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B-185016 1 (1976-07-08)

handle is hein.gao/gaobaddbj0001 and id is 1 raw text is: THE COMPTROLLER GENERAL DECISION OF THE UNITED STATES WASHINGTON, D.C. 20548 FILE: B-185016 DATE:July 8, 1976 MATTER OF: Hassidic Corporation for Urban Concerns q9333 DIGEST: Nonprofit institution may be reimbursed for interest cost incurred in financing its participation in Special Food Service Program for Children since applicable regulations and contract do not specifically preclude reimbursement. Matter is returned to agency to deter- mine extent of expenditures incurred. ''.Counsel for Hassidic Corporation for Urban Concerns (Hassidic Corporation) has claimed the sum of $48,811.61, representing interest charges paid by the claimant in financ- ing its participation in the Special Summer Food Service Pro- gram for Children administered by the Food and Nutrition Service of the Department of Agriculture. The Special Summer Food Service Program for Children was authorized by the National School Lunch Act, 42 U.S.C. § 1761 (1970) which provides for the Secretary of Agriculture to assist states through grants-in-aid and other means to carry out nonprofit food service programs for children in service institutions. Paragraph (a)(1) of 42 U.S.C. § 1761 defines service institutions as private, nonprofit or public institu- tions which provide child care for children from areas in which poor economic conditions exist and where there are high concentrations of working mothers. The term also includes public or private nonprofit institutions that develop special summer programs providing food services similar to that avail- able to children under the National School Lunch or School Breakfast Programs during the school year. 42 U.S.C. § 1761 (a)(2).. Hassidic Corporation is a private nonprofit corpora- tion which had developed a food service program similar to that provided under the National School Lunch Act. Paragraph (a) of 42 U.S.C. § 1761 provides for direct disbursement of funds to service institutions by the Secretary of Agriculture. It appears that Agriculture contracted directly with Hassidic Corporation under authority of the above cited statute.

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