124 STAT. 3252 PUBLIC LAW 111–296—DEC. 13, 2010 ‘‘(I) the number of family and group day care homes of the sponsoring organization submitting a claim for reimbursement during the month; by ‘‘(II) the appropriate administrative rate deter- mined by the Secretary. ‘‘(ii) ANNUAL ADJUSTMENT.—The administrative reimbursement levels specified in clause (i) shall be adjusted July 1 of each year to reflect changes in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor for the most recent 12-month period for which such data are available. ‘‘(iii) CARRYOVER FUNDS.—The Secretary shall develop procedures under which not more than 10 per- cent of the amount made available to sponsoring organizations under this section for administrative expenses for a fiscal year may remain available for obligation or expenditure in the succeeding fiscal year.’’. SEC. 335. CHILD AND ADULT CARE FOOD PROGRAM AUDIT FUNDING. Section 17(i) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(i)) is amended by striking paragraph (2) and inserting the following: ‘‘(2) FUNDING.— ‘‘(A) IN GENERAL.—The Secretary shall make available for each fiscal year to each State agency administering the child and adult care food program, for the purpose of conducting audits of participating institutions, an amount of up to 1.5 percent of the funds used by each State in the program under this section, during the second preceding fiscal year. ‘‘(B) ADDITIONAL FUNDING.— ‘‘(i) IN GENERAL.—Subject to clause (ii), for fiscal year 2016 and each fiscal year thereafter, the Secretary may increase the amount of funds made available to any State agency under subparagraph (A), if the State agency demonstrates that the State agency can effec- tively use the funds to improve program management under criteria established by the Secretary. ‘‘(ii) LIMITATION.—The total amount of funds made available to any State agency under this paragraph shall not exceed 2 percent of the funds used by each State agency in the program under this section, during the second preceding fiscal year.’’. SEC. 336. REDUCING PAPERWORK AND IMPROVING PROGRAM ADMINISTRATION. (a) DEFINITION OF PROGRAM.—In this section, the term ‘‘pro- gram’’ means the child and adult care food program established under section 17 of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766). (b) ESTABLISHMENT.—The Secretary, in conjunction with States and participating institutions, shall continue to examine the feasi- bility of reducing unnecessary or duplicative paperwork resulting from regulations and recordkeeping requirements for State agencies, institutions, family and group day care homes, and sponsored cen- ters participating in the program. 42 USC 1766 note. Procedures.
