Page 296

State Plan Checklist - FOOD FUNDS MANAGEMENT 8/14/2026 Page 1

INTRODUCTION

Food funds management involves monitoring cost containment measures and procedures related to infant formula and other authorized food items, the monitoring and management of State agency funding sources, and the accurate reporting of participation figures. The following sections provide a brief overview of the information that is required by federal regulations to be included in State Plans. The questions that follow are designed to assist the State agencies in submitting compliant State Plans for FNS approval. State agencies are encouraged to review each federal regulation in its entirety. A. Cost Containment Measures - 246. 4(a)(14)(xi), 246. 4(a)(14)(xvii), 246. 16a(a): describe the policies and procedures used to implement cost containment measures as they relate to infant formula contracts, their approval and the processing of infant formula and/ or other rebates, and food package cost containment practices. B. Funds Monitoring/798 Reporting - 246. 4(a)(2); (a)(12); and (a)(14): describe the State agency's funding sources, how food obligations are calculated to allow for inflation, rebate cash management, and monthly closeout monitoring activities. C. Participation Reporting - 246. 4(a)(11): describe the methods used to accurately document and monitor participation at the State and local level, and methods for monitoring changes in participation by priority.

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Page 296

Official source

State Plan Checklist - FOOD FUNDS MANAGEMENT 8/14/2026 Page 1

INTRODUCTION

Food funds management involves monitoring cost containment measures and procedures related to infant formula and other authorized food items, the monitoring and management of State agency funding sources, and the accurate reporting of participation figures. The following sections provide a brief overview of the information that is required by federal regulations to be included in State Plans. The questions that follow are designed to assist the State agencies in submitting compliant State Plans for FNS approval. State agencies are encouraged to review each federal regulation in its entirety. A. Cost Containment Measures - 246. 4(a)(14)(xi), 246. 4(a)(14)(xvii), 246. 16a(a): describe the policies and procedures used to implement cost containment measures as they relate to infant formula contracts, their approval and the processing of infant formula and/ or other rebates, and food package cost containment practices. B. Funds Monitoring/798 Reporting - 246. 4(a)(2); (a)(12); and (a)(14): describe the State agency's funding sources, how food obligations are calculated to allow for inflation, rebate cash management, and monthly closeout monitoring activities. C. Participation Reporting - 246. 4(a)(11): describe the methods used to accurately document and monitor participation at the State and local level, and methods for monitoring changes in participation by priority.