Section 4000
Managing the Program
Table of Contents
4100
Reimbursable Meals
4110
4120
Advance Planning of Meal Service
4111
Menu Planning
4111.1
Pre-planned Pre-printed Menus
4111.2
Cycle Menus
4112
Meal Pattern Charts
4112.1
Meal Pattern Charts – Infants
4112.2
Meal Pattern Charts – Children One Year and
Older
4112.3
Variations in Meal Pattern Requirements for
Religious Reasons
4112.4
Meals for Children/Infants with Disabilities
4112.5
Meals for Children/Infants with Medical or Special
Dietary Needs
4113
Water for Infants
4114
Product Labeled Food
4114.1
CN Labels
4114.2
Product Analysis
4114.3
(Reserved for future use)
4114.4
Product Formulation Statements
4115
Meal Service Schedule
4116
Meal Service Styles
Meal Counts, Second Servings and Field Trips
4121
Limit on Quantity of Reimbursable Meals
4122
Meal Counts
4122.1
Meal Service Record
4122.2
Second Meals during One Meal Service
4123
Field Trips
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 1
4200
Two-Tiered Reimbursement Provisions
4210
4220
4230
4240
Tier I and Tier II Providers
4211
Tier I Providers
4212
Tier II Providers
4212.1
Tier II High Providers
4212.2
Tier II Low Providers
4212.3
Tier II Mixed Providers
Area-Eligible Tier I Providers
4221
Area-Eligible Tier I Providers Based on Elementary School
Data
4221.1
Attendance Area Information Requirements
4221.2
School List Requirements
4221.3
Sufficient Elementary Grade Level Information
4221.4
Percentage of Income-Eligible Children
4221.5
Documentation
4221.6
Prohibitions Against Using School Data
4222
Area-Eligible Tier I Providers Based on Census Data
4222.1
Census Block Data Provided by FND
4222.2
Census Block Data Obtained From Another Source
4223
Resident Children in Area-Eligible Tier I Homes
4223.1
Annual Renewal of Eligibility
4223.2
Letter to Provider
4223.3
Determining Eligibility
4223.4
Automatic Eligibility for Head Start/Early Head
Start/Even Start Participants
4223.5
Confidentiality
Income of Categorically Eligible Tier I Providers
4231
Provider Income/Categorical Eligibility Data Requirements
4232
Resident Children in Income/Categorically Eligible Tier I
Home
Tier II Providers
4241
Resident Children in Tier II Homes
4242
Resident Foster Children in Tier II Homes
4243
Nonresident Children in Tier II Homes
2 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4250
4260
4270
4300
Tier I/Tier II Determinations
4251 Documentation of Providers’ Tier Determination
4252 Deadline for Submittal of Form H1658
4253
Notification of Tier I/Tier II Determinations
Claims for Reimbursement
4261
Reimbursement Based on Tier Determination
4262
Meal Counting, Reporting, and Reimbursement
4263
Claims for Meal Reimbursement
Documentation
Program Administration
4310
4320
4330
4340
Management and Monitoring
4311
Pre-Approval Visits
4312
Parental Notification
4313
Distribution of Women, Infants, and Children (WIC)
Supplemental Food Program Materials
4314
Enrollment of Children
4315
Policy Statement
4316
State Government Privacy Policy
Enrolling, Deleting or Making Changes to Day Care Homes
4321
Amendments to Forms H1537 and H1542
4322
Denials
4323
Resuming Provider Participation
4324
Open Enrollment
4325
Transfers
Training
4331
Sponsor Training
4331.1
Sponsor Training During the First Program Year
4331.2
Sponsor Training After the First Program Year
4332
Provider Training During the First Program Year
4333
Provider Training After the First Program Year
4334
Provider Training Documentation
Monitoring Reviews
4341
Review Averaging
4341.1 How to Establish Your Averaging Cycle
4342
Meal Edit Checks
4343
Five-Day Reconciliation
4344
Household Contacts
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 3
4350
4360
4370
4380
4390
4400
Nonprofit Food Service
4351
Operating Costs
4352
Administrative Costs
4352.1
Administrative Labor Costs
4352.2
Documentation Requirements for Administrative
Labor Costs
4352.3
Unallowable Costs
4353
Program Income
4354
Net Costs
Filing Claims
4361
Submittal Deadline
4362
Late Claims
4362.1
Good Cause
4362.2
One-Time Exception
4363
Amended Claims
4364
Upward Adjusted Amended Claims
Food Service Operations
4371
On-Site Food Preparation
4372
Estimating Costs
4373
Inventories
4374
Inventory Adjustments
4375
Recycled Food
4376
Storage
4377
Purchased Meals
Serious Deficiency Process for Providers
4381
Suspension of Provider Participation
Operation During a Pandemic
Program Documentation
4410
4420
4430
4440
Retention Period
Availability of Records
Types of Records
4430.1 Provider Record Keeping Requirements
Required Forms
4 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4000
Managing the Program
You must accept full administrative and financial responsibility for operating the program in
the day care homes that you sponsor. These responsibilities are described in federal and state
laws, regulations and policies and in your approved application and FND Agreement. You
must not deviate from your approved budget and application/management plan without our
written consent.
Either directly or through your providers, you must:




Prepare and serve reimbursable meals.
Operate a nonprofit food service.
Manage program activities.
Document the program activities as required.
4100
Reimbursable Meals
The CACFP meal patterns guide the preparation of well-balanced and nutritious meals. The
lunch pattern should provide children with approximately one-third of their recommended
dietary allowance (RDA), while the breakfast pattern should provide approximately one-fourth
of their RDA. The CACFP meal patterns are a flexible framework that enables you to choose
from a wide variety of foods when planning and serving nutritious meals. Variations in the
meal patterns can be considered for religious, cultural, and ethnic eating preferences when
planning menus.
4110
Advance Planning of Meal Service
Providers are encouraged to plan meals at least two weeks in advance of a meal service to assist
in food-purchasing, cost control and the scheduling of food preparation. Using the appropriate
USDA meal pattern and DFPS' Child Care Licensing requirements, you should help providers
vary the form, size, shape, color, texture, flavor, and temperature of foods that they offer. You
should review your providers' menus in advance to reduce the number of disallowed meals.
Since children's diets often lack sufficient nutrients, such as iron and vitamins A and C, we
recommend using foods that are good sources of these nutrients.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 5
4111
Menu Planning
4111.1
Pre-planned Pre-printed Menus
You must ensure that your providers prepare a menu record for each meal service on a daily
basis. You cannot:


Require the use of pre-planned, pre-printed menus.
Provide pre-planned, pre-printed menus, except as a training tool.
Individual providers may use pre-planned, pre-printed menus that they have developed for
their own use. Each day, they must:



Verify that the items on the pre-printed menu were served as listed, or that acceptable
substitutions were made.
Identify the individual who recorded the information.
Record the date.
EXAMPLE: On the first day of a pre-printed 10-day menu, the provider served all of the items
listed. Prior to the end of the day, the provider must notate that each item was served and
initial and date the menu record.
If a substitution is made, the item must be added to the pre-printed menu record. Providers
should record the substitution without obscuring the readability of the original item.
EXAMPLE: A provider served each of the items that were listed on a lunch menu prepared 10
days earlier, except corn was substituted for green beans on the ninth day. Prior to the end of
the ninth day, the provider must:




Strike through the words “green beans.”
Record “corn”.
Notate that other items were served as planned.
Initial and date the entries.
4111.2
Cycle Menus
Cycle menus repeat themselves over a period of time, usually three to six weeks. Using cycle
menus provides a variety of meals, reduces cost, and makes it easier for providers to plan their
children's favorite combinations. Providers may repeat a non-cycle menu with any frequency
that they desire, e.g., one-month.
6 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4112
Meal Pattern Charts
The meal pattern charts show the minimum amounts of each meal component that must be
served to each child to qualify for reimbursement. Providers may choose to serve additional
foods. Serving sizes vary for children of different ages.
4112.1
Meal Pattern Charts – Infants
(See next page for the INFANT MEAL PATTERN.)
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 7
INFANT MEAL PATTERN:
Meal Type
BREAKFAST
Birth through
3 Months
• 4-6 fluid ounces (fl oz) of
formula 1 or breastmilk 2,3.
4 Months through
7 Months
8 Months through
11 Months
• 4-8 fl oz of formula 1 or
breastmilk 2,3 ;
• 6-8 fl oz of formula 1 or
breastmilk 2,3 ;
and
• 0-3 tablespoons (Tbsp) of
infant cereal 1,4.
and
• 2-4 Tbsp of infant cereal 1 ;
and
• 1-4 Tbsp of fruit or vegetable
or both.
LUNCH OR
SUPPER
• 4-6 fl oz of formula 1 or
breastmilk 2,3.
• 4-8 fl oz of formula 1 or
breastmilk 2,3 ;
• 6-8 fl oz of formula 1 or
breastmilk 2,3 ;
and
• 0-3 Tbsp of infant cereal 1,4 ;
and
• 0-3 Tbsp of fruit or vegetable
or both 4.
and
• 1-4 Tbsp of fruit or vegetable
or both ;
and
• 2-4 Tbsp of infant cereal 1 ;
and/or
• 1-4 Tbsp of meat, fish,
poultry, egg yolk, cooked dry
beans or peas; or
• 1/2-2 oz. of cheese; or
• 1-4 oz. (volume) of cottage
cheese; or
• 1-4 oz. (weight) of cheese
food, or cheese spread.
SNACK
• 4-6 fl oz of formula 1 or
breastmilk 2,3.
• 4-6 fl oz of formula 1 or
breastmilk 2,3.
• 2-4 fl oz of formula 1 or
breastmilk 2,3, or fruit juice 5 ;
and
• 0-1/2 slice of bread 4,6 or 0-2
crackers 4,6.
1
Infant formula and dry infant cereal must be iron-fortified.
2
Breastmilk or formula, or portions of both, may be served; however, it is recommended that breastmilk be served in place of
formula from birth through 11 months.
3
For some breastfed infants who regularly consume less than the minimum amount of breastmilk per feeding, a serving of less
than the minimum amount of breastmilk may be offered, with additional breastmilk offered if the infant is still hungry.
4
A serving of this component is required only when the infant is developmentally ready to accept it.
5
Fruit juice must be full-strength.
6
A serving of this component must be made from whole-grain or enriched meal or flour.
(See your Food Buying Guide for more details.)
8 – Managing the Program
Chart Revised by TDA FND – June 2007
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
NOTE: Meal component substitutions to any component of the infant meal pattern due to an
infant’s disability, or medical or special dietary need must be supported by a medical statement.
Refer to Items 4112.4, Meals for Children with Disabilities and 4112.5, Children with Special
Dietary Needs.
Providers must offer at least one infant formula that meets the infant meal pattern
requirements. A parent (or guardian) may decline the infant formula that is offered by the
provider and supply an alternate infant formula. The provider must have a statement from the
parent (or guardian) declining the infant formula offered by the provider in order to claim the
meal.
According to CACFP requirements, in order to claim meals for reimbursement for infants 4
through 7 months, the provider is required to serve infant cereal and other foods when the
infant is developmentally ready to accept them.
Providers must include in their program documentation the following elements in order to
claim reimbursement for meals that are served to infants:







Infant's name;
Infant's date of birth;
Name of provider;
The name and type of infant formula the provider will provide;
Whether the parent (or guardian):
o Will bring the breastmilk;
o Will bring the infant formula (Adequate information must be provided by the parent (or
guardian) about the alternate infant formula to determine whether the infant formula
meets infant meal pattern requirements (e.g., the name brand of the infant formula and
whether the infant formula is iron-fortified);
o Will bring solid foods that the infant is developmentally ready to accept;
o Wants the provider to provide the infant formula;
o Wants the provider to provide infant cereal and other food items that the infant is
developmentally ready to accept according to the Infant Meal Pattern;
Parent’s (or guardian's) signature; and
Date of signature.
For an example, refer to Item 11700, Sample CACFP Infant Feeding Preference – Providers.
NOTE: As situations change, such as a physician or recognized medical authority changing the
infant’s formula, the provider must update the information in the infant’s file. The provider
must update the information within one month of the infant moving from one age category to
the next.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 9
An infant formula is considered to meet program requirements when it:


Meets requirements of the infant meal pattern; or
Does not meet the infant meal pattern requirements, but you maintain a medical statement
to support the substitution.
BIRTH THROUGH THREE MONTHS
If the…
Provider provides
the infant formula,
Parent (or guardian)
provides the infant
formula/breastmilk1,
Then the provider may claim reimbursement when the provider …
Provides the infant formula/breastmilk1 in the minimum quantity
specified in the infant meal pattern.
 Has a statement from the parent (or guardian) declining the infant
formula offered by the provider;
 Provides the infant formula/breastmilk1 in the minimum quantity
specified in the infant meal pattern; and
 Feeds the infant.
FOUR THROUGH SEVEN MONTHS
If the…
Provider provides all
of the meal
components,
Then the provider may claim reimbursement when the provider …
Provides the infant a complete meal (including required2 meal
components) in the minimum quantity specified in the infant meal
pattern.
Provider provides the
infant formula,
Provides the infant a complete meal (including required2 meal
components) in the minimum quantity specified in the infant meal
pattern.
Parent (or guardian)
provides the infant
formula/breastmilk1,

Parent (or guardian)
provides some of the
meal components,

1
2


Has a statement from the parent (or guardian) declining the infant
formula offered by the provider; and
Provides the infant a complete meal (including required2 meal
components) in the minimum quantity specified in the infant meal
pattern.
Has a statement from the parent (or guardian) declining specific
meal components (e.g., infant formula or solid food) offered by the
provider; and
Provides at least one of the required2 meal components in the
minimum quantity specified in the infant meal pattern.
This includes breastmilk provided to the parent (or guardian) by a wet nurse.
If the infant is developmentally ready for solid foods, then the optional meal component(s) are
required and no longer considered as options and must be served on a gradual basis to the
infant. The determination to be developmentally ready should be made by the infant’s parent
(or guardian).
10 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
EIGHT THROUGH 11 MONTHS
If the…
Then the provider may claim reimbursement when the provider …
Provider provides all
of the meal
components,
Provider provides the
infant formula,
Provides the infant a complete meal (including required2 meal
components) in the minimum quantity specified in the infant meal
pattern.
Provides all other required2 meal components in the minimum
quantity specified in the infant meal pattern.
Parent (or guardian)
provides the infant
formula/breastmilk1,

Parent (or guardian)
provides some of the
meal components,



1
2
Has a statement from the parent (or guardian) declining the infant
formula offered by the provider; and
Provides all other required2 meal components in the minimum
quantity specified in the infant meal pattern.
Has a statement from the parent (or guardian) declining specific
meal components (e.g., infant formula or solid food) offered by
the provider; and
Provides at least one of the required2 meal components in the
minimum quantity specified in the infant meal pattern.
This includes breastmilk provided to the parent (or guardian) by a wet nurse.
If the infant is being served a snack, and the infant is developmentally ready for bread or
crackers, then the optional meal component(s) for a snack are required and no longer
considered as options and must be served on a gradual basis to the infant. The determination
to be developmentally ready should be made by the infant’s parent (or guardian).
A provider may claim reimbursement for meals in which the provider breast-feeds or supplies
the breastmilk for her own infant as long as:



The provider's own child participates in the meal service;
At least one non-resident child participated in a meal service that day; and
Breastmilk/infant formula is the only required component and the provider supplies the
breastmilk.
4112.2
Meal Pattern Charts – Children One Year and Older
(See the following pages for the MEAL PATTERN CHARTS for Children One Year and
Older.)
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 11
BREAKFAST FOOD COMPONENTS
1
Age 1 - 2
Age 3 - 5
Age 6 - 12
1/2 cup (4 fl oz)
3/4 cup (6 fl oz)
1 cup (8 fl oz)
1/4 cup
1/2 cup
1/2 cup
1/4 cup
1/2 cup
1/2 cup
1/2 slice
1/2 slice
1 slice
1/2 serving
1/2 serving
1 serving
Serve All Three Components for a Reimbursable Meal
• Milk, fluid
Milk
• Vegetable(s) and/or fruit(s) or
Vegetables/
Fruits
2
2
• Full strength vegetable or fruit juice , or
• An equivalent quantity of any combination
of vegetable(s), fruit(s) and juice
Grains/Breads
3
2
3
• Bread , or
3
• Cornbread, biscuits, rolls, muffins, etc. , or
• Cold dry cereal
3,4
, or
1/4 cup or 1/3 oz
3
• Cooked cereal , or
3
• Cooked pasta or noodle products , or
3
• Cooked cereal grains , or
4
1/3 cup or 1/2 oz
4
3/4 cup or 1 oz
1/4 cup
1/4 cup
1/2 cup
1/4 cup
1/4 cup
1/2 cup
1/4 cup
1/4 cup
1/2 cup
4
• An equivalent quantity of any combination
of Grains/Breads
1
Children ages 13 through 18 must be served minimum or larger portion sizes specified in this column for children ages 6 through
12.
2
Fruit or vegetable juice must be full-strength. You may serve an equivalent quantity of any combination of vegetable(s) or fruit(s),
and juice.
3
Bread, pasta or noodle products, and cereal grains, must be whole-grain or enriched. Cornbread, biscuits, rolls, muffins, etc. must
be made with whole grain or enriched meal or flour. Cereal must be whole-grain or enriched or fortified.
4
Either volume (cup) or weight (oz), whichever is less.
(See your Food Buying Guide for more details.)
12 – Managing the Program
Chart Revised by TDA FND – Sep 2007
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
CHILD CARE MEAL PATTERN FOR CHILDREN ONE YEAR OLD OR OLDER (cont.)
LUNCH or SUPPER FOOD COMPONENTS
1
Age 1 - 2
Age 3 - 5
Age 6 - 12
1/2 cup (4 fl oz)
3/4 cup (6 fl oz)
1 cup (8 fl oz)
1/4 cup total
1/2 cup total
3/4 cup total
1/2 slice
1/2 slice
1 slice
1/2 serving
1/2 serving
1 serving
1/4 cup
1/4 cup
1/2 cup
1/4 cup
1/4 cup
1/2 cup
1 oz
1 1/2 oz
2 oz
1 oz
1 1/2 oz
2 oz
1 oz
1 1/2 oz
2 oz
1/2 large egg
3/4 large egg
1 large egg
1/4 cup
3/8 cup
1/2 cup
2 Tbsp
3 Tbsp
4 Tbsp
Serve All Four Components for a Reimbursable Meal
• Milk, fluid
Milk
Vegetables/ Fruits
2
• Vegetable(s) and/or
fruit(s)
(2 or more)
Grains/Breads
3
3
• Bread , or
• Cornbread, biscuits,
3
rolls, muffins, etc. , or
• Cooked pasta or noodle
3
products , or
3
• Cooked cereal grains ,
or
• An equivalent quantity of
any combination of
Grains/Breads
Meat/ Meat Alternates
4,5,6,7
• Lean meat or poultry or
4
fish , or
• Alternate protein
5
products , or
• Cheese, or
• Egg (large), or
• Cooked dry beans or
peas, or
• Peanut butter or soynut
butter, or other nut or seed
butters, or
• Peanuts or soynuts or
tree nuts or seeds
1/2 oz = 50%
6
3/4 oz = 50%
6
1 oz = 50%
6
6,7
, or
• Yogurt - plain or flavored,
unsweetened or
sweetened, or
4 oz or 1/2 cup
6 oz or 3/4 cup
8 oz or 1 cup
• An equivalent quantity of
any combination of the
above Meat /Meat
Alternates
Notes continued on next page.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 13
1
Children ages 13 through 18 must be served minimum or larger portion sizes specified in this column for children
ages 6 through 12.
2
Serve two or more kinds of vegetable(s) and/or fruit(s). Full-strength vegetable or fruit juice may be counted to meet
not more than one-half of this requirement.
3
Bread, pasta or noodle products, and cereal grains, must be whole-grain or enriched. Cornbread, biscuits, rolls,
muffins, etc. must be made with whole grain or enriched meal or flour. Cereal must be whole-grain or enriched or
fortified.
4
A serving consists of the edible portion of cooked lean meat or poultry or fish.
5
Alternate protein products must meet requirements in Appendix A of 7 CFR Part 226.
6
Nuts and seeds may meet only one-half of the total Meat/Meat Alternate serving and must be combined with
another Meat/Meat Alternate to fulfill the lunch or supper requirement. 1 ounce of nuts or seeds is equal to 1 ounce
of cooked lean meat, poultry, or fish.
7
Nuts and seeds are generally not recommended to be served to children ages 1-3 since they present a choking
hazard. If served, nuts and seeds should be finely minced.
(See your Food Buying Guide for more details.)
Chart Revised by TDA FND – September 2007
14 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
CHILD CARE MEAL PATTERN FOR CHILDREN ONE YEAR OLD OR OLDER (cont.)
SNACKS
1
Age 1 - 2
Age 3 - 5
Age 6 - 12
1/2 cup (4 fl oz)
1/2 cup (4 fl oz)
1 cup (8 fl oz)
1/2 cup
1/2 cup
3/4 cup
1/2 cup
1/2 cup
3/4 cup
1/2 slice
1/2 slice
1 slice
1/2 serving
1/2 serving
1 serving
Select Two of the Four Components
• Milk, fluid
Milk
Vegetables/ Fruits
• Vegetable(s) and/or fruit(s), or
2,3
• Full strength vegetable or fruit
2
juice , or
• An equivalent quantity of any
combination of vegetable(s),
2
fruit(s) and juice
Grains/Breads
4
4
• Bread , or
• Cornbread, biscuits, rolls,
4
muffins, etc. , or
4
5
• Cold dry cereal , or
5
5
1/4 cup or 1/3 oz
1/3 cup or 1/2 oz
3/4 cup or 1 oz
1/4 cup
1/4 cup
1/2 cup
1/4 cup
1/4 cup
1/2 cup
1/4 cup
1/4 cup
1/2 cup
1/2 oz
1/2 oz
1 oz
• Alternate protein products , or
1/2 oz
1/2 oz
1 oz
• Cheese, or
1/2 oz
1/2 oz
1 oz
1/2 large egg
1/2 large egg
1/2 large egg
1/8 cup
1/8 cup
1/4 cup
1 Tbsp
1 Tbsp
2 Tbsp
4
• Cooked cereal , or
• Cooked pasta or noodle
4
products , or
4
• Cooked cereal grains , or
• An equivalent quantity of any
combination of Grains/Breads
Meat/ Meat Alternates
6,7,8,9
6
• Lean meat or poultry or fish ,
or
7
• Egg (large), or
• Cooked dry beans or peas, or
• Peanut butter or soynut butter,
or other nut or seed butters, or
• Peanuts or soynuts or tree
nuts or seeds
8,9
, or
• Yogurt - plain or flavored,
unsweetened or sweetened, or
1/2 oz = 50%
8
2 oz or 1/4 cup
1/2 oz = 50%
8
2 oz or 1/4 cup
1 oz = 50%
8
4 oz or 1/2 cup
• An equivalent quantity of any
combination of the above
Meat/Meat Alternates
Notes continued on next page.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 15
1
Children ages 13 through 18 must be served minimum or larger portion sizes specified in this column for children ages 6 through
12.
2
Fruit or vegetable juice must be full-strength. You may serve an equivalent quantity of any combination of vegetable(s) or fruit(s),
and juice.
3
Juice may not be served when milk is the only other component.
4
Bread, pasta or noodle products, and cereal grains, must be whole-grain or enriched. Cornbread, biscuits, rolls, muffins, etc. must
be made with whole grain or enriched meal or flour. Cereal must be whole-grain or enriched or fortified.
5
Either volume (cup) or weight (oz), whichever is less.
6
A serving consists of the edible portion of cooked lean meat or poultry or fish.
7
Alternate protein products must meet requirements in Appendix A of 7 CFR Part 226.
8
Nuts and seeds may meet only one-half of the total Meat/Meat Alternate serving and must be combined with another Meat/Meat
Alternate to fulfill the lunch or supper requirement. 1 ounce of nuts or seeds is equal to 1 ounce of cooked lean meat, poultry, or
fish.
9
Nuts and seeds are generally not recommended to be served to children ages 1-3 since they present a choking hazard. If served,
nuts and seeds should be finely minced.
(See your Food Buying Guide for more details.)
Chart Revised by TDA FND – September 2007
In addition to the meal pattern requirements, providers must also adhere to the following
guidance:









