CACFP Policy Memo Number 93

DOH-CACFP: Number 93 (08/04)

TO: CACFP Sponsoring Organizations of Day Care Homes

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

SUBJECT: Changes from the Child Nutrition and WIC Reauthorization Act of 2004

The Child Nutrition and WIC Reauthorization Act of 2004 (Public Law 108-265) made two significant changes to CACFP operations for sponsors of day care homes. The Act was signed by President Bush on June 30 and was given an effective date of June 30, 2004. Highlights of the new provisions are described below.

Extends Duration of Tier 1 Eligibility using School Data

The new law changed the duration of Tier 1 determinations for family and group day care homes from three to five years, when based upon school data. Sponsoring organizations are now required to re-determine the Tier status of day care homes using school data every five years instead of every three years. New day care home providers signed up from July 1, 2004 forward will have a Tier 1 expiration date in five years. For example, a day care home signed up on July 15th will have a Tier expiration date of June 30, 2009 - five years from the end of the month during which they signed up. Participating providers, whose tiering is currently based on the three-year cycle, may be extended by two years for a total of five years. Please note that the following will also occur:

  • A revised CACFP-3705 is being printed to reflect this change and will be available to order in quantity.
  • The five year expiration date will automatically calculate from the determination date for new providers in the next upgrade of the Windows-based Local Home System (version 3.22). In the meantime, sponsors will need to extend the expiration date by two years in the system for existing providers to give the full 5-year eligibility. If a 3-year re-determination was recently conducted for a provider, sponsors will need to change the eligibility period to the five year interval.
  • The DOS-based version of the Local Homes System will allow sponsors to data enter a five year interval for area school eligibility. However, an error message will display and bring the user back to the Tier expiration field. The user can then "page down" to bypass having to change the expiration date back to the three-year interval. The error message for the Tier expiration date will not affect the providers' ability to claim at the Tier 1 rate. For existing providers, sponsors will need to extend the expiration date by two years in the system to give the full 5-year eligibility interval.
  • Current year school data used to complete Tier determinations will continue to be sent to Sponsoring Organizations on a yearly basis.

Permanent Agreements between Sponsoring Organizations and Day Care Home Providers

Permanent agreements are allowed between sponsoring organizations and family or group day care home providers. This will streamline program operations and reduce the paperwork and record keeping requirements for sponsoring organizations and State agencies. The "agreement" specifies the rights and responsibilities of the sponsor and the provider. In New York State, the agreement is a part of the Provider Application form, CACFP-3705. This form has been revised and will be available to order in quantity. To prepare for this change, please note the following:

  • Sponsoring organizations will be required to amend their providers' current agreements to make them permanent by completing an Addendum to the Day Care Home Application and Agreement Form. This form is not yet approved, but a draft of this form is enclosed for your review. Copies of the finalized form will be mailed to sponsoring organizations as soon as they are ready. Do not use the draft form.
  • The Application and Agreement for Day Care Home Participation Form (CACFP-3705) has been revised and is being reprinted to reflect the continuous approval to participate. The revised CACFP-3705 will be used for all new providers applying for program participation. The revised CACFP-3705 form is not yet available, but will be mailed to sponsors as soon as it is ready.
  • All day care homes must have the permanent agreement in place no later than July 1, 2005. In order to accomplish this for currently participating providers, sponsors should bring the "addendum" for completion when conducting the next scheduled monitoring visit.
  • The permanent agreement continues the provisions for termination by either party for cause or convenience.
  • The provider will retain the right to transfer to a new sponsor in accordance with existing regulations.
  • CACFP will retain the right to require an amendment to the permanent agreement whenever there is a change in program policy or regulation which affects the agreement.
  • Sponsoring Organizations will be permitted to approve changes in a provider's meal service operations by updating the appropriate data management system (i.e., Local Homes System).
  • The application expiration date in the Windows version of the Local Homes System will be eliminated. Sponsoring Organizations will be notified when this change has occurred.
  • In the DOS version of the Local Homes System, a provider cannot be claimed if the application ending date has passed. Therefore, when a provider's current renewal expires, sponsors will be required to enter new beginning and ending application dates as if an actual renewal occurred. This will allow the provider to continue to be claimed.

CACFP will provide more information on the permanent agreement at an upcoming training session. Please contact a Homes Unit Nutritionist at 1-800-942-3858, ext. 27104, if you have any questions in the meantime.