Sponsoring Unaffiliated Centers:
A Strategy to Increase Viability
and Improve Program Integrity
PRESENTED BY
SHARON RAY
President
Improving Program Integrity
GAIL BIRCH
Chief Executive Officer
Start Up and Marketing
VICKI LIPSCOMB
Executive Director
Financial Concerns and
Budgeting
Sponsored Centers
Advantages to:
State Agencies
Centers
Sponsors
SHARON RAY
Advantages to SA
• Reduces the caseload of State Agency staff
• Sponsored centers receive more oversight
because there is an ongoing data stream
• Sponsors will have significantly more
knowledge of regulations and policies
than center personnel
Advantages to SA
• Centers receive more training
• Monthly claim integrity strengthened
• Fewer over-claims for centers
• Program Integrity: Sponsored centers have on
site reviews more often (3 per year VS once per 3 years)
• Increased Oversight = Accountability
Advantages to Centers
• Improved claim integrity and accuracy
• Rely on sponsor’s CACFP knowledge
• Nutrition training for all staff
• Improved meal service
• Participation can begin sooner
Advantages to Centers
• Assistance with budgeting and allowable costs
• Sponsor accepts financial responsibility for
mistakes or over claims.
• Sponsor accepts responsibility for
the center’s CACFP participation.
Advantages to Sponsors
• Additional Revenue
Stream=Improved Financial Viability
• Increased Community Presence
• Available Training Sites
• Supports the mission to reach
more low income children
• Enables centers that may not
•
otherwise participate
GAIL BIRCH
3 STEPS to Start Up
STEP 1 : Costs Analysis & Funding
STEP 2 : Fine Tune the Plan
STEP 3 : Recruitment and Marketing
STEP 1
Costs & Funding Analysis
•
•
•
•
Feasibility Study
Start up Budget
Board of Directors
Funding Sources
Start Up Budget
• Estimating Admin Expenses
• Includes:
• Wages (office and field)
• Fixed Costs
• Administrative Overhead
• Determines Cost of Sponsoring Center
Present to Board of Directors
• Feasibility Study
• Projected Budget
• Determine Source
of Funding
Funding Resources
• Home admin funds are not allowable
• Possible Resources
• Private Donors
• Volunteer Time
• Director or part time staff
• Beware of wage and hour issues
• General Funds Account
• Sponsor or umbrella agency
• Grants
STEP 2
Fine Tune the Plan
•
•
•
•
Learn the Center Program
Management Plan
Develop Center Training Material
Train Staff
STEP 3
Marketing & Materials
•
•
•
•
General Marketing
Identifying Prospects
Targeted Marketing
Design Outreach Materials
General Marketing
Partnerships
•
•
•
•
State Agency
Child Care Licensing
Resource and Referrals
Family Child Care Homes
Identifying Prospects
Lists Analysis
•
•
•
•
Delete Current Participants?
For/Non-Profit
License Capacity
Low Income Areas
Organize Prospects Geographically
Targeted Marketing
• Walk-in Visits
• Cold Calls
• Mailings
Outreach Materials
• Look at Current Materials
• Tap into Other Sponsors
VICKI LIPSCOMB
Financial Concerns
and Budgeting
The Future of CACFP
• What Is Sustainability?
• Nonprofits have to make money to sustain the
organization in order to continue to fulfill their mission
• Ensures the home program stays afloat
• Our current model for child care is changing
• Fewer family child care providers are providing care
• Center participation is growing
• Effects on viability
• As the child care model changes, so must our
organizations….and our budgeting process
Payment Methods
• Determine method of payment
• Evaluate your current method of paying
independent centers (State Option)
• Actuals
• Per child, per meal, by F/R/P rate
• Blended
• Blended for all or by site
• Percentage
• Percentage for all or by site
Differences in
Payment Methods
• Actuals
• Per child, per day, based on F/R/P determination
• more labor intensive option for the child care site and
sponsor
• Larger paperwork burden
• Blended or Percentage for all
•
while this may be equitable for affiliated sites it does
result in discriminatory practices for unaffiliated.
• Blended or Percentage by site (Recommended )
• Each site is paid based on their own blended rate based
on enrollment just as if they were reporting directly to the
State.
Administrative Payments
•
15% each month-the maximum allowed
•
If sponsor overspends, the organization
is operating at a loss (year end)
• Homes money does not supplement
center income or vise versa
Communicate with Your Sponsors
• Communicate your expectation of your
sponsors on methods to report and allocate
their income and expenses.
• Actual
• Center specific software
• Actual employee time
• Allocation based on time and/or space
• Office Space Rent
• Telephone
Tracking Center Expenses
• Add one or two centers and work with them
for a while to determine these variables.
• How much time will it take?
• What resources will be needed?
• Additional postage
• Additional mileage
• Additional staff time
• The Sponsor should carefully track expenses
Other Budget Concerns
• Sponsor income from centers will vary each month
• Expenses should be more consistent
• Sponsors should track average per child costs and
average per child income
• Useful in planning as new sites come on
• Summer income will be higher since school age
children will participate all day
Sample Income/Expense Flow
Review Outcomes
• Sponsors should monitor their budget
• Report expenses in the same manner
as budgeted and approved
• Budget estimates may not be reality
• Analyze real expenses and real income
each month
• Adjust budget and cost allocation
accordingly
In Summary
• Sponsors can ensure greater integrity of
independent sites if you are able to work as a team
with a common goal
• Sponsors will need your support and training
• Program management becomes more
complicated
• Budgeting is more complicated
• It’s worth your time to help the sponsoring
organization support the independent center
Together We Make a
Difference
There are child care centers that
need additional support,
assistance in order for their
children to benefit from the
CACFP.
Your collaboration ensures that
these children are not left behind.
Your efforts do make a
difference!