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Section 4000 Managing the Program

Table of Contents

4000 Managing the Program

4100 Reimbursable Meals 4110 Advance Planning of Meal Service 4111 Suggested Meal Enhancements 4112 Menu Planning 4112.1 Cycle and Non-cycle Menus 4113 Meal Pattern Chart 4113.1 Meal Pattern Charts – Infants 4113.2 Meal Pattern Charts – Children One Year and Older 4113.3 Variations in Meal Pattern Requirements for Religious Reasons 4113.4 Meals for Children/Infants with Disabilities 4113.5 Meals for Children/Infants with Medical or Special Dietary Needs 4113.6 Water Availability in the CACFP 4113.6.1 Water for Infants 4113.6.2 Water for Children One Year and Older 4113.7 Alternate Protein Products 4113.8 Grains/Breads Requirements 4113.9 Creditability of Breakfast Cereals 4114 Product Labeled Food 4114.1 CN Labels 4114.2 Product Analysis/Product Formulation Statements 4114.3 Manufacturer’s Specification 4115 Meal Service Schedule 4116 Meal Service Styles

Texas Department of Agriculture – June 2012 Managing the Program – 1 Child and Adult Care Food Program – Child Care Centers Handbook 4120 Meal Counts, Second Servings and Field Trips 4121 Limit on Quantity of Reimbursable Meals 4121.1 Excess Meals 4122 Meal Counts 4122.1 Meal Service Record 4122.2 Second Meals during One Meal Service 4123 Field Trips

4200 Claims for Reimbursement 4210 Eligibility for Free or Reduced-Price Meals 4211 Application 4212 Income Standards 4213 Pricing and Non-Pricing Programs 4213.1 Pricing Programs 4213.2 Non-Pricing Programs 4214 Eligibility Based on Household Size and Income 4214.1 Deployed Military Members 4214.2 Letter to Parents 4214.3 Head Start Program Eligibility 4214.3.1 Requirements for Centers that Operate Head Start Programs 4214.3.2 Requirements for Centers that Do Not Operate Head Start Programs 4214.4 Even Start Family Literacy Program Eligibility 4214.4.1 Requirements for Centers that Operate Even Start Programs 4214.4.2 Requirements for Centers that Do Not Operate Even Start Programs 4214.5 Early Head Start Program Eligibility 4214.5.1 Requirements for Centers that Operate Early Head Start Programs 4214.5.2 Requirements for Centers that Do Not Operate Early Head Start Programs 4215 Annual Renewal of Eligibility 4216 Record Retention 4217 Confidentiality

Managing the Program – 2 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4300 Program Administration 4310 Management and Monitoring 4311 Pre-Approval Visits of Sites 4312 Parental Notification 4313 Distribution of Women, Infants, and Children (WIC) Supplemental Food Program Materials 4314 Enrollment of Children 4315 Policy Statement 4316 State Government Privacy Policy 4317 Monitoring a Food Service Management Company Contract or Vendor Agreement 4320 Adding, Terminating, or Making Changes to Sites 4321 Denials 4322 Resuming Site Participation 4323 Open Enrollment 4324 Transfers 4330 Training 4331 Training Requirements for Sponsoring Organizations 4331.1 New Site and Sponsor Staff 4331.2 Participating Sites and Current Sponsor Staff 4332 Training Requirements for Independent Centers 4333 Training Documentation 4340 Monitor Reviews – Sponsoring Organizations 4341 Monitor Review Requirements for At-Risk Afterschool Care Centers 4342 Review Averaging 4342.1 How to Establish the Averaging Cycle 4343 Meal Edit Checks 4343.1 Five-Day Reconciliation 4343.2 Household Contacts 4350 Nonprofit Food Service 4351 Operating Costs 4351.1 Documentation Requirements for Operating Labor Costs 4351.2 Depreciation 4352 Administrative Costs 4352.1 Documentation Requirements for Administrative Labor Costs

