As you are aware, the fiscal year 2002 Department of Agriculture appropriations legislation (PL 107-76), enacted on Nov. 28, 2001, extended the free and reduced price provision for for-profit centers in the CACFP through Sept. 30, 2002.
This memorandum clarifies the Child and Adult Care Food Program termination process and provides guidance on steps that can be taken if additional information becomes available subsequent to the termination of an institution.
Section 17(a) of the National School Lunch Act (NSLA) previously allowed the participation of a proprietary Title XX child care center “if such organization receive[d] compensation under such title for at least 25 percent of the children for which the organization provides such nonresidential day care services.”
Section 226.23 (h) requires states to conduct follow-up reviews when the verification process reveals that deficiencies in eligibility determinations or application procedures exceed certain levels established by FNS.
This Instruction provides policy guidance regarding allowable costs related to the distribution of bonus commodities by sponsors of family day care homes in the CACFP.