The Agricultural Risk Protection Act of 2000 (PL 106-224) made a significant change to the procedures involved in terminating the participation in the Child and Adult Care Food Program of an institution or a day care home determined to be seriously deficient. Specifically, these new procedures will require a change in the effective date of the termination and the flow of CACFP funds prior to the termination.
Apparently, there are still some state agencies and sponsoring organizations which believe that the Agricultural Risk Protection Act of 2000 made substantive changes to the current monitoring requirements for sponsoring organizations. The purpose of this memorandum is to reiterate the information provided to you earlier.
This memorandum provides guidance for state agencies to implement the statutory changes mandated by PL 106-224, which was signed into law by the President on June 20, 2000.
This memorandum provides flexibility to State agencies and sponsoring organizations of family day care homes in approving homes for CACFP participation under these circumstances.
This memorandum extends this categorical eligibility provision to the National School Lunch Program, the School Breakfast Program, the Special Milk Program for Children, and closed enrolled sites in the Summer Food Service Program.
CACFP benefits have been extended to include meal services to children who reside with their families in emergency shelters, under the National School Lunch Act. Because the circumstances of an emergency shelter are so different from any other type of CACFP institution, we thought it would be helpful to share these questions and our responses.
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.