702 KAR 6:075. Reports and funds.

      RELATES TO: KRS 156.010, 156.031, 156.035, 156.100, 156.200, 156.480, 42 U.S.C. 1751-1969b, 42 U.S.C. 1771-1789, 7 C.F.R. 210.9, 7 C.F.R. 210.14, 7 C.F.R. 210.15

      STATUTORY AUTHORITY: KRS 156.031, 156.035, 156.070

      NECESSITY, FUNCTION, AND CONFORMITY: This administrative regulation is promulgated under the authority of the State Board for Elementary and Secondary Education's mandate to implement federal education assistance programs and is needed to carry out the Congressional intent of the National School Act of 1946, the Child Nutrition Act of 1966 and all amendments thereto. This administrative regulation is necessary to properly protect all funds accruing to the local school food service program.

      Section 1. A local board of education shall be responsible for the safeguarding of all funds accruing to its school food service program and shall adopt a plan for handling those funds and bonding all personnel who receive or handle such funds.

      Section 2. All revenue received by the school food service program, including, but not limited to, funds received as payments for meals by students and adult, federal and state reimbursements, and any interest earned on deposits of federal and state reimbursements shall be used only for the operation or improvement of the school food service program.

      Section 3. School food service funds shall not be used to purchase land or acquire or construct buildings.

      Section 4. All schools approved for participation in the federal school food service program(s) shall make required monthly reports (using approved forms) to the state Department of Education. A copy of the forms submitted to the Department of Education, as well as other financial records and reports pertaining to the school food service program and applications for free and reduced price meals shall be kept by the school or local board of education for a period of three (3) fiscal years after the close of the fiscal year applicable to such records and those shall be subject to audit by appropriate state or federal officials.

      Section 5. All school meals for which federal reimbursement is claimed shall be priced as a complete unit.

      Section 6. A local school food service program shall be operated on a nonprofit basis where actual cash balances shall not exceed three (3) months' operating balance.

      Section 7. The forms referenced in Section 4 of this administrative regulation are incorporated by reference. The effective date of the forms is October 19, 1989. A copy of the form may be obtained by contacting the Division of School Food Services, attention: Betty Williamson, 564-4390. The material is available for inspection and copying between the hours of 8 a.m. to 4:30 p.m. EST in Room 614, Capital Plaza Tower, Frankfort, Kentucky. (17 Ky.R. 694; Am. 1356; eff. 10-14-90.)