The grant does not set limits on prices. Because grantees have a Federal subaward, they must follow the general procurement standards in 2 CFR 200.318. This includes having and using their own documented procurement procedures which follow applicable state and local law and regulations. These procedures must conform to applicable federal law and the standards found in 2 CFR 200.302-325. Additionally, your organization must follow the same policies and procedures for procurements from non-federal sources.
For your reference, the procurement (i.e. contracting and bidding) standards that the state requires for Non-Governmental Organizations are available in Section 4.3 of the Competitive Grant Agreement for Non-Governmental Organizations (Microsoft Word, updated June 2020). These standards should conform to most Federal law and standards for most non-profit or for-profit grantee organizations for typical MN LFPA grant project procurement purchases.
The grant does not set limits on prices. Because grantees have a Federal subaward, they must follow the general procurement standards in 2 CFR 200.318. This includes having and using their own documented procurement procedures which follow applicable state and local law and regulations. These procedures must conform to applicable federal law and the standards found in 2 CFR 200.302-325. Additionally, your organization must follow the same policies and procedures for procurements from non-federal sources.
For your reference, the procurement (i.e. contracting and bidding) standards that the state requires for Non-Governmental Organizations are available in Section 4.3 of the Competitive Grant Agreement for Non-Governmental Organizations (Microsoft Word, updated June 2020). These standards should conform to most Federal law and standards for most non-profit or for-profit grantee organizations for typical MN LFPA grant project procurement purchases.
If LFPA funds are used to purchase food through a food hub the price of the food can be marked up following the hub’s standard practices. This can include markups to cover costs associated with aggregation. An organization cannot, however, charge a markup and charge expenses (e.g. an hourly staff rate) to LFPA for the same services that the mark up is intended to address. Food aggregation services should be aware of what expenses their mark up is intended to cover and be sure that other services billed to LFPA do not duplicate these expenses.
If LFPA funds are used to purchase food through a food hub the price of the food can be marked up following the hub’s standard practices. This can include markups to cover costs associated with aggregation. An organization cannot, however, charge a markup and charge expenses (e.g. an hourly staff rate) to LFPA for the same services that the mark up is intended to address. Food aggregation services should be aware of what expenses their mark up is intended to cover and be sure that other services billed to LFPA do not duplicate these expenses.
Mileage that’s involved with food procurement and distribution can be an allowable cost as long as it’s directly supporting an approved LFPA activity and program. If the driving is done by volunteers, the mileage is an eligible expense as long as there is a financial transaction taking place with the volunteers. Services that are donated are not an allowable cost.
Mileage that’s involved with food procurement and distribution can be an allowable cost as long as it’s directly supporting an approved LFPA activity and program. If the driving is done by volunteers, the mileage is an eligible expense as long as there is a financial transaction taking place with the volunteers. Services that are donated are not an allowable cost.
No, that would not meet the requirement for partnership if the food pantry and student farm are both a part of the same organizational entity. The lead applicant must have at least one partner that is a different business/organization or an individual that is not organizationally affiliated with the applicant.
No, that would not meet the requirement for partnership if the food pantry and student farm are both a part of the same organizational entity. The lead applicant must have at least one partner that is a different business/organization or an individual that is not organizationally affiliated with the applicant.
Transportation expenses can fall under three budget categories. As indicated on the budget templates, the “Transportation” budget category is intended to address expenses associated with food transportation (not including personnel). Transportation costs in the form of travel, including personnel expenses, can also be part of the Administration budget category and/or the Engagement and Outreach budget category depending on the activities the transportation is associated with. Please see Appendix D for additional examples and clarification.
We suggest grouping expenses based on the estimated activity and creating one or more line items within each relevant budget category. For example, as applicable:
- Food Transportation: one line for mileage, one line for distribution contracts
- Administration: one line for staff time, one line for mileage
- Engagement and Outreach: one line for staff time, one line for mileage
Further details, including specific or general locations and any equations used to estimate total miles, can be provided as part of the budget table along with information on the sources of the estimates. Details on the expense purpose can also be included in the budget narrative as necessary. If exact locations are not yet known, a rough estimate based on region (“SE Minnesota,” for example) can be provided.
Transportation expenses can fall under three budget categories. As indicated on the budget templates, the “Transportation” budget category is intended to address expenses associated with food transportation (not including personnel). Transportation costs in the form of travel, including personnel expenses, can also be part of the Administration budget category and/or the Engagement and Outreach budget category depending on the activities the transportation is associated with. Please see Appendix D for additional examples and clarification.
We suggest grouping expenses based on the estimated activity and creating one or more line items within each relevant budget category. For example, as applicable:
- Food Transportation: one line for mileage, one line for distribution contracts
- Administration: one line for staff time, one line for mileage
- Engagement and Outreach: one line for staff time, one line for mileage
Further details, including specific or general locations and any equations used to estimate total miles, can be provided as part of the budget table along with information on the sources of the estimates. Details on the expense purpose can also be included in the budget narrative as necessary. If exact locations are not yet known, a rough estimate based on region (“SE Minnesota,” for example) can be provided.
