FFVP: Claiming Administrative Costs

This management bulletin provides guidance on when and how to claim administrative costs for the Fresh Fruit and Vegetable Program (FFVP) and how the administrative costs for the FFVP aligns with updates to the California School Accounting Manual (CSAM). Note that the existing practice of using the indirect cost rate (ICR) to estimate FFVP administrative costs aligns with these CSAM updates.

As part of the 2021–22 fiscal year updates to the CSAM, food costs (object 4700) were excluded from the list of allowable charges to the ICR. As a result, only nonfood costs can be charged to the ICR.

The FFVP permits a school food authority (SFA) to use their ICR to estimate administrative costs for administering the FFVP. Note that administrative costs are not indirect costs for the FFVP, rather, these are actual administrative costs directly associated with implementing the FFVP, such as notices for bid expenses, office expenses (including but not limited to telephone and office supplies directly related to FFVP activities), announcing and advertising the FFVP, and printing nutrition education materials.

The language regarding estimating administrative costs for the FFVP has been updated in the Child Nutrition Information and Payment System (CNIPS) on line #6 to reflect the new CSAM guidance. Specifically, the language “Claiming Indirect Costs” has been updated to read “Use Indirect Cost Rate as an Estimate for Administrative Costs.”  

FFVP grantees may charge up to 10 percent of their grant award in total administrative costs. Claiming these administrative costs is optional. It is not permissible to charge indirect costs to the FFVP.

Claiming Administrative Costs:

The ICR can be used when estimating administrative costs incurred to support the FFVP that are above and beyond routine administrative costs. Routine administrative costs, such as indirect labor and equipment, are already included in line #5 “Administrative Costs” in the FFVP claim in CNIPS. 

To claim the administrative costs as described above, check the box on line #6 in the FFVP claim. CNIPS will automatically calculate these administrative costs. Do not manually calculate administrative costs separately in line #5 for FFVP claims.

For more detailed instructions and information regarding claiming administrative costs for the FFVP in CNIPS, please visit the CDEs FFVP Resource web page located at https://www.cde.ca.gov/ls/nu/sn/caffvp.asp to access and review the updated FFVP User Manual for Claiming in CNIPS document at https://www.cde.ca.gov/ls/nu/sn/documents/ffvpcnipsclaimmanual.docx.

Questions:

If you have any questions regarding this subject, please contact the FFVP Team by email at FFVPClaim@cde.ca.gov.