CACFP Policy Memo Number 95
DOH-CACFP: Number 95 (07/04); Supersedes Number 89 (12/03)
TO: CACFP Sponsoring Organizations of For-Profit Day Care Centers
FROM: Jeanne Culver, State Director - Child and Adult Care Food Program
SUBJECT: Expanded Eligibility of For-Profit Centers
Purpose and Scope
- The purpose of this memorandum is to inform sponsoring organizations of for-profit child care centers of an extension in center eligibility. The Consolidated Appropriation Act of 2001 permits for profit child care centers and outside school hours child care centers to participate in CACFP if 25% of the participants are eligible for free and reduced price meals. The Child Nutrition and WIC Reauthorization Act of 2004 (Public Law 108-265) made this provision permanent.
- Prior to this provision, for-profit centers were only eligible when, in any month, 25% of the participants enrolled or 25% of the licensed capacity, whichever is less, received subsidized tuition payments (Proprietary Title XX centers).
- Centers were required to provide proof of eligibility by submitting:
- Copies of vendor remittance statements from the local Departments of Social Services; or
- Copies of the Provider/Program Invoice Request for Payment statements from the Agency for Child Development; or
- Proof of tuition payment from a Human Resources Administration program.
Summary of Changes
- Under the new provisions, a for-profit center meeting other program requirements can continue to participate as a Proprietary Title XX center or may elect to participate as a "Proprietary Free/Reduced Price (F/RP) center". A Proprietary F/RP center is defined as one in which 25% or more of the participants enrolled or 25% of the licensed capacity, whichever is less, are eligible for free and reduced price meals. Whether participating as a Title XX or F/RP center, each program must maintain documentation that the 25% threshold is met each claiming month. Proof of eligibility for F/RP proprietary centers would include copies of the Income Eligibility Applications for children meeting the free and reduced price eligibility and a current enrollment list.
- Centers cannot combine children receiving Title XX subsidies with children meeting the free and reduced price eligibility in order to meet the 25% threshold. Centers must meet the eligibility criteria of either the Proprietary Title XX or a Proprietary F/RP Center requirement.
- In determining the percentage of participants served, it is not permissible to "round up" the 25% calculations. For example, a center with 24.6% of its enrolled children eligible for free and reduced price meals would not be eligible for reimbursement during that month. A for-profit center must reach or exceed the 25% level each month CACFP reimbursement is sought.
- Centers that have been unable to meet the Proprietary Title XX requirements and can now meet the requirements of a Proprietary F/RP Center can submit documentation of meeting these criteria and request approval as a Proprietary F/RP Center.
- Centers that are already participating in CACFP as a Proprietary F/RP Center do not need to respond to this memo.
- This provision became effective on October 1, 2001 and remains in effect permanently.
- When a for-profit center requests reimbursement as a Proprietary Title XX center, information should be reported on the claim form according to the instructions. The center will continue to indicate the number of children receiving tuition subsidies for child care.
- When a for-profit center requests reimbursement as a Proprietary F/RP center, leave item 10 on the claim form (DOH-3703) blank.
If you have any questions about this information, please contact CACFP at 1-800-942-3858.