Children 12 and older may be served adult size portions but must be served at least the
minimum amount for children age 6 to 12.
“Cup” means a standard measuring cup of 8 oz.
Bread, pasta or noodle products, and cereal grains must be wholegrain or enriched.
Biscuits, rolls, muffins, etc., must be made with wholegrain or enriched meal or flour.
Cereal must be wholegrain, enriched, or fortified.
For products made with corn meal or corn flour, such as cornbread and corn tortillas; the
label must have:
o “Whole corn” (or other “whole” corn designations, such as whole grain corn, whole
ground corn, whole cornmeal, whole corn flour, etc.); or
o “Enriched” corn (or other “enriched” corn designations, such as enriched yellow
cornmeal, enriched corn flour, enriched corn grits, etc.).
All serving sizes and equivalents must be as specified in the Food Buying Guide as
published by USDA.
Juice cannot be used as the second component of a snack if milk is the first component.
The minimum serving size for cereal is measured by volume (cup) or weight (oz.),
whichever is less.
At lunch or supper, you must serve two or more kinds of vegetable and/or fruit. Full
strength vegetable or fruit juice may be counted toward a maximum of one-half of this
requirement.
The minimum amounts shown for meat, poultry or fish are edible portions as served.
16 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook


USDA determines whether a specific tree nut or seed may be served as a meat alternate. At
lunch or supper, tree nuts and seeds may be counted toward a maximum of one-half of this
requirement. Nuts or seeds must be combined with another meat/meat alternate to fulfill
the requirement. For the purpose of determining combinations, one ounce of nuts or seeds
is equal to one ounce of cooked lean meat, poultry, or fish.
The following items cannot be used to satisfy the meat/meat alternate component for a
snack:
o Frozen yogurt.
o Yogurt bars.
o Yogurt covered fruits or nuts.
o Yogurt flavored products.
o Homemade yogurt.
NOTE: Commercially added flavorings such as fruit, fruit juice, juice, nuts, seeds, or granola
cannot be counted as the second component of a snack.
Commissioner Staples is committed to the 3E’s of Healthy Living – Education, Exercise and
Eating Right. As part of that commitment, the CACFP initiative “Promoting Healthy Eating and
Physical Activity for a Healthier Lifestyle” is the TDA FND avenue to promote a healthier lifestyle,
including healthy eating and physical activity for children ages 2 – 5 years. FND partnered with
CACFP contractors from both independent centers and sponsoring organizations to
recommend changes to the Child Care Meal Patterns to comply with the 2005 Dietary Guidelines
for Americans.
The recommended modifications are voluntary, but if day care home providers implement
these minor changes to the meal patterns, they will lower total fat, saturated fat, trans fatty
acids, added sugars and calories. At the same time, they will increase fruit, vegetable, vitamins
A and C, fiber and whole grain consumption.
The recommended modifications are as follows:







Serve nonfat or 1% milk for children ages 2 years and older.
Serve juice only once daily, for breakfast or snack (juice must not be served from a bottle).
Serve one fresh or frozen fruit or vegetable daily for a required Vegetables/Fruits
component at any meal service.
Serve one good source of Vitamin C daily.
Serve one good source of Vitamin A three days per week. (See the list on page 19 for
examples of vitamin A and C rich foods)
Serve one whole grain daily (whole grain must be the first ingredient listed), for a required
Grains/Breads component at any meal service.
Serve Grains/Breads food items listed in Exhibit A: Group C through Group G of the Food
Buying Guide no more than twice a week for a snack only.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 17


Serve ready-to-eat cereals with no more than 10 grams of sugar per serving.
Do not serve vegetable or fruit juice as a Vegetables/Fruits component for lunch or supper.
Sponsors are encouraged to request that their day care home providers make these
modifications to promote healthier eating habits. Menu planning trainings will be offered in
2010 to help implement these recommended modifications.
NOTE: The modifications recommended above do not replace the component and serving size
requirements in the CACFP Meal Patterns.
18 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Vitamins A and C Rich Foods
Foods for Vitamin A
¼ cup serving (about 1500 International Units (IU))
Beet greens
Carrots
Cherries, red sour
Chili peppers, red
Collards
Kale
Mangoes
Mixed Vegetables
Mustard greens
Peas and carrots (canned or frozen)
Peppers, sweet red
Pumpkin
Spinach
Squash, winter (acorn, butternut, hubbord)
Sweet potatoes
Turnip greens
¼ cup serving (about 750-1500 IU)
Apricots
Broccoli
Cantaloupe
Papayas
Purple plums (canned)
½ cup serving (about 750-1500 IU)
Asparagus, green
Chili peppers, green
Endive, curly
Nectarines
Peaches (except canned)
Prunes
Tomatoes
Tomato juice or reconstituted paste or puree
Foods for Vitamin C
¼ cup serving (about 15-25 milligrams (mg))
Broccoli
Brussel sprouts
Chili peppers, red and green
Orange juice
Oranges
Peppers, sweet red and green
Cantaloupe
Cauliflower
Collards
Grapefruit
Grapefruit juice
Kiwi fruit
Mangoes
Mustard greens
Papayas
Pineapple juice (canned-vitamin C restored)
Strawberries
Tangerine juice
Tangerines
¼ cup serving (about 8-15 mg)
Asparagus
Cabbage
Honeydew melon
Okra
Potatoes (baked, broiled or steamed)
Potatoes (reconstituted instant mashed-vitamin C restored)
Raspberries, red
Sauerkraut
Spinach
Sweet potatoes (except those canned in syrup)
Tomatoes
Tomato juice or reconstituted paste or puree
Turnip greens
Vegetable juice
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 19
4112.3
Variations in Meal Pattern Requirements for Religious Reasons
We may approve variations in meal patterns to meet religious needs. If one of your providers
wants to serve meals that vary from USDA Meal Patterns, you must submit an alternate meal
pattern with justification to TDA.
Jewish facilities may be exempted from the enrichment portion of the bread requirement if they
choose to substitute unenriched matzo for the required grains/breads component during the
observance of Passover.
Jewish facilities may also be exempted from the meal pattern requirement that milk be served
with all lunches and suppers. This exemption applies only to meals containing meat or poultry
since Jewish Dietary Law allows milk to be served with meat alternates such as fish, cheese,
eggs, nut and seed butter, and nuts and seeds. Jewish facilities that request an exemption must
choose from the following three options:

Option I – Serve an equal amount of full-strength juice in place of milk with lunch or
supper. Juice substituted for milk cannot contribute to the vegetable/fruit requirement.
If the facility operates five days a week, it may substitute juice for milk twice per week for
lunches and twice per week for suppers, but is only allowed one substitution per day.
If the facility operates seven days a week, it may substitute juice for milk three times per
week for lunches and three times per week for suppers, but is only allowed one substitution
per day.
Milk substitutions are limited since milk is a primary source of calcium and riboflavin.
When using Option I, providers should serve other sources of calcium, e.g., broccoli and
greens, and riboflavin, e.g., dark green and yellow fruits and vegetables and whole-grain or
enriched breads and cereals.

Option II – Serve milk at an appropriate time before or after the meal service period, in
accordance with applicable Jewish Dietary Law.

Option III – Serve a snack juice component at lunch or supper. Serve the lunch or supper
milk component as part of a snack.
NOTE: An exemption is not necessary for breakfasts.
20 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Seventh-Day Adventist’s may use meat analogues (plant protein products) at the 100% level to
meet the meat/meat alternate component and quantity requirements for breakfasts, lunches,
suppers, and snacks.
Meat analogues are nutritionally comparable to and acceptable as meat alternates. They are
foods of plant origin, usually soy and wheat, which are made to resemble meat, poultry and fish
in appearance, texture, and flavor. A food buying guide supplement list of creditable meat
analogues is located in section 11000, Resources.
Providers should notify you if they want to request an exemption. You must obtain approval
for an exemption from TDA prior to claiming reimbursement.
4112.4
Meals for Children/Infants with Disabilities
Providers are required to provide meal component substitutions to a disabled child/infant
when supported by a medical statement signed by a licensed physician. The determination of
whether or not a child/infant has a disability that restricts his or her diet is to be made on an
individual basis by a licensed physician. The physician’s medical statement of the child’s /
infant’s disability must be based on the regulatory criteria for “disabled child/infant” and
contain a finding that the disability restricts the child’s/infant’s diet.
The medical statement must identify:





The child’s/infant’s disability and an explanation of why the disability restricts the
child’s/infant’s diet;
The major life activity affected by the disability;
The food or foods to be omitted from the child’s/infant’s diet;
The food or choice of foods to be used as substitutions; and
Any other restrictions and/or requirements specific to the child’s/infant’s disability (i.e.
caloric modifications or the substitution of a liquid nutritive formula).
NOTE: If the child’s/infant’s disability requires only textural modification(s) to the regular
program meal, as opposed to a meal pattern substitution, then the medical statement is
recommended, but not required.
Children/infants with food allergies or intolerances, or obese children/infants do not meet the
regulatory criteria for “disabled child/infant”. However, if the physician’s assessment finds that
the food allergy may result in severe, life-threatening reactions (anaphylactic reactions) or the
obesity is severe enough to substantially limit a major life activity, then the child/infant meets
the definition of “disabled child/infant”, and you must make the substitutions prescribed by the
licensed physician and supported by the physician’s medical statement.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 21
Providers must:




Keep on file a copy of the licensed physician’s medical statement;
Provide a copy of the licensed physician’s medical statement to their sponsor;
Provide the meal substitutions at no additional cost to the child’s/infant’s parent (or
guardian); and
Document meal substitutions.
FND strongly encourages providers to work closely with the parent (or guardian) for the health,
well-being and education of children/infants with disabilities to ensure that reasonable
accommodations are made to allow children/infants with disabilities to participate in the meal
service. This is particularly important when accommodating children/infants whose
disability(ies) requires significant modifications or personal assistance.
The reimbursement rate for meals served to children/infants with disabilities is the same
standard rate as all other program meals.
4112.5
Meals for Children/Infants with Medical or Special Dietary Needs
Children/infants who are not a “disabled child/infant” but who are unable to consume a food
item because of medical or other special dietary needs may be served substitutions. This
includes children/infants with food intolerance(s) (e.g., lactose intolerant or food allergy).
The parent (or guardian) of a child with a medical or special dietary need must be supported by
a medical statement signed by a recognized medical authority. In these cases, recognized
medical authority may include physicians, physician assistants or nurse practitioners.
The medical statement must include the following:



Identification of the medical or special dietary need that restricts the child's/infant’s diet;
Food or foods to be omitted from the child’s/infant’s diet; and
Food or choice of foods to be used as substitutions.
The decision as to whether or not the provider will provide the substitutions is at the discretion
of the provider. A provider is not required to satisfy the unique dietary needs of each
child/infant. FND urges providers to make every effort to satisfy the unique medical or special
dietary needs of each child/infant; however, we recognize that this may not always be possible
due to operational and financial constraints.
22 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
If a provider chooses to provide substitutions for children/infants with medical or special
dietary needs, then the provider must:





Provide substitutions on a case-by-case basis;
Maintain the required medical statement in their files;
Provide a copy of the required medical statement to their sponsor;
Provide the meal at no additional cost to the child’s/infant’s parent (or guardian); and
Document the meal substitution.
EXAMPLE: "Lactose Intolerant" describes a difficulty digesting the sugar found in milk and
milk foods. Symptoms associated with lactose intolerance may be reduced or eliminated if:



Small, frequent portions of milk are consumed rather than large portions;
Milk or milk foods are consumed with other foods or a meal; or
Acidophilus milk, yogurt with active cultures, ice cream, cottage cheese and aged hard
cheeses like cheddar and Swiss are consumed.
If a child is lactose intolerant, you are encouraged to determine the availability of lactosereduced or lactose-free milk. You are also encouraged to provide lactose-reduced or lactosefree milk as a fluid milk choice as a creditable part of a reimbursable meal. If you substitute
lactose-reduced or lactose-free milk for another milk type, you cannot assess additional charges
to the child’s parent (or guardian). If you serve a meal without milk to a child, you cannot claim
reimbursement unless you maintain a medical statement.
If an infant is lactose intolerant, you are encouraged to provide a lactose-free infant formula as a
creditable part of a reimbursable meal, and you cannot assess additional charges to the infant’s
parent (or guardian). Refer to Section 11000, Resources, for a list of Iron Fortified Infant
Formulas that do not require a medical statement.
Additionally, children/infants with chewing and swallowing difficulties may require textural
modifications that include softer foods, e.g., cooked carrots rather than raw carrots, or foods
that are chopped, ground, or blended.
Textural modifications can usually be made to the regular program meal; therefore, a
physician's medical statement indicating the appropriate food texture is recommended, but not
required.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 23
FND strongly encourages providers to work closely with the parent (or guardian) for the health,
well-being and education of children/infants with medical or special dietary needs to ensure
that reasonable accommodations are made to allow children/infants with medical or special
dietary needs to participate in the meal service. This is particularly important when
accommodating children/infants whose medical or special dietary needs require significant
modifications or personal assistance.
The reimbursement rate for meals served to children/infants with medical or special dietary
needs is the same standard rate as all other program meals.
4113
Water for Infants
USDA recommends that parents consult their infant’s health care provider regarding feeding
water to infants. However, it is generally recommended that:




Formula-fed infants in a normal climate should not be fed more water than the quantity
found in properly diluted formula.
Partially breast-fed and formula-fed infants in a hot climate should be fed water (about four
to eight ounces per day, unless otherwise indicated by a health care provider).
Breast-fed and formula-fed infants, in a normal climate who are fed a variety of solid foods,
especially high protein foods, e.g., meats, egg yolks, should be fed some water (a total of
about four to eight ounces per day, unless otherwise indicated by a health care provider).
Exclusively breast-fed infants in hot humid climates should not be fed additional water
besides what is in breast milk.
NOTE: Child care providers should obtain parental approval before feeding water to an infant.
When in doubt, parents should consult their infant's health care provider.
Most fruit juices are diluted with water. Infants should only be provided juice in a cup and the
amount should be limited (fewer than four ounces of juice). Parents should consult their infant's
health care provider regarding the total amount of fruit juice and water to feed an infant each
day. Plain water and fruit juice are meant to be fed in relatively small amounts to older infants
as a source of fluid, which supplements a nutritionally balanced diet. Feeding an excessive
amount of water, juice or other diluted liquid, places an infant at risk of water intoxication.
24 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4114
Product Labeled Food
Commercially prepared products, including those prepared by restaurants, “fast food” outlets,
etc. must have one of the following:


A child nutrition (CN) label.
A product analysis from the food manufacturer.
4114.1
CN Labels
Products containing the CN label will have the following information printed on the principal
display panel of the label:






Product name.
Ingredients listed in descending order by weight.
Inspection legend for the appropriate inspection.
Establishment number (for meat, poultry, and seafood items only).
Manufacturers or distributor’s name and address.
CN label statement. The CN label statement must be an integral part of the product label
and include the following information:
o CN logo, the distinctive border around the CN statement.
o Six-digit product identification number which will appear in the upper right hand
corner of the CN label statement.
o A statement of the product’s contribution toward meal pattern requirements for the
Child Nutrition Programs.
o A statement specifying that the use of the CN logo and label statement is authorized by
Food and Nutrition Services (FNS).
o The month and year the label was approved by FNS.
If a product without a CN label is purchased and the product does not meet CACFP
requirements, you will not be reimbursed for the meals containing the food product, unless you
have a product analysis for the item.
4114.2
Product Analysis
A product analysis from a food manufacturer must contain:




A detailed explanation of what the product actually contains.
The amount of each ingredient in the product by weight or measure, as appropriate.
A certifying statement as to the contribution of the product to the meal pattern.
The signature of a high-ranking official employed by the manufacturer.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 25
You are responsible for:



Reviewing the manufacturer’s product analysis before serving to determine the credibility
of information provided by the manufacturer.
Ensuring the proper documentation is maintained on each commercially prepared product
used to meet USDA meal pattern requirements.
Assuring that the food product meets specifications and has the correct code number.
Providers serving cereal bars as part of a reimbursable meal must obtain factual documentation
from the manufacturer to show they have a creditable amount of grain/bread. A sample
product formulation statement is located in Section 11000, Resources.
4114.3
(reserved for future use)
4114.4
Product Formulation Statements
Product formulation statements can be used for items not found in the Food Buying Guide (FBG)
and for products that do not have a CN label to document the product’s contribution toward
meeting the meal pattern requirements.
Currently there are two available sample product formulation statements that have been
developed to assist sponsors when documenting the creditable amount of food in products to
meet meal pattern requirements. Both samples are located in Section 11000, Resources of your
CACFP DCH Handbook:


11561, Prepared Grain/Bread
11562, Meat/Meat Alternates
4115
Meal Service Schedule
Each meal and snack must be reported individually on Form H1532, Claim for Reimbursement.
You must ensure that the following meal service times are observed:



Three hours must elapse between the beginning of breakfast and the beginning of lunch.
Four hours must elapse between the beginning of lunch and the beginning of supper, when
a snack is not served in between.
Two hours must elapse between the beginning of a:
o Meal service and the beginning of a snack.
o Snack and the beginning of a meal service.
o Snack and the beginning of another snack.
26 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
NOTE: When determining meal service times, a snack is not a meal.
The following conditions also apply to the meal service schedule:




The duration of a meal service must not exceed two hours
The duration of a snack service must not exceed one hour.
Service of supper must begin no earlier that 5:00 p.m., but no later than 7:00 p.m. It must
end no later than 8:00 p.m.
A meal service cannot begin any later than 30 minutes before the ending time (close of
business) indicated as the normal hours of child care operations on Form H1537.
Your providers may use a different schedule for infants younger than one year old.
4116
Meal Service Styles
Providers may serve meals:


As a unit (cafeteria style).
Family style.
In either type of meal service, the provider must ensure that the minimum quantities of each
meal component are available to each child.
At lunch or supper, the minimum quantity of the vegetable and fruit component is the
combined amount of each of the two or more fruit or vegetable items that are served. In
cafeteria style meal service, each child must be served at least the minimum amount of each
component.
In family style meal service:



A sufficient amount of prepared food must be placed on each table to provide the full,
required portions of each of the food components for all children at the table, and to
accommodate adults if they eat with the children.
Children should initially be offered the full required portion of each meal component. The
family style meal service allows children to make choices in selecting foods and the size of
initial servings.
It is the responsibility of the provider, during the course of the meal, to actively encourage
each child to accept service of the full required portion for each food component of the meal
pattern, e.g., if a child initially refuses a food component, or initially does not accept the full
required portion of a meal component, the provider should offer the food component to the
child again.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 27

Second meals cannot be claimed for reimbursement.
In some instances it may be appropriate to offer only some components family style. However,
any component not served family style, in an otherwise family style meal service, must be
served according to the criteria for cafeteria style service, which dictates that the full portion of
each component must be served to each child. For example, if you serve a meal family style
with the exception of milk, then each child must be served at least the full minimum portion of
milk.
Although we strongly encourage allowing children to serve themselves in a family style meal
service, it is not required.
4120
Meal Counts, Second Servings and Field Trips
4121
Limit on Quantity of Reimbursable Meals
Your providers may serve any or all of the following:
Meals
Breakfast
Lunch
Supper
Snacks
A.M.
P.M.
Evening
You may claim reimbursement for a maximum of two meals and one snack or two snacks and
one meal per child per day if the meals/snacks meet meal pattern requirements and are:







Served to children who are properly enrolled for and participating in child care.
Eaten in the day care home.
Served to children who meet CACFP age requirements.
Supplied by the provider.
EXCEPTION: Refer to Item 4112, Meal Pattern Charts, for exceptions concerning infant
meals provided by the parent/guardian.
Served at a time that we have approved on Form H1537, Application Between Sponsoring
Organization and Day Care Home.
Served by a provider who we have approved for participation in the CACFP.
Prepared by a source (self-prep or vended) that we have approved.
28 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
You cannot claim reimbursement for meals or snacks that are provided by a child’s
parent/guardian, e.g., a sack lunch. Additionally, you cannot claim reimbursement for meals or
snacks that are served to:







Adults.
Children in excess of the day care homes licensed capacity.
Children not properly enrolled.
The children of one provider in the care of another provider unless substitute care is being
offered and the child is enrolled with the substitute provider. (The provider for whom
substitute care is offered cannot claim reimbursement for any meals during the period of
substitute care).
The provider’s school-age children (during regular school hours), unless the children are
home schooled and all CACFP requirements are met.
The provider’s own child, unless a nonresident child enrolled for child care is participating
in the meal service.
The provider’s own child, unless the child is eligible for free or reduced-price meals.
4122
Meal Counts
Your meal count system must provide accurate counts of reimbursable meals served to eligible
children.
4122.1
Meal Service Record
You must record meal counts on a daily basis. It is recommended that you record meal counts
at the point of service where you observe that an eligible child receives a creditable meal. A
meal is creditable when a child receives all required components in the correct quantities.
You must record meal counts on Form H1539, Day Care Home Meal Service Record, or on an
alternate form that has been approved by FND.
You must ensure that all items on the form are completed, including the:





Date of food service.
Day of the week.
Names of all children (participants) enrolled in day care.
Age of each child.
Meal counts, by meal type, for each participant.
Form H1539 contains a certification statement that must be signed and dated by the provider.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 29
4122.2
Second Meals During One Meal Service
You must plan and prepare meals with the intent of serving no more than one of each approved
meal type per child per day.
You may claim reimbursement for second meals only if:






The second meals were served due to an unanticipated fluctuation in participation resulting
from conditions beyond your control.
The meals were served cafeteria style. You may not claim second meals under any
condition when the meals are served family style.
The second meals complied with USDA meal patterns.
The second meals were served to eligible program participants.
You submit documentation justifying the second meals.
We approve your justification for serving second meals due to reasons beyond your control.
Your meal production records, or other documentation, must show that the quantity of each
prepared component was adequate for each meal served (including any second meals) and
contained the minimum of each required component.
4123
Field Trips
The Texas Department of Family and Protective Services (DFPS) consider organized activities
directly related to the provision of child care, e.g., field trips, to be an “extension of the day care
home and subject to regulation.”
Therefore, you may claim reimbursement for meals that are served during a field trip if:


The activity is directly related to child care.
All program requirements are met.
Program requirements include, but are not limited to, the following:



Meals must meet meal pattern requirements for the appropriate age group and must be
served to eligible children.
All state and local health department standards, including maintaining food at proper
temperatures, must be followed.
Meal counts for meals served to eligible children must be documented on Form H1539, Day
Care Home Meal Service Record, or an alternate meal count form approved by FND. You must
also maintain these forms as required.
30 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook


Meals must be provided by the approved source (self-preparation or vended). Meals
purchased from restaurants or “fast food” outlets are not reimbursable without a product
analysis from the food manufacturer.
Meals that are served to children who are in transit to the provider’s or their homes cannot
be claimed as reimbursable meals.
You are not required to obtain prior approval from us when planning a field trip. However,
you may require that providers obtain prior approval for field trips as a condition of
reimbursement for meals served off-site.
Occasionally, field trips will include a visit to a Summer Food Service Program (SFSP) site. You
cannot claim reimbursement for meals that are served at SFSP sites.
4200
Two-Tiered Reimbursement Provisions
Reimbursement for meals is based on a two-tiered rate structure. Providers receive
reimbursement for meals served to enrolled children based on economic need as determined by
one of the following:



The location of the provider.
The income of the provider.
The household income of each participating child.
You must determine whether your providers can claim Tier I or Tier II reimbursement. You will
use elementary school data (provided by FND), census data, or household income information
given to you by the provider, to make Tier I determinations. A provider that does not qualify as
Tier I will receive Tier II reimbursement.
A provider may qualify as either Tier I or Tier II for any given month. However, no provider
may be claimed in both categories for an individual month. A Tier I determination based on
elementary school data is valid for five years from the effective date of the determination, e.g. if,
on July 1, 2009, you determine that a provider qualifies as Tier I, the determination is valid
through June 30, 2014. When census data is used, the determination is valid until more recent
census data is available. When the provider's household income is used, the Tier I
determination is valid for one year from the effective date of the determination. For example, if
on July 1, 2009, you determine that a provider qualifies as Tier I, the determination is valid
through July 31, 2010.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 31
4210
Tier I and Tier II Providers
4211
Tier I Providers
Providers qualify as Tier I if:


Their homes are located in geographic areas shown to be low-income by elementary school
data or by census data.
They are determined to be low-income based on income information obtained from the
provider.
4212
Tier II Providers
Providers will claim Tier II reimbursement, if they do not qualify as Tier I. Tier II providers are
categorized: Tier II High, Tier II Low, and Tier II Mixed. These categories will be determined
each month and are based on the tier determination of the children enrolled for child care that
month.
4212.1
Tier II High Providers
A provider qualifies as Tier II High if all of their enrolled children have been determined
eligible for Tier I meal reimbursement. If all of a Tier II provider's enrolled children were
certified eligible for Tier I reimbursement during the claim month, the provider will be reported
as a Tier II High on that month's claim for reimbursement.
NOTE: Only those Tier II providers who have chosen to distribute income applications and
whose enrolled children are all certified for Tier I reimbursement by income will be categorized
as Tier II High.
4212.2
Tier II Low Providers
A provider qualifies as Tier II Low if none of their enrolled children are eligible for Tier I meal
reimbursement. If none of a Tier II provider's enrolled children were eligible for Tier I
reimbursement during the claim month, the provider will be reported as a Tier II Low provider
on that month's claim for reimbursement.
NOTE: Tier II providers who have chosen not to distribute income applications and Tier II
providers who have chosen to distribute income applications, but none of their children are
certified eligible for Tier I reimbursement will be categorized as Tier II Low.
32 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4212.3
Tier II Mixed Providers
A provider qualifies as Tier II Mixed if at least one of their enrolled children has been
determined eligible for Tier I meal reimbursement and at least one other enrolled child is
ineligible for Tier I meal reimbursement. If a Tier II provider's enrolled children are a mixture of
Tier I and Tier II children, the provider will be reported as Tier II Mixed on the month's claim
for reimbursement.
NOTE: Only those Tier II providers who have chosen to distribute income applications and
whose enrollment consists of children who are certified eligible for Tier I reimbursement and
children who are certified eligible for Tier II reimbursement will fall into this category.
4220
Area-Eligible Tier I Providers
A provider who is eligible for Tier I reimbursement based on elementary school or census data,
i.e. an area-eligible provider, will receive Tier I reimbursement for all nonresident enrolled
children. The provider will not complete an income application for the nonresident children.
Area eligibility is based on the geographical location of a provider. Therefore, if an area-eligible
provider changes location, you must reassess the provider's eligibility.
4221
Area-Eligible Tier I Providers Based on Elementary School Data
The yearly list of schools that you receive from FND contains all schools that have grades that
could be considered "elementary school grades," but each individual Independent School
District (ISD) decides the designation of a particular school as an "elementary school" and the
grade levels that are included in each. Therefore, grade levels in elementary schools will vary
from school district to school district.
EXAMPLE: One ISD may designate pre-kindergarten (PK) through 6th grade as their
elementary school grades and another ISD may designate Early Education (EE) through 5th
grade as their elementary school grades.
Some providers are located in an attendance area that is served by a single elementary school
while other providers are located in an attendance area that is served by "sister schools." Sister
schools are two or more schools with elementary grades that serve the same attendance area,
but some of the elementary grades are in one of the sister schools and the other elementary
grades are in the other sister school or schools.
EXAMPLE: Two sister schools serve the same attendance area; one contains grades EE-3 and
the other contains grades 4-5.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 33
4221.1
Attendance Area Information Requirements
You must determine the school or sister schools in whose attendance area the provider is
located. You must verify, by written or verbal verification from the ISD, that the provider is
located in the attendance area. You must also verify, by written or verbal verification from the
ISD, that the school or sister schools in whose attendance area the provider is located draw their
attendance from a specific neighborhood. You may not use schools or sister schools that have
court-ordered busing or schools that are magnet schools, charter schools, or alternate schools
that serve the entire ISD. Written documentation may include a map with school boundaries, a
letter confirming school boundaries, etc. Verbal documentation may include a telephone
conversation with an ISD official knowledgeable in school boundaries.
EXCEPTION: Some rural areas or small towns will have a single elementary school or sister
schools that serve the entire town or ISD. In this case, it is acceptable for the "specific
neighborhood" from which the school or sister schools draw attendance to be the entire town or
ISD.
You must verify, by written or verbal verification from the ISD, that the school or sister schools
in whose attendance area the provider is located do not target their attendance to children with
special needs. Schools such as alternate schools and schools that primarily or only serve
children with disabilities, etc., may not be used.
4221.2
School List Requirements
You must use the list of schools that you received from FND to make tier determinations. You
may not obtain or use more recent school data from schools. FND will send periodic updates or
changes to the school list to you at least once per year.
The school or sister schools in whose attendance area the provider is located must be on the
current list of schools at the time you make the tier determination.
4221.3
Sufficient Elementary Grade Level Information
You must ensure that the school or sister schools in whose attendance area the provider is
located contain sufficient elementary grade levels. The requirements for ensuring a school or
sister schools contain sufficient elementary grade levels are outlined below.
34 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
If a provider lives in an attendance area served by a single school, the school in whose
attendance area the provider is located is considered to have sufficient elementary grade levels
when one of the following conditions is met:



The list of schools shows the school has all grade levels.
The list of schools shows the school has grade levels that begin with EE, PK, K, or 1st grade
and go through at least the 4th grade.
The list of schools shows the school does not have grade levels that begin with EE, PK, K, or
1st grade and go through at least the 4th grade, but you obtain written or verbal verification
from the ISD that the school contains all of the grades that the ISD considers elementary
grades.
EXAMPLE: The list of schools shows that the school has grades EE-3. You call the ISD and they
inform you that their ISD considers only grades EE through the 3rd grade to be elementary
grades. Although the school does not contain grade levels through at least the fourth grade, it
does contain all the grades that the ISD considers elementary grades; therefore, the school is
considered to contain sufficient elementary grade levels.
If a provider lives in an attendance area served by sister schools, the sister schools in whose
attendance area the provider is located are considered to have sufficient elementary grade levels
when one of the following conditions is met:

The list of schools shows that the combined grade levels for the sister schools contain all
grade levels.
EXAMPLE: The list of schools shows that one sister school has grades EE-3 and another has
grades 4-12.

The list of schools shows that the sister schools have combined grade levels that begin with
EE, PK, K or 1st grade and go through at least the 4th grade.
EXAMPLE: The list of schools shows that one of the sister schools has grades K-2 and the
other sister school has grades 3-4.

The list of schools shows that the sister schools do not have combined grade levels that
begin with EE, PK, K or 1st grade and go through at least the 4th grade, but you obtain
written or verbal verification from the ISD that the sister schools contain all of the grades
that the ISD considers elementary grades.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 35
EXAMPLE: The list of schools shows that one of the sister schools has grades EE-1 and the
other sister school has grades 2-3. You call the ISD and they inform you that their ISD
considers only grades EE through the 3rd grade to be elementary grades. Although the
sister school's combined grade levels do not go through at least the 4th grade, their
combined grades do include all of the grades that the ISD considers to be elementary
grades; therefore, the sister schools are considered to contain sufficient elementary grade
levels.
4221.4
Percentage of Income-Eligible Children
The percentage of income-eligible children for the school (or sister schools) in whose attendance
area the provider is located must be equal to or greater than 50 percent.
When the provider lives in an attendance area served by a single school, and the list of schools
shows that the "% of eligible" children for the school in whose attendance area the provider is
located is at least 50 percent, the school has sufficient income-eligible children.
EXAMPLE: The list of schools shows the schools “% of eligible” children are 51.28 percent.
NOTE: If the "% of eligible" children are less than 50 percent (such as 49.94 percent), you may
not round up and the school data may not be used.
When the provider lives in an attendance area served by sister schools, the percentage of
income-eligible children for all the sister schools must be equal to or greater than 50 percent.
If the list of schools shows that the "% of eligible" children for each of the sister schools in whose
attendance area the provider is located is at least 50 percent, the sister schools have sufficient
income-eligible children.
EXAMPLE: The list of schools shows the "% of eligible" children for one sister school is 66.44
percent, and for the other sister school it is 59.03 percent.
If the list of schools shows that none of the sister schools in whose attendance area the provider
is located have a "% of eligible" children of at least 50 percent, school data may not be used.
EXAMPLE: The list of schools shows the "% of eligible" children for one sister school is 49.88
percent, and for the other sister school is 22.63 percent.
If the list of schools shows that the "% of eligible" children in one of the sister schools in whose
attendance area the provider is located is at least 50 percent, but the "% of eligible" children in
36 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
the other sister school is not at least 50 percent, you will need to calculate the "% of eligible"
children for the sister schools.
Use the following formula:




Add the number of students attending each of the sister schools to determine the attendance
for the sister schools. (The number of students attending each sister school is shown in the
column titled "Students" on the school list.)
Add the number of eligible students attending each of the sister schools to determine the
number of eligible students for the sister schools. (The number of eligible students attending
each sister school is shown in the column titled "Economically Disadvantaged Children
Number" on the school list.)
Divide the number of eligible students for the sister schools by the attendance for the sister
schools to determine the "% of eligible" children for the sister schools.
If the "% of eligible" children that you calculated for the sister schools is equal to or greater
than 50 percent, the sister schools have sufficient income-eligible children.
EXAMPLE: The school list shows the following information for the sister schools:
Sister school #1:
% of eligible children
58.99%
-
number of students attending
378
-
number of eligible students
223
Sister school #2:
% of eligible children
46.83%
-
number of students attending
442
-
number of eligible students
207
Calculate the "% of eligible" children as follows:
Step 1:
378
attendance for sister school #1
-
+442
attendance for sister school #2
-
820
attendance for the sister schools
Step 2:
223
eligible children for sister school #1
-
+207
eligible children for sister school #2
-
430
eligible children for both sister schools
Step 3:
430 (total eligible children) ÷ 820 (total attendance) = 52.44 percent
-
The "% of eligible" children for the sister schools is 52.44 percent; therefore, the
sister schools have sufficient income-eligible children.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 37

If the "% of eligible" children that you calculated for the sister schools is not at least 50
percent, school data may not be used.
NOTE: If the "% of eligible" children are less than 50 percent (such as 49.94 percent), you may
not round up and the school data may not be used.
4221.5
Documentation
You must retain documentation of all school data used in a tier determination. Documentation
includes, but is not limited to, the list of schools, copies of all written information that you
receive from ISD officials (i.e., maps of school boundaries, letters confirming school boundaries,
etc.), and written documentation of all verbal information you receive from ISD officials.
Documentation of verbal contacts with ISD officials must include:





The name of the school (or sister schools) being used for the tier determination and the ISD
in which the school (or sister schools) is located.
The name of the ISD official who was contacted.
The date the ISD official was contacted.
The phone number of the ISD official who was contacted.
The specific information you were given by the ISD official.
Failure to retain adequate documentation could result in denial of a provider's Tier I eligibility
and additional adverse action against your organization.
4221.6
Prohibitions Against Using School Data
School data may not be used for a Tier I determination if any of the following occurs:





The school (or sister schools) in whose attendance area the provider is located is not on the
current list of eligible schools given to you by FND.
You are unable to obtain written documentation or verbal verification from the ISD that the
provider lives in an eligible school's (or sister schools) attendance area.
The school (or sister schools) in whose attendance area the provider is located does not
draw its attendance from a specific neighborhood (for example, the school has courtordered busing, or is a magnet school, charter school, or alternate school).
The school (or sister schools) in whose attendance area the provider is located targets its
attendance to children with special needs (for example, the school is an alternate school or
serves primarily children with disabilities, etc.).
The school (or sister schools) in whose attendance area the provider is located does not have
sufficient elementary grade levels.
38 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook

The percentage of eligible children for the school (or sister schools) in whose attendance
area the provider is located is not equal to or greater than 50 percent.
A Tier I determination based on Elementary School data is valid for five years from the effective
date of the determination, e.g. if a provider is determined to be Tier I effective December 1,
2007, the determination is valid through November 30, 2012.
4222
Area-Eligible Tier I Providers Based on Census Data
When determining the area eligibility of a provider for Tier I reimbursement, you must first
consult school data. If the data is inadequate, you may consult census data. If you are unable to
use school data, you must justify your use of census data.
When determining the area eligibility of providers by consulting census data, you may use data
that is:


Provided by FND.
Obtained from a source other than FND.
4222.1
Census Block Data Provided by FND
If you use census block data provided by FND, you must maintain the following:




A copy of the information provided by FND which shows the provider is located in an
eligible census block (one in which 50 percent or more of the children are from households
which meet income standards for free or reduced-price meals).
The census block group number in which the provider is located.
Documentation of the date the Tier I determination was made.
Documentation of why you were unable to use school data.
4222.2
Census Block Data Obtained From Another Source
If you use census block data from a source other than FND, you must maintain the following:





The source of the census data that you used.
Documentation which shows the provider is located in an eligible census block (one in
which 50% or more of the children are from households which meet income standards for
free or reduced-price meals).
The census block group number in which the provider is located.
Documentation of the date the Tier I determination was made.
Documentation of why you were unable to use school data.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 39
A Tier I determination based on census data is valid until more recent census data is available.
4223
Resident Children in Area-Eligible Tier I Homes
CACFP regulations require that an area-eligible Tier I provider's resident child, i.e., a provider's
own child, be income-eligible or categorically eligible in order for the provider to claim
reimbursement. We provide a standard application Form H1531, Child Nutrition Program
Application, for area eligible Tier I providers who wish to claim their own resident children. You
must use the standard application form and ensure that each area-eligible Tier I provider
receives and has an opportunity to submit an application for program benefits for resident
children.
An area-eligible Tier I provider can only claim reimbursement for a resident child, including a
foster child, if the provider completes a Form H1531 for the resident child and you determine
that the resident child is income or categorically eligible based on the form.
"Provider's own children" includes all residential children in the household who are part of the
economic unit of the family. A family is defined as a group of related or unrelated individuals
who are not residents of an institution or boarding house, but who are living together as one
economic unit. An economic unit is a group of related or unrelated people who share housing
and/or all significant income and expenses. Children whose parents or guardians have made a
contractual agreement, whether formal or informal, with a provider for residential care, and
whose relationship with the provider is defined primarily by the child care situation, are not
considered the "provider's own."
A foster child is treated the same as any other "provider's own child" for determining eligibility
on the basis of family size and income, except that a foster child is considered to be a family of
one with only those funds going directly to the foster child being considered income. Money the
family receives for providing foster care for the child is not considered income to the foster
child. This is because the foster child remains the legal responsibility of the court or welfare
agency that placed him in foster care.
As with all "provider's own children,"


The foster child must be officially enrolled and participating with the provider in
compliance with state and/or local licensing standards.
At least one nonresidential child, enrolled for and receiving child care from the provider,
must be in attendance and participating in the meal service.
40 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
You must also review the application to ensure that it contains the child's Temporary Assistance
for Needy Families (TANF) or Supplemental Nutrition Assistance Program (SNAP) (Formerly
Food Stamp Program) case number*.
The SNAP case number can be one of the following:
 On the TIERS letter, the Eligibility Determination Group Number (EDG#) – an eight or ninedigit number. The eight-digit number can begin with any number except “0”. The nine-digit
number can begin with any number between “0” and “9”.
 SAVERR case number – a nine-digit number beginning with a “0” or “1”.
 A copy of the SAVERR award letter, Form H1009, is not acceptable documentation for
eligibility for free meals. The household must submit a Form H1531 indicating the SAVERR
case number to be eligible to receive free meals. Form H1009 must be attached to Form
H1531.
The TANF case number is a nine-digit case number beginning with a “0” or “1” or any eight
digit number that does not begin with a “0”.
*Eligibility Benefits Transfer (EBT) or Lone Star Card account numbers are not acceptable SNAP case
numbers on the application. If this occurs, contact the applicant to obtain the valid SNAP or TANF
eligibility number.
If no TANF or SNAP case number is provided, or if an incomplete TANF or SNAP case number
is provided, the application must include:
 Names of all household members.
 Social Security Number of the adult household member who signs the form (or check the “I
do not have a Social Security Number” box, if the adult household member signing the form
has no Social Security Number).
 Current income of each household member, by source of income (including the child
enrolled for child care).
You are not required to verify the income information that an area-eligible provider reports for
a resident child.
When determining eligibility based on a child's receipt of TANF or SNAP, you must determine
eligibility for each child, not the household. Under both TANF and SNAP rules, it is possible for
some, but not all, the children in the household to be eligible for benefits.
Providers are not required to keep records of their operating costs for CACFP activities.
However, if they want to claim reimbursement for meals served to their own children (based on
family size and income standards) they must report the entire amount of CACFP
reimbursement received as income unless they choose to keep records of operating costs to
justify an adjusted income.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 41
You must sign and date Form H1531, acknowledging that you have received and reviewed it.
4223.1
Annual Renewal of Eligibility
A new Form H1531 must be completed for a resident child every 12 months (one year from the
date the determination was made). The provider’s own child cannot be claimed for
reimbursement if Form H1531 is more than one year old.
4223.2
Letter to Provider
We have developed Form H1626, Parent Letter Non-Pricing, and Form H1625-A, Income Standards
for Determining Child Nutrition Program Eligibility, to accompany Form H1531. Form H1625-A
contains only the family size and income standards for reduced-price meals.
The parent letter is in Spanish and English. It advises providers that, if their household income
is at or below the levels indicated on Form H1625-A, meals served to their own children may be
eligible for CACFP reimbursement.
4223.3
Determining Eligibility
Providers will not be reimbursed for meals served to their own children if they:


Do not return a completed Form H1531.
Fail to qualify for reduced-price meals.
You must use the information on the application to determine eligibility by:




Determining the size of the family.
Determining the total income of the family (or receipt of TANF or SNAP) (Formerly Food
Stamp Program)
Finding the family size and income on Form H4504, Standards for Determining Free and
Reduced-price Eligibility.
Determining if the child’s family size and income is within the income limits for free or
reduced-price meals.
Family size and income standards change every July 1. We will send you a revised Form H4504
each year showing the current standards. You must file the revised form and keep the old ones
in a separate file.
42 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
When determining eligibility for free and reduced-price meals, monthly income must be
multiplied by 12 to obtain annual income and bi-monthly income must be multiplied by 24 to
obtain annual income. Weekly income must be multiplied by 52 to obtain annual income and biweekly income must be multiplied by 26 to obtain annual income. If you multiply the income
by any other numbers, the annual income total could result in incorrectly categorizing the child.
This incorrect categorization could result in an overpayment to your providers.
The effective date of a resident child's Tier I eligibility may be made retroactive to the first of the
month in which the resident child's Tier I eligibility determination is made.
4223.4
Automatic Eligibility for Head Start/Early Head Start/Even Start
Participants
A child is automatically eligible for free meals if an area-eligible Tier I provider's resident child
is enrolled as a participant in the:



Head Start Program.
Early Head Start Program.
Even Start Family Literacy Program and the child has not yet entered kindergarten.
Therefore, the provider will receive Tier I reimbursement for meals served to the child.
To document that an area-eligible Tier I provider’s resident child is categorically eligible based
on Head Start, Early Head Start, or Even Start participation, the provider must furnish you with
a letter from the:



Head Start Program which states that the child is currently enrolled as a participant in the
Head Start Program;
Early Head Start Program which states that the child is currently enrolled as a participant in
the Early Head Start Program;
Even Start Program which states that the child is currently enrolled as a participant in the
Even Start Program and that the child has not yet entered kindergarten.
The letter must be signed and dated by the local Head Start/Early Head Start/Even Start project
director or an employee who is authorized to make the certification on behalf of Head
Start/Early Head Start/Even Start. You may assume that the person signing the letter on behalf
of Head Start/Early Head Start/Even Start is authorized by Head Start/Early Head Start/Even
Start to provide the certification. A copy of the Head Start/Early Head Start/Even Start
certification letter is sufficient documentation that the provider's child is eligible to be claimed
in the CACFP. If the provider furnishes you with the Head Start/Early Head Start/Even Start
letter, you do not need to obtain a Form H1531 for the provider's child.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 43
You must retain a copy of the Head Start/Early Head Start/Even Start certification letter as part
of your CACFP records and make it available for inspection during a CACFP review, audit, or
other official visit.
A resident child's categorical eligibility based on participation in Head Start/Early Head
Start/Even Start must be updated annually. Therefore, every 12 months the provider must again
furnish you with a copy of a letter from the:



Head Start certifying that the child is currently enrolled as a participant of Head Start.
Early Head Start certifying that the child is currently enrolled as a participant of Early Head
Start.
Even Start certifying that the child is currently enrolled as a participant in Even Start and
has not yet entered kindergarten.
If the provider does not submit a copy of a current Head Start/Early Head Start/Even Start
certification letter to you to update the child's categorical eligibility, the provider must complete
a Form H1531 in order for you to determine if the resident child is eligible to be claimed in the
CACFP.
If at any time during the year the provider's child continues to participate in Even Start but
enters kindergarten, the provider must complete a Form H1531 in order for you to determine if
the child is eligible to be claimed in the CACFP.
4223.5
Confidentiality
You must protect the confidentiality of any information that has been provided on an
application for eligibility. You may only use the information to determine eligibility for
program benefits and verify income. Do not release any information that contains a program
participant’s name or other individual information.
School food authorities (SFAs) operating the National School Lunch Program/School Breakfast
Program (NSLP/SBP) and Special Milk Program (SMP) may disclose children’s names and all
eligibility information, including eligibility status (whether they are eligible for free or reduced
price meals or free milk), to persons directly connected with the administration of other
Federal child nutrition programs authorized under the National School Lunch Act (NSLA) and
the Child Nutrition Act of 1966, which includes the Child and Adult Care Food Program
(CACFP).
44 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Because SFAs are not required to give prior notice or receive consent from the household before
sharing this information, the information obtained from an SFA is subject to the same
confidentiality and disclosure requirements as information obtained directly from a household
on an application for eligibility.
The term “persons directly connected” with the administration of another child nutrition
program can include sponsors and facilities of the CACFP. Not all employees of a sponsor are
entitled access to eligibility information. “Persons directly connected” with the administration
of the CACFP must legitimately “need to know” the eligibility information in order to carry out
their program responsibilities.
There is specific information that sponsors must obtain and use as documentation to determine
that a child is eligible for Tier I meals. The sponsor would need to obtain information from the
SFA, or provide information to the SFA, to:


Document that the eligibility information applies to the specific child in question; and
Verify the source/validity of the information. For example, the name of the SFA and the
person providing the information, the date the information was obtained and the person at
the sponsoring organization who obtained the information.
The sponsor and SFA should share information that would minimally identify the child,
however, it is understood that in some cases, it may be necessary to share more than the child’s
name to ensure that the eligibility determination applies to a specific child.
Example: A sponsor attempting to document the income eligibility of a child named “John
Smith” may need to provide the child’s date of birth to the SFA so that the SFA can verify that
the information being provided applies to the “John Smith” in question.
Obtaining eligibility information from the SFA would only apply if the provider selects the first
or second option under “Provider’s Choice for Distributing Income Applications and Receiving
Reimbursements” under Section III, Eligibility and Participation Information on Form H1537,
Application Between Sponsoring Organizations and Day Care Homes. By selecting the third option,
the provider agrees not to distribute income applications and therefore, collecting eligibility
information from the SFA would not be necessary.
Eligibility information received from the SFA should be documented in writing by the SFA;
however, verbal documentation is sufficient to verify the information. Documentation of verbal
information must be written and maintained with Form H1531, Child Nutrition Program
Application or H1531-H, Child Nutrition Program Application – Nonresident Children in Tier II
Homes as supporting documentation for the determination of eligibility for Tier I meals.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 45
This is similar to allowing sponsors to adequately document a verbal confirmation that a
provider is located in a particular area where 50% or more of a school’s enrolled children are
eligible for Tier I meals as described in Items 4221, Area-Eligible Tier I Providers Based on
Elementary School Data and 4221.1, Attendance Area Information Requirements in the DCH
Handbook.
TDA has developed a template form, located in Section 11000, Resources, titled, Shared Income
Eligibility Documentation for day care homes to use to document eligibility information received
from the SFA. Sponsors can either provide the template to the SFA for completion or may
complete the template based on verbal information received from the SFA. Sponsors may use
the attached template or develop a form of their own to document the eligibility information. If
sponsors choose to develop their own form, they must ensure it captures all the required
elements to document eligibility.
The following are the required elements:







Name of SFA;
Telephone number of SFA;
Date information obtained from SFA;
Name of SFA representative providing the eligibility information;
Name of student;
Student’s eligibility category; and
Printed name, title, signature and date of signature of CACFP representative.
Eligibility information from the SFA should not be used in place of the completion of Form
H1531 or H1531-H.
Parents/guardians of children who are eligible for free and reduced price meals due to
information received from the SFA have two options when completing Forms H1531 or H1531H:


Complete Form H1531 or H1531-H in its entirety; or
Sign and date Form H1531 or H1531-H with the written eligibility information received
from the SFA attached to the Form H1531 or H1531-H (i.e., stapled). The parent must be able
to view the eligibility information provided by the SFA when signing and dating Form
H1531 or H1531-H.
NOTE: The disclosure of information by the SFA is the SFA’s option and not required by
regulations.
46 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
The privacy and confidentiality of personal data must be protected and the sponsor must take
the decision to obtain eligibility information seriously. It must be made clear that the person
receiving eligibility information cannot share the information with any other entity*. The
sponsor must also ensure that the information is securely stored and the number of individuals
that have access to it is limited.
The sponsor must maintain control over the use of all eligibility information and guard against
improper disclosure.
* Refer to CACFP-DCH Handbook Item 4420, Availability of Records, for additional
information.
4230
Income or Categorical Eligible Tier I Providers
Providers who wish to demonstrate income or categorical eligibility for Tier I reimbursement
must complete Form H1531-P, Day Care Home Provider Application for Tier I Eligibility. Income
information reported by the provider on Form H1531-P must be compared to the current
income eligibility guidelines (Form H4504) to determine if the provider is income-eligible.
You must verify the income information or categorical eligibility information reported on Form
H1531-P prior to determining a provider eligible for Tier I reimbursement. You may verify the
income/categorical eligibility information reported on a provider's Form H1531-P by comparing
it to written documents, e.g. pay stubs, letters from employers, IRS tax information such as
Form 1040, award letters, or through collateral contacts. You must keep a copy of the written
documentation that you use to verify a provider's income/categorical eligibility. You must keep
a written record of collateral contacts you make to verify a provider's income eligibility,
including the name and telephone number of the person who verified the provider's income
and the date you spoke to that person.
Providers may provide documentation of participation in Supplemental Nutrition Assistance
Program (SNAP) (Formerly Food Stamp Program) or proof of receiving Temporary Assistance
for Needy Families (TANF) to be categorically eligible; or they may provide documentation that
their child is currently enrolled as a participant in the Head Start Program or Early Head Start
Program. A provider may not be considered categorically eligible for Tier I based on the
provider's resident child participation in the Even Start Program.
A Tier I determination based on the provider's household income or categorical eligibility is
valid for one year from the month of the determination, e.g., if a provider is determined to be
Tier I effective May 1, 2009, the determination is valid through May 31, 2009.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 47
The following types of “income” must not be included when determining a household’s total
income for Tier I eligibility:








Earned Income Tax Credit refunds.
Medicare prescription drug card subsidiary.
Family Subsistence Supplemental Allowance (FSSA).
Agent Orange Compensation Exclusion Act.
Veteran’s Educational Assistance Act of 1964 (GI Bill).
Housing allowances for households living on military bases participating in the Military
Housing Privatization Initiative. A list of bases participating in this initiative can be
accessed at http://www.acq.osd.mil/housing.
Income to a deployed military household member that is not made available to the
household. You must include the deployed household member as part of the household
count. If both military parents/guardians are deployed, count their children as part of the
household with whom they are temporarily residing. Also include the deployed parents or
guardians in the host household’s count; however, only include the funds provided to the
host household by the deployed military parents/guardians when totaling the host
household’s income.
Rebate checks as a result of the economic stimulus act.
4231
Provider Income/Categorical Eligibility Data Requirements
To determine income/categorical eligibility you must have:


A Form H1531-P, completed by the provider.
One of the following which verifies the provider's income:
o Copies of written information you obtained to verify the provider's income/categorical
eligibility such as pay stubs, letters from employers, IRS Form 1040, SNAP or TANF
award letters, documentation which verifies current participation in a program that
establishes categorical eligibility, etc.
o Documentation which verifies that you obtained verbal confirmation of the provider's
income or participation in a program that establishes categorical eligibility from
someone outside the provider's household, such as employers, social service agencies,
migrant agencies, etc.
The income of a provider who is associated with a corporation will differ from other providers
in that the provider will likely have wages from the corporation rather than self employment
income. In addition, if the provider is a shareholder of the corporation, the provider may also
receive dividends from the corporation. The provider must include both the wages and
dividends received from the corporation as household income.
48 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
The following types of “income” should not be included when determining a household’s total
income for Tier I eligibility:








Earned Income Tax Credit refunds.
Medicare prescription drug card subsidiary.
Family Subsistence Supplemental Allowance (FSSA).
Agent Orange Compensation Exclusion Act.
Veteran’s Educational Assistance Act of 1964 (GI Bill).
Housing allowances for households living on military bases participating in the Military
Housing Privatization Initiative. A list of bases participating in this initiative can be
accessed at http://www.acq.osd.mil/housing.
Income to a deployed military household member that is not made available to the
household. You must include the deployed household member as part of the household
count. If both military parents/guardians are deployed, count their children as part of the
household with whom they are temporarily residing. Also include the deployed parents or
guardians in the host household’s count; however, only include the funds provided to the
host household by the deployed military parents/guardians when totaling the host
household’s income.
Rebate checks as a result of the economic stimulus act.
4232
Resident Children in Income/Categorically Eligible Tier I Homes
A provider who completes a Form H1531-P and is determined to be income or categorically
eligible for Tier I reimbursement is eligible to receive Tier I reimbursement for all resident and
nonresident children (including foster children) enrolled for child care. The provider will not
complete separate Forms H1531/H1531-H for any of the children in care.
Although a provider may receive Tier I reimbursement for meals served to a foster child, when
completing a Form H1531-P for the provider's household, the provider should not list a foster
child as a household member and should not include income they receive on behalf of foster
children on Form H1531-P.
4240
Tier II Providers
If a provider does not qualify as Tier I, the provider will receive Tier II reimbursement.
4241
Resident Children in Tier II Homes
Meals that are served to resident children (excluding resident foster children) in Tier II homes
cannot be claimed for reimbursement.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 49
4242
Resident Foster Children in Tier II Homes
A Tier II provider may claim reimbursement for a resident foster child if one of the following
conditions is met:


The provider completes a Form H1531, Child Nutrition Program Application, for the foster
child and the foster child is determined to be income-eligible or categorically eligible.
The provider provides documentation that the foster child is enrolled as an income-eligible
participant in the Head Start, Early Head Start or Even Start Program.
The following requirements must also be met in order for a Tier II provider to claim
reimbursement for meals served to a resident foster child:


The foster child must be officially enrolled and participating with the provider.
At least one nonresidential child, enrolled for and receiving child care in the provider's
home must be in attendance and participating in the meal service.
If the above requirements are met, the foster child is considered a Tier I child and the Tier II
provider will receive Tier I reimbursement for meals served to the foster child.
Form H1660, List of Eligible Federal/State Funded Assistance Programs, which is used to establish
categorical eligibility for the households of nonresident children in Tier II homes, may not be
used to establish categorical eligibility for resident foster children in Tier II homes. SNAP
(Formerly Food Stamp Program), TANF and Head Start/Early Head Start/Even Start are the
only programs, if applicable, that may be used to establish categorical eligibility of resident
foster children in Tier II homes.
The effective date of a resident foster child's Tier I eligibility may be made retroactive to the first
of the month in which the resident foster child's Tier I eligibility determination is made.
EXAMPLE: A resident foster child was in care with a Tier II provider on May 1. The provider
completes a Form H1531 for the resident foster child and submits the form to the sponsor on
May 21. On May 26 the sponsor determines that the foster child meets eligibility requirements
for free and reduced-price meals. The effective date of the resident foster child's Tier I eligibility
would be made retroactive to May 1.
Resident foster children who meet these requirements are the only resident children for whom a
Tier II provider may claim meal reimbursement. A Tier II provider may not claim
reimbursement for meals served to resident foster children who do not meet these
requirements.
50 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
CACFP regulations stipulate that the only resident child in a Tier II home who may participate
in the CACFP is a resident foster child who is income or categorically eligible. If a Tier II
provider's resident foster child is enrolled as a participant in the:



Head Start Program.
Early Head Start Program.
Even Start Family Literacy program and the child has not yet entered kindergarten,
the foster child is automatically (categorically) eligible for free meals. Therefore, the resident
foster child is eligible to be claimed in the CACFP and the provider will receive Tier I
reimbursement for meals served to the foster child.
To document that a Tier II provider’s resident foster child is categorically eligible based on
Head Start, Early Head Start, or Even Start participation, the provider must furnish you with a
letter from the:



Head Start Program, which states that the child is currently enrolled as a participant in the
Head Start Program.
Early Head Start Program, which states that the child is currently enrolled as a participant in
the Early Head Start Program.
Even Start Program, which states that the child is currently enrolled as a participant in the
Even Start Program and that the Child has not yet entered kindergarten.
The letter must be signed by the local Head Start, Early Head Start or Even Start project director
or an employee who is authorized to make the certification on behalf of Head Start, Early Head
Start or Even Start and it must be dated. You may assume that the person signing the letter on
behalf of Head Start, Early Head Start or Even Start is authorized to provide the certification.
A copy of the Head Start, Early Head Start or Even Start certification letter is sufficient
documentation that the provider's resident foster child is eligible to participate in the CACFP.
If the provider furnishes you with the Head Start, Early Head Start or Even Start letter, you do
not need to obtain a Form H1531, Child Nutrition Program Application, for the provider's resident
foster child.
You must retain a copy of the Head Start, Early Head Start or Even Start certification letter as
part of your CACFP records and make it available for inspection during a CACFP review, audit,
or other official visit.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 51
A resident foster child's categorical eligibility based on participation in Head Start, Early Head
Start or Even Start must be updated annually. Therefore, every 12 months the provider must
again furnish you with a copy of a letter from:



Head Start certifying that the foster child is currently enrolled as a participant of Head Start.
Early Head Start certifying that the foster child is currently enrolled as a participant of Early
Head Start.
Even Start certifying that the foster child is currently enrolled as a participant in Even Start
and has not yet entered kindergarten.
If the provider does not furnish you with a copy of a current Head Start, Early Head Start or
Even Start certification letter to update the foster child's categorical eligibility, the provider
must complete a Form H1531 in order for you to determine if the foster child is eligible to be
claimed in the CACFP.
If at any time during the year the provider's resident foster child continues to participate in
Even Start but enters kindergarten, the provider must complete a Form H1531 in order for you
to determine if the foster child is eligible to be claimed in the CACFP.
4243
Nonresident Children in Tier II Homes
Tier II providers must be allowed to choose whether or not they want you to identify incomeeligible nonresident children.
Form H1537, Application Between Sponsoring Organization and Day Care Home, is used to
determine a provider's choice for distributing income applications to nonresident children in
Tier II homes. The Tier II provider may choose to have:



Income applications given to households of all enrolled children, and agree to receive Tier I
meal payments for income-eligible or categorically eligible children and Tier II meal
payments for all other enrolled children.
Income applications given only to households of enrolled children who the sponsor or
provider have identified as categorically eligible, because of the child's or their
parent's/guardian's participation in an eligible Federal/State Funded Assistance program
(see Form H1660), and agree to receive Tier I meal payments for categorically eligible
children and Tier II meal payments for all other enrolled children.
No income applications given to households of enrolled children, and agree to receive Tier
II meal payments for all enrolled children.
The provider may change their choice for distributing income applications at any time during
the program year.
52 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
If a Tier II provider chooses to have income applications distributed to the households of
children in care, the households must be given:




Form H1531-H, Child Nutrition Program Application — Nonresident Children in Tier II Homes
Form H1625-A, Income Standards for Determining Child Nutrition Program Eligibility
Form H1626, Parent Letter Nonpricing
Form H1660, List of Eligible Federal/State Funded Programs
You or the provider may distribute these forms, but the households must be instructed to return
Form H1531-H to you, not the provider, and you must make the determination of whether or
not the child is eligible for Tier I reimbursement.
The determination of whether or not the child is eligible for Tier I reimbursement may be
retroactive to the first day of the month in which the eligibility determination is made by the
sponsor. For example, if the sponsor received the Form H1531-H on September 5th and the
sponsor makes the Tier I determination on September 28, the provider will receive Tier I rates
for the child's meals effective September 1.
If the sponsor received the Form H1531-H on September 5, but the sponsor does not make the
Tier I determination until October 3, the provider would receive Tier II rates for the child's
meals in September and the provider would receive Tier I rates for the child's meals effective
October 1.
Form H1660 can only be used for households of nonresident children enrolled in Tier II homes.
In order to demonstrate categorical eligibility, households of nonresident children in Tier II
homes are required to provide the name and case number of the eligible program in which the
child or parent/guardian participates. If the program does not issue a case number, it will be
sufficient for the household to provide the name of the eligible program on Form H1531-H and
indicate on the form that the program does not have a case number.
When a household of a nonresident child in a Tier II home is completing a Form H1531-H, the
following information must be completed in Question #2 on the form to document participation
in one of the eligible programs listed on Form H1660. If this information is not provided, the
child may not be approved as categorically eligible for Tier I rates.

If the child or their parent/guardian participates in SNAP (Formerly Food Stamp Program)
or TANF, the SNAP or TANF case number must be provided because these two programs
do issue case numbers.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 53

If the child or their parent/guardian participates in one of the eligible programs listed on
Form H1660 other than SNAP, TANF, or Head Start/Early Head Start/Even Start, the name
of the eligible program must be provided. The applicant must also enter the case number
issued by the program or enter "none", or "no case number" in the space for the program
case number, to indicate that the program does not issue a case number.
The information that households provide on Form H1531-H is confidential and may not be
shared with the provider. You may tell the provider how many of the children in care are Tier I
and Tier II, but you must not tell the provider which children are Tier I and Tier II. In addition,
you must not tell the provider which households did or did not return Form H1531-H.
Any Form H1531-H which may be used in an appeal hearing must de-identify (black out)
information that would identify which children are income eligible/categorically eligible for
Tier I and which children are not. A nonresident child's eligibility must be updated annually.
Therefore, every twelve (12) months a Form H1531-H must be obtained and reassessed.
If a nonresident child in a Tier II home is enrolled as a participant in the Head Start Program,
Early Head Start Program or the Even Start Family Literacy Program and the child has not yet
entered kindergarten, then the child is categorically eligible, and the provider will receive Tier I
reimbursement for meals served to the child.
To document that a nonresident child in a Tier II home is categorically eligible based on Head
Start, Early Head Start, or Even Start participation, the parent/guardian of the child must
furnish you with a letter from the:



Head Start Program, which states that the child is currently enrolled as a participant in the
Head Start Program.
Early Head Start Program, which states that the child is currently enrolled as a participant in
the Early Head Start Program.
Even Start Program, which states that the child is currently enrolled as a participant in the
Even Start Program and that the child has not yet entered kindergarten.
The letter must be signed by the local Head Start, Early Head Start or Even Start project director
or an employee who is authorized to make the certification on behalf of Head Start, Early Head
Start or Even Start and it must be dated. You may assume that the person signing the letter on
behalf of Head Start, Early Head Start or Even Start is authorized to provide the certification. A
copy of the Head Start, Early Head Start or Even Start certification letter is sufficient
documentation that the child is categorically eligible. If the parent/guardian furnishes you with
the Head Start, Early Head Start or Even Start letter, you do not need to obtain a Form H1531-H,
Child Nutrition Program Application - Nonresident Children in Tier II Homes, for the child.
54 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
You must retain a copy of the Head Start, Early Head Start or Even Start certification letter as
part of your CACFP records and make it available for inspection during a CACFP review, audit,
or other official visit.
A nonresident child's categorical eligibility based on participation in Head Start, Early Head
Start or Even Start must be updated annually. Therefore, every 12 months the provider must
furnish you with a copy of a letter from:



Head Start Program, which states that the child is currently enrolled as a participant in the
Head Start Program.
Early Head Start Program, which states that the child is currently enrolled as a participant in
the Early Head Start Program.
Even Start Program, which states that the child is currently enrolled as a participant in the
Even Start Program and that the child has not yet entered kindergarten.
If the parent/guardian does not furnish you with a copy of a current Head Start, Early Head
Start or Even Start certification letter to update the child's categorical eligibility, the
parent/guardian may complete a Form H1531-H for the child so that you can make an eligibility
determination.
If at any time during the year the nonresident child continues to participate in Even Start but
enters kindergarten, the parent/guardian may complete a Form H1531-H for the child so that
you can make an eligibility determination.
4250
Tier I/Tier II Determinations
4251
Documentation of Providers’ Tier Determination
You must maintain documentation that supports a provider’s Tier I determination. Form
H1658, Documentation of Provider Tier Determination, is used to document Tier determinations
made on each provider.
When approving a new provider as Tier I, you must submit:




An approvable Form H1542, Agreement Between Sponsor and Day Care Home Provider.
An approvable Form H1537, Application Between Sponsoring Organization and Day Care Home.
A copy of the provider’s license/registration.
A completed and signed Form H1658.
The above provider “application” documents must be submitted by the 25th of the month in
which you want the provider’s Tier I determination to be effective.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 55
4252
Deadline for Submittal of Form H1658
On or before the 25th of the month in which a new provider is added or a change in a provider's
determination is effective, you must submit Form H1658. If a completed Form H1658 is not
received by the 25th of the month, the provider will be approved as Tier II, unless you provide
documentation showing you mailed the approvable form on or before the 21st of the month.
A "change to a provider's tier status" includes when a provider changes from Tier I to Tier II, or
Tier II to Tier I, and the following:



The basis, e.g. elementary school data, census data, or income/eligibility data, for a
provider's Tier I determination changes.
The effective date of the provider's tier determination changes.
The expiration of the provider's Tier I determination.
EXAMPLES: (1) You had previously determined a provider was Tier I based on income
information and had submitted a Form H1658 to FND. When you received the updated yearly
list of elementary schools, you determined the provider was now eligible for Tier I based on
elementary school data. You would submit a new Form H1658 for the provider indicating the
provider was eligible for Tier I based on elementary school data, and including the new date of
the tier determination. Form H1658 is due to FND by the 25th of the month in which you want
the Tier determination to be effective, in order to be effective that month.
(2) You had previously determined that a provider was eligible for Tier I based on income, on
May 1, 2008, and had submitted a Form H1658 to FND. Since Tier I determinations that are
based on income must be reassessed every 12 months, you make a reassessment on the
provider. She continues to be Tier I based on income, but the new date of her tier determination
is May 1, 2009. You must submit a new Form H1658 by May 25, 2009, indicating she is Tier I
based on income in order for the Tier I to be effective May 1, 2009.
(3) You had previously determined that a provider was eligible for Tier I based on elementary
school data, on June 1, 2005, and had submitted a Form H1658 to FND. Since Tier I
determinations based on elementary school data must be reassessed every five years, a
reassessment on this provider must be done and submitted to FND by June 25, 2010, showing a
new Tier determination date.
4253
Notification of Tier I/Tier II Determinations
You are required to use Form H1659, Notice to Providers of Tier Determination, to notify providers
of their tier status. You may reproduce this form on your organization's official letterhead. You
may not make any changes to the text or format.
56 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
A determination that a provider is Tier II is an adverse action that the provider may appeal. You
must send all notices of adverse action return receipt requested. However, we believe the cost of
notifying providers of Tier II determinations by return receipt requested may not be justified in
relation to the protection it gives providers. Therefore, if you wish to use an alternate method to
notify providers of Tier II determinations other than sending the notices return receipt
requested, you may submit your request for an alternate method of notifying providers of Tier
II determinations to TDA for approval.
NOTE: If you currently use an alternate method to notify providers of meal disallowances that
has been approved by FND, you may also use the same alternate method to notify providers of
Tier II determinations, without submitting another request for approval to FND.
4260
Claims for Reimbursement
4261
Reimbursement Based on Tier Determination
Tier I reimbursement rates are higher than Tier II reimbursement rates. All meals that are
served to enrolled children by a Tier I provider will be reimbursed at Tier I rates.
EXCEPTION: Area-eligible Tier I providers may receive reimbursement for meals served to
resident/foster children only if they are income or categorically eligible.
Tier II providers must be allowed to choose whether they want you to identify income-eligible
children. If a provider requests that you identify income-eligible children, you must distribute
and collect Form H1531-H, Child Nutrition Program Application - Nonresident Children in Tier II
Homes, for enrolled children and determine whether the children are income-eligible. The
provider would receive Tier I reimbursement rates for the meals that are served to incomeeligible children and Tier II reimbursement rates for the meals served to children who are not
income-eligible. You must protect the confidentiality of children's income information.
You may tell a provider the number of Tier I and Tier II children who are enrolled, but you
must not identify the children on an individual basis as Tier I or Tier II.
If a Tier II provider does not want you to identify income-eligible children, the provider will
receive Tier II reimbursement rates for all meals served to enrolled children. Providers cannot
charge children separately for their meals.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 57
4262
Meal Counting, Reporting, and Reimbursement
You will have three options for reimbursing your providers. You may reimburse providers
based on:



Actual meal counts.
Claiming percentages.
Blended rates.
“Actual meal counts” reimbursement is based on the number of meals served to income-eligible
children and the number of meals served to children who are not income eligible.
"Claiming percentages" reimbursement is based on the percentage of income-eligible children
and the percentage of children who are not income-eligible. The first month of a Tier II
provider's participation in the CACFP would be the month of enrollment/attendance data
collection.
The claiming percentage would be applied to meals served during that first month and for the
next five months thereafter. You must recalculate the percentages of children who are incomeeligible and those who are not income-eligible at least once every six months. You may
recalculate the percentages more frequently, but recalculations must be done with the same
frequency for every provider whom you sponsor. Additionally, you must have a consistent
policy for making more frequent recalculations, and the policy must account equally for
changes that increase or decrease a provider's reimbursement.
"Blended rates" reimbursement is based on the percentage of income-eligible children and the
percentage of children who are not income-eligible. A "blended" rate of reimbursement is
calculated for each meal type.
The first month of the Tier II provider's participation in the CACFP would be the month of
enrollment/ attendance data collection, and the resulting blended rate would be applied to
meals served during that first month and for the next five months thereafter. You must
recalculate the percentages of children who are income-eligible and those who are not incomeeligible at least once every six months.
You may recalculate the rate more frequently, but recalculations must be done with the same
frequency for every provider whom you sponsor. Additionally, you must have a consistent
policy for making more frequent recalculations, and the policy must account equally for
changes that increase or decrease a provider's reimbursement.
58 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
NOTE: If you use claiming percentages or blended rates when reimbursing providers and the
reimbursement that you receive from FND exceeds the amount that you would disburse to
providers, you should retain the excess funds for use when reimbursement does not meet the
necessary disbursal.
If you use claiming percentages or blended rates to reimburse your providers, you must
calculate these options based on either attendance or enrollment. You can only use one method,
attendance or enrollment, during a specific program year.
4263
Claims for Meal Reimbursement
The meals served by providers will be reported in three categories on Form H1532, Claim for
Reimbursement. The three categories that you will use for reporting meals on a claim will be:



