Skip to main content
California Department of Education Logo

Interest Earned on the Cafeteria Account/Fund

Nutrition Services Division Management Bulletin
Purpose: Policy, Beneficial Information

To: School Nutrition Program Sponsors

Number: USDA-SNP-16-2009

Attention: Food Service Director, Business Official

Date: July 2009

Subject: School Nutrition Program Interest Earned on the Cafeteria Account/Fund
Reference: Title 7, Code of Federal Regulations, Part 210.2


This Management Bulletin provides clarification on interest earned in non-profit cafeteria funds. On December 24, 2008, the California Department of Education (CDE) issued a letter informing local educational agencies (LEA) that interest received on federal funds must be remitted to the CDE.

Please be clear, the information in that letter does not apply to non-profit school food service funds. Therefore, the interest earned on those funds must not be returned to the CDE.

The cafeteria fund is governed by federal and State regulations that require LEAs to use these funds solely for the operation and/or improvement of the school food service. The United States Department of Agriculture (USDA) confirmed that interest earned on cafeteria funds is allowable under Title 7, Code of Federal Regulations (CFR), Section 210.2, where the definition of “revenue” includes earnings on investments and interest earned from cafeteria funds.

Also, 7 CFR, Section 210.14(a) states that school food service revenues are to be used only for the operation or improvement of such food service. Interest earned on cafeteria fund accounts is considered allowable revenue and must accrue to the nonprofit food service account.

Additional information regarding interest earned from the USDA may be found in Section 210.14(a) Resource Management at the USDA National School Lunch Program Regulations Web page at http://www.fns.usda.gov/nslp/regulations [Note, the preceding web address is no longer valid.]

If you have any questions, please contact the Resource Management Unit at SNPCafeFundQuestions@cde.ca.gov or 800-952-5609.

Questions:   Resource Management Unit | 800-952-5609
Last Reviewed: Tuesday, June 11, 2024
Trending in Nutrition
Recently Posted in Nutrition
  • Buy American Provision (added 10-Jan-2025)
    The Buy American provision is a procurement standard that SFAs must comply with when purchasing food products served in School Nutrition Programs (SNP). SFAs are required to purchase domestic commodities or products to the maximum extent practicable.
  • NSLP Equipment Assistance Grant: Allowable Costs (added 10-Jan-2025)
    The USDA issued Policy Memo SP 06-2025: National School Lunch Program (NSLP) Equipment Assistance Grants (EAG): Installation Expenditures which provides guidance on costs related to installing and using new equipment purchased with EAG funds.
  • Governor Newsom Proclaims State of Emergency (added 08-Jan-2025)
    Governor Newsom proclaims state of emergency to support the communities impacted by the Palisades Fire.
  • Buy American Provision (added 08-Jan-2025)
    This management bulletin provides school food authorities (SFAs) with updates to the Buy American requirements included in the final rule titled Child Nutrition Programs: Meal Patterns Consistent with the 2020-25 Dietary Guidelines for Americans.
  • FFAVORS new requirement (added 08-Jan-2025)
    Effective January 5, 2025, (FFAVORS) user are now required to receipt within 2 business days of receipt of product or required delivery date (RDD).

  • CNIPS Update (added 06-Jan-2025)
    Transition of Child Nutrition Information and Payment System (CNIPS) server hosting and maintenance from California Department of Technology to California Department of Education (CDE).
  • October 22, 2024 Tuesday at 2 Town Hall Resources (added 03-Jan-2025)
    The California Department of Education (CDE) Nutrition Services Division (NSD) hosted the monthly Tuesday @ 2 School Nutrition Town Hall webinar October 22, 2024.
  • SNP-11-2024 Final Rule: Fluid Milk Substitutions (added 17-Dec-2024)
    This MB updates and replaces USDA-CNP-04-2010, related to Fluid Milk Substitutions in SNPs to align with the Final Rule.
  • Final Rule: Fluid Milk Substitutions (added 13-Dec-2024)
    This management bulletin updates and replaces USDA-CNP-04-2010, related to Fluid Milk Substitutions in School Nutrition Programs to align with the Final Rule.
  • Riverside Natural Foods Issues Voluntary Recall (added 13-Dec-2024)
    Riverside Natural Foods Inc. issues voluntary recall of granola bars.