CORE-843 P3 – CORE Microlearnings

Let’s practice calculating the CACFP sponsoring organization administrative fee.

Scenario # 2

Scenario #2:

You are working on your CACFP budget for next year. To calculate the projected administrative fee, you must utilize the lesser of (1) 15% of annual meal reimbursement; or (2) the actual net allowable administrative costs. Below is what you are projected to receive annually in meal reimbursement and expected to incur in annual net allowable administrative costs.
- $ 60,000 projected annual meal reimbursement
- $ 15,000 projected cash-in-lieu
- $ 10,000 projected net allowable administrative cost
Select the correct projected annual administrative fee from the choices below:*
- $11,250 (Calculation method: 15% of $75,000).
- $9,000 (Calculation method: 15% of $60,000 = $9,000, compared to net allowable administrative costs of $10,000. $9,000 is the lower of the two components).
- $24,000 (Calculation method: $9,000 + $15,000).
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