The State agency will make advance payments to sponsors that have executed a Program agreement in order to assist in meeting initial operating and administrative expenses. However; advance payments shall not exceed the amount of the estimated reimbursement. It is expected that all sponsors requesting an advance take the time to evaluate how their program is operating and make the necessary adjustments to reflect the most accurate site participation, enrollment and income eligible children. SED will be evaluating all advances to ensure that they do not exceed the estimated reimbursement. Fiscal sanctions may occur for sponsors in which adequate fiscal oversight and monitoring does not occur and lead to advance payments that are in excess of reimbursements.

In order for a subsequent advance to be released a valid claim for reimbursement must be submitted for the previous claim period. If a balance is available from a previous months advance payment, the balance will be deducted from the current advance payment request.

Additional Advance Payment Guidance [7 CFR 225.9 (c)] 

• Sponsors must request an advance at least 30 days prior to the payment date. Requests received less than 30 days prior to payment dates will be acted upon within 30 days of receipt.
• The total advance payment for any month will not exceed $40,000. Exceptions will be granted on a case by case basis.
• NYSED will deduct from advance payments any previous payment under dispute or which is part of a demand for recovery.
• If NYSED has reason to believe that a sponsor will not be able to submit a valid claim for reimbursement covering the month for which advance payments have already been made, the subsequent month’s advance payment will be held until a valid claim is received.

OPERATING COSTS: 

• Sponsors may have up to three payments:

1. June 1st
2. July 15th
3. August 15th

• Prerequisites: 

1. Training: sponsors must conduct training sessions before receiving the second advance payment. Training sessions must cover Program duties and responsibilities for the sponsor’s staff and for site personnel. (School food authority sponsors are exempt from this requirement.)
2. Operate at least 10 days in the month: a sponsor will not receive advance operating payments for any month in which it will participate in the Program for less than 10 days.
3. To be eligible for the second advance payment a sponsor must have filed a claim for the previous claim period.

• Calculation:  The sponsor will be paid based on whichever method results in the larger payment:

1. Total operating costs paid to the sponsor for the same calendar month in the preceding year. OR
2. A percentage of the amount determined by NYSED to be needed that month for meals. (50% for vended sponsors, 65% for self-preparation sponsors.)

ADMINISTRATIVE COSTS:

Sponsors may have up to two payments:

1. 1. June 1st
2. July 15th
3. August 15th

Prerequisites:

1. To be eligible for the second advance payment, a sponsor must certify that:
   • it is operating the number of sites for which the administrative budget was approved, and
   • its projected administrative costs do not differ significantly from the approved budget
2. Operate at least 10 days in the month: a sponsor will not receive advance administrative payments for any month in which it will participate in the Program for less than 10 days.
3. To be eligible for the second advance payment a sponsor must have filed a claim for the previous claim period.

Calculation:

1. Each payment will equal 1/3 of the total amount NYSED determines the sponsor will need to administer the program.
2. For sponsors eligible for only one payment, the payment will be no less than ½ and no more than 2/3 of the total amount NYSED determines the sponsor will need to administer the program.