Policy Memo 165
DOH-CACFP: Number 165 (03/13), Supersedes Number 57 (07/01)
TO: CACFP Sponsoring Organizations of Day Care Homes
FROM: Sandra J Rhoades, Director, Homes Administration Unit, Child and Adult Care Food Program
SUBJECT: Policy for Provider Transfers
The purpose of this memorandum is to clarify the rules for Providers who wish to transfer their CACFP participation from one Sponsoring Organization (Sponsors) to another. The Agricultural Risk Protection Act of 2000 (P.L. 106-224) contains a provision that limits the number of times a family day care home Provider can transfer between Sponsoring Organizations to once per 12 month period. This memo also explains the rules concerning the recruitment of participating Providers by Sponsors.
CACFP recognizes that Sponsors develop their administrative budgets based on a specific number of homes that will claim meal reimbursement. An unprecedented change in the number of homes claimed could have serious results for a Sponsor in terms of staffing and services that can be offered to the remaining Providers. Therefore, this rule was designed to help Sponsors maintain the integrity of their administrative budget and help Sponsors avoid unnecessary competition for Providers.
Sponsors must make sure that Providers are aware of the rules and procedures for transferring their participation to avoid the loss of reimbursement. The Continuous Application & Agreement for Day Care Home Participation (CACFP-3705) was revised to include the new transfer rule. Please note that the Provider will not be eligible for reimbursement with the new Sponsor until all procedures are met and CACFP has approved the transfer. Therefore, it is recommended that transferring Providers be submitted on an adjusted claim to prevent delays in processing the claims for approved Providers.
A. A Provider may initiate a transfer from one Sponsor to another Sponsor only once during any 12 month period.
- A Provider may wish to transfer to another Sponsor when she/he moves to a new location or when the services of another Sponsor in the same area seem to better meet the Provider's needs.
- The Provider must notify the current Sponsor of their intent to transfer by completing and submitting Part 1 of the Provider Transfer Form (DOH-4219) at least two weeks prior to the effective date of the transfer. The DOH-4219 can be ordered from CACFP or downloaded from the website at: www.health.ny.gov/CACFP.
- The current Sponsor must complete Part 2 of the Provider Transfer Form and return it to the Provider within 5 business days.
- The Provider must submit the completed Provider Transfer Form to the new Sponsor. The new Sponsor must confirm that the Provider is in good standing with the current Sponsor prior to accepting the transfer. This is documented in Part 2 of the Provider Transfer Form.
- The new Sponsor must conduct a pre-approval visit to the transferring Provider's home and complete the paperwork required for all new Providers. The Provider Transfer Form must be submitted, with the required paperwork, to the State for approval.
B. CACFP may approve more frequent transfers for "good cause."
- The law allows a Provider to transfer more than once per 12-month period when there is good cause for the transfer.
- Situations that would justify transfers more frequently than once every 12 months include, but are not limited to:
- The Sponsoring Organization closes.
- The Provider moves out of the Sponsor's service area.
- The Sponsor changes their geographic service area.
- The Provider and Sponsor staff have irreconcilable differences.
- The same approval procedures for a Provider initiated transfer must be followed.
C. Limitations on Sponsor recruitment of Providers who are already participating in CACFP.
- A participating provider is defined as one currently claiming with another New York State Sponsor. Direct contact with, or recruitment of, participating Providers for the purpose of persuading the Provider to transfer to another Sponsor is strictly prohibited.
- Sponsors are also prohibited from soliciting the influence of third parties (other Providers, friends, relatives, etc.) for the purpose of persuading a Provider to transfer to another Sponsor.
- Direct contact/recruitment includes; but is not limited to:
- Telemarketing calls to participating Providers.
- In-home visits to participating Providers.
- Offers of cash or gift bonuses for changing Sponsors.
- Mailings with content designed to persuade participating Providers to transfer to another Sponsor.
- Presentations initiated by the Sponsor specifically designed to persuade and instruct participating Providers to transfer to another Sponsor.
- Any other type of communication initiated by the Sponsor with the intent to persuade Providers to transfer to another Sponsor.
- Direct contact/recruitment does not include:
- General promotion and publicity materials such as yellow pages advertising, newspaper and broadcast advertising, public service announcements, televised training, posters, web sites, etc.
- Mass mailings about other child care services provided by the Sponsor, such as resource and referral, business and tax classes, general nutrition training, etc.
- Booths or exhibits and resource materials distributed at conferences, child care fairs, open houses, shopping malls, county fairs, and other places accessible by the public.
- Workshops or training activities at conferences directed toward child care Providers.
- General informational workshops or meetings about CACFP that are not designed for recruitment purposes (such as menu planning workshops).
You may contact a Homes Unit nutritionist at 1-800-942-3858, select Option 3, if you have any questions regarding this memorandum.