[Cacfp] CACFP Budget guidance and updates

[Fullmer, Troy]

Dear CACFP Sponsors:
This communication provides budget related guidance and updates about- Entering Indirect Costs, Administrative Expense Cost Cap, and changes in 2 CFR Part 200 that relate to the CACFP.
If your Agency chooses to include Indirect Costs in their budget, they will enter them in the Schedule C- Administrative tab of the CACFP budget templates. Applicable information will be added in subsection 12(a) Miscellaneous Office Expenses. Please see related budget guidance for more details. Budget guidance is found in the application, checklist tab, Off-Line Forms section next to the budget templates on lines 20 and 21. Budget guidance is also included in the step-by-step application instructions manual.
A reminder- the 15% administrative cost cap only applies to Sponsoring Organizations. If Agencies that are not Sponsoring Organizations see a message in the budget template on the D- Summary tab in red text, “Administrative expenses exceed 15% of estimated reimbursement.”, they don’t need to be concerned or make any related adjustments and should move forward with completing their budget.
Also, please be aware of a few changes to 2 CFR Part 200 that are relevant to the CACFP:

  1.  An increase in the de minimis indirect cost rate from 10% to 15% of Modified Total Direct Costs (2 CFR § 200.414 [f]), and
  2.  An increase in the threshold for determining equipment from a per unit cost of $5,000 to $10,000 (2 CFR § 200.313).
These changes will be in effect on October 1, 2024. However, we are not updating any related parts in the 2025 program year budget templates. We will make applicable changes to the budget templates for program year 2026.
Regards,

________________________________________

Troy Fullmer
CACFP, Nutrition Consultant
Child Nutrition
Maine Department of Education
136 State House Station
Augusta, ME 04333-0136
Email: Troy.fullmer at maine.gov<mailto:Troy.fullmer at maine.gov>
Phone: 207-816-2312
Maine DOE<http://www.maine.gov/doe> | Facebook<https://www.facebook.com/MaineDepartmentofEducation1/> | Twitter<https://twitter.com/mdoenews> | Instagram<https://www.instagram.com/mainedepted/?hl=en> | Maine DOE Newsroom<https://mainedoenews.net/>

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