Tier I Meals Served in Tier I Homes, i.e., all meals served by Tier I providers.
Tier I Meals Served in Tier II Homes, i.e., meals served to Tier I children by Tier II providers.
Tier II Meals Served, i.e., meals served to Tier II children by Tier II providers.
The meal reimbursement that you will receive will be determined by multiplying the number of
Tier I meals by the Tier I reimbursement rates established for each meal type and by
multiplying the number of Tier II meals by the Tier II reimbursement rates established for each
meal type.
NOTE: Reference Item 4360, Filing Claims, for information on claim submittal.
4270
Documentation
You will be required to submit information related to the number of Tier I and II providers and
the number of children enrolled by Tier I and II providers. You must gather this information on
Form H1536-A, Application and Management Plan for New Day Care Home Sponsors, or Form
H1536-D, Application for Renewal for Day Care Home Sponsors.
You must retain a copy of Form H1658, Documentation of Provider’s Tier Determination, for each
provider. If a provider qualifies as Tier I, you must also retain a copy of all Tier I supporting
documentation. All Forms H1658 and Tier I supporting documentation must be made available
to FND upon request. Failure to maintain adequate records or make them available to FND
upon request could result in adverse action against your organization.
You will also be required to submit, by April 1st of each year, a list of providers claiming
categorical eligibility based on the Provider’s eligibility for SNAP (Formerly Food Stamp
Program).
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 59
The list must contain the following information:





Categorically eligible Tier I providers, who claim eligibility for Tier I reimbursement for all
children in care based on the Provider’s SNAP eligibility (this information can be found on
Form H1531-P, Day Care Home Provider Application for Tier I Eligibility).
Area-Eligible Tier I providers, who have established their child’s eligibility for Tier I
reimbursement based on the provider’s SNAP participation eligibility (this information can
be found on Form H1531, Child Nutrition Program Application).
The name of the provider.
The address of the provider.
The SNAP case number for each provider.
4300
Program Administration
If you create, develop or produce materials with federal funds, USDA-FNS may reproduce or
publish the material. USDA-FNS may also authorize others to reproduce, use, or publish the
material. You may reproduce any material developed by TDA or USDA as long as the
reproduction is:


Used in an FNS program.
Not used for profit.
4310
Management and Monitoring
You are responsible for the management and monitoring of the providers whom you sponsor.
These responsibilities include:







Making pre-approval visits.
Enrolling and deleting providers.
Ensuring providers maintain a current license/registration and enrollment documents.
Conducting training.
Conducting monitor reviews.
Providing technical assistance.
Forwarding payments to providers.
60 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4311
Pre-Approval Visits
Before a sponsor enrolls a provider, they must make a pre-approval visit to the provider.
During the visit, you must discuss program benefits and requirements, including meal pattern
requirements, and determine whether they can provide food service in accordance with CACFP
requirements.
You must use Form H1607-P, Day Care Home Provider Pre-Approval Visit, to document preapproval visits. Alternate versions of this form will not be accepted.
4312
Parental Notification
Sponsors must notify the households of all enrolled children that their provider participates in
the CACFP. We have developed a flyer for you to use to satisfy this requirement, located in
Section 11000, Resources. The flyer presents the information in English and Spanish and
provides:




A brief statement about the CACFP.
Notice of the provider's participation in the CACFP.
The USDA and FND toll free telephone numbers for households with questions or concerns
about the CACFP.
The name and telephone number of the CACFP sponsor with administrative oversight of
the day care home (you must enter this information before distributing the flyer to the
provider or households).
You must retain documentation of your method of distribution. You must ensure that each
provider posts the English and Spanish versions of this flyer in their day care home where it can
be easily seen. Additionally, you must also post the English and Spanish versions of this flyer in
your administrative offices. You must distribute the flyer annually by the beginning of each
CACFP Program Year and must also provide the flyer to households who enroll children for
child care during the CACFP Program Year.
4313
Distribution of Women, Infants, and Children (WIC) Supplemental Food
Program Materials
You must distribute information provided by FND regarding the Women, Infants, and Children
(WIC) Supplemental Food Program to the households of each enrolled child. The material
contains educational information regarding the benefits of the WIC Program, income eligibility
guidelines for participation and contact information.
WIC materials are revised annually corresponding to the implementation of the annual revision
of the income eligibility guidelines effective July 1.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 61
You may distribute the WIC materials to the households directly or you may instruct your
providers to distribute the materials. You must document the process that you use to distribute
the materials and retain this documentation in your records.
4314
Enrollment of Children
You must maintain proof of proper enrollment for all children who receive child care. Per
Section 9000, Terms, Definitions and Acronyms, an enrolled child means a child whose parent
or guardian has submitted a signed document that indicates that the child is enrolled for child
care. Any child who could be in attendance, for the purpose of receiving child care and at least
one CACFP meal, would be an enrolled child. We will not take adverse action against you if a
provider does not have an enrollment form for each child, as long as you maintain proof that
the child is properly enrolled (that is, you have the documentation in your administrative files).
The following information must be included on an enrollment form, in enrollment
documentation or in alternate documentation if a child is to be considered properly enrolled:







Child’s name;
Child’s date of birth;
Meals/snacks normally served to the child while in care;
Days and hours the child is normally in care;
Enrollment and withdrawal dates;
Parent’s or guardian’s signature; and
Date of signature
The enrollment documentation must be completed and submitted by the parent/guardian, and
the parent/guardian must sign the enrollment documentation upon completion. The enrollment
documentation must provide spaces for the parent/guardian to indicate each of the required
enrollment elements.
Providing lines to write on, check boxes, instructions to circle the applicable information, can do
this.
FOR EXAMPLE:
Meals/snacks normally served to the child while in care (circle all that apply):
Breakfast
AM Snack Lunch PM Snack Supper Evening Snack
Days and hours the child is normally in care:
Days: M T W TH F
62 – Managing the Program
Hours: ______am to _____ pm
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
In the above examples the parent/guardian will complete the required information.
The sponsor/provider must not complete any of the information after the parent/guardian has
signed and dated the document. The sponsor/provider can include on the enrollment
documentation their hours of operation and the meals they provide, thereby informing the
parent/guardian of the provider’s normal hours and meals.
Enrollment information must be updated annually (that is, at least every 12 months). The
provider can provide the previous enrollment documentation to the parent/guardian to indicate
changes, re-sign and re-date; or they can obtain all new enrollment documentation. The
provider may not provide the parent/guardian with a statement to sign saying the information
had not changed and attach it to the previous enrollment documentation.
The parent/guardian must be given the opportunity to review the information, make any
changes and re-sign and re-date.
Form H1531, Child Nutrition Program Application, can be used to document some of the required
enrollment information, but the remainder of the required information would have to be
captured on other enrollment documentation and maintained with the child’s file.
The Texas Department of Family and Protective Services (DFPS) has a Form 2935, Admission
Information – Centers, that contains all the required elements for enrollment. The form can be
obtained from the DFPS website at www.dfps.state.tx.us, select “Child Care Licensing” in the
menu on the left hand side of the screen, scroll approximately half way down the screen and
choose “All child care forms”.
4315
Policy Statement
Form H4505, Free and Reduced-Price Policy Statement for Child and Adult Care Food Program (nonpricing only), contains the policy statement you must agree to in order to participate in the
program. You must sign this statement with your initial application and with an update or
renewal application if needed.
4316
State Government Privacy Policy
State Government Privacy Policy legislation stipulates that an individual has the right to review
their personal information as maintained by a state agency. An individual also has the right to
request the correction of inaccurate information. We are required to consider the request, but
reserve the right to determine whether the requested correction is appropriate.
A privacy statement is written at the bottom of all TDA forms that requests personal
information about a specific individual.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 63
4320
Enrolling, Deleting or Making Changes to Day Care Homes
Providers must be located in their private residence, the residence of another person, or a rented
or unoccupied private residence. As a result, providers who are located in commercial
properties, for example, churches, schools, corporations, are ineligible to participate in the
CACFP. Providers are limited to one location when participating in the CACFP.
Some providers have incorporated their day home operations. However, you must enter into an
agreement with the provider as an individual. Providers cannot participate in the CACFP as a
corporation.
A corporation may sponsor more than one provider. If providers wish to participate in the
CACFP, they must comply with these requirements:



Each home must be operated by a different provider.
Each provider must have an individual CACFP agreement with a sponsor.
The license/registration must be issued to the provider, not the corporation.
In cases where more than one provider operates from a single home, all providers who are
licensed at the same residence must care for different children and must participate under the
sponsorship of a single contractor.
When enrolling a day care home, you must submit the following items for approval:




A complete and correct Form H1537, Application Between Sponsoring Organization and Day
Care Home.
A complete and correct Form H1542, Agreement Between Sponsor and Day Care Home Provider.
A copy of the provider's license/registration.
A complete and correct Form H1658, Documentation of Provider's Tier Determination.
You will report, on Form H1603, Changes in Day Care Home Participation, information regarding
those providers who you want to add or delete.
64 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
When enrolling a day care home or making changes to day care home participation (i.e.,
changes in meal service times), sponsors may fax completed Forms H1537, H1542 and H1603 as
long as the following conditions are met:





Forms must be signed with original signatures. Using “signature on file” is not sufficient to
demonstrate that the sponsor representative and/or provider signed all the forms, certified
that the information contained is true and correct, and agreed to all the terms and
conditions.
Forms must be legible and come through the fax in their entirety. Faxing copies is
discouraged as copies tend to be harder to read and, if copied incorrectly, can cut off parts
of the text. A faxed form that cannot be read will be considered incomplete or incorrect and
will delay approval and reimbursement.
Sponsors must keep the originals of faxed documents in their program files and available
for review upon request.
Sponsors must adhere to record keeping requirements.
Sponsors should follow up faxed submissions with a phone call to verify receipt of faxed
documents. A fax confirmation will not suffice as proof that the fax was received.
NOTE: If the license/registration lists more than one person, all persons listed must sign and
date the Form H1537 and Form H1542.
You must submit Forms H1537 and H1542 together, but you may complete these forms in any
sequence, for example, you may execute an agreement with a provider:



At the same time they complete the provider's application.
Before completing the provider's application.
After completing the provider's application.
Forms H1537 and H1542 are legally binding documents. By signing the forms, the provider and
you certify that the information contained is true and correct. A provider is not contracted with
you until Form H1542 has been signed and dated by both parties.
The date upon which a provider may begin participating in the CACFP is based on the latest
date that either you or the provider signs Form H1542. We will neither approve a provider's
participation, nor can you claim reimbursement or administrative payments for meals served,
before the latest of the following dates:





The date of the provider's license/registration.
The date of your pre-approval visit.
The date of the agreement (Form H1542) between the provider and you.
The latest date that Form H1542 is signed by the provider or you.
The date of participation we assigned.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 65

The first day of the month in which an approvable agreement is received by TDA.
Additionally, you may not claim meals for a provider who is not in compliance with meal
pattern or other program requirements, regardless of the date TDA has approved the provider
for participation and claiming. You may not allow a new provider a “grace period” to meet
meal pattern or other program requirements. You must disallow any meals that do not meet
requirements from the beginning of their participation as you would with any other provider.
Sponsors who make special provisions for new providers may be placed in the serious
deficiency process for failure to perform administrative and financial responsibilities.
You cannot add a provider unless the provider has at least one nonresidential child enrolled for
child care at the time of application. You and a provider may sign Forms H1537 and H1542
prior to the enrollment of a nonresidential child, but you may not submit Form H1537 or Form
H1542 to us for approval until the enrollment occurs.
If a nonresidential child is not enrolled for child care when the provider signs Form H1542 to
participate under your sponsorship, you will:



Complete all of the information on Form H1537, but leave the section for the number of
enrolled nonresident children blank.
Give the provider a copy of the completed/signed Form H1537 and keep the original.
Instruct the provider to notify you as soon as they enroll a nonresidential child for child
care.
As soon as the provider notifies you that a nonresidential child has been enrolled for child care:




Complete the section for the number of enrolled nonresident children on Form H1537.
Put the date that the provider enrolled the first nonresidential child next to the number of
enrolled nonresident children on Form H1537 and put your initials next to the number of
enrolled nonresident children on Form H1537.
Send a copy of Form H1537 to the provider and keep a copy in your files.
Submit the required documents to TDA to request approval for the provider to participate
in the CACFP.
The deadline for submitting complete and correct Forms H1537 and H1542, with supporting
documentation, is the 25th of the month in which you want the provider's participation to
begin.
66 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
If the 25th of the month is a non-workday, we must receive Forms H1537 and H1542, with
supporting documentation, no later than the preceding workday. If Forms H1537 and H1542,
with supporting documentation, are received after the 25th day but before the last day of the
month, the provider will be ineligible for participation until the following month, unless you
provide evidence showing that you mailed the form(s) on or before the 21st of the month. We
accept as proof of submission a postmark affixed by the U.S. Postal Service or equivalent
documentation from a private postal service showing when the item was mailed.
NOTE: We will not accept, as proof of submission, a postmark affixed by a postage meter.
Providers cannot be approved to participate in a month prior to the month of receipt of Forms
H1537 and H1542, with supporting documentation, regardless of the date of submission.
After processing your Forms H1537, H1542, and H1658, we will notify you of which forms have
been approved and those that need to be corrected. FND may correct certain elements based on
verbal contact or by returning the documents to you for correction. When making corrections
based on verbal contact, FND will confirm your corrections in writing on the document(s) and
return the corrected original to you.
We can correct all items on the Form H1537 by verbal confirmation with you, except for the
following:




Provider's choice for distributing income applications and receiving reimbursement.
Declaration by providers relating to fraud in the CACFP.
Signature and date of signature of the provider.
Signature and date of signature of the sponsoring organization representative.
If FND cannot correct an item, we will return Form H1537 to you with a written explanation of
all items that must be corrected or completed prior to approval. You and your provider must
initial and date corrections to the provider's choice for distributing income applications and
receiving reimbursement and the provider's declaration relating to fraud in the CACFP. You
must give the provider a copy of the corrected Form H1537 for their records.
NOTE: If FND returns a Form H1537 that is incomplete/incorrect for an item that we could have
corrected, you must initial and date your correction. The provider is not required to initial and
date the correction.
All items on Form H1542 must match the information on the license/registration in sufficient
detail as to allow a reasonable person to determine that the two individuals/entities are the
same.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 67
EXCEPTION: Refer to Item 2225, Licensing/Registration, for additional information related to
providers who change locations.
The only item on Form H1542 that we can correct by verbal confirmation with you is the
Program Number (TX No.). If FND cannot correct an item, we will return Form H1542 to you
with a written explanation of all items that must be corrected or completed prior to approval.
Both you and your provider must initial and date any corrections to the Form H1542 before we
will accept it. You must give the provider a copy of the corrected Form H1542 for their records.
Form H1658 is used to document your initial tier determination for a provider and to change a
provider's tier determination. We may correct all items on Form H1658 by verbal confirmation
with you, except the signature and date of signature of the sponsor representative.
If FND returns Form H1537 or Form H1542 to you for correction and we receive the corrected
form(s) from you after the 25th day but before the last day of the month, the provider will be
ineligible to participate until the following month, unless you provide evidence showing that
you mailed the corrected form(s) on or before the 21st of the month.
After FND approves Form H1537, Form H1542 and Form H1658, we will sign Form H1542 and
return the originals to you. We will retain a copy of each form.
4321
Amendments to Forms H1537 and H1542
You are required to submit amendments to Form H1537 whenever a change in the conditions of
participation occurs. When submitting an amendment, you will prepare a new Form H1537,
indicate that it is an amendment, and complete only the sponsor's name, the name and
license/registration number of the provider and those items affected by the change. The time
frames for submitting complete and correct amended Forms H1537 are the same as those for the
submittal of original Forms H1537. We will process amended Forms H1537 according to the
same procedures as an original submission of a Form H1537. We will return the original
amended Form H1537 to you upon approval of the amendment(s).
EXCEPTION: Amendments are not used for changes to the following items:




Name of sponsor.
Program (TX) number.
Number of nonresident children.
Expiration date of fraud conviction sentence.
68 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
A representative of your organization must sign and date all amended Forms H1537. However,
the provider's signature and date of signature is only required for an amendment to the
provider's choice for distributing income applications and receiving reimbursement. You may
amend any other item on the Form H1537 on behalf of the provider without their signature.
If you amend the address of a provider, you must submit a copy of the provider's license or
registration with the amended Form H1537.
EXCEPTION: Refer to Item 2225, Licensing/Registration, for additional information related to
providers who change locations.
There is no need to amend the Form H1542. The Form H1542 stipulates that you and the
provider agree to participate in accordance with Form H1537, as amended.
4322
Denials
Form H1537 or Form H1542 will be denied and returned to you if:






The provider is already participating with another sponsor.
The provider is requesting a transfer, but you do not attach a transfer letter from FND.
The provider has been declared seriously deficient and is on the National Disqualified List
or debarred from participating in the CACFP.
The provider is currently participating in the program and signs either form prior to June 1
or after September 30.
The provider signed Forms H1537 and H1542 with multiple sponsors between June 1 and
September 30. The sponsor whose Form H1542 shows the earliest sign date of both the
provider and the sponsor representative has the legally binding application and agreement.
You failed to submit a copy of the provider’s license/registration.
4323
Resuming Provider Participation
If a provider terminates their agreement with you but wishes to resume their participation in
the same program year, the provider must participate with you, unless:


The provider has "just cause" for a transfer and FND approves the provider to transfer to
another sponsor.
The provider signs an agreement for the next program year during the open enrollment
period (June 1 through September 30 of each program year).
You would follow the same procedures as outlined in Item 4320 to resume a provider’s
participation.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 69
4324
Open Enrollment
Providers may select a new sponsor, without our prior approval, between June 1 and September
30 of each program year. Agreements (Form H1542) signed during the open enrollment period
are effective October 1 of the following program year. A new provider can sign an agreement
with a sponsor at any time during the program year. If the agreement is signed between June 1
and September 30, the provider may choose another sponsor before the end of the open
enrollment period to be effective October 1 of the following program year. If a provider signs
Forms H1537 and H1542 with more than one sponsor during open enrollment, the Form H1542
that was signed earliest by both the sponsor representative and the provider is legally binding.
Once a provider has selected a sponsor, the provider may not transfer to another sponsor
without prior approval from FND. Under no condition may a provider participate under the
sponsorship of two sponsors during a given month.
4325
Transfers
Prior to open enrollment, you cannot recruit nor enter into a sponsorship agreement for the next
program year with providers who are currently participating in the CACFP. Providers who
show good cause for transferring from a sponsor may, with prior approval from FND, enter
into an agreement with another sponsor at any time during the program year.
If a provider wants to transfer to another sponsor, they must:



Request in writing, and receive, prior approval for the transfer.
Demonstrate good cause for the transfer request.
Submit a letter to their current sponsor stating the intention to terminate their agreement,
and the effective date of termination.
"Good cause" for transferring from the sponsorship of one sponsor to another during the
program year is limited to the following conditions:


Deny a provider access to the program.
Reduce the level of benefit a provider receives under the program (for example, the sponsor
will not allow providers to claim suppers or weekend meals because they do not want to
monitor these meal services).
It is the provider's responsibility to demonstrate that such conditions exist.
EXAMPLE: A provider moved to an area where the current sponsor does not provide service.
70 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
When approving a transfer based on good cause, FND will specify the earliest dates on which a
new agreement may be signed or become effective. Transfers may be approved any time
throughout the program year when there is good cause. The approval granted by FND to
transfer is only effective one time. A provider may not use the same transfer letter to transfer
between multiple sponsors.
Occasionally, a sponsor will cease participation in the CACFP prior to the end of the program
year. When this happens, FND notifies the providers that they are approved to transfer to
another sponsor. No sponsor may execute an agreement with a provider who has been
approved for transfer prior to the date of notification.
If you are enrolling a provider that was previously under the sponsorship of another sponsor
during the same program year, you must attach the termination letter/approval to transfer letter
to the provider's application.
Any costs you incur while recruiting a current or former sponsor's providers, prior to June 1 or
prior to the date that FND has approved a provider's transfer, are unallowable. At a minimum,
your records must include:


Itemized accounts of recruiting costs.
The first date of contact with the provider.
4330
Training
You must train your administrative staff on CACFP requirements before they assume CACFP
duties and again during each program year thereafter. You must also train providers on CACFP
requirements before the provider begins participating in the CACFP and again during each
program year thereafter.
You must retain documentation of the CACFP training that you present to providers and staff.
Your documentation must include:






Date of training.
Location of training.
Training topic(s).
Name(s) of participant(s).
Written or electronic signature of the participant(s).
Name(s) of trainer(s), if applicable.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 71
You must plan trainings that are appropriate to the experience level of the SO staff and
providers. Experienced and inexperienced SO staff and providers should not get the same
training year after year. Repetition of some information may be necessary to ensure continued
Program compliance.
Although all topics must be included in the annual training, you may provide more information
on some topics than others. Your training should always address areas you have identified
where SO staff and providers have problems.
There is no requirement for the amount of time spent on training. Therefore, you may only
need a short review on some topics, while other topics require a longer period of time.
Training may be conducted in a variety of ways to meet the needs of the SO staff and providers.
Sponsors may use classroom style, on-site, distance learning (with the exceptions listed below),
or other innovative training techniques, provided the training is properly documented and the
training accomplishes the regulatory requirements for training content and frequency.
However, sponsors may not fulfill the training requirement by providing a training video to SO
staff and providers and requiring them to certify that they watched it. Training on video, CDROMS, web-based training, and/or other independent learning approaches are only permitted
to fulfill the requirement if there are a means to verify that each trainee has actually received the
training, i.e., pre- and post-tests, activities, exercises, etc. SO staff and providers may use
electronic signatures to verify that they have completed electronic training.
4331
Sponsor Training
4331.1
Sponsor Training During the First Program Year
You must train your staff who perform key CACFP activities in the following areas and
subtopics:

Program Meal Pattern
o Infant and child meal pattern
o Serving sizes for age groups
o Creditable foods
o Meal service styles
o Accommodating special needs diets
o Menu planning
72 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook





Meal Counts
o Daily
o Weekly
o Monthly
Claims Submission
o Due date
o Late claims
o Amended claims
Claims Review Procedures
o Review elements
o Serious deficiency process
o Appeal rights
Recordkeeping Requirements
o Daily, weekly, monthly forms
o Child Nutrition Program Application
o Annual enrollment information
o Meal production records
o Attendance records
o Financial Records
o Record retention
Reimbursement System
o Tiering structure
o Rates
o Payment schedule
Civil rights training is a self-paced training. The civil rights self-paced training can be accessed
from the FND website at www.snptexas.org. Instructions for accessing the civil rights training
are located in Section 11000, Resources. All individuals who have CACFP responsibilities must
complete this training annually.
FND may also require you to attend additional training during the program year. You will be
notified when mandatory training is scheduled.
4331.2
Sponsor Training After the First Program Year
After your first program-year of participation, you must train your staff who perform key
CACFP activities in the following areas annually:




Program Meal Pattern
Meal Counts
Claims Submission
Claims Review Procedures
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 73


Recordkeeping Requirements
Reimbursement System
Civil rights training is a self-paced training. The civil rights self-paced training can be accessed
from the FND website at www.snptexas.org. Instructions for accessing the civil rights training
are located in Section 11000, Resources. All individuals who have CACFP responsibilities must
complete this training annually.
We may also require you to attend additional training during the program year. You will be
notified when mandatory training is scheduled.
Key CACFP activities include:












Budget
Procurement
Enrollment
Tier Determination
Attendance Records
Meal Preparation
Meal Service
Meal Counting
Claim Preparation
Monitoring
Civil Rights
Training
NOTE: Failure to comply with mandatory training requirements will result in placement of
your organization and responsible principals and individuals in the Serious Deficiency Process.
4332
Provider Training During the First Program Year
You must provide training to your new providers in the following areas and subtopics:

Program Meal Pattern
o Infant and child meal pattern
o Serving sizes for age groups
o Creditable foods
o Meal service styles
o Accommodating special needs diets
o Menu planning
74 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook





Meal Counts
o Daily
o Weekly
o Monthly
Claims Submission
o Due date
o Late claims
o Amended claims
Claims Review Procedures
o Review elements
o Serious deficiency process
o Appeal rights
Recordkeeping Requirements
o Daily, weekly, monthly forms
o Child Nutrition Program Application
o Annual enrollment information
o Meal production records
o Attendance records
o Financial Records
o Record retention
Reimbursement System
o Tiering structure
o Rates
o Payment schedule
Civil rights training is a self-paced training. The civil rights self-paced training can be accessed
from the FND website at www.snptexas.org. Instructions for accessing the civil rights training
are located in Section 11000, Resources. All providers must complete this training annually.
NOTE: If you begin sponsoring a provider who participated with another sponsor, civil rights
may be eliminated from the required topics if you obtain documentation verifying that the
provider completed civil rights training while with the previous sponsor.
4333
Provider Training After the First Program Year
After their first program-year of participation, providers must participate in or receive training
in the following areas annually:




Program Meal Pattern
Meal Counts
Claims Submission
Claims Review Procedures
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 75


Recordkeeping Requirements
Reimbursement System
“Civil Rights for FND” is self-paced training. The civil rights self-paced training can be accessed
from the FND website at www.snptexas.org. This self-paced training can be copied and
provided to your providers in hard copy.
4334
Provider Training Documentation
When a provider completes a required training course, you must present the provider with
written documentation acknowledging their completion of the training. The documentation
must include:






The name of the provider.
The title of the training.
The date that the training was completed.
The name of your sponsoring organization.
The name of the trainer who provided the training.
The written or electronic signature of an authorized representative of your organization.
You must retain documentation of the trainings that you present to providers. This
documentation must include date of training, location of training, training topic(s), name(s) of
participant(s), written or electronic signature of the participant(s), and the name(s) of the
trainer(s), if applicable.
NOTE: FND produces training materials with federal funds for FND sponsored training events
and as a tool for attendees to reference and use for training their own staff and providers. No
part of these training materials may be reproduced in any form or by any means for profit or for
any purpose other than use in USDA Food and Nutrition Service (FNS) programs. The Texas
Department of Family and Protective Services (DFPS) may or may not recognize selfinstructional trainings, based on FND materials, for hours of training required for day care
licensing.
4340
Monitoring Reviews
You must conduct monitoring reviews of each of your providers to determine compliance with
all program requirements.
76 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Any member of your sponsoring organization who enters a provider’s home must carry photo
identification that includes the name of the individual and the name of your sponsoring
organization. A Texas Driver’s License or Texas ID card is not sufficient to meet this
requirement because it does not identify the individual as an employee of your sponsoring
organization.
You are required to conduct a monitoring review of each of your providers:



At least three times per year (based on the 12-month monitoring review period of each
provider), unless you are averaging your reviews.
Once within the first four weeks of the date the provider signs their agreement.
At least once every six months (unless you are averaging your reviews).
NOTE: See Item 4341, Review Averaging, for procedures and requirements for averaging your
monitoring reviews.
Two of the monitoring reviews conducted must be unannounced (unscheduled), the third
monitoring review may be announced or unannounced at the sponsor’s discretion, during each
provider’s 12 month monitoring review period. Prior to conducting an announced monitoring
review, you must notify the provider verbally or in writing. You must document verbal
notifications, e.g., telephone contact log. You must not notify a provider prior to an
unannounced monitoring review.
You must observe a meal service at each required monitoring review. Only one monitoring
review during the provider’s 12-month monitoring review period may include the observation
of a snack rather than a meal. If a provider participates on Saturday or Sunday, at least one of
the monitoring reviews must be conducted on a Saturday or Sunday.
A sponsor must provide oversight of all types of meal services being claimed by their providers.
In order to provide adequate oversight, the sponsor must review all meal service types being
claimed by all of their providers, including weekend meals.
Monitoring all meal service types does not require a sponsor to annually conduct monitoring
reviews of all meal services being claimed at each provider. As long as, in the total of all
monitoring reviews conducted, the sponsor provides oversight of all meal service types being
claimed, the sponsor has met their responsibility. Meal service types include: breakfast, lunch,
supper, snacks (am/pm/eve) and/or weekend meals.
Sponsors may not observe the same meal service type at all monitoring reviews conducted for
the same provider. EXCEPTION: If a provider only serves one meal type, each monitoring
review must include the observation of that meal service.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 77
You must make an unannounced follow-up monitoring review of a provider within two weeks
of any monitoring review at which you are unable to confirm the provider’s program
participation.
If you arrive at a provider's home and the provider has already served the meal that you
intended to observe or you are unable to conduct a monitoring review because the provider is
absent, you cannot count the monitoring review as one of your required monitoring reviews.
Additionally, you must make an unannounced follow-up monitoring review within two weeks
of the attempted monitoring review.
If you conduct a monitoring review of a provider and observe a meal that is only being served
to resident children, you may count the monitoring review as one of your required monitoring
reviews, but you must make an unannounced follow-up monitoring review within two weeks
of the monitoring review to confirm the provider's program participation.
You must complete Form H1607, Monitor Review, during each visit. All questions on Form
H1607 are considered critical. However, each entry on Form H1607, in and of itself, does not
ensure that an organization fulfills its fundamental management responsibilities. Some entries
are essential to ensuring that the program's intent is being met with integrity. Other entries
denote that technical federal and state requirements are being met. Sponsoring organizations
that fail to complete all elements on Form H1607 will be subject to serious deficiency.
NOTE: You are not permitted to use or develop an alternate version of Form H1607.
If you determine during a monitoring review that a provider has not complied with program
requirements, you must execute a corrective action plan to achieve compliance and/or place the
provider in the serious deficiency process (See Item 4380, Serious Deficiency Process for
Providers). Additionally, you must disallow any meals that do not meet program requirements.
You must not allow new providers a “grace period” to come into compliance with meal pattern
or other program requirements in lieu of disallowing ineligible meals. Sponsors who fail to
properly monitor providers, including disallowance of ineligible meals, may be placed in the
serious deficiency process.
If you conduct two or more monitoring reviews of a provider in any 12-month period, and
during those monitoring reviews you cannot confirm that children are enrolled for child care
and are participating in the program, you must execute a corrective action plan. The purpose of
this requirement is to ensure you are able to effectively monitor the provider's participation in
the program and that the provider is in compliance with program requirements.
78 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
You must place a provider in the serious deficiency process who knowingly claimed meals for a
child who is not enrolled for child care or for a child who was not in attendance on a day that
meals were claimed for the child, or refused to enter into or comply with a corrective action
plan. (See Item 4380, Serious Deficiency Process for Providers).
When you take any adverse action against a provider, you must notify the provider of the
adverse action and include appeal rights in accordance with your management plan.
You must keep records of the locations, dates, times, and findings for each review. You are
responsible for using the reviews as an opportunity for training the provider. If problems are
identified during a monitor review, you must prescribe corrective action and conduct follow up
reviews to ensure that the problems are corrected. We expect reviews of providers that are
experiencing difficulty operating the program to exceed the minimum number and frequency.
4341
Review Averaging
You may choose to average your monitoring reviews as a means to better utilize your resources
by conducting only two unannounced monitoring reviews of your best providers (those with
few or no program non-compliances or findings at the last 2-3 reviews), three monitoring
reviews for the bulk of your providers, and four monitoring reviews of those providers that
need closer oversight and technical assistance.
You are not required to obtain approval from FND to implement monitoring review averaging
however; you are responsible for informing FND of your intent to utilize the option and to
provide a description of your implementation plan. If you decide to implement or stop
averaging during new/renewal or update application processing, or during the program year,
you must submit Form H1548, Application and Management Plan Change, to TDA.
Your plan must include the criteria you will use to implement monitoring review averaging for
your organization. FND will evaluate and approve your monitoring review-averaging plan to
ensure that all monitoring reviews will be conducted and performed according to program
regulations. Regardless of your monitoring review schedule, FND will review and monitor
your operation for compliance to determine if you are conducting monitoring reviews as
required.
Monitoring Review Averaging Exceptions
SOs that average their monitoring reviews must include the above review requirements with
the following exceptions:
1. A Provider that submits a block claim must receive a minimum of three monitoring reviews.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 79
2. There can be no more than 9 months between monitoring reviews if a Provider is receiving 2
monitoring reviews.
3. The minimum number of monitoring reviews a Provider may receive is two.
4. A Provider declared seriously deficient during the PY must receive four monitoring
reviews, and must have the next monitoring review unannounced.
4341.1
How to Establish Your Averaging Cycle
In order to implement the monitoring review averaging option successfully, your review cycle
must correspond with the CACFP Program Year (October 1 – September 30). If you have been
conducting monitoring reviews on a schedule other than the CACFP PY (for example, providers
approved participation date, calendar year, etc.), your new monitoring review averaging cycle
must have a beginning date of October 1 for all participating providers.
Step 1. Calculate the number of total monitoring reviews that must be conducted
Number of participating providers as of Oct. 1 multiplied by 3 equals the total number of
required monitoring reviews.
EXAMPLE: 75 providers x 3 = 225 total number of required reviews that must be conducted
during the program year (October 1 – September 30).
Step 2. Construct a profile to determine which providers need more or fewer monitoring
reviews
The following is an example of how you may determine which providers would require more
frequent review and which would require less frequent review.
Providers that need only two monitoring reviews:


Providers that had no findings on their last 2-3 monitoring reviews.
Providers that have participated for several years that have only minor findings on their last
monitoring review.
80 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Providers that need three monitoring reviews:





New providers that have previously participated with another sponsor.
Providers that have submitted a legitimate block claim.
Providers that had findings on their last 2 monitoring reviews.
Providers that are doing well, but need additional technical assistance in a particular area.
Providers that had serious deficiencies identified on their last monitoring review.
Providers that need four monitoring reviews:





New providers.
Providers that submitted an unsubstantiated block claim.
Providers that are having difficulties.
Providers that have a combination of the above.
Providers in the serious deficiency process.
Fluctuations due to adding and deleting providers with your organization will affect your
monitoring review averaging plan. To help manage the total number of required monitoring
reviews you must perform, a separate averaging plan may be beneficial for new participating
providers added to your organization during the PY. New participating providers added
during a PY will then be added to the total monitoring reviews for the following PY.
Example:
FOR NEW PROVIDERS BEGINNING WITHIN A PY
Provider Beginning Participation Date
Minimum Number of Monitoring Reviews in
PY
October 1 – December 30
3
January 1 – March 31
3
April 1 – June 30
2
July 1 – September 30
1
NOTE: If a new provider begins participation on December 3, three monitoring reviews must
be conducted for the PY. If a new provider begins participation on May 2, two monitoring
reviews are required.
Step 3. Determine exactly how many providers will get two, three, or four monitoring reviews
In order to get the total number of monitoring reviews required, you will need to have the same
number of providers receiving two monitoring reviews as you have receiving four monitoring
reviews.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 81
EXAMPLE: If 300 monitoring reviews are required, your schedule might have:



10 providers receiving 2 monitoring reviews.
80 providers receiving 3 monitoring reviews.
10 providers receiving 4 monitoring reviews.
Step 4. Develop a plan to track monitoring reviews
Tracking monitoring reviews shows the timing of monitoring reviews for each provider
throughout the year, and identifies which monitoring reviews will be announced and
unannounced.
Your tracking plan should keep a running tally, by month and by year-to-date, of:



The number of monitoring reviews conducted.
The number of unannounced monitoring reviews conducted.
The number of announced monitoring reviews conducted.
Step 5. Frontload reviews
Conducting a majority of your monitoring reviews (“frontloading”) early in the PY allows for
more flexibility if circumstances occur later in the year that force you to revise your monitoring
review plan.
Step 6. Revise your schedule
Your monitoring review plan will need to be reassessed periodically. The more providers you
have, the more times your schedule will need to be assessed.
Anticipate changes such as:





Providers scheduled for two monitoring reviews submit block claims.
The number of your participating providers changes due to new or dropped or temporarily
inactive providers.
Monitor leaves position.
Bad weather prohibits the monitoring review.
The monitor has car problems and all monitoring reviews for the day cannot be conducted.
82 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Averaging will work differently for each organization, depending on how the provider profile
is developed, the organization is structured, and other factors. Organization’s who implement
monitoring review averaging should remember it is a tool to use to focus more technical
assistance and oversight on problematic and new providers.
4342
Meal Edit Checks
Sponsors must use monthly edit checks to review meal counts submitted by each provider to
ensure the accuracy of the sponsor’s monthly claim.
The edit checks will:



Check that providers are reimbursed only for approved meal types.
Check that providers are not reimbursed for more meals than they could have served
during the claiming period.
Identify providers that submit block claims.
Edit checks can reveal problems with providers’ meal data that need to be resolved before the
sponsor submits their aggregated claim to FND. A failed edit check must always result in
further investigation or follow-up by the sponsor.
The edit checks required are:

Approved Meal Types: Compare the meal types claimed to the meal types for which the
provider has been approved. This basic edit check can detect obvious claiming errors. It
ensures, for example, that a provider approved to serve breakfast, lunch and PM snacks
does not receive reimbursement for AM snacks and suppers.
You must follow your own procedures for handling invalid documentation submitted by a
provider. However, all meal types claimed that are not approved must be disallowed. You
may not retroactively amend the approved meal types in order to reimburse the provider
for those meals already claimed (see Item 4321, Amendments to Forms H1537 and H1542).

Maximum Number of Meals: Identifies the total reported counts that exceed the maximum
number of meals that a provider could claim. This maximum number equals the provider’s
total enrollment, times the number of approved meal types, times the number of operating
days in the claiming period.
EXAMPLE: If a provider has 6 children enrolled for 20 operating days, and serves
breakfast, AM snack and lunch, the provider can claim a maximum of 120 for each meal
type, and a maximum of 360 total meals (6 x 20 x 3 = 360).
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 83
When you prepare a consolidated claim, each provider’s total meals/snacks reported must
be compared with the provider’s enrollment figure for that month. You must develop a
procedure to ensure that you are using the most current information on enrollment for the
claim month to conduct this edit check.
If the meals/snacks count reported for reimbursement fails the maximum number of meals
edit check, you must follow up with a more complete review to determine whether the meal
count is accurate. If the meal count is incorrect, follow your own procedures for handling
inaccurate meal counts.

Block Claim: Identifies data for reimbursement submitted by a provider for which the
number submitted for one or more meal type (breakfast, lunch, snack, or supper) is identical
for 15 consecutive days within a claiming period.
When a block claim is detected, you must:





Examine several months of reported counts to see if there are any suspicious patterns, prior
to conducting the monitoring review.
Conduct an unannounced monitoring review of the provider within 60 days of the date the
block claim was received. If you are unable to complete all of the unannounced monitoring
reviews within the required time frame, contact TDA to request an extension. The extension
can be up to an additional 30 days.
Examine the provider’s meal counts and validate the provider’s counts for the month in
question.
Observe the meal service with the “block-claim” pattern during the monitoring review.
Conduct a five-day reconciliation.
You must be specific in documenting “valid” reasons for a block claim. The reasons must be
specific to the provider and must include a detailed explanation why you believe the reasons to
be valid.
For example, “provider accepts sick children” would not be sufficient to document a valid
reason. You would need further documentation, such as you examined the provider’s written
policy regarding caring for sick children, or observed sick children in the provider’s home, or
you have some other reason to believe that this is a valid reason for the provider to have block
claims.
84 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
You can evaluate and document valid reasons for a block claim prior to submission of the block
claim, if during an unannounced monitoring review you observe a block claim in the provider’s
meal/menu records and you are able to determine and document that a valid reason exists for
the block claim. If the sponsor documents valid reasons for a block claim prior to submission
then the sponsor will be exempt from conducting the 60-day follow up monitoring review for
the remainder of the provider’s current monitoring review cycle.
4343
Five-Day Reconciliation
During each monitoring review sponsors must conduct a reconciliation of meal counts to
enrollment and attendance records for five consecutive days during the current and/or prior
claiming period. The five-day reconciliation is included in Form H1607, Monitor Review.
The five-day reconciliation will be done by comparing enrollment, attendance and meal counts
by child and by meal type.
Before beginning the reconciliation, you must:


Review the enrollment and attendance records to ensure they are current and accurate.
Compare the provider’s total enrollment to the recorded daily attendance to ensure the
number of children in attendance does not exceed the number enrolled. If attendance does
exceed enrollment, for any day or for any shift (if shift care is provided), you must
determine the source of the error (for example, inaccurate attendance records, missing
enrollment forms) before the five-day reconciliation can be performed.
To perform the five-day reconciliation, compare the enrollment forms, meal counts and
attendance records for each child claimed during the five-day period chosen for the
reconciliation to determine if:



The meals claimed were consistent with the meals indicated by the parent/guardian as
meals the child will normally receive. If not, the provider must explain the discrepancy.
The days and hours the child was claimed for meals are consistent with the days and hours
indicated by the parent/guardian as days and hours the child would normally be in care. If
not, the provider must explain the discrepancy.
The attendance records indicate the child was in attendance for the meal service(s) being
claimed. If not, the meal(s) must be disallowed.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 85
If the provider is unable to provide a reasonable explanation, or you are unable to reconcile the
discrepancies, you must use the household contact procedure to verify the validity of the meal
counts, attendance and enrollment records. Upon completion of the household contact process,
if you are still unable to reconcile the difference between meal counts, attendance and
enrollment, you must determine whether meals must be disallowed and the provider placed in
the serious deficiency process.
NOTE: If there are circumstances that warrant the review of a five-day period from an earlier
month (for example, there are indications of an inaccurate meal count in an earlier month, but
not the current or previous month) you may look at the earlier month’s records as well.
4344
Household Contacts
Household contacts is an oversight tool that must be used as a means to check the accuracy of
meal counts when there are unusual CACFP participation/claiming patterns detected at a
monitoring review or during the consolidation of meal count data.
Household contacts will help verify that claimed meals in question were:


Served to children enrolled in care.
Served to children in attendance when the meal was served.
At a minimum, you must call parents/guardians of children whose attendance/enrollment is in
question when one or more of the following situations occur:








There is an unexplainable difference in the number of meals claimed from what you verify
at the monitoring review.
There is no acceptable explanation for a significant variation (10% or more) in the
attendance on the day of the monitoring review.
Maximum capacity is claimed consistently except on the day of the monitoring review.
There is a suspicious claiming pattern discovered during review of the monthly meal count
data submitted.
Children are only absent on the day of the monitoring review.
Complaints are received that indicate meals are claimed fraudulently.
Enrollment form and/or attendance record appears to be completed or altered without
parental consent.
Any other claiming pattern and/or program participation concerns that you identify.
86 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Contacting Households


Do not notify the provider prior to initiating household contacts.
Households may be contacted by written correspondence, email, phone, personal visit, or
any other means you choose to make. Letters are strongly encouraged as families may be
hesitant to share this type of information with a stranger over the phone. When using
letters, include a self-addressed stamped envelope to increase the chances the household
will respond.
A minimum of three documented attempts must be made to contact the household.
If all attempts to contact the household fail, verify that the contact information is the most
current by using the secondary verification process. Secondary verification of participation is
only acceptable when you can document compliance with the requirement to make a minimum
of three attempts to contact the parent/guardian.
Examples of secondary verification are:




Itemized deposit slips or receipts showing the child-care payments were received for the
child during the time period in question.
Collateral contact such as a member of the child’s family other than the parent/guardian, or
the parent or family member of another child in care who can verify that the child was
enrolled for care and received meals during the time in question.
Sign in/out sheets that show that the child was present during the meal service during the
time in question.
Trip sheets and/or field trip permission forms that show the child was present during the
meal service time in question.
Initiate the household contact within 30 calendar days from the date of the monitoring review,
or the date the claim in question was processed. No more than 45 calendar days may elapse
from the start of the household contact process to the end.
A response rate of 50% or more of the households contacted is considered successful. If contact
cannot be made with at least 50% of the selected households, meaning the household contact
procedure was unsuccessful, you may use other approaches (additional unannounced reviews,
more detailed review(s) of claim history, etc.) to investigate and explain the program concern.
Regardless of other approaches used, you must document all subsequent actions taken to an
unsuccessful household contact.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 87
Contact Documentation
Document household contact and attempts; including the following data:










Name of provider.
Name of person conducting the household contact.
Name of child/children in household in question.
Name of household contact.
Circumstances that initiated the household contact.
Date of household contact or attempted household contact.
Method of household contact.
Circumstances for unsuccessful household contact.
Information obtained from household contact.
Any additional information you want to include.
You must establish your own written policies and procedures regarding corrective action and
reimbursement when discrepancies are verified.
A sample household contact form is included in Section 11000, Resources, but you may develop
your own contact form.
4350
Nonprofit Food Service
A sponsor must operate a nonprofit food service principally for the benefit of enrolled children
and must document the operation of that food service. Nonprofit status does not require that
the sponsor operate at a break-even or loss. Nonprofit status is determined by the scope of the
food service activities conducted by the sponsor and the use of nonprofit food service revenues
through:
1. Identifying all nonprofit food service revenues,
2. Deducting allowable net expenses,
3. Identifying the excess of all nonprofit food service revenues over nonprofit food service
expenses, and
4. Verifying that any excess of revenues over expenses is retained and used only in the
nonprofit food service program.
Food service revenue includes:


CACFP reimbursement.
Income to the Program, which is income earned from activities supported by the food
service.
88 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook

All other funds used or restricted for use in the nonprofit food service, such as donations.
A sponsor can maintain a maximum of three months' net cash resources, i.e. income minus
expenditures, in this account. If a sponsor approaches the maximum amount allowed in the
nonprofit food service account, they should contact TDA for assistance.
Sponsors must account for all costs of operating their nonprofit food service through the
consistent use of generally accepted accounting principles (GAAP). Sponsors are responsible for
accounting for costs accurately and for maintaining records to demonstrate that costs claimed
have been paid, are allowable to the program, and comply with financial management
requirements found in FNS Instruction 796-2, Rev.3, Financial Management – Child and Adult
Care Food Program located at http://netx.squaremeals.com/snp/resources/index.html. In all
cases, allowable costs must be prior approved.
Unallowable costs may be necessary and reasonable for the operation of your organization but
are not allowed as nonprofit food service costs, even when the majority of the organization's
revenue is from the CACFP. For example, cost to obtain or maintain corporation status is an
unallowable cost.
For budgeting purposes, the cost of an expense may be estimated; however, the nonprofit food
service accounting system and the sponsor’s supporting documentation must show only actual
costs. In addition, costs must be necessary and reasonable to the operation of the nonprofit food
service. A necessary cost must represent an activity or function that is generally recognized as
ordinary, and necessary for the operation of the nonprofit food service. A reasonable cost must
not exceed what a prudent person would pay under the same circumstance.
Allowable costs can be either direct or indirect costs. Direct costs specifically benefit the
organization's nonprofit food service. Indirect costs are incurred for a common purpose in the
organization, but a portion cannot be easily assigned to the nonprofit food service. If the
sponsor will be claiming indirect costs, the rate must be part of their cost allocation plan. A cost
allocation plan is a written explanation of how costs are classified.
Allowable costs can be categorized as "operating costs" or "administrative costs."
4351
Operating Costs
You must account for the cost of operating a nonprofit food service. Operating costs include:




