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CACFP Participation Requirements

The United Sates Department of Agriculture (USDA) provides licensed child care centers and registered day home providers with a monetary incentive to serve nutritious meals and snacks to your day care children. For most centers and providers, the rules are very similar to what your state licensing agency already requires of you…so why not get reimbursed for your efforts and your food service costs!

To participate on the Child and Adult Care Food Program (CACFP),  you must first be licensed or registered with the state agency in charge of overseeing all child care operators.   For the lady who cares for children in her home, there are certain rules  your state will have in place in regards to when you must register as a day home provider (or group home).   Regardless, without being registered, a day home provider will not qualify for participation on the CACFP.  Once registered, this provider then MUST sign up with a DCH Sponsor in her state in order to participate on the CACFP.  The state agency designated by USDA to administer the CACFP in  that state provides a list of eligible Day Home Sponsors.

For child care centers (outside the  home) child care licensing rule are more similar between states, but still have some distinct differences.  However, just as the day home provider a licensed child care center must first be licensed in order to “apply” to participate on the CACFP.  Next, there are specific rules for a “licensed center” to meet in order for them to qualify to participate on the CACFP.

First and foremost, your center must either be:

  • a 501 (c ) (3) Non-Profit agency, or
  • a For-Profit agency with at least 25% of their children qualified as low income or under the state’s tuition subsidy program.

Then the licensed child care center may participate under one of the following two options:

  • as an Independent Center:*
  • as a client under an Unaffiliated Center Sponsor

* If an agency owns multiple Child Care centers, they may sign up all “owned” centers under one contract called an Affiliated Center Sponsor

What Is The Difference Between Having An Independent Center Contract or Going Under An  Unaffiliated Sponsor ?

All licensed child care centers have the option to participate on the CACFP through a direct contract with their State Agency (USDA assigns to managing the CACFP in your state).  This is called an Independent Center Contract.  The licensed child care center must attend an orientation class conducted by your State Agency (usually online)  and then complete a CACFP application.  There is no fee to operate the CACFP under an Independent Center Contract.

For some centers, operating under an Independent Center Contract is simply too daunting a task:

  • The paperwork and red tape seems insurmountable to understand and keep up with;
  • Understanding “kitchen math” is way beyond the cook and/or director’s understanding;
  • Time spent on CACFP paperwork takes too much time away from caring for the kids;
  • The center serves low quality meal/snacks and doesn’t want to increase their food costs

For those centers who feel too overwhelmed to apply for an Independent Center Contract, they have the option (in most states), to apply for CACFP participating under an Unaffiliated Center Sponsor.

An Unaffiliated Center Sponsor is a non profit agency who has a contract directly with USDA (and your State Agency) to “sponsor” qualifed licensed child care centers on the CACFP.  These sponsors take on the role of your “CACFP Manager” and are liable for each sponsored center’s management of all CACFP requirements:

  • The child care center must sign a center agreement form with the sponsor and agree to pay the sponsor 15 % of their monthly CACFP reimbursement for their assistance in managing your CACFP (food service) operations;
  • The CACFP Sponsor provides the child care center  with the training, paperwork and oversight needed to comply with all CACFP requirements;
  • The CACFP Sponsor monitors the child care center (similar to child care licensing) approximately three times per year during one of your food service meal/snacks;
  • The CACFP Sponsor files a “claim for reimbursement” on the child care center’s behalf with the State Agency and submits to the child care center those funds earned under each month’s CACFP claim (minus their 15 % admin fee).

What Responsibilities Must The Child Care Center Maintain Under A CACFP Unaffiliated Sponsor?

The child care center must still prepare and serve their meals and snacks based on CACFP requirements, which include the type of food groups required per meal service, the type of food (per food group) served, and the serving sizes per child based on age group requirements.

The child care center must maintain an accurate daily accounting of what meals/snacks were served to each participant and records those meal counts at the time of meal service (when children are eating that meal/snack) on state agency or sponsor approved forms or media (eg: pc tablets)

The child care center must maintain an accurate log of what food groups were prepared and the amount prepared for all participants on state agency or sponsor approved forms or media.

The center must train all key staff involved in that child care center’s food service operations at least once per year and record specifics of that training on state agency or sponsor approved forms or media.

The child care center must maintain written and/or electronic records of all food purchases, supplies purchased for the food service operation, and labor of food service personnel (including teachers who help serve the meal/snack or oversee children during a meal/snack).

** CACFP Sponsors may procure food and food service supplies on behalf of the child care center; however, in the vast majority of cases, the child care center elects to make their own food/supply purchases.

What Are The Differences Between CACFP Sponsors?

A CACFP Sponsor may only withhold up to 15% of a child care center’s “meal reimbursement” funds. They are not allowed to withhold any of the center’s earned cash in lieu (CIL) funds.  Main differences between CACFP Sponsors are only in their “management style“.

  • Some CACFP Sponsors are more “automated” than others….they allow the child care center to capture CACFP data on electronic devices and store their data electronically;
  • Some CACFP Sponsors require additional paperwork and “data processing steps” in order for the sponsor to be able to maintain all USDA requirements;
  • Some CACFP Sponsors monitor more frequently than the USDA requirement of three times per year;
  • Some CACFP Sponsors are more restrictive of what foods are eligible to be served on the CACFP;
  • Some CACFP Sponsors do not allow their client centers to participate as an At-Risk center;
  • Some CACFP Sponsors are slower to file a claim (and get the center reimbursed) …usually due to how they process CACFP data.

How Do CACFP Management Tools  Help With Managing the CACFP?

CACFP Management Tools are defined by USDA as being Automated Data Processing Equipment (Software and Hardware).  While some state agencies still prefer their sponsors and sites to use pen and paper, USDA is very “pro-paperless”   …meaning allowing computer systems to do much of the work for the child care provider/center and eliminating mundane “manual” tasks a computer could perform much quicker and much more accurately.  Even the storing and archiving of CACFP data can now be done electronically as long as specific guidelines are followed by the child care provider and CACFP sponsor.

Visit our Services We Provide page to see how MTX Communications is at the forefront of developing such tools for a software programmer to easily provide in a turn key system for CACFP Sponsors and child care providers (both centers and day homes).