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Serious Deficiency Process: Annual Update Req.
Nutrition Services Division Management Bulletin
Child and Adult Care Food Program Institutions
Food Service/Program Directors
Serious Deficiency Process for Agencies Failing to Submit Annual Update Requirements for the Child and Adult Care Food Program
The Healthy, Hunger-Free Kids Act of 2010, Public Law 111-296; Title 7, Code of Federal Regulations,
sections 226.6(c)(2)(ii), 226.6(f)(1), and 226.6(f)(3); Nutrition Services Division Management Bulletin USDA-CACFP-06-2011
This Management Bulletin (MB) is follow-up to MB USDA-CACFP-06-2011, which notified Child and Adult Care Food Program (CACFP) agencies of changes in the annual update requirements. This MB notifies CACFP agencies that failure to submit the required update and associated documents by October 10 of each year will result in the Nutrition Services Division (NSD) declaring the agency seriously deficient on November 1.
The Healthy, Hunger-Free Kids Act of 2010 (Act) requires state agencies to have permanent operating agreements with CACFP sponsors. The Act and Title 7, Code of Federal Regulations
), sections 226.6(f)(1) and 226.6(f)(3) also require agencies to submit documents annually to the NSD and verify that all information previously provided to the NSD is current and correct. Therefore, agencies that fail to submit these annual documents are not in full compliance with 7 CFR
In the past, the NSD put a hold on reimbursement if agreements were not “renewed” by the end of October. Those agencies either submitted the required documents, self-cancelled, or were terminated for non-renewal.
Effective immediately, the NSD will declare any agency that has not submitted complete and correct annual update documents by October 10, seriously deficient on November 1. In order for NSD staff to have sufficient time to review submitted annual update documents, all agencies must ensure that they submit their Application Packet electronically via the Child Nutrition Information and Payment System (CNIPS) by October 10. In addition, agencies should ensure that the NSD has received any required CNIPS Checklist items by fax, e-mail, or postal mail no later than October 10.
If an agency does not submit the required annual update, the NSD will continue to pay valid claims until the agency is terminated.
Agencies Intending to Self-Cancel
Agencies that intend to self-cancel their participation in the CACFP prior to November 1, must complete and submit the Self-Cancellation Request Form (Form ID CACFP 42) no later than 5:00 p.m. on October 31. Agencies may find this form in the Download Forms section of the CNIPS. If an agency has closed or plans to self-cancel before November 1, and fails to submit the annual update documents or the Self-Cancellation Request Form within the timeline noted above, the NSD will declare the agency seriously deficient, regardless of whether it is operating.
Termination and Disqualification
If an agency does not complete the corrective action required by the notice of serious deficiency by November 15, the NSD will begin proposed disqualification and termination procedures against the agency. If an agency’s agreement to participate in the CACFP is terminated, the agency and its principals will be placed on the National Disqualified List and may be prohibited from participating in other federal assistance programs for up to seven years.
If you have any questions regarding this MB, please contact the CACFP specialist assigned to your agency. You will find a list of contact information for specialists in the Download Forms section of the CNIPS. You may also contact the Help Desk by phone at 800-952-5609, option 6.
Questions: Nutrition Services Division | 800-952-5609
This institution is an equal opportunity provider.
Esta institución es un proveedor que ofrece igualdad de oportunidades.