Texas Department of Agriculture – June 2012 Managing the Program – 3 Child and Adult Care Food Program – Child Care Centers Handbook 4352.2 Unallowable Administrative Costs 4353 Program Income 4354 Net Costs 4360 Filing Claims 4361 Submittal Deadline 4362 Late Claims 4362.1 One-Time Exception 4362.2 Good Cause 4363 Adjusted Claims 4363.1 Upward Adjusted Amended Claims 4364 Limitations on Administrative Reimbursement for Sponsoring Organizations 4364.1 Sponsors of Affiliated Sites 4364.2 Sponsors of Unaffiliated Sites 4364.3 Sponsors of Both Affiliated and Unaffiliated Sites 4364.4 Waiver to Limitation on Administrative Reimbursement for Sponsoring Organizations 4370 Food Service Operations 4371 On-Site Food Preparation 4372 Estimating Costs 4373 Inventories 4374 Inventory Adjustments 4375 Recycled Food 4376 Storage 4377 Vended Programs 4377.1 Food Service Management Companies 4377.2 Program Meals Obtained from a School Food Authority that Participates in NSLP/SBP 4378 Operation of Child Nutrition Programs During a Pandemic 4379 Use of USDA Foods

4400 Program Documentation 4410 Retention Period 4420 Availability of Records 4430 Types of Records 4440 Required Forms

Managing the Program – 4 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4000 Managing the Program

By agreeing to participate in the CACFP, the contracting entity (CE) must accept final administrative and financial responsibility for operating the program in their independent child care center or their sponsored site(s). These responsibilities are described in federal and state laws, regulations and policies and in the CE’s approved application and FND Permanent Agreement. The CE must not deviate from its approved budget and application/management plan without F&N’s written consent.

Either directly or through its site(s), a CE must:

 Prepare and serve reimbursable meals.  Operate a nonprofit food service.  Manage program activities.  Document the program activities as required.

4100 Reimbursable Meals

The CACFP meal patterns guide the preparation of well-balanced and nutritious meals. The lunch pattern should provide children with approximately one-third of their recommended dietary allowance (RDA), while the breakfast pattern should provide approximately one-fourth of their RDA. It is recommended that thirty percent of calories come from fat from meals over several days. Salt and sodium should be used in moderation. Refer to Section 11000, Resources for instructions for calculating percentage of calories from fat. The CACFP meal patterns are a flexible framework that enables the CE and sites to choose from a wide variety of foods when planning and serving nutritious meals. Variations in the meal patterns can be considered for religious, cultural, and ethnic eating preferences when planning menus.

4110 Advance Planning of Meal Service

CEs and sites are encouraged to plan meals at least two weeks in advance of a meal service to assist in food-purchasing, cost control and the scheduling of food preparation. Using the appropriate USDA meal pattern and DFPS' Child Care Licensing requirements, a CE should help their sites vary the form, size, shape, color, texture, flavor, and temperature of foods that they offer. The CE should review their sites’ menus in advance to reduce the number of disallowed meals. Since children's diets often lack sufficient nutrients, such as iron and vitamins A and C, F&N recommends using foods that are good sources of these nutrients.

Texas Department of Agriculture – June 2012 Managing the Program – 5 Child and Adult Care Food Program – Child Care Centers Handbook A CE must ensure that its independent center or sponsored sites prepare a meal production record for each meal service daily. CEs and sites must record the food items used, and quantities on a daily basis on Form H1530, Daily Meal Production Record, or Form H1530-A, Daily Meal Production Record for Infants, Form H1530-B, Daily Meal Production Record for At Risk Afterschool, or alternate form.

The Daily Infant Food Record, developed by TDA and used in the TDA F&N Training titled, “Feeding Infants – During the First Year”, is a TDA alternate form. CE and sites can use the TDA Daily Infant Food Record in lieu of Form H1530-A. Refer to Section 11000, Resources, for the Daily Infant Food Record and instructions.

