NC S842

Prohibits local school administrative units from assessing indirect costs to child nutrition programs unless the program's food services account balance exceeds an average month's operating cost.

Requires the Department of Public Instruction to calculate and publish each child nutrition program's average monthly cost of operation based on the three prior fiscal years' audited figures.

Defines "indirect costs" according to the United States Office of Budget and Management Circular A-87 and "cost of operation" according to existing statute G.S. 115C-264(c).

Appropriates $80,000 in recurring funds for fiscal year 2012-2013 to the Department of Public Instruction for administrative support of the North Carolina Procurement Alliance to promote optimal pricing for child nutrition program foods and supplies.

Requires the Department of Public Instruction to submit annual reports to the Joint Legislative Education Oversight Committee beginning October 1, 2013, documenting savings achieved through increased local school participation in the North Carolina Procurement Alliance.