CACFP Administrative Manual Section 6.1

Section 6: Financial Management

Sections 6.1 Centers Budgets

Centers must submit an annual budget in the Child Nutrition Information and Payment System (CNIPS) that reflects program expenditures during the program year (October 1—September 30).  After the California Department of Social Services (CDSS) approves the initial budget, the agency must adhere to the budget or receive approval from the CDSS for budget revisions.

Because the CDSS considers an School Food Authority's (SFA) successful operation of the National School Lunch Program (NSLP) as sufficient evidence of administrative capability and financial viability, SFAs are not required to submit budgets for the At Risk Afterschool (ARA) Meals Component of the CACFP. This exemption, however, only applies to costs that require prior approval, and not to costs that require specific prior written approval. Please refer to Section 6.2 for more information on allowable costs. All other program operators in the CACFP must provide a budget for review and approval in CNIPS.

Net Cash Resources

Net cash resources (NCR) are defined as all monies that are available, or have accrued to, the CACFP operator’s CACFP account, less cash payable. Monies may include but are not limited to cash on hand, cash receivables, earnings on investments, cash on deposit, and the value of stocks, bonds, other negotiable securities. The current NCR limitation is six months average operating expenditures. Federal regulations require the California Department of Social Services (CDSS) to ensure that program operators are in compliance with the requirements to limit NCR. If excess NCR are identified by the CDSS, the program operator will be required to initiate a spend-down budget agreement.

Estimating the Child and Adult Care Food Program Budget

The CACFP budget should be based on the center’s projected enrollment, and meals claimed for the upcoming program year as well as the US Department of Agriculture’s meal and snack reimbursement rates. Agencies must adhere to their approved CNIPS budget or submit and receive approval in the CNIPS for additional revisions prior to exceeding any budget line.

Expenses and Funding Sources

The budget in the CNIPS must reflect expenses related to the CACFP only. There are three columns in the CNIPS budget:

  • Expense Amount —this is the total expense for each line item.
  • Income: CACFP Funding Amount —this is the total CACFP reimbursement that will be used to fund a line item.
  • Income: Other Income Amount —this is the total other income (non-CACFP income) that will be used to fund a line item.

Expense Amount = CACFP Funding Amount + Other Income Amount. For example, if a center anticipates a food expense of $50,000 for the program year and this expense is entirely funded by CACFP reimbursement, then:

  • the Expense Amount = $50,000;
  • the CACFP Funding Amount = $50,000; and
  • the Other Income Amount = $0.

Centers must ensure that their budget is in compliance with program regulations and standards. Refer to Section 6.2 for information on CACFP allowable expenses.

References: Title 2, Code of Federal Regulations, Part 200, section 200.302, 200.303, 200.439; 7 CFR, sections 226.6, 226.7(g)226.15(b), and 226.16(b)(1); USDA FNS Instruction 796-2, Revision 4; and USDA Guidance for Management Plans and Budgets Handbook.

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.

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CDSS Child and Adult Care Food Program
744 P Street, MS 9-13-290
Sacramento, CA 95814