General. This section sets allowable cost standards for activities of State agencies in administering the SNAP and Food Distribution Program on Indian Reservations.

Federal reimbursement rate. The base percentage for Federal payment shall be 50 percent of State agencies' allowable SNAP administrative costs.

Funding of demonstration projects approved by FNS will be at a rate agreed to by FNS in accordance with the requirements outlined in part 282.

The reimbursement of administrative costs to State agencies administering the program on Indian reservations shall be in accordance with the requirements of parts 281 and 283.

The federally funded share of administrative costs, as identified in paragraph (b) of this section may be decreased based upon its payment error rate as described in § 275.23. The rates of Federal funding for the activities identified in paragraphs (b)(1) and (b)(2) of this section shall not be reduced based upon the agency's payment error rate.

Employment and training program grants, as outlined in § 273.7(d) shall be 100 percent federally-funded.

The Federal reimbursement rate shall include reimbursement for SNAP informational activities, but shall not include the following:

Recruitment activities designed to persuade an individual to apply for SNAP benefits through the use of persuasive practices. Persuasive practices constitute coercing or pressuring an individual to apply, or providing incentives to fill out an application for SNAP benefits. Communicating factual information pertaining to SNAP so that an individual can make an informed choice is not a recruitment activity designed to persuade an individual to apply for SNAP benefits.

Television, radio or billboard advertisements that are designed to promote SNAP benefits and enrollment, excepting the use of such advertisements for programmatic activities undertaken with respect to benefits provided under § 280.1 of this chapter. This restriction does not apply to radio, television, or billboard advertisements that are not designed to promote SNAP benefits and enrollment and that provide factual information identifying retail food stores where SNAP benefits are accepted.

Agreements with foreign governments that are designed to promote SNAP benefits and enrollment.

Any entity that receives funding from the programs identified by this section and § 251.4 of this chapter is prohibited from compensating any person for conducting outreach activities relating to participation in, or for recruiting individuals to apply to receive benefits under, the Supplemental Nutrition Assistance Program, if the amount of the compensation would be based on the number of individuals who apply to receive the benefits.

Matching costs. State agency costs for Federal matching funds may consist of:

Charges reported on a cash or accrual basis by the State agency as project costs.

Project costs financed with cash contributed or donated to the State agency by other non-Federal public agencies and institutions.

Project costs represented by services and real or personal property donated by other non-Federal public agencies and institutions.

All cash or in-kind contributions except as provided in paragraph (e) of this section shall be allowable as part of the State agency's share of program costs when such contributions:

Are verifiable;

Are not contributed for another federally-assisted program, unless authorized by Federal legislation;

Are necessary and reasonable for accomplishment of project objectives;

Are charges that would be allowable under this part;

Are not paid by the Federal Government under another assistance agreement unless authorized under the other agreement and its subject laws and regulations; and

Are in the approved budget.

The value of services rendered by volunteers or the value of goods contributed by third parties, exclusive of the State and Federal agencies, are unallowable for reimbursement purposes under the SNAP. The value of services rendered by volunteers shall be allowable only to meet any matching administrative costs requirements for the Food Distribution Program on Indian Reservations.

The expenses (e.g. travel, lodging, meals) of persons working with volunteer or nonprofit organizations which receive training and assistance pursuant to § 272.4(d)(2) are not allowable.

Investigations of authorized retail or wholesale food concerns when performed in coordination with the USDA Office of Inspector General and FNS shall be funded at the 50 percent Federal reimbursement rate.

For Federal Register citations affecting § 277.4, see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at www.govinfo.gov.