Facilities and space (rent, utilities and other space costs).
Supplies and equipment (durable supplies, expendable material/supplies, and equipment).
Purchased services (security services, maintenance and janitorial).
Financial costs (accounting, audits, and bonding).
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 89



Media costs (advertising, public relations, communications, publications, printing).
Sponsoring organization costs (training, travel, appeals, legal expenses, meetings and
conferences, membership, subscriptions and other professional organization activities).
Other costs (any other cost associated with the nonprofit food service).
Depreciation is the expense associated with your use of space, facilities, and equipment. It is
based on the cost and life expectancy of an item. A use allowance can only be applied to items
that have been fully depreciated by the organization before being placed into use for the
nonprofit food service. Any generally accepted method of computing depreciation might be
used.
All depreciation charged to the program must be documented through depreciation records
indicating the amount of depreciation taken each period and, when appropriate, prorated
between program and non-program use.
Durable supplies have a life expectancy of one year or more and include stoves, dishwashers,
microwaves, and garbage disposals. Durable supplies are charged to the nonprofit food service
account at the time of purchase.
Expendable materials and supplies have a life expectancy of less than one year and include
straws, napkins, paper plates, and dishwashing soap. Expendable materials and supplies are
charged to the nonprofit food service as they are used each month. You must keep receipts,
invoices, and bills to document these purchases.
Purchased services are the costs of services required by the food service operation. You may
claim the costs if they are allocated specifically to the food service operation. You must keep
receipts, invoices, billings, and rental agreements to document these costs.
The following types of purchased services may be claimed:



Maintenance, repair, or upkeep of food service equipment if the repair does not add to the
equipment's value or prolong its intended life.
Cost of utilities, security, and janitorial service if these costs are not included in rent, indirect
costs, or other charges for space.
Cost of renting space in privately owned buildings if the space is procured according to
appropriate bid procedures.
90 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4352
Administrative Costs
Administrative costs are limited to the organization's allowable expenses for planning,
organizing, and managing the nonprofit food service, e.g., salaries, wages, and fringe benefits
for staff that approve eligibility forms, provide training, and monitor facilities. We must
approve your administrative costs as part of your annual budget and whenever budget
amendments are submitted.
4352.1
Administrative Labor Costs
Administrative labor costs include salaries and benefits for administrative personnel, e.g.,
secretaries and accountants. Each element of an individual's compensation must be reasonable
for the services provided by the individual and conform to the organization's written
compensation policy.
The cost of labor identifies:





Salaries or hourly rates for administrative labor are reasonable when the rates that are
charged are the same as the rates paid for similar work throughout the organization.
The employer's share of federal, state, and local employment taxes such as Social Security,
withholding tax, and State unemployment taxes. The employer's share of fringe benefit costs
such as vacation leave, military leave, health benefits, life and disability insurance, paid
non-work holidays, and retirement benefits.
Payment of overtime, holiday pay for work performed on a non-work holiday, and
compensatory leave are allowed with specific prior written approval for each instance,
except for cases of emergencies. You must contact TDA within two working days of any
emergency situation.
Except for awards of nominal or minimal value, specific prior written approval is required
for costs of an incentive payment or award given to an employee. Awards of minimal value
include length of service pins, certificates of appreciation, floral arrangements, live plants,
mugs, and plaques.
Severance or dismissal pay is compensation paid to an employee whose employment is
terminated. The cost of severance pay is allowed on a case-by-case basis, with specific prior
written approval.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 91
4352.2
Documentation Requirements for Administrative Labor Costs
You must maintain documentation to support administrative labor costs, including:



An established and maintained written compensation policy for every element of
compensation charged to the nonprofit food service. At a minimum, the written
compensation policy must identify: (a) rates of pay; (b) hours of work, including breaks and
meal periods; and (c) the organization's policy and payment schedule for regular
compensation, overtime, compensatory time, holiday pay, benefits, awards, severance pay,
and payroll tax withholding. The written compensation policy and approved budget must
be in agreement for labor costs to be allowable.
Time and attendance reports for all labor costs. These reports must identify the total time
actually worked by the employee and not just the time spent on nonprofit food service
activities. At a minimum, these reports must include: (a) start time; (b) end time; and (c)
absences.
Time distribution reports. To establish the portion of costs that may be claimed as
administrative labor, a daily log or time distribution method must be used. Time
distribution reports must be:
o Completed by all employees and account for the total activity for which each employee
is compensated (this includes employees who spend 100 percent of time on nonprofit
food service activities).
o Prorated by the amount of time spent on nonprofit food service activities.
o Completed for each employee separately.
o An after-the-fact determination of the actual activity of each employee.
o In intervals no less than every 15 minutes.
In addition, the report must be compiled at least monthly and coincide with one or more
pay periods.
Employees who spend 100 percent of time on food service activities may sign a certification
statement monthly when they do not deviate from their regular work schedule. All other
employees must complete time distribution reports. Budget estimates and time studies of
any kind are not acceptable documentation.
In all cases, time and attendance and time distribution reports must be completed by the
employee and signed and certified as true and correct by the employee and a responsible
supervisor.
92 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook

Payroll records. At a minimum, a record for each employee containing:
o Employee name.
o Employee identification number.
o Rate of pay.
o Hours worked.
o Benefits earned.
o Any reductions or increases to the employee's base compensation, e.g., overtime pay,
incentive award, etc.
o Gross pay.
o Net pay.
o Date of payment to employee.
o Method of payment, i.e., check, cash, EFT.
o Verification that the employee has been paid, i.e., canceled checks or EFT deposit
verification. For cash payments, an original signature certifying receipt of payment is
required.
You may include the cost of establishing and maintaining accounting and other information
systems required for management of the nonprofit food service. You may not claim the cost of
maintaining central accounting records to meet all of your organization's requirements.
You may include the organization's costs for administrative appeals pursuant to the CACFP
regulations.
You may claim the cost of advertising media to solicit bids for the procurement of program
goods and services, recruitment of personnel for the nonprofit food service, and disposal of
scrap or surplus materials acquired in the performance of the nonprofit food service.
Advertising media include newspapers, magazines, radio and television, direct mail, World
Wide Web pages, and trade papers.
If funds are available, you may be reimbursed for the cost of audits required for the
administration and management of the program.
You may include the cost of premiums on bonds for employees who handle program funds and
for pre-agreement and post-agreement costs of bonding imposed by regulation.
Communications includes the costs of supplies and services such as telephone, telegrams, fax,
license fees for electronic mail software, Internet services, postage, and messenger services.
Costs for communication supplies and services must be prorated accordingly.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 93
You may use administrative program funds to defray some licensing-related expenses for
unlicensed or unregistered, low-income providers. You may use up to a total of $300 per
provider in any combination of expansion, start-up, or regular administrative funds with the
following limitations:



Regular administrative funds may be used to assist unlicensed/unregistered income-eligible
providers, regardless of their location.
Start-up funds may be used to assist unlicensed/unregistered income-eligible providers
regardless or their location.
Expansion funds may be used only to assist unlicensed/unregistered income-eligible
providers located in low-income or rural areas.
NOTE: CACFP funds for assisting a provider in becoming licensed are available to each
provider only once. Use of CACFP program funds to assist a provider who is already
licensed/registered to provide child care or to pay for a provider's yearly renewal fees is an
unallowable use of funds.
You may use CACFP funds to correct deficiencies that are impeding the approval of the
provider's license/registration, as documented from the official licensing source. You may not
use CACFP funds for general remodeling or renovation of a provider's facility.
Before using CACFP funds to assist a provider in becoming licensed or registered, you must
obtain the following from the provider and have on file:





A completed Form H1531-P, Day Care Home Provider Application for Tier I Eligibility, that
documents that the provider meets income standards for free or reduced-price meals.
A copy of the provider's application for licensing or registration.
Documentation, from the licensing authority, of the deficiencies that are impeding the
provider's approval for licensing or registration.
A completed Form H1542, Agreement Between Sponsor and Day Care Home Provider, and Form
H1537, Application Between Sponsoring Organization and Day Care Home, for the provider.
If using expansion funds to assist the provider in becoming licensed or registered,
documentation that the provider lives in a low-income or rural area.
You cannot use CACFP funds for purchases made to assist a provider in becoming licensed or
registered before the date that the sponsoring organization has all required documentation, as
described above, on file for the provider. You will be required to repay money that FND
determines was expended on unallowable costs.
To be classified as equipment, an item must cost at least $5,000 per unit and have a useful life of
at least one year.
94 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Instead of using depreciation, an organization, with specific prior written approval, can charge
the nonprofit food program for certain types of equipment at the time the items are purchased.
You must keep invoices, bills of sale, purchase orders, leases, contracts, and procurement
documents to meet documentation requirements.
Space and facilities costs may be charged through rental/lease fees or depreciation. Whether in
privately or publicly owned buildings, the total cost for space and facilities cannot exceed the
rental costs of comparable space and facilities for privately owned buildings in the same
locality. When a private residence owned by the organization or a related party is used for the
nonprofit food service, the costs claimed must meet all IRS requirements for business use of a
home and must be supported by the records used to meet IRS requirements for documenting
the business use of the home.
Financial expenses that must be incurred in the normal cost of administering the nonprofit food
service are allowable costs. Allowable financial costs include:




Purchase price of checks.
Fees charged by financial institutions for stop payment of checks.
Fees for use of ATM machines.
Monthly service fees for maintaining a bank account.
Financial costs that are unallowable include:




Interest charged on loans.
Credit card balances.
Insufficient funds/returned check charges assessed by financial institutions and retailers.
Late payment fees.
You may include insurance costs that are required for the administration of the nonprofit food
service.
You may include legal expenses required for the administration of the nonprofit food service.
However, you may not claim the cost of maintaining a legal staff with general responsibilities.
Materials and supplies include durable supplies and expendable materials and supplies.
Durable supplies have a life expectancy of one year or more and include desks, chairs, and
computers. Durable supplies are charged to the nonprofit food service account at the time of
purchase. Expendable materials and supplies have a life expectancy of less than one year and
include copy paper, pens, and pencils. Expendable materials and supplies are charged to the
nonprofit food service as they are used each month.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 95
Meetings and conferences include federal, state, county, national, or regional child care
conferences. Meetings and conference costs are not the same as training costs. Allowable costs
include:


With prior approval, the travel and registration fees for attending meetings and conferences
devoted solely to the CACFP.
With specific prior written approval, the prorated share of travel and registration fees when
the CACFP is only a portion of a larger child care related agenda.
Membership costs in civic, business, technical and professional organizations and subscriptions
to professional and technical periodicals are included in this category. Allowable costs include:



Membership fees and annual dues for the organization's membership in business, technical,
and professional organizations related to the program.
Membership fees and annual dues for one individual membership per organization in
business, technical, and professional organizations related to the nonprofit food service
when the organization will only accept individual and not organizational memberships.
Costs for the organization's subscription to periodicals related to the nonprofit food service.
If you or one of your employees uses his own or your vehicle to conduct administrative
business, the reasonable cost is an allowable administrative cost.
You must document mileage expenses to include records of:






The date of each trip.
The driver's name.
The mileage.
The origin and destination of each trip.
Parking costs.
The reason for each trip.
You may develop your own travel form containing these elements.
Procurement service costs include the cost of soliciting bids, preparing and awarding contracts,
and all phases of your contract administrative system related to the nonprofit food service.
Publication, printing, and reproduction include the costs for in-house and outside publication,
printing, and reproduction costs. All allowable costs are limited to the direct costs for
publication, printing, and reproduction of materials related solely to the nonprofit food service,
or the prorated share when necessary.
96 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
With prior approval, funds can be used to cover public relation costs for pamphlets, news
releases, and other information services to inform individuals, groups, or the general public
about the CACFP, or to increase an organization's CACFP participation.
Costs of utilities, purchased security and janitorial service, etc., not already included in space
costs or labor compensation costs are allowable.
Costs for supplies, storage, and maintenance of records necessary for the administration of the
nonprofit food service are allowed.
Costs in this category include lease costs for space, facilities, vehicles, and equipment for use in
the nonprofit food service. Rental fees must be prorated when necessary. Written rental
agreements must be properly procured from a third party.
Taxes or payments in lieu of taxes that the organization is legally required to pay as a result of
operating the nonprofit food service are allowable. Unallowable costs include personal income
taxes, corporate income taxes, and taxes resulting from non-program operations.
An organization's cost for providing training to administrative staff is an allowable nonprofit
food service cost.
With prior approval, the following administrative costs are allowed:



Rental costs of properly procured meeting and conference room space.
Fees for speakers who are not employees, officers, directors or trustees, or immediate family
members.
Costs for meals and nonalcoholic beverages served to participants, but not guests, when
nonprofit food service training is presented concurrent with the meal service.
Travel costs are expenses for transportation, lodging, subsistence, and related costs for
employees, officers, directors, or trustees performing nonprofit food service work. Costs for
nonprofit food service travel may be charged on an actual per diem or mileage basis provided
that the method used results in charges consistent with those normally allowed by the
organization in its non-program operations.
FND cannot require that you use the state, federal GSA, or IRS mileage and travel rates instead
of the rates used for non-federally funded travel. However, we can limit the amounts charged
for mileage or other travel costs when the amount requested is unreasonable or when the
requested rate will divert needed financial resources from activities required to meet CACFP
requirements.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 97
4352.3
Unallowable Costs
Unallowable costs include:















Administrative costs not approved by TDA.
Bad debts.
Compensating any individual, provider, employee, or subcontractor based on the number
of homes recruited. This includes cash and non-cash compensation.
Compensating any individual, provider, employee, or subcontractor based on increased
program participation, as measured by meals, children, or providers.
Contingencies.
Contributions and donations For example, the funds an employer provides for an
employee’s retirement fund is frequently referred to as a “contribution”).
Costs (such as advertising, marketing, travel, telephone, wages, etc.) for recruiting providers
who are already participating in the program with another sponsor.
Entertainment.
Fines and penalties.
Fundraising.
Interest and other financial costs, such as insufficient funds/returned check charges and late
payment fees.
Legislative or lobbying expense.
Political or partisan costs.
Subcontracted services that do not meet CACFP requirements. (Refer to Item 3140 for
additional guidance)
Under-recovery of costs under grant agreements (These are costs exceeding income in other
federal programs, including all grant agreements regardless of funding source or program
year. Also included are disallowed costs in the CACFP in the current or prior program
years.).
4353
Program Income
Program income includes, but is not limited to, funds used in the operation of the CACFP from:




Money from other government sources.
Cash donations.
Grants from organizations or individuals.
All interest earned on reimbursements and advances.
98 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Income to the program may not be used to pay costs that are not considered allowable in the
CACFP. Income to the program may not be used to pay for such things as:


Incentives and bonuses provided to providers to participate in the program.
Training related to, but not required for program participation, such as training to maintain
licensing/registration requirements.
The receipt of all funds related to the CACFP, including grants, donations, and loans, regardless
of their source, must be documented in writing. All loans must satisfy Food and Nutrition
Division financial management system requirements including, but not limited to, the following
criteria:


A written agreement specifying the terms and conditions of the loan, including a repayment
schedule, must be signed by both parties.
Loans may not be entered into retroactively.
EXAMPLE: A donation or grant may not be converted to a loan agreement after the fact.

Interest accrued on the loan is not an allowable program cost.
Donations, such as food, building use, services, and labor are not considered program income.
However, you must report these at zero value on your application to show how you will
manage your program on the CACFP reimbursement.
4354
Net Costs
Net costs are your total operating costs minus income to the program. Your CACFP
reimbursement may not exceed your net costs.
EXAMPLE: Your reimbursement is $10,000 per year. Your records support costs of $11,000 with
$1,000 income. Since the net costs and CACFP payment are the same, you have shown that the
program is nonprofit. If, however, your records support net costs of less than $10,000, you have
not shown that the program is nonprofit.
You must always report costs as you accrue them, not as you pay them. For example, you may
pay payroll taxes quarterly, but you must report them monthly as you accrue the expense.
We are able to observe your daily operation of the program only in the course of administrative
reviews and audits. Therefore, we must rely on the records you keep to determine your
compliance with program standards and the amount of reimbursement to which you are
entitled.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 99
If your records do not support your eligibility or the eligibility of your providers or your claims
for reimbursement, you will be required to repay any amounts you were paid improperly.
4360
Filing Claims
A sponsor’s claim is their actual participation report submitted for the purpose of receiving
reimbursement for costs associated with food service. FND reimburses claims depending on the
availability of funds.
In order to process claims for a sponsors’ organization, TDA must have approved a Form
H4508, Certificate of Authority, for the contracting organization.
With certain exceptions (noted below), a sponsor must submit claims electronically via the
Internet, through the Special Nutrition Automated Processing System (SNAPS). Upon approval
of a sponsor’s application and FND Agreement, FND will set up a SNAPS account for each
authorized representative indicated on Form H4508, Certificate of Authority. Each authorized
representative will receive an email with a user ID and temporary password. Once logged into
the system, the user will be prompted to change the password. A user manual is available online at https://fn-contractors.squaremeals.org.
The user guide gives instructions on how to:




Access/log on to SNAPS;
Change their initial password to one only they know;
Submit a claim for reimbursement using SNAPS; and
Obtain help if they are having trouble with their user ID or password, or with accessing
SNAPS.
Once the sponsor’s claim has been successfully submitted, the sponsor can print the claim,
which contains a confirmation number, to reference when calling to confirm or ask questions
about the claim. You will also receive an email confirmation of the submission of your claim,
which can be printed and filed with your program records.
When a sponsor calls to confirm the receipt of their claim, they must use the confirmation
number listed on the confirmation screen or email. FND Business Operations/Claim Processing
office hours are 8:00 a.m. to 5:00 p.m. Central Standard Time (CST).
If the SNAPS website is unavailable on the last day of the filing deadline (“the system is
down”), a sponsor may submit a paper claim via fax, mail, or by personal delivery to the TDA
Business Operations Section in the Stephen F. Austin Building in Austin.
100 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
However, the claim must be postmarked or received by Claims Processing before close of
business on the 60th day or it will be received as a late claim.
If a sponsor waits until the 60th day to submit a claim electronically and then is unable to access
SNAPS due to any problem other than the SNAPS website being down, the sponsor must:


Find an alternate site to access SNAPS and submit their claim before the deadline, or
Submit their claim via the paper process as a late claim. See Item 4362 for information on the
processing of late claims.
EXCEPTIONS: FND will accept a paper claim that is submitted via fax, mail or personal
delivery within 60 days of the end of the service month to which the claim pertains if:


SNAPS was down or inaccessible at any time for the 24-hour period marking the 60th or last
day to submit a claim electronically for that service month. FND must verify that the
system was inaccessible at that time.
The claim is accompanied by an Interagency Transfer Voucher (ITV) from another Texas
State agency.
ADDITIONAL EXCEPTIONS: The following types of claims cannot be submitted through
SNAPS and must always be submitted as a paper claim via fax, mail or personal delivery:



A claim that contains second meals.
A claim or an amended claim that is submitted after the 60-day claim submittal deadline
(late claim).
An amended claim that results from an administrative review.*
*An amended claim that results from an administrative review must be submitted via fax, mail
or personal delivery directly to TDA.
Paper claims must be mailed to:
Texas Department of Agriculture
Food & Nutrition Division
P.O. Box 12847
Austin, Texas 78711-2847
Faxed claims must be faxed to (888) 232-2759. A sponsor must call and confirm receipt of faxed
claims. The number to call is (800) 264-5732 (TDD number 1-888-440-4997).
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 101
NOTE: Do not mail your claim if you fax it or submit it electronically. It may take up to 45
days to process valid paper (mailed, faxed, hand delivered) claims.
The purchase of a computer and Internet Service Provider (ISP) support is considered an
allowable operating cost. If a contractor uses the automation equipment and ISP for any
activity – personal or business -- other than the operation of their nonprofit food service, the
sponsor must prorate the cost. The only allowable cost is the portion used in the operation of
the sponsor’s nonprofit food service.
4361
Submittal Deadline
To be eligible for reimbursement, you must ensure that claims for reimbursement are
postmarked (paper claims) or received (paper or electronic claims) by TDA no later than 60
days after the last day of the claim month. If the 60th day is on a weekend or holiday, the claim
must be postmarked or received no later than midnight on the following workday.
Mail Form H1534, Documentation of Claimed Cost-Meals Served (Day Care Home Program), to FND
within five calendar days of submitting your claim/amended claim.
We recommend that you always have a back-up person designated to submit claims. Doing so
could lessen your chance of submitting a late claim that may be denied for payment.
If you receive advance payments, you should submit your claim as early as possible after the
end of the claim month since a delay in submitting your claim could affect receipt of advance
payments.
4362
Late Claims
Claims that are submitted after the 60-day deadline must be submitted on the paper Form
H1532, Claim for Reimbursement; they may not be submitted electronically.
Claims postmarked or received by FND later than 60 days after the last day of the claim month
(i.e. late claim) will only be paid if funds are available, and will be processed in the following
manner:
Corrective Action Plan (CAP)
The submission of a late claim is a program noncompliance; therefore, you must submit an
approvable CAP that includes the:
 Reason for submitting a late claim;
 Actions to be taken to avoid repetition of the situation linked to the late claim submission;
102 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook


Actions to be taken to avoid any future late claim submission for the same or other causes;
and
Signature of an Authorized Representative designated to act on the organization’s behalf
per Form H4508, Certificate of Authority.
Once you have submitted an approvable CAP, we will determine if you are eligible for the onetime exception payment provision.
NOTE: We will accept as proof of submission of a paper claim a postmark affixed by the U.S.
Postal Service or equivalent documentation from a private postal service showing when the
item was mailed. We will not accept as proof of submission a postmark affixed by a postage
meter.
4362.1
Good Cause
Requesting a Good Cause Exception
If you…
Request a good cause exception,
Then we…
Will consider each request on a case-by-case basis.
You must demonstrate that the noncompliance
occurred due to circumstances beyond your control
(i.e., Good Cause).
If we…
Approve your
request
Do not approve
your request
Do not request a good cause exception
Then we…
Will forward your request to
USDA for approval
Will deny payment of the late
claim
Will deny payment of the late claim.
Examples of good cause beyond your control may include, but are not limited, to:


A catastrophic incident such as a tornado, flood, or fire; or
A life-threatening injury or illness to the person responsible for submitting the claim.
NOTE: Catastrophic incidences, life-threatening injuries or illnesses do not automatically
entitle you to be granted a good cause exception. The responsibility is upon you to demonstrate
how the catastrophic incident, life-threatening injury or illness caused a situation that made
submitting the claim within 60 days unreasonable/impossible.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 103
Examples of reasons that would not be considered good cause beyond your control include, but
are not limited to:




