This memorandum is intended to clarify that, consistent with the National School Lunch Act and CACFP regulations, there are a variety of ways for Native American child care facilities to meet the licensing and approval requirements for participation in CACFP.
This is to advise that the Departmental regulation, 7 CFR Part 3052, addresses the audit requirements of for-profit subrecipients and supersedes the audit requirements established at 7 CFR 226.8(a) for CACFP Proprietary Title XIX and Title XX institutions.
This memorandum attempts to answer specific questions raised about CACFP providers incorporating their day care home operations under the laws of their respective states and the effect incorporation has on program participation.
It has come to our attention that several states are allowing child care conducted in buildings which are not private residences to be considered day care homes for purposes of CACFP. This memorandum clarifies our policy on the participation of group and family day care homes.
PL 101-147 provided for additional administrative payments to sponsoring organizations wishing to expand into rural and low-income areas.