Policy Memo 126

DOH-CACFP: Number 126 (03/09)

TO: CACFP Sponsoring Organizations of Day Care Homes

FROM: Lynne Oudekerk, Acting State Director, Child and Adult Care Food Program

SUBJECT: Record Maintenance Requirements for Family Day Care Home Providers and their Sponsors

I. Purpose and Scope

The purpose of this memo is to clarify the record keeping requirements for Family Day Care Home (FDCH) providers who participate in the Child and Adult Care Food Program (CACFP). Federal regulations describe the record retention rules that, according to recent USDA correspondence, apply to both the Sponsoring Organization and FDCH providers.

II. Background Information

  1. Required FDCH Records: Federal regulation 7 CFR 226.18(e) states the types of records that FDCH providers must keep. This includes:
    1. Child enrollment forms, updated annually
    2. Daily attendance records
    3. Daily meal count records (the number of meals served to enrolled children by the type of meal)
    4. Daily menu records
  2. Required Sponsor Records: Federal regulations 7 CFR 226.15(e) and 226.16(e) detail the FDCH provider records that must also be maintained by Sponsoring Organizations. This includes:
    1. A copy of all applications and supporting documents submitted to CACFP (e.g., DOH-3705 and license certificates)
    2. Documentation of enrollment of each child at each FDCH, updated annually
    3. Information used to determine the eligibility of provider's own/resident children to claim (e.g., DOH-4161)
    4. Information used to classify FDCHs as Tier I, including source documents (e.g., DOH-4161, school attendance map, BEDS code, census map, etc.)
    5. Information used to classify children as Tier I eligible in Tier II homes
    6. (e.g., DOH-4160)
    7. Daily records of attendance, meal counts and menus served
  3. Required Retention Period: Federal regulation 7 CFR 226.10(d) states the records must be retained for three years after the submission of the last claim for the current Federal Fiscal Year (October 1 through September 30). The exception to this rule is when there are outstanding audit findings, in which case the retention period is extended to three years after resolution of the audit. For FDCH providers, this means:
    1. The format for record retention can include either of the following as long as the records can be retrieved for review upon request:
      • Hard copy of forms
      • Electronic copy, but must be easily retrievable
    2. FDCH providers must keep all records to support the current month, and the previous 12 months of operation at day care home site.
    3. FDCH providers may store the remaining 2 years of records offsite, but they must be accessible within a reasonable amount of time.
    4. If no off-site storage is used, the FDCH must keep all 3 years of records at the day care home site.
  4. Retention of Records Related to Serious Deficiencies: Records documenting the serious deficiency process for providers must be retained by the Sponsoring Organization beyond the normal retention rules in the following instances:
    1. Records of FDCH providers who have been declared seriously deficient must be retained for three years after the date of the serious deficiency removal letter.
    2. Records supporting the termination and disqualification of FDCH providers must be retained for three years after the FDCH provider is removed from the National Disqualified List (e.g., 7 years on list plus 3 years).
  5. Consequences: Sponsors and providers must be aware that failure to maintain these records could result in the denial and/or recovery of program payments.
  6. Effective Date: Full implementation of this requirement must be completed no later than October 1, 2010, although Sponsoring Organizations should immediately begin work to ensure that appropriate records are retained.

III. Summary of Changes

Sponsoring Organizations and FDCH providers are required to maintain records to support claims for reimbursement. These records must be maintained by both Sponsoring Organizations and FDCH providers for a minimum of three years plus the current Federal Fiscal Year. Failure to maintain records could result in the denial and/or recovery of program payments.