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.
The purpose of this FNS Instruction is to provide guidance regarding the number of applications that must be reviewed by state agencies conducting verification of eligibility for free and reduced price meals under the Child and Adult Care Food Program.
CACFP has long been recognized for its nutritional goals of providing nutritious meals to children and helping them establish good eating habits at a young age. Family style meal service provides a further opportunity to enhance these goals by encouraging a pleasant eating environment that will support and promote mealtime as a learning experience.
Sections 226.6 (d) and (e) of the CACFP regulations require that state agencies establish procedures to annually review information submitted by institutions to ensure that all participating facilities meet program licensing/approval requirements.
The rapid growth of multi-state sponsoring organizations over 'the past several years has presented administering agencies (both state agencies and Food and Nutrition Service regional offices) with new problems in reviewing and approving administrative budgets.
Administering agencies have in the past expressed concern over two federal income tax issues connected with Child Care Food Program operations in day care homes: (1) tax status of program reimbursement to providers and (2) possible responsibility of home sponsors for Social Security and unemployment contributions for providers.
A state agency may make payment for meals served in accordance with provisions of the program in the calendar month preceding the calendar month in which the agreement is executed. This provision applies only to center programs and to home programs which are renewing their agreements. The agreements of new home sponsoring organizations may not be backdated.
This Instruction clarifies the FNS policy regarding the reimbursement of meals and milk served on weekends through the National School Lunch Program, the Commodity School Program, the School Breakfast Program, and the Special Milk Program.