant funds to purchase a walk in freezer for school food service use would be an allowable cost; whereas renovation of the food service area would fall under the category of construction costs which must be borne by the school district's general fund."

Selected schools must follow all federal, state, and local procurement laws when purchasing equipment under these grants. The Department's Office of Nutrition, Health, and Safety will select schools based on guidance in this memorandum and oversight by USDA. Due to the nature of these funds and the desire to expedite distribution of these funds, the following criteria were established for schools to participate in this program:

1. 50% or more of students are eligible for free or reduced price meals;

2. program applicants must obligate fully the NSLP ARRA grant within three (3) months of the award or not later than September 30, 2009; and

3. program applicants must address one or more of the focus areas for effective use of funds.

The application is designed to capture essential information that is readily available and may be completed by a school or by the SFA on behalf of their schools. Completed applications must be submitted by the close of business on Friday, May 15, 2009.

All districts awarded grants will be required to report information and compliance with the ARRA language. Successful proposals will receive a reporting requirements template.

The National Food Service Management Institute (NFSMI) has developed a resource for SFAs entitled Equipment Purchasing and Facility Design for School Nutrition Programs. It includes information on decision-making for the purchase of school food service equipment. This resource is available on NFSMI's website at http://nfsmi.org/.

If you have any questions, please contact the following staff members.

We hope that you will consider taking part in the ARRA Equipment Assistance Program.