CACFP Administrative Manual Section 1.6
Section 1: Program Eligibility
1.6 Performance Standards
Sponsors and agencies that operate a center at one single physical site (independent centers) must be prepared to manage the Child and Adult Care Food Program (CACFP) according to the CACFP regulations and policies and accept all financial and administrative responsibilities for program operation. The CACFP regulations require that the California Department of Social Services (CDSS) ensures agencies are financially viable, administratively capable of operating the program, and have internal controls to ensure accountability.
Financial Viability and Financial Management
To demonstrate financial viability, agencies must document that they have adequate financial resources to operate the CACFP on a daily basis, continue to pay employees and suppliers during periods of temporary interruptions in program payments and/or to pay debts when fiscal claims have been assessed against the agency.
Prospective CACFP centers must provide one full year of financial documents to assist the CDSS in assessing their financial viability. These financials include an independent financial audit from the most current year. If an audit is not available, CDSS will collect a recent tax return, a profit and loss statement, and a balance sheet outlining current and total assets and liabilities.
In addition, a prospective sponsoring organization must provide a description of need/recruitment for recruiting facilities consistent with Title 7, Code of Federal Regulations (CFR), Section 226.6(p) and any state policies. They are also asked to provide this description in the Child Nutrition Information & Payment System (CNIPS) management plan.
Once the CDSS approves these centers to participate in the CACFP, they must complete and submit Form ID CACFP 87: Financial Viability Worksheet, found in the Download Forms section of the CNIPS. These existing centers must submit this form yearly during the annual update process. All approved agencies must ensure that CACFP funds are expended and accounted for in accordance with regulatory requirements and the requirements in FNS Instruction 796-2, Revision 4, found on the USDA Financial Management Tools web page. Agencies must also submit a budget for approval documenting necessary, reasonable, and allowable expenses. Further guidance on the annual update process will be addressed in this manual.
Prospective Day Care Home (DCH) sponsors must provide at least one year of audited financial statements and have at least two years’ experience administering a Community-Based Organization (CBO). A CBO is a nonprofit organization that works at a local level to improve the life of residents. Sponsors may only knowingly recruit providers that are not currently enrolled with another sponsor.
Agencies must ensure that they follow appropriate and effective management practices in operating the CACFP. To demonstrate administrative capability, agencies must document that they:
- Have an adequate number and type of qualified staff to ensure CACFP operations
- Have sufficient staff to meet the ratio of monitors to facilities
- Have written policies and procedures that assign CACFP responsibilities and duties and ensure compliance with civil rights requirements
Agencies must ensure fiscal accountability and that the CACFP will operate in accordance with regulatory requirements. To demonstrate program accountability, agencies will document that they:
- Have adequate oversight of the CACFP by an independent governing board of directors
- Have a financial management system with management controls specified in writing that ensure:
- Fiscal integrity and accountability for all funds and property received, held, and disbursed
- The integrity and accountability of all expenses incurred
- That claims will be processed accurately and in a timely manner
- That funds and property are properly safeguarded and used only for authorized CACFP uses
- That a system of safeguards and controls is in place to prevent and detect improper financial activities by employees
- Maintain appropriate records to document compliance with CACFP requirements, including budgets, approved budget amendments, accounting records, management plans, and, for DCH sponsors, appropriate records on provider operations
- Provide adequate and regular training of sponsor staff
- Perform monitoring as required by federal regulations to appropriately operate the CACFP
- For DCH sponsors, accurately classify providers as Tier I or Tier II
- Have a system in place to ensure that administrative costs funded by the CACFP reimbursement do not exceed regulatory limits
- Ensure that approved sites and homes offer meals that meet meal pattern requirements, comply with licensing requirements, have a food service that complies with state and local health and sanitation requirements, comply with civil rights requirements, maintain complete and appropriate records, and claim reimbursement only for eligible meals
Many of these requirements will be covered extensively throughout this manual.
References: 7 CFR, Sections 226.6(b)(1)(xviii), 226.6(b)(1)(xviii)(A), 226.6(b)(1)(xviii)(B), 226.6(b)(1)(xviii)(C), 226.6(b)(2)(vii)(A), 226.6(b)(2)(vii)(B), 226.6(b)(2)(vii)(C), 226.15(c), and 226.20; 2 CFR, Sections 200.302; 200.303; NSD-CACFP-05-2013 Contracting Out for Management Functions.
Questions: A list of program specialists that can assist is found on the CACFP Contact List.
This institution is an equal opportunity provider.
Esta institución es un proveedor que ofrece igualdad de oportunidades.