Can food service funds pay for gift items such as watches, pen sets, or plaques for food service employees when they retire or celebrate length of service, such as 25 years?
Awards of minimal value, such as length of service pins or certificates of appreciation, for food service employees may be purchased from cafeteria funds. Awards given to employees to improve performance are not allowable. USDA encourages nutrition program sponsors to use prudent judgment and base their decisions about using food service funds on the guidance provided in applicable program regulations: OMB Circulars A-87, “Cost Principles for State, Local, and Indian Tribal Governments” for public school agencies and A-122, “Cost Principles for Nonprofit Organizations” for private nonprofit agencies. Program regulations may be requested by calling the Resource and Information Management Unit at (916) 445-0850 or (800) 952-5609. You may also download them from the Internet at the following addresses: • Code of Federal Regulations: http://www.access.gpo.gov/nara/cfr/cfr-table-search.html (Outside Source) • OMB Circulars: http://www.whitehouse.
Related Questions
- Can food service funds pay for gift items such as watches, pen sets, or plaques for food service employees when they retire or celebrate length of service, such as 25 years?
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