On May 25, 2000, Congress passed Child and Adult Care Food Program legislation (Public
Law 106-224) designed to address integrity issues by improving program operations.
President Clinton signed this bill on June 20, 2000. Because of changes in the CACFP
regulations and additional requirements by the Department of Health and Human Services
(State Agency) there will be some changes made to the application for the CACFP as well as
the way the CACFP operates. We have highlighted some of the changes you can expect.
Changes as a result of Public Law 106-224:
- Nonprofit institutions applying for CACFP participation must have tax exempt status, as
defined under the Internal Revenue Code of 1986 or operate a Federal program requiring
nonprofit status to participate in the program. Nonprofit institutions must submit a copy
of its tax exempt letter or certify that it operates another Federal program requiring
nonprofit status. If these conditions are not met, the institution may participate as a
for-profit institution, if it receives Title XX compensation for at least 25 percent of
the children enrolled in the day care center or 25 percent of the licensed capacity,
whichever is less. We will no longer accept the IRS Release of Tax Exempt Status (CAC 19)
as permission to verify Tax Exempt status. For institutions that were approved prior to
June 20, 2000 this requirement is in effect beginning October 1, 2000. (Family and group
day care homes are exempt from these requirements).
- Sponsoring organizations must employ enough monitors to ensure effective oversight of
homes and centers. Further guidance on this will be forthcoming. Until that time, continue
to use current staffing standards for monitors.
- Beginning immediately, sponsoring organizations must have a policy that restricts other
employment by employees if that employment would interfere with their responsibilities and
duties as sponsor employees. General principles to consider in approving outside
employment would include likely schedule conflicts with CACFP responsibilities and duties
and ethical or conflict of interest issues.
- Beginning immediately, if an institution is prohibited from participation in another
publicly funded program (State, Federal or local government) by reason of violation of the
requirements of the program, that institution will also be prohibited from participating
in the CACFP. Institutions will be required to certify that the institution has not been
disqualified from participating in any other public-funded program.
- Sponsoring organizations are required to periodically make unannounced visits to family
day care homes and day care centers not less than once every three (3) years and at least
one scheduled visit each year to family day care homes and day care centers. This
requirement is in effect beginning October 1, 2000.
- Beginning October 1, 2000, providers under the auspices of sponsoring organizations may
only change sponsoring organizations once a year, unless there are extenuating
- Day Care Homes and child care centers (or their Sponsoring Organizations) must provide
the parents of newly enrolled children and families currently participating with
information on CACFP, the name of the State CACFP agency and the name and telephone number
of the sponsoring organization. This requirement is effective immediately for newly
enrolled children. For children that are already enrolled in the program, parent
notification must be provided by September 20, 2000. Please remember that published
materials about the CACFP must contain the nondiscrimination statement.
Changes due to Department of Health and Human Services Requirements:
- Certification regarding Drug-Free Workplace Requirements, Certification Regarding
Lobbying, Certification Regarding Environmental Tobacco Smoke, and Certification regarding
Debarment, Suspension, Ineligibility and voluntary Exclusion-Lower Tier Coverage
Transaction have been added to the agreement. This is a requirement for all participating
- All nonprofit institutions must submit a conflict of interest policy. You can submit
your institution's conflict of interest policy or you can submit the CAC2 supplement
that will be provided with your renewal packet. By submitting and signing the CAC 2
supplement, your institution is agreeing to accept this document as its Conflict of
Interest policy. The conflict of interest policy must have an original signature
(signed by an authorized representative) and an original notary stamp. Nonprofit
institutions will not receive reimbursement until we have a signed, notarized conflict of
interest statement on file.
- Each nonprofit institution must list the names, mailing address, phone number and family
relationship for each board member.
- If your institution is contracting for food with a Food Service Management Company
(other than with a public or private nonprofit school) and the total food cost is $10,000
or more, you must competitively bid the contract. You will be required to submit a copy of
the bid with your agreement. While this is not a new requirement, the State Agency will be
enforcing the procurement requirements as stated in 7 C.F.R. Section 226.22. You are still
required to use the Food Service Contract provided by the state Agency (CAC-17).
- Enclosed with this mailing are "Building for the Future" posters announcing
that your institution receives cash assistance to serve healthy meals to children. This
poster must be displayed in a conspicuous place at each of your centers and day care
homes. If you need additional posters, please contact Vickie Peretic at (919) 715-1925.
If you have questions or need assistance, please contact your SNP regional consultant.