It has come to our attention that there is still some question regarding the ability of state agencies and sponsoring organizations to use “stop payments” (suspension of all program reimbursement to institutions or providers) as a tool to enforce an institution or a provider’s compliance with program requirements.
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.