Handout A - Steps to Notify Providers of Serious Deficiencies and Proposed Termination and Disqualification.

Click Here to Download Handout A

Step 1: After identifying a problem of non-compliance, the sponsor sends a Serious Deficiency Notice to the provider (Sample Letter C), that:

  • Identifies all serious deficiencies (use the list in Handout B).
  • Informs the home that corrective action must be taken as of a specific date.
  • If corrective actions are not taken, the sponsor proposes to terminate the home's agreement for cause and disqualify the home and the provider.

Step 2: Based upon the provider's response to the Serious Deficiency Notice, the Sponsor will do one of the following:

  1. If the provider corrects deficiencies, the sponsor informs the provider if the corrective actions taken are acceptable and the notice of serious deficiency is removed (Sample Letter D). No further action is needed.
  2. If the provider fails to document or permanently correct the serious deficiencies, the sponsor proposes to terminate the provider's agreement and disqualify the home and the provider, and gives the provider the right to appeal (Sample Letter E). Go to Step 3.

Step 3: The provider requests an appeal of the proposed termination and disqualification within 15 days of receipt of the notice. (Note: If the provider does not request an appeal, the process ends when the 15 days have elapsed and the sponsor issues a notice of termination and disqualification. See details for notice in step 5(a) below, using Sample Letter F.)

Step 4: The hearing is held and a decision is rendered.

Step 5: The sponsor informs the provider of the hearing decision (sends the State agency a copy of this letter).

  1. If the sponsor loses the appeal, the sponsor must inform the provider that (Sample Letter G):
    • The home's agreement is not terminated,
    • The provider is not disqualified, and can continue to claim for eligible meals served (payment was not stopped during appeal process).
  2. If the sponsor wins the appeal, the sponsor must send a Notice of Termination and Disqualification to the provider (Sample Letter H). The notice must inform the provider that:
    • The home's agreement is terminated for cause, and
    • The provider is disqualified and placed on the National Disqualified List.

Step 6: The sponsor sends the CACFP Homes Unit, NYSDOH, a copy of the notice.

Step 7: If the provider has been disqualified, the NYS DOH adds the home and the provider to the State agency list and informs USDA-FNS if there are any termination/disqualification actions to add to the National Disqualified List.

Please note: The provider will remain on the National Disqualified List for a period of seven years. If the provider owes a debt after seven years, the provider will remain on the list until the debt is repaid.