4111 Suggested Meal Enhancements

There are many ways that CEs and sites may improve their program's meal service. Options include, but are not limited, to:

 Contracting with a registered dietitian to provide assistance in preparing cycle menus, meeting participants' special diet requirements, and ensuring proper food storage and sanitation in all aspects of the food program;  Using cultural preferences as a factor when preparing menus;  Evaluating the food's visual appeal;  Monitoring plate waste;  Forming a client advisory committee to provide feedback on the meals provided; and  Providing adaptive equipment that allows disabled participants to feed themselves.

4112 Menu Planning

4112.1 Cycle and Non-cycle Menus

Cycle menus repeat themselves over a period of time, usually three to six weeks. Using cycle menus provides a variety of meals, reduces cost, and makes it easier for CEs and sites to plan their children's favorite combinations. Non-cycle menus may be repeated with any frequency, for example, one-month.

4113 Meal Pattern Charts

The meal pattern charts show the minimum amounts of each meal component that must be provided to each child for the meal to qualify for reimbursement. CEs and sites may serve any additional food that they choose. Serving sizes vary for children of different ages.

Managing the Program – 6 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CEs and sites are valuable partners in the challenge to improve the health of Texans, prevent obesity, and model better eating habits for Texas children. Here are some facts (from The Strategic Plan for the Prevention of Obesity in Texas: 2005–2010), published by the Texas Department of State Health Services:

 Unhealthy eating contributes to many of the current leading causes of death in Texas.  More than one in three Texas children is overweight, increasing their chance of becoming obese adults by 25 to 50 percent.  A diet high in fruits and vegetables can help reduce the risk of heart disease, cancer and stroke, the three leading causes of death.  Children are establishing poor fruit and vegetable eating habits at an early age. Research shows 45 percent of kids eat no fruit and 20 percent eat less than one vegetable per day, falling short of the 4 cups or 8 servings they need each day.  Snacks play a major role in children’s diets and serving healthy snacks is important to providing good nutrition and improving lifelong healthy eating habits.

Below are a variety of resources to assist CEs and sites with planning healthy snacks and incorporating fruits and vegetables into their menus:

• Healthy Snacks for Young Children from Team Nutrition Iowa, Iowa Public Television at http://www.iptv.org/rtl/downloads/SlidesFood1.pdf. A collection of recipes for healthy snacks for young children. Each card provides a book title appropriate for young children relevant to the specific foods in the recipe. The recipes provide a fruit, vegetable or bread/grain serving for snacks for 1 to 5 year olds according to the Child and Adult Care Food Program guidelines. • Illinois Learning Project Tip Sheet – “Say Yes to Healthy Snacks” at http://www.illinoisearlylearning.org/tipsheets/healthysnacks.htm • MyPyramid for Kids at http://teamnutrition.usda.gov/kids-pyramid.html • Dietary Guidelines for Americans, 2010 at http://health.gov/dietaryguidelines/2010.asp  USDA Recipes for Child Care at http://teamnutrition.usda.gov/Resources/childcare_recipes.html

Texas Department of Agriculture – June 2012 Managing the Program – 7 Child and Adult Care Food Program – Child Care Centers Handbook 4113.1 Meal Pattern Charts - Infants

Meal Type Birth through 4 Months through 8 Months through 3 Months 7 Months 11 Months

BREAKFAST 4-6 fluid ounces (fl oz) of 4-8 fl oz of formula 1 or 6-8 fl oz of formula 1 or formula 1 or breastmilk 2,3. breastmilk 2,3 ; breastmilk 2,3 ; and and 0-3 tablespoons (Tbsp) of infant 2-4 Tbsp of infant cereal 1 ; cereal 1,4. and 1-4 Tbsp of fruit or vegetable or both. LUNCH OR 4-6 fl oz of formula 1 or 4-8 fl oz of formula 1 or 6-8 fl oz of formula 1 or 2,3 2,3 2,3 SUPPER breastmilk . breastmilk ; breastmilk ; and and 0-3 Tbsp of infant cereal 1,4 ; 1-4 Tbsp of fruit or vegetable or and both ; and 0-3 Tbsp of fruit or vegetable or both 4. 2-4 Tbsp of infant cereal 1 ; and/or 1-4 Tbsp of meat, fish, poultry, egg yolk, cooked dry beans or peas; or 1/2-2 oz. of cheese; or 1-4 oz. (volume) of cottage cheese; or 1-4 oz. (weight) of cheese food, or cheese spread. SNACK 4-6 fl oz of formula 1 or 4-6 fl oz of formula 1 or 2-4 fl oz of formula 1 or breastmilk 2,3. breastmilk 2,3. breastmilk 2,3, or fruit juice 5 ; and 0-1/2 slice of bread 4,6 or 0-2 crackers 4,6.

