6300 Reimbursement Expenses

Federal regulations allow SRS to reimburse organizations only for expenses incurred in the storage and distribution of USDA commodities. This section establishes guidelines in regards to allowable/non-allowable reimbursement expenses.

6301 Allowable Expenses - Participating organizations may incur expenses in the acquisition, storage and distribution of USDA commodities. Many organizations provide services voluntarily at no charge while others choose to request reimbursement for every aspect of participation. Below is a list of items for which reimbursement may be allowed:

1. Salaries/Wages - Any request for salaries/wages must be clearly documented by specific time sheet notations regarding TEFAP implementation. NOTE: Organizations may NOT receive salaries/wages reimbursement for TEFAP implementation and also receive payment for the same time period from another funding source.
   
   
2. Storage - Expenses for storage may include payments to a commercial storage facility, grocery store, locker plant, etc. Reimbursement requests should include an invoice copy showing the amount due and the period of time covered by the billing.
   
   
3. Shipping/Transportation - Allowable expenses for reimbursement may include private car mileage, commercial shipping expenses, vehicle rental and mileage. Requests for mileage reimbursement will list the specific number of miles traveled and the amount per mile requested. Mileage reimbursements for private vehicles will be paid at any rate requested up to the maximum IRS private vehicle mileage rate which includes an allowance for gasoline. Organizations will be notified of changes in mileage rate as they occur.
   
   Rental vehicle mileage will be reimbursed at the rate billed by the rental company. If reimbursement for gasoline is requested for a rental vehicle, paid receipts must be provided. The total gasoline cost may not exceed the state rate for the number of miles driven, with the exception of rental trucks.
   
   
4. Rent/Utilities/Telephone - Reimbursement requests for the rental of an organization's space or payment for utilities must include specific identifiable documentation. Payment can be made only if space rented or utilities paid are specifically related to TEFAP. This means that organizations must document the specific amount of space or utilities used to store and provide care for TEFAP food. Any request for telephone expenses must include copies of actual bills with TEFAP expenses itemized. Basic telephone rates will not be allowed unless telephone is for TEFAP use only.
   
   
5. Equipment Rental - Certain equipment rentals may be necessary in order to implement TEFAP. All rental of equipment where reimbursement will be requested must have the prior approval of the Regional Director.
   
   
6. Supplies - Office supplies such as paper, labels, envelopes, and ledgers are allowable expenses. Reimbursement requests will include paid receipts and documentation for each item listed. Other supplies may be allowable; however, it must be clearly documented that supplies are for TEFAP use only and would not have been obtained otherwise. Participating organizations may wish to receive a clearance from the Regional Director prior to the purchase of supplies in order to assure reimbursement. Regional Directors may in turn receive clearance from the Food Distribution Unit as necessary.
   
   
7. Postage - Postage expenses related specifically to TEFAP are allowable. Purchase of stamps or payment of bulk mailings are acceptable. Reimbursement requests must include paid receipts for stamps or the exact amount of postage expenses for each bulk mailing. A copy of the mailing order completed by the organization may act as a bulk mailing receipt if the order lists the number of pieces mailed and the total postage amount.
   
   
8. Maintenance/Repairs - Certain maintenance, upkeep and repair expenses may be incurred by participating organizations in the implementation of TEFAP. Since SRS requires TEFAP participating organizations to provide adequate and appropriate storage, these expenses may be allowable. All maintenance expenses, where reimbursement will be requested, must have the prior approval of the Regional Director.
   
   

6302 Non-Allowable Expenses - Certain expenses incurred by participating organizations in the implementation of TEFAP will not be allowable for reimbursement. Below is a list of items for which reimbursement is not permissible:

1. Capital Purchases - Reimbursement to organizations for the purchase of equipment, furniture, tools, or other capital purchases for TEFAP purposes.
   
   
2. Meals - No reimbursement will be allowed for the cost of meals or refreshments.
   
   
3. Uniforms/Clothing - No clothing or uniform reimbursement payments will be made. Distribution of USDA-donated commodities do not require the need for special clothing or uniforms.
   
   
4. Non-Documented/Verified Items - In order for reimbursement payments to be made, all items listed as incurred expenses must be documented, identifiable and verified. It is not permissible to request payment for a percentage of an organization's total expenses as a TEFAP expense because these expenses cannot be separately identified, documented or verified. Requests to pay entire property rental and/or utility bills for organizations that provide other services will not be allowed, since the specific amount of incurred expenses for TEFAP operations is not documented, identified or verified. Documentation and verification of expenses incurred is of vital importance, both in the determination of payments as well as for audit purposes.
   
   
5. Requests in Excess of Reimbursement Cap - Depending on the amount of available funding participating organizations whose total TEFAP operating expenses are in excess of the reimbursement cap may be paid above the maximum cap limit.  See Section 6202 for Reimbursement Cap explanation.
   
   
6. Requests in Excess of Funding Availability - Section 6100 explains the availability of federal funding. If reimbursement funding is terminated, reduced or depleted, reimbursement requests may be paid in part or denied in full.