Fiscal Year (FY) 2023 Reallocation of State Administrative Expense (SAE) Funds in Child Nutrition Programs

FNS-525 and Reallocation Request  

State agencies must use the SAE Funds Reallocation Report (FNS-525) to request SAE reallocation funding. All State agencies must submit an FNS-525 to their respective USDA Food and Nutrition Service (FNS) Regional office, even if the State agency is not requesting funds.  

State agencies may request SAE reallocation funds for any allowable expense associated with the administration of the CNPs, including related Food Distribution Programs, as described under 7 CFR 235.6. In FY 2023, FNS expects the amount available for reallocation to be lower than in previous years. As such, FNS encourages States to prioritize funding requests that would support the administration of and efficiency improvements in Food Distribution Programs for the National School Lunch Program, as well as those that enhance the integrity of the Child Nutrition Programs.  

FNS requests that no later than March 20, 2023, State agencies submit FNS-525s and requests for SAE reallocation funds to their respective FNS Regional office.  

Carryover  

State agencies must ensure that the total amount of SAE funds (initial allocation plus reallocation and transfers for States receiving, or minus transfers in the case of those transferring out) carried over into FY 2024 does not exceed an amount equivalent to 20 percent of the total amount of all SAE allocations received in FY 2023.  

State SAE Plans  

The State’s SAE Plan must reflect an estimate of the planned use of SAE funds through the end of FY 2023. An amendment to the SAE Plan must be made and approved by the Regional office for any substantive changes in planned activities or planned expenditures on activities as a result of receiving SAE reallocation funds. If SAE reallocation funds are used for Summer Food Service Program purposes, the associated management and administration plan (MAP) may also need to be amended accordingly [7 CFR 225.4]. 

SAE Recovery 

FNS will recover SAE funds from any State agency that fails to expend the approved amount of the SAE funds by the end of the grant period. 

Key dates associated with the reallocation process: 

• March 20, 2023: State Agencies submit SAE reallocation requests and FNS-525s to Regional offices. 
• April 28, 2023: FNS notifies SA of SAE reallocation results. 
• September 30, 2023: End of first year of FY 2023 SAE funds grant period. State agencies are allowed to carry over an unobligated amount no greater than 20 percent of the total FY 2023 SAE funds allocation into FY 2024 (initial allocation plus reallocation and plus or minus transfers). 
• September 30, 2023: End of FY 2023 SAE reallocation funds grant period. All SAE reallocation funds awarded in FY 2023 must be obligated and expended. 
• State agencies with questions should contact the appropriate FNS Regional office. 

 

Read the full guidance: Fiscal Year (FY) 2023 Reallocation of State Administrative Expense (SAE) Funds in Child Nutrition Programs (CACFP 04-2023).