1 Infant formula and dry infant cereal must be iron-fortified. 2 Breastmilk or formula, or portions of both, may be served; however, it is recommended that breastmilk be served in place of formula from birth through 11 months. 3 For some breastfed infants who regularly consume less than the minimum amount of breastmilk per feeding, a serving of less than the minimum amount of breastmilk may be offered, with additional breastmilk offered if the infant is still hungry. 4 A serving of this component is required only when the infant is developmentally ready to accept it. 5 Fruit juice must be full-strength. Texas Department of Family and Protective Services Child Care Licensing does not allow juice to be served to infants less than 12 months of age. 6 A serving of this component must be made from whole-grain or enriched meal or flour.

Managing the Program – 8 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook (See the Food Buying Guide for more details.) Chart Revised by TDA F&N– Sep 2011

Texas Department of Agriculture – June 2012 Managing the Program – 9 Child and Adult Care Food Program – Child Care Centers Handbook NOTES:  Meal component substitutions to any component in the infant meal pattern due to an infant’s disability or medical or special dietary need must be supported by a medical statement.

 If special needs require the CE or site to serve whole cow’s milk to an infant, the CE must first request approval from F&N to serve whole milk as part of a reimbursable meal.

CEs and sites must offer program meals to all children who are enrolled for care, including infants. CEs and sites may not avoid this obligation by stating that the infants are not “enrolled” in the CACFP, or by stating they are not claiming infant meals.

CEs and sites must offer at least one infant formula that meets the infant meal pattern requirements. A parent (or guardian) may decline the infant formula that is offered and supply an alternate infant formula. The CE and/or site must have a statement from the parent (or guardian) declining the infant formula offered in order to claim the meal.

According to CACFP requirements, in order to claim meals for reimbursement for infants 4 through 7 months, the CE and site is required to serve infant cereal and other foods when the infant is developmentally ready to accept them. CEs and sites must include in their program documentation the following elements in order to claim reimbursement for meals that are served to infants:

 Infant's name;  Infant's date of birth;  Name of center;  The name and type of infant formula the CE or site will provide;  Whether the parent (or guardian): o Will bring the breastmilk; o Will bring the infant formula. Adequate information must be provided by the parent (or guardian) about the alternate infant formula to determine whether the infant formula meets infant meal pattern requirements (e.g., the name brand of the infant formula and whether the infant formula is iron-fortified); o Will bring solid foods that the infant is developmentally ready to accept; o Wants the center to provide the infant formula; o Wants the center to provide infant cereal and other food items that the infant is developmentally ready to accept according to the Infant Meal Pattern;  Parent’s (or guardian's) signature; and  Date of signature.

Refer to Section 11000, Resources, for the CACFP Infant Feeding Preference – Centers.

Managing the Program – 10 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook NOTE: As situations change, such as a physician or recognized medical authority changing the infant’s formula, the CE or site must update the information in the infant’s file. The information must be updated within one month of the infant moving from one age category to the next.

An infant formula is considered to meet program requirements when it:

 Meets requirements of the infant meal pattern; or  Does not meet the infant meal pattern requirements, but the CE or site maintain a medical statement to support the substitution.