Absence of personnel on the 60th day, for reasons other than a life-threatening injury or
illness;
SNAPS is down or inaccessible for electronic filing;
A malfunction of power or equipment at your facility; or
Failure to get the claim in the mail in time to get it postmarked on the 60th day.
If USDA determines that your request for a good cause exception does not demonstrate that the
noncompliance occurred due to good cause, payment of the late claim will be denied. You
cannot appeal USDA’s denial of a claim. However, you may appeal FND’s denial to submit
your request for a good cause exception to USDA for consideration of payment.
4362.2
One-Time Exception
A one-time exception may only be used once within a 36-month time period for each USDA
Child Nutrition program that you administer. A one-time exception granted to a CACFP
sponsor does not eliminate the sponsor from consideration for a one-time exception for another
child nutrition program claim. If you submit late claims for several months at the same time,
you may choose the claim month for which the one-time exception may be used.
If you have…
Not used your one-time exception provision
within the last 36-months
Already used your one-time exception
provision within the last 36-months
4363
Then you may…
Choose or request to use the one-time
exception payment or receive no payment
for the late claim.
Request a good cause exception.
Amended Claims
If we process an amended claim, we will reconcile any overpayments or underpayments against
any outstanding claims. If the outstanding claims are not sufficient to reconcile the amended
claim, we will process payment to you for any underpayment and require you to submit any
remaining overpayment.
4364
Upward Adjusted Amended Claims
The procedures stated in Item 4362, Late Claims, also apply to any upward adjusted amended
claim postmarked or received by FND Business Operations Section more than 60 days after the
last day of the amended claim month.
104 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4370
Food Service Operations
4371
On-Site Food Preparation
Providers usually prepare their own meals. Those who do are responsible for their own
purchasing, menu planning, cooking, serving, and cleanup. Providers must also keep their own
records of the daily menus and the number of meals served, and they must comply with all
state and local health and sanitation laws.
4372
Estimating Costs
Providers are not required to keep records of operating costs (such as food costs) to participate
in the CACFP. However, the Internal Revenue Service considers providers to be self-employed
for income tax purposes.
Your providers may use the following procedure to determine the cost of each serving for their
menus. Although estimating costs is a good management practice, it is not mandatory.
Step 1:
List all foods, except seasonings, needed to produce a meal.
Step 2:
Determine the amounts of food needed.
Step 3:
Multiply the amount of food needed by the cost per unit (such as cost per pound or
#10 can).
Step 4:
Divide the total cost of the meal by the number of meals.
Step 5:
Add 11/2 (.0150) cents to each meal cost for items such as seasonings, margarine used
for spread, and salad dressings.
See the next page for an example of determining the price per meal.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 105
The following example breaks down the price per meal for a lunch prepared for 12 children's
portions:
EXAMPLE
Step 1:
Food Items
Step 2:
Food Amount
Needed
Cost per
Market Unit
Step 3:
Total Cost
of Food
ground beef
.75 lb.
1.89/lb.
1.42
processed cheese
.50/lb.
2.69/lb.
1.35
eggs
2 each
1.09/doz.
.18
enriched flour
2 cups (.59 lb.)
.30/lb.
.18
tomato paste
12 oz. can
.59/12 oz. can
.59
fresh spinach
1/2 lb.
.89/lb
.45
iceberg lettuce
1/2 lb.
.50 lb.
.25
2% milk
1/2 gal.
2.39/gal.
1.20
-
-
-
TOTAL 5.62
Step 4: 5.62 / 12 = .4683
Step 5: ADD .0150 cents per meal for seasonings
.4683
+.0150
.4833 or .48 per meal
4373
Inventories
At a minimum, you must conduct inventories at the end of each program year (September). You
will inventory all items you use to operate the program, including any food and nonfood items
you provide to your providers. If yours is a large operation you should conduct monthly
inventories to minimize losses.
The providers you sponsor are not required to conduct inventories. However, inventories
should be encouraged as part of an effective food service operation.
You may choose one of the following inventory methods:


Perpetual inventory.
Physical inventory.
106 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
A perpetual inventory is a continuous record of supplies purchased, in storage, and used. You
must not use perpetual inventory records as a substitute for actual counts of items in storage.
Discrepancies between actual counts and written records may indicate problems with storage
procedures or personnel.
You can develop a simple card system for a perpetual inventory. Keep the cards in alphabetical
order and update them routinely.
Sample inventory card:
Supply: Paper, Copying
Date
In
Quantity
Unit Price
Out
Quantity
On Hand
Cash
Value
9/1/08
4 reams
$4.00
7 reams
$28.00
Physical inventories are periodic physical counts of all items in storage. Physical inventories are
simple and suitable for small facilities. They are useful for indicating needed purchases.
Physical inventories are easier to keep if you:





Keep supplies of the same kind together.
Keep supplies stored in an orderly manner.
Label weights or capacities on large containers or barrels.
Record dates supplies are received.
Use supplies on a first-in/first-out basis.
Sample inventory form:
Supply
Item
4374
Unit
Unit
Price
Date
Quantity On
Hand
Cash Value
On Hand
Copying ream
paper
$4.00
9/1/08
6 reams
$24.00
Inventory Adjustments
Inventory adjustments are reductions in inventory because of fire, water damage, or spoilage.
Insured or insurable losses are also inventory adjustments. You must deduct inventory
adjustments from the cost of operating the program.
You are not required to count as inventory adjustments small losses of less than $100.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 107
4375
Recycled Food
Your providers may recycle leftover food according to the following conditions:






State and local health department requirements must be met.
Food must be held at the proper temperature.
Food can be recycled one time.
Food served family style cannot be recycled.
Food that has been served cannot be recycled unless it is individually wrapped or self
contained (apples, oranges, etc.).
Recycled food must be recorded on Form H1568, Record of Recycled Food.
4376
Storage
You are responsible for storing all CACFP supplies in a manner that will minimize potential
loss.
4377
Purchased Meals
You may choose to purchase meals for your providers from a:




Caterer.
Food Service Management Company (FSMC).
School Food Authority.
Another CACFP contractor.
You may purchase meals in bulk or as units. Whether your providers prepare their own meals
or you purchase meals for delivery to the providers, you are responsible for ensuring that they
meet CACFP meal pattern requirements.
If you purchase meals for your providers, you must do so according to the purchasing policies
in this handbook. If you want to contract for purchased meals, you must contact TDA for
procedures.
4380
Serious Deficiency Process for Providers
Agreements can be terminated for convenience or for cause. The serious deficiency process
must be followed when terminating a provider “for cause”.
108 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
There are five steps in the serious deficiency process.
Step 1. The serious deficiency determination.
Step 2. The serious deficiency notice.
Step 3. The opportunity for corrective action.
Step 4. The notice of proposed termination and disqualification.
Step 5. The notice of termination and disqualification.
Step 1. The Serious Deficiency Determination
Serious deficiencies that could lead to day care home’s termination include:









Submission of false information on the Form H1537, Application Between Sponsoring
Organization and Day Care Home.
Submission of false claims for reimbursement.
Simultaneous participation under more than one sponsor.
Non-compliance with CACFP meal patterns.
Failure to keep required records.
Failure to participate in mandatory annual training.
Conduct or conditions that threaten the health or safety of a child or children in care, or the
public health or safety.
A determination that the provider has been convicted of an activity that indicated a lack of
business integrity. Convictions indicating a lack of business integrity must have:
o Occurred during the previous 7 years.
o Been criminal convictions only, and not civil judgments, audit or review findings,
“common knowledge,” or supposition.
Any other circumstance related to non-performance under the Form H1542, Agreement
Between Sponsoring Organization and Day Care Home Provider, as specified by the sponsoring
organization or FND.
This list of serious deficiencies for providers is not meant to be all-inclusive. You may declare a
day care home seriously deficient for any serious management or integrity problems, even if it
is not specifically listed above.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 109
You must use discretion in making these serious deficiency determinations. To appropriately
use discretion, you must be able to distinguish between:


Occasional versus systemic errors.
Minor versus major errors.
Being able to make these distinctions is critical because, once a notice of serious deficiency is
issued, in can result in only two possible outcomes:


The provider corrects the serious deficiency to your satisfaction, within the period allotted
for corrective action.
The provider does not correct the serious deficiency and you propose termination of the
agreement for cause and disqualification of the provider.
You can take into account several factors in deciding whether a problem rises to the level of a
serious deficiency:




The frequency of the error.
The severity of the error.
Length of the provider’s CACFP experience.
The provider’s literacy level or English proficiency.
Once a serious deficiency has been determined you must immediately prepare a serious
deficiency notice.
NOTE: Sample letters for each step in the serious deficiency process can be found in Section
11000, Resources.
Step 2. The Serious Deficiency Notice
The serious deficiency notice must:




Fully describe the serious deficiency.
Specify the corrective action required to resolve the serious deficiency and the deadline (not
to exceed 30 days) by which the action must be taken.
State that the serious deficiency determination is not subject to appeal.
State that failure to fully and permanently correct the serious deficiency by this deadline
will result in:
o Proposed termination of the provider’s agreement for cause.
o Proposed disqualification of the provider and placement on the National Disqualified
List (NDL).
110 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook


Inform the provider if he/she will receive CACFP payments during the period of corrective
action. Note: You may allow the provider to participate during the corrective action
process. The one exception is the suspension of the provider based on imminent threat to
the health or safety of participants or the public (see Item 4381, Suspension of Provider
Participation).
State that if the provider voluntarily terminates the agreement after he/she receives the
serious deficiency notice, you will still proceed with the proposed disqualification.
Immediately send a copy of this letter to TDA. Do not wait until the serious deficiency process
is completed to send letters to TDA.
Step 3. The Opportunity for Corrective Action
Providers are allowed up to 30 days to correct a serious deficiency. You may not allow a
provider additional time.
In all but one case, you must give the provider the chance for corrective action before you
propose to terminate the provider’s agreement. The one exception is suspension of a provider
based on an imminent threat to the health or safety of participants or the public. In that case,
suspension occurs first. The provider’s participation, including CACFP payments, is
suspended, either until the deadline for requesting an appeal hearing passes or until the appeal
is completed.
You may not suspend participation of a provider who you believe has submitted a false or
fraudulent claim. The requirement to provide an opportunity for corrective action when you
believe that the provider has submitted a false or fraudulent claim gives the provider time to
demonstrate that:



You have made an administrative error.
You have confused two providers with similar or identical names.
The information submitted by the provider was not, in fact, false.
In addition to declaring the provider seriously deficient and offering a brief period for
corrective action, you must deny the portion of the claim which is false or fraudulent. You must
never reimburse providers for invalid claims.
If you determine after a claim has been paid that the claim was invalid, you will notify the
provider in the Notice of Serious Deficiency that a suspected over claim is owed and the dollar
amount of that debt. You must submit amended claims to FND to remove the meals that you
suspect were falsely claimed. The provider must repay the over claim in order to achieve
corrective action.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 111
Whenever feasible, you should make onsite visits to verify and evaluate the implementation
and effectiveness of the provider’s corrective action.
If the provider fully and permanently corrects the serious deficiency within the time allowed for
corrective action, send a notice to the provider, with a copy to TDA, stating that the serious
deficiency determination has been rescinded due to the provider’s successful corrective action.
If the provider fails to take corrective action, or the corrective action is inadequate, you must
send the provider a Notice of Proposed Termination and Proposed Disqualification, with a copy
to TDA. Do not send the Notice of Proposed Termination and Proposed Disqualification until
after the period allowed for corrective action has expired.
Step 4. Notice of Proposed Termination and Proposed Disqualification
This notice must:






State that you are proposing to terminate the provider’s agreement for cause and place the
provider on the NDL.
State that these actions are being taken due to the provider’s failure to correct the serious
deficiency.
Inform the provider that he/she may appeal the proposed termination and proposed
disqualification.
Inform the provider whether he/she will receive CACFP payment during the period of
appeal (normally the provider will continue to receive payments).
Inform the provider that if he/she voluntarily terminates the agreement after receiving the
notice, you will proceed with the proposed disqualification.
Inform the provider if you suspect that the provider submitted false claims and the dollar
amount of the over claims, if appropriate.
The effective date of the proposed termination and proposed disqualification must be no earlier
than 30 days from the date of the letter.
If the provider appeals your Notice of Proposed Termination and Proposed Disqualification
and your action is overturned, you must issue a Rescission of Serious Deficiency, Proposed
Termination and Proposed Disqualification to the provider, with a copy to TDA. The effective
date of the rescission is the date of the hearing official’s decision.
112 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Step 5. Notice of Termination and Disqualification
If the provider fails to appeal the Notice of Proposed Termination and Proposed
Disqualification, or if the hearing official rules in your favor, you must issue a notice
immediately terminating the agreement with the provider and disqualifying the provider. Do
not give appeal rights. Send a copy of this letter to TDA. You must also submit Form H1603,
Changes in Day Care Home Participation, to TDA deleting the provider’s participation.
If the provider does not appeal, the effective date of the termination and disqualification is the
date in your Notice of Proposed Termination and Proposed Disqualification letter. If the
provider appealed and your action is upheld, the effective date is the date of the hearing
official’s decision.
Status of Provider CACFP Payments
You must include the status of the provider’s CACFP payments in any notices you send to the
provider during the serious deficiency process. CACFP participation, including CACFP
payments, will continue during the process, except when the provider is suspended due to
imminent threat to health or safety. In all other cases, you must continue to make CACFP
payments from the time the provider is declared seriously deficient to the time the serious
deficiency is resolved. This will happen either when you terminate the provider’s agreement or
when you remove the serious deficiency finding.
Removal of a Provider from the National Disqualified List
Once included on the NDL, a day care home provider will remain on the list until TDA FND
determines that the serious deficiency that led to their placement on this list has been corrected,
or until seven years have elapsed since the agreement was terminated for cause, whichever
comes first. However, if the provider failed to repay debts owed under the CACFP, he/she will
remain on the list until the debt has been repaid.
If a provider contacts you for assistance in removal from the NDL, refer them to TDA.
4381
Suspension of Provider Participation
The process for suspending a provider for an imminent threat to the health or safety of
participants or the public depends on whether a State or local health or licensing authority, or
the sponsor discovers the problem.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 113
Health or Licensing Authority Discovers the Problem
When a state or local health or licensing authority notifies you of the imminent health or safety
threat, you must immediately send the provider a Notice of Suspension. This notice must
include:





All serious deficiencies that constitute the imminent threat.
A statement that the home’s participation, including all CACFP payments, is suspended as
of the date of the notice.
A statement that you intend to terminate the home’s agreement for cause.
A statement that you intend to disqualify the provider.
The procedures for appealing the suspension, proposed termination and proposed
disqualification.
Send a copy of this Notice of Suspension to TDA. An imminent threat to health or safety
requires the immediate suspension of a day care home without the opportunity for corrective
action.
The provider may appeal any or all of the three adverse actions:



The suspension.
The proposed termination.
The proposed disqualification.
If the provider appeals and loses, send the provider a Notice of Termination and
Disqualification informing the provider that:


The home’s agreement is terminated for cause.
The provider is disqualified and placed on the NDL.
If the provider appeals and wins, send the provider a Notice of Rescission informing the
provider that:



The home’s suspension ended on the date of the hearing official’s decision.
The home’s agreement will not be terminated.
The provider will not be disqualified and may claim for eligible meals served during the
suspension period.
Send a copy of the Notice of Termination and Disqualification or Notice of Rescission to TDA.
114 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
If you have documentation that the licensing agency revoked the provider’s license or
registration, the provider could not win an appeal.
If the provider does not request an appeal, the process ends when the 15 days have elapsed for
the provider to request an appeal, and you issue the Notice of Termination and Disqualification.
If the home’s agreement is terminated and the provider disqualified you must submit Form
H1603, Changes in Day Care Home Participation, to TDA, deleting the provider’s participation.
Sponsor Discovers the Problem
If you determine there is an imminent threat to health or safety in a day care home, you must
immediately inform the health or licensing authority and then take action that is consistent with
the authority’s recommendation. This will usually mean suspension of CACFP participation. If
you suspend participation, follow the suspension, notification and appeal procedures outlined
above.
4390
Operation During a Pandemic
The Child Nutrition Programs are designed to support institutional feeding operations. The
regulations require that programs will operate in a congregate setting, whether in schools or
child care facilities. During the outbreak of a pandemic disease, public health officials
anticipate the need for “social distancing” as a means of minimizing the spread of illness by
limiting person-to-person contact. Thus, when social distancing measures are in effect, schools
and other facilities may be closed, and operation of the Child Nutrition Programs will probably
not be possible.
School facilities and equipment normally used in the operation of the NSLP/SBP may be used
for other activities during a pandemic outbreak. In addition, in a Presidentially-declared
disaster, Program commodities and other foods would be available for distribution to
community groups or public agencies. However, although school facilities or commodities
could be used, their use would not be related to the NSLP/SBP.
Depending on the nature and scope of the outbreak, some program requirements may be
waived in areas adjacent to, but not directly affected by, a pandemic outbreak. Provisions
related to operational procedures, review requirements, or meal patterns have been waived,
either on a short-term or a longer-term basis, in previous disasters. The usefulness and
applicability of such waivers during a pandemic would, of course, be dependent on the scope of
the outbreak and the limitations of person-to-person contact in any given area.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 115
4400
Program Documentation
4410
Retention Period
You must keep the FND Agreement and all amendments to the FND Agreement for at least
three years from the end of your final program year. You must retain all documents relating to
your participation in the program, such as claims and supporting documents that are specific to
a particular program year, for at least three years from the end of that program year. For
example, all documents specific to the CACFP 2006 program year must be retained until
September 30, 2009.
EXCEPTION: If audit findings, claims, or litigation have not been resolved, all forms and
records must be retained beyond the required time period until all issues are resolved.
In addition, records relating to day care home providers, who have been placed on the National
Disqualified List (NDL) by your organization, are considered to pertain to the entire period that
the provider remains on the NDL. Those records must be retained for three years after the day
care home provider has been removed from the NDL.
Records relating to any serious deficiency for which you placed a provider into the serious
deficiency process, that has been corrected before the day care home provider was disqualified,
must be retained for three years from the date you accepted the corrective action and rescinded
the serious deficiency. This will allow you to conduct one or more follow-up reviews to ensure
that the serious deficiency has been fully and permanently corrected, and will provide the
necessary back-up documentation for proposed termination should you discover that the
corrective action was not permanently implemented.
Your providers must maintain records relating to the program as required in Item 4430.1,
Provider Record Keeping Requirements, for three years from the end of their final program
year. In order to minimize the burden of space and storage, providers may maintain and have
on hand for immediate review all records that support their program activities for the current
month and the previous twelve months of operations. The remaining two years of program
records may be stored offsite; however, they must still be in control of the provider and
accessible within a reasonable amount of time. If no offsite storage is used, the provider must
retain three years of records at their home. Records can be kept in hard copy or electronic
format, provided they are readily available to reviewers. Failure to maintain such records will
be grounds for denial of reimbursement.
116 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4420
Availability of Records
You, and each of your providers, must allow TDA, USDA, Government Accountability Office,
and representatives of other appropriate agencies to inspect facilities and records and to audit,
examine, and copy records during normal working hours.
You must maintain separate records for each of your providers, and your CACFP records must
be maintained separately from records of other programs.
4430
Types of Records
As a contractor you must keep complete and accurate records of the program including, but not
limited to, the following:











Records of expenditures for supplies and services including:
o Cash register tapes, invoices, delivery slips, and receipts.
o Receiving reports from vendors signed by authorized staff.
o Itemized purchase invoices.
o Records showing costs of processing, distributing, transporting, storing, and handling
food (if these costs are in addition to the cost on the purchase invoice).
o Credits - if they are not shown on invoices.
o Canceled checks or other forms of receipts for payments.
o Inventory records (including records of major inventory adjustments).
o Records of insurance claims and collections.
Procurement records, including the basis for the cost or price and the reason for selecting a
particular:
o Method.
o Contract type.
o Contractor.
Mileage logs to support transportation costs (see Business Mileage Record in Resources
Section of this handbook).
Time Distribution Reports.
Payroll records (such as payroll ledgers, IRS Form W-2, IRS Form 941, and cancelled payroll
checks).
Field trip documentation.
Records of the cost of purchased services (such as utilities and rent).
Records of administrative costs (such as payroll records and invoices).
Recruitment costs (such as salaries/benefits, travel costs, forms/supplies, and costs
associated with identifying and selecting providers).
Daily record of the number of meals, by type, served to enrolled children (including names).
Daily record of the number of meals served as second meals, if any.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 117

























Documentation sufficient to justify the service of second meals (if claimed for
reimbursement).
Records of meal service times (including starting times and duration) for each meal.
Records of all income to your program.
Enrollment records for each child.
Attendance records.
Daily menus that include the food items served.
Copies of medical statements with prescribed substitutions for children who require special
diets.
Records of the first date of contact with day home providers.
Canceled checks (or checking account statements).
Copies of CACFP claims and receipts for payment from us.
Documentation to support Tier determinations.
Family size and income information (Form H1531, Child Nutrition Program Application, or
Form H1531-P, Day Care Home Provider Application for Tier I Eligibility) for providers that
have applied for program benefits for their own children.
Family size and income information for Tier II providers who have Tier I nonresident
children enrolled (Form H1531-H, Child Nutrition Program Application - Nonresident Children
in Tier II Homes).
Copies of your CACFP application and all supporting documents.
Copies of Head Start/Early Head Start letters to support the eligibility of the provider's own
child to participate in the CACFP.
Head Start/Early Head Start/Even Start certification letters.
Copies of your FND Agreement.
Documentation of training sessions with administrative staff and providers (dates,
locations, trainer, topics, and participants).
Documentation of attendance at training provided by FND.
Documents that show the food service is nonprofit. (You must use all CACFP funds to
conduct or improve the food service operation, principally for the benefit of the enrolled
children.)
Copies of audits.
Records of dates and amounts of food service payment to each of your providers.
Records of provider reviews (locations, dates, problems noted, corrective action prescribed,
and technical assistance provided), including completed Form H1607, Monitor Review.
Records of pre-approval visits to providers (Form H1607-P).
Records of applications and agreements with your providers (Form H1537/Form H1542).
118 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
4430.1
Provider Record Keeping Requirements
A provider must keep complete and accurate records of their program operation to include:



Enrollment records for each child;
Daily attendance records; and
Daily record of the number of meals, by type, served to enrolled children (including names)
These records must be available for review and maintained as required by Item 4410, Retention
Period.
4400
Required Forms
You must use forms provided by TDA to administer and operate the CACFP unless you have
received approval from TDA to use alternate forms. The following forms are the only forms
that may be submitted for alternate approval:








H1530-A, Daily Meal Production Record for Infants.
H1534, (Page 1) Documentation for Claimed Costs – Meals Served.
H1534, (Page 2) Budget Reconciliation.
H1539, (Page 1) Day Care Home Meal Service Record.
H1539, (Page 2) Menus (Day Care Home Meal Service Record)
H1568, Record of Recycled Food.
H1603, Changes in Day Care Home Participation.
H1658, Documentation of Provider’s Tier Determination.
When submitting an alternate form for approval you must:







Use the checklist appropriate to the form located in Section 11000, Resources.
Identify on the proposed alternate form, the TDA form number.
Prepare corresponding instructions for every proposed alternate form.
Submit the checklist with the proposed alternate form to TDA.
Make corrections to alternate forms returned for changes by TDA and resubmit.
Begin using the alternate form only when you get approval notification from TDA.
Keep a copy of the alternate form approval letter from TDA and the approved form and
instructions in your CACFP program files.
You may use approved alternate forms until a revision is initiated. A revision may be necessary
due to an organization’s operational change or a regulatory/legislative change to CACFP.
Revisions to alternate forms must be approved through the alternate form approval process
before you can begin using the form.
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook
Managing the Program – 119
NOTE: Do not use an alternate form approved for another contractor until TDA approves the
form for your use.
EXCEPTIONS:



Forms that are reproduced electronically are not considered alternate forms if they are exact
replicas of both format and content. These do not need alternate form approval.
Organizations are accountable for ensuring that an electronically reproduced version of a
form is exactly the same as the TDA form. If any additional data element is added to the
form or instructions, or the TDA number and date are removed, it is considered an alternate
form and you must follow the alternate form approval process.
When an organization is using an alternate form and the TDA form is changed, it is the
organization’s responsibility to revise their alternate form through the alternate form
approval process to reflect TDA changes.
When an organization requests approval of an alternate form generated by a software
system that permits the use of only the most current form, a universal approval will be
given. The approval is sent to the requesting organization, but covers all the organizations
using that system.
You must submit copies of your current approved alternate forms with your annual application
for CACFP participation. This is part of your Management Plan and documents how you
intend to operate the program.
You are encouraged to submit requests for alternate forms approval well in advance of the
application process. However, if you do submit an alternate form for approval with your
application packet, include a note alerting TDA of the alternate form approval request to avoid
potential confusion or delays in processing the application packet.
120 – Managing the Program
Texas Department of Agriculture – April 2010
Child and Adult Care Food Program – Day Care Homes Handbook