On August 23, 2023, The United States Department of Agriculture (USDA) published the Child Nutrition Program Integrity final rule. This final rule aims to help USDA and state administering agencies reduce program errors of all types, resulting in more efficient operations and improved compliance with program requirements. This final rule also provides the state agencies and program operators with targeted flexibilities, allowing oversight based on needs determined by the state agency.

The final rule impacts the National School Lunch Program (NSLP), School Breakfast Program (SBP), Special Milk Program (SMP), Summer Food Service Program, and Child and Adult Care Food Program. The following is an overview of the provisions codified in the final rule related to the NSLP, SBP, and SMP. Some of these provisions will require forthcoming, additional guidance from USDA to implement. The New York State Education Department (SED) will update school food authorities (SFAs) as these updates are made available.

The following provisions will be implemented in the 2023-2024 School Year:

1. The SED has the discretion to take fiscal action for repeated violations of milk type and vegetable subgroup requirements. 7 CFR 210.18(l)(2)
2. SED can omit designated areas of review, in part or entirely, where SED or a SFA has implemented USDA-specified error reduction strategies or utilized USDA-specified monitoring efficiencies. 7 CFR210.18(f)-(h)
3. SED can conduct the risk assessment of an SFA’s nonprofit school food service account at any point in the administrative review process. 7 CFR 210.18(h)(1)
4. Compliance with the Buy American requirements is added to the General Areas of the Administrative Review.

The following provisions will be implemented in the 2024-2025 School Year

1. SED can conduct administrative reviews and food service management company (FSMC) reviews on a 5-year review cycle, while targeting additional oversight to high-risk SFAs. 7 CFR 210.18(c)
2. SED may use information from local-level audits to substitute for related parts of the administrative review. 7 CFR 210.18(f)(3)
3. SED may omit specific, redundant areas of the administrative review when sufficient oversight is conducted outside of the administrative review. 7 CFR 210.18(f)
4. School nutrition program directors, management, and staff who work on NSLP procurement activities are required to complete procurement training annually. 7 CFR 210.30
5. Allows for the assessment of fines on SFAs who operate any CN program, but only under exceptional (rare) circumstances, which could include failure to correct severe program mismanagement; disregard of a program requirement of which an SFA has been informed; or failure to correct repeated violations of program requirements.7 CFR 210.18(p), 210.26(b)(3), 215.15(b)(3), 220.18(b)(3).