BIRTH THROUGH THREE MONTHS

Then the CE or site may claim reimbursement when the If the… CE/site … CE or site provides the Provides the infant formula/breastmilk1 in the minimum infant formula, quantity specified in the infant meal pattern. Parent (or guardian)  Has a statement from the parent (or guardian) declining provides the infant the infant formula offered; formula/breastmilk1,  Feeds the infant formula/breastmilk1 in the minimum quantity specified in the infant meal pattern; and  Staff feeds the infant.

FOUR THROUGH SEVEN MONTHS

Then the CE or site may claim reimbursement when the If the… CE/site … CE or site provides all of the Provides the infant a complete meal (including required2 meal required2 meal components, components) in the minimum quantity specified in the infant meal pattern. CE or site provides the Provides the infant a complete meal (including required2 meal infant formula, components) in the minimum quantity specified in the infant meal pattern. Parent (or guardian)  Has a statement from the parent (or guardian) declining the provides the infant infant formula offered; and formula/breastmilk1,  Feeds the infant a complete meal (including required2 meal components) in the minimum quantity specified in the infant meal pattern. Parent (or guardian)  Has a statement from the parent (or guardian) declining provides some of the meal specific meal components (e.g., infant formula or solid food) components, offered; and  Provides at least one of the required2 meal components in

Texas Department of Agriculture – June 2012 Managing the Program – 11 Child and Adult Care Food Program – Child Care Centers Handbook the minimum quantity specified in the infant meal pattern.

1 This includes breastmilk provided to the parent (or guardian) by a wet nurse. 2 If the infant is developmentally ready for solid foods, then the optional meal component(s) are required and no longer considered as options and must be served on a gradual basis to the infant. The determination to be developmentally ready should be made by the infant’s parent (or guardian).

EIGHT THROUGH 11 MONTHS

Then the CE or site may claim reimbursement when the If the … CE/site … CE or site provides all of the Provides the infant a complete meal (including required2 meal meal components, components) in the minimum quantity specified in the infant meal pattern. CE or site provides the infant Provides all other required2 meal components in the minimum formula, quantity specified in the infant meal pattern. Parent (or guardian) provides  Has a statement from the parent (or guardian) declining the the infant formula/breastmilk1, infant formula offered; and  Provides all other required2 meal components in the minimum quantity specified in the infant meal pattern. Parent (or guardian) provides  Has a statement from the parent (or guardian) declining some of the meal components, specific meal components (e.g., infant formula or solid food) offered; and  Provides at least one of the required2 meal components in the minimum quantity specified in the infant meal pattern. 1 This includes breastmilk provided to the parent (or guardian) by a wet nurse. 2 If the infant is being served a snack, and the infant is developmentally ready for bread or crackers, then the optional meal component(s) for a snack are required and no longer considered as options and must be served on a gradual basis to the infant. The determination to be developmentally ready should be made by the infant’s parent (or guardian).

Refer to Section 11000 for iron-fortified infant formulas which do not require a medical statement.

Managing the Program – 12 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook When Served to Infants 9 Through 11 Months:

These types of formulas do not require medical statements when they are served to infants from 9 months through 11 months of age. (A medical statement is required if any of them is served to infants younger than 9 months or to children 1 year of age and older):

 Ross Similac 2 Older Baby & Toddler Formula with Iron  Ross Similac Isomil 2 Older Baby & Toddler Soy Formula with Iron

Fruits and Vegetables

Commercial baby foods that are reimbursable in the Infant Meal Pattern:

 Commercial baby food fruits and vegetables that list fruit or vegetable as the first ingredient in the ingredient listing on the label.  Commercial baby food fruits and vegetables that contain multiple fruits or multiple vegetables, and list fruit or vegetable as the first ingredient in the ingredient listing on the label.

Commercial baby foods that are NOT reimbursable:

 Commercial baby food "dinners" which list fruit or vegetable as the first ingredient.  Commercial baby foods in the "jarred cereal with fruit” category.  Commercial baby foods in the "dessert" category (these generally have "dessert" as part of the product name on the front of the label) that list a fruit as the first ingredient in their ingredient listing.  Commercial baby food fruits and vegetables that list water as the first ingredient in their ingredient listing.

