The Healthy Hunger-Free Kids Act of 2010 established requirements for CEs for the revenue from paid reimbursable lunches and revenue from foods sold outside of reimbursable meals when those foods are purchased with school food service (School Nutrition Program) account funds. USDA has developed an Excel-based tool with user instructions, available here, that CEs may use to determine the amount of revenue from nonprogram foods required to be in compliance.

The full cot of the NSLP and SBP includes both direct and indirect costs. Direct costs are incurred specifically for the NSLP and can be readily identified to a particular school food service objective. Allocation of indirect costs is necessary because it identifies the portion of the costs benefitting the school food service. The Indirect Cost Guidance and its attachment provide assistance to the CEs to ensure the nonprofit school food service (School Nutrition Program) account funds are limited to those expenses that are reasonable and necessary to provide quality meals for the NSLP and SBP.