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<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%"><span style="font-family:"Calibri",sans-serif">Dear CACFP Sponsors:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%"><span style="font-family:"Calibri",sans-serif">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.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%"><span style="font-family:"Calibri",sans-serif">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.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%"><span style="font-family:"Calibri",sans-serif">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, “<span style="color:red">Administrative expenses exceed 15% of estimated reimbursement</span>.”, they don’t need to be concerned or make any related adjustments and should move forward with completing
their budget. <o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%"><span style="font-family:"Calibri",sans-serif">Also, please be aware of a few changes to 2 CFR Part 200 that are relevant to the CACFP:<o:p></o:p></span></p>
<ol style="margin-top:0in" start="1" type="1">
<li class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%;mso-list:l0 level1 lfo1">
<span style="font-family:"Calibri",sans-serif">An increase in the de minimis indirect cost rate from 10% to 15% of Modified Total Direct Costs (2 CFR § 200.414 [f]), and<o:p></o:p></span></li><li class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%;mso-list:l0 level1 lfo1">
<span style="font-family:"Calibri",sans-serif">An increase in the threshold for determining equipment from a per unit cost of $5,000 to $10,000 (2 CFR § 200.313).<o:p></o:p></span></li></ol>
<p class="MsoNormal" style="margin-bottom:8.0pt;line-height:106%"><span style="font-family:"Calibri",sans-serif">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. <o:p>
</o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif">Regards,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">________________________________________ <br>
<br>
<b>Troy Fullmer</b><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">CACFP, Nutrition Consultant<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Child Nutrition<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Maine Department of Education<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">136 State House Station<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Augusta, ME 04333-0136 <o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Email:</span></b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"> <a href="mailto:Troy.fullmer@maine.gov">Troy.fullmer@maine.gov</a><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none">Phone:</span></b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"> 207-816-2312<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"><a href="http://www.maine.gov/doe" target="_blank" title="Original URL: http://www.maine.gov/doe. Click or tap if you trust this link.">Maine DOE</a> | <a href="https://www.facebook.com/MaineDepartmentofEducation1/" target="_blank" title="Original URL: https://www.facebook.com/MaineDepartmentofEducation1/. Click or tap if you trust this link.">Facebook</a> | <a href="https://twitter.com/mdoenews" target="_blank" title="Original URL: https://twitter.com/mdoenews. Click or tap if you trust this link.">Twitter</a> | <a href="https://www.instagram.com/mainedepted/?hl=en" target="_blank" title="Original URL: https://www.instagram.com/mainedepted/?hl=en. Click or tap if you trust this link.">Instagram</a> | <a href="https://mainedoenews.net/" target="_blank" title="Original URL: https://mainedoenews.net/. Click or tap if you trust this link.">Maine
DOE Newsroom</a> <br>
<o:p></o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-family:"Calibri",sans-serif"><img border="0" width="190" height="69" style="width:1.9791in;height:.7187in" id="Picture_x0020_1" src="cid:image001.png@01DAEE4B.C338AC00"></span></i></b><span style="font-family:"Calibri",sans-serif;mso-ligatures:none"> <o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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