NOTE: Policy has changed to allow commercial baby foods containing modified food starch to be served in the Infant Meal Pattern. However, most products containing modified food starch and other ingredients will still not be reimbursable because the first ingredient in their ingredient listing is water.

Texas Department of Agriculture – June 2012 Managing the Program – 13 Child and Adult Care Food Program – Child Care Centers Handbook Meat/Meat Alternates

Commercial baby foods that are reimbursable:

 Commercial plain strained baby food meats (including those with beef, chicken, turkey, lamb, veal and ham).  Gerber "2nd Foods" baby food meat products (i.e., Beef and Beef Gravy, Chicken and Chicken Gravy, Ham and Ham Gravy, Lamb and Lamb Gravy, Turkey and Turkey Gravy, and Veal and Veal Gravy), even if they do contain additional ingredients, such as cornstarch and, in some cases, lemon juice concentrate.

Commercial foods and baby foods that are NOT reimbursable:

 Commercial baby food "combination dinners" because the actual amount of various food components in the dinners is difficult to determine.  Meat sticks or "finger sticks" (which look like miniature hot dogs) because they could present a choking risk in infants and, by the manufacturer's declaration, they are designed to match the skills of children over 12 months of age.  Commercial fish sticks, other commercial breaded or battered fish or seafood products, canned fish with bones, hot dogs, and sausages, because these foods are not designed by their manufacturers for consumption by infants (less than 12 months of age). Also, infants may choke on these food items and there may be an incidental bone in fish sticks and other breaded fish products.  Yogurt is NOT reimbursable, but can be served as an additional food if a parent requests that it be served.  Nuts, seeds and nut and/or seed butters, because these foods can cause an infant to choke and can cause allergic reactions in some infants.

Bread and Crackers, and Infant Cereals

Bread and cracker-type products that are reimbursable:

The following foods, which must be made from whole-grain or enriched meal or flour, are reimbursable in the bread and crackers categories of the Infant Meal Pattern:

Bread

 Breads (white, wheat, whole wheat, French, Italian, and similar breads, all without nuts, seeds, or hard pieces of whole-grain kernels)  Biscuits  Bagels (made without nuts, seeds, or hard pieces of whole-grain kernels)

Managing the Program – 14 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  English muffins  Pita bread (white, wheat, whole wheat)  Rolls (white, wheat, whole wheat, potato, all without nuts, seeds or hard pieces of whole-grain kernels)  Soft tortillas (wheat or corn)

Cracker-type products

 Crackers-saltines or snack crackers made without nuts, seeds, or hard pieces of whole- grain kernels; matzo crackers; animal crackers; graham crackers made without honey (honey, even in baked goods, could possibly contain Clostridium botulinum spores which can cause a type of serious food borne illness in infants)  Zwieback  Teething biscuits

NOTE: If any of the above items are served, they must be prepared in a form that is suitable for an infant to use as a finger food and that reduces the chances of choking (e.g., small thin strips of bread are most appropriate, not a whole or half of an uncut hard bagel, English muffin, pita bread, wheat roll, or soft tortilla). It is advisable that these items only be served if parents agree for them to be served, and after they have previously been introduced to an infant, with no problems, by the infant's parents.

It would be inappropriate to serve certain foods in this category to infants because they may contain ingredients which could cause allergies (e.g., pancakes, waffles, or muffins made with whole eggs), cause choking (e.g., hard pretzels, certain cookies, bread sticks, tortilla chips, granola bars, croutons, pieces of crunchy waffles, many ready-to-eat breakfast cereals), or add additional calories without being nutrient-dense foods (e.g., doughnuts, cake, brownies).

Cereal that is reimbursable:

Infant cereal in the Infant Meal Pattern is defined as "any iron-fortified dry cereal specially formulated for and generally recognized as cereal for infants that is routinely mixed with formula or milk prior to consumption." The package should include the words, "Cereal for Baby," and the infant cereal should be fortified with iron. The percent Daily Value for iron on the nutrition label must be at least 45%.

Cereals that are NOT reimbursable:

 Iron-fortified dry infant cereal containing fruit  Commercial jarred baby food cereals (which are "wet," not "dry")  Ready-to-eat breakfast cereal (cold dry) and cooked breakfast cereals (such as farina or oatmeal). Although enriched farina, regular oatmeal, and corn grits, for example, are not reimbursable, they can be fed as additional foods if the parent requests that they be served.

Texas Department of Agriculture – June 2012 Managing the Program – 15 Child and Adult Care Food Program – Child Care Centers Handbook Do not feed ready-to-eat cold or cooked breakfast cereals with nuts, seeds, raisins and hard pieces of whole-grain kernels or other hard food pieces to infants because they pose a choking risk.

Fruit Juice

Full-strength fruit juice (regular or infant juice) is the only type of juice product that qualifies for reimbursement as a snack for infants 8 through 11 months of age in the Infant Meal Pattern. Although not specified in the regulations, it is recommended that if juice is served, the following types of juice be selected:

 Fruit juice containing or fortified with Vitamin C (Vitamin C promotes the body's absorption of iron in food.)  Only pasteurized fruit juice. Some kinds of juice and cider have not been pasteurized and may contain harmful bacteria. Frozen concentrate, shelf stable juice in hermetically- sealed containers, including infant juices, and canned juices are processed or pasteurized to eliminate harmful bacteria.

NOTE: Vegetable juices and fruit juices with yogurt are NOT reimbursable in the Infant Meal Pattern because, by regulation, only full-strength fruit juice is reimbursable. Although these products are NOT reimbursable, they can be served as additional foods if a parent requests that they be served.

General Guidelines

Check with parents to be certain that an infant has tried, and had no reaction to, baby food products before serving them. This would include, but is not limited to the following:

 Baby food products containing multiple fruits or vegetables and other ingredients (such as milk, nonfat dry milk, whole milk solids, cheese, whey, wheat flour or other wheat products, tomato, corn).  A meat product and any other ingredient besides the meat (such as cornstarch, which could be a problem if an infant is allergic to corn).

Request that parents furnish a statement signed by a recognized medical authority if their infant is allergic to and should not be fed certain foods or ingredients. The statement must be signed by a licensed physician if the allergy is severe and life-threatening. The statement should include the medical or other special dietary need that restricts the infant's diet, the food or foods to be omitted from the infant's diet, and the food or foods to be substituted.

Managing the Program – 16 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook It is highly recommended that written instructions be obtained from parents, who, in consultation with their infant's doctor, request that certain optional or additional foods be fed or specifically not be fed to their infants.

Texas Department of Agriculture – June 2012 Managing the Program – 17 Child and Adult Care Food Program – Child Care Centers Handbook 4113.2 Meal Pattern Charts – Children One Year and Older

BREAKFAST FOOD COMPONENTS Age 1 - 2 Age 3 - 5 Age 6 - 121 Serve All Three Components for a Reimbursable Meal Milk2,3 Milk, fluid 2,3 1/2 cup (4 fl oz) 3/4 cup (6 fl oz) 1 cup (8 fl oz)

Vegetables/ Fruits4 Vegetable(s) and/or fruit(s) or 1/4 cup 1/2 cup 1/2 cup

Full strength vegetable or fruit 1/4 cup 1/2 cup 1/2 cup juice 4, or

An equivalent quantity of any combination of vegetable(s), fruit(s) and juice 4 Grains/Breads5,6 Bread 5, or 1/2 slice 1/2 slice 1 slice

Cornbread, biscuits, rolls, 1/2 serving 1/2 serving 1 serving muffins, etc.5, or

6 6 Cold dry cereal 5,6, or 1/4 cup or 1/3 oz 1/3 cup or 1/2 oz 3/4 cup or 1 oz 6

Cooked cereal 5, or 1/4 cup 1/4 cup 1/2 cup

Cooked pasta or noodle products 1/4 cup 1/4 cup 1/2 cup 5, or Cooked cereal grains 5, or 1/4 cup 1/4 cup 1/2 cup

An equivalent quantity of any combination of Grains/Breads 1 Children ages 13 through 18 must be served minimum or larger portion sizes specified in this column for children ages 6 through 12. 2 USDA requires children ages 2 and older be served low-fat (1%) or non-fat (skim) milk. Texas Department of Family and Protective Services Child Care Licensing (TDFPS CCL) does not allow flavored (sweetened) milk, except for special occasions. 3 USDA requires water be made available at all meals and upon request, but does not take the place of milk. TDFPS CCL requires that water is always available to each child and is served at every snack, mealtime, and after active play in a safe and sanitary manner. 4 Fruit or vegetable juice must be full-strength. You may serve an equivalent quantity of any combination of vegetable(s) or fruit(s), and juice. TDFPS CCL only allows juice to be served once daily in the amounts of up to 4 ounces of juice for children ages 12 months through 5 years of age and 6 ounces for children ages 6 years and older. 5 Bread, pasta or noodle products, and cereal grains, must be whole-grain or enriched. Cornbread, biscuits, rolls, muffins, etc. must be made with whole grain or enriched meal or flour. Cereal must be whole-grain or enriched or fortified. 6 Either volume (cup) or weight (oz), whichever is less. (See your Food Buying Guide for more details.) Chart Revised by TDA F&N – Dec 2011

Managing the Program – 18 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CHILD CARE MEAL PATTERN FOR CHILDREN ONE YEAR OLD OR OLDER (cont.)

LUNCH or SUPPER FOOD COMPONENTS Age 1 - 2 Age 3 - 5 Age 6 - 121 Serve All Four Components for a Reimbursable Meal Milk2,3 Milk, fluid 2,3 1/2 cup (4 fl oz) 3/4 cup (6 fl oz) 1 cup (8 fl oz) Vegetables/ Vegetable(s) and/or fruit(s) 1/4 cup total 1/2 cup total 3/4 cup total Fruits4 (2 or more) Grains/Breads5 Bread 5, or 1/2 slice 1/2 slice 1 slice Cornbread, biscuits, rolls, muffins, 1/2 serving 1/2 serving 1 serving etc.5, or

Cooked pasta or noodle products 1/4 cup 1/4 cup 1/2 cup 5, or

Cooked cereal grains 5, or 1/4 cup 1/4 cup 1/2 cup

An equivalent quantity of any combination of Grains/Breads Meat/ Meat Lean meat or poultry or fish 6, or 1 oz 1 1/2 oz 2 oz 6,7,8,9 Alternates Alternate protein products 7, or 1 oz 1 1/2 oz 2 oz

Cheese, or 1 oz 1 1/2 oz 2 oz

Egg (large), or 1/2 large egg 3/4 large egg 1 large egg

Cooked dry beans or peas, or 1/4 cup 3/8 cup 1/2 cup

Peanut butter or soynut butter, or 2 Tbsp 3 Tbsp 4 Tbsp other nut or seed butters, or

8 8 8 Peanuts or soynuts or tree nuts or 1/2 oz = 50% 3/4 oz = 50% 1 oz = 50% seeds 8,9, or

Yogurt - plain or flavored, 4 oz or 1/2 cup 6 oz or 3/4 cup 8 oz or 1 cup unsweetened or sweetened, or

An equivalent quantity of any combination of the above Meat/Meat Alternates Notes continued on next page

Texas Department of Agriculture – June 2012 Managing the Program – 19 Child and Adult Care Food Program – Child Care Centers Handbook 1 Children ages 13 through 18 must be served minimum or larger portion sizes specified in this column for children ages 6 through 12. 2 USDA requires children ages 2 and older be served low-fat (1%) or non-fat (skim) milk. Texas Department of Family and Protