CACFP Policy Memo Number 80

DOH-CACFP: Number 80 (12/02)

TO: All CACFP Sponsoring Organizations of Day Care Homes

FROM: Jeanne Culver, State Director, Child and Adult Care Food Program

SUBJECT: Clarification of Rules for Suspension and Termination of Providers

The purpose of this memorandum is to clarify the new rules for suspension and termination of day care home providers participating in CACFP. The Interim Rule, CACFP: Implementing Legislative Reforms to Strengthen Program Integrity, defines the circumstances and procedures that Sponsoring Organizations must follow when suspending or terminating providers. All Sponsoring Organizations received a copy of the new rule, transmitted with DOH-CACFP Number 72H, in July 2002.

The current memorandum supersedes all guidance previously issued for suspension and termination. The effective date for this memorandum is immediate, upon receipt. Please note that training on the new rules, including suspension and termination, will be provided to Sponsoring Organizations in May 2003 (dates have yet to be determined).

The interim rule allows Sponsoring Organizations to suspend payments to a day care home provider only under one condition: the imminent threat to the health or safety of children in care or the general public. Suspension can only occur when the licensing authority or sponsor staff identifies an imminent health or safety threat. Sponsoring Organizations cannot suspend a day care home provider for any other reason, including fraud and abuse of the Program. There are specific procedures that must be followed when suspending a provider. Therefore, Sponsoring Organizations should contact a Homes Unit nutritionist for assistance with this process.

The interim rule also specifies the types of serious deficiencies that would trigger a sponsor to begin the termination-for-cause process. The rules require Sponsoring Organizations to notify providers prior to termination and allow a period of time for the provider to make corrective actions, even when suspected or documented fraud or abuse is found. Until the May 2003 training occurs, it is important that Sponsoring Organizations contact a Homes Unit nutritionist for assistance when they plan to terminate a provider to ensure the process is in compliance with the new rules.

For assistance, please contact a Homes Unit nutritionist at 1-800-942-3858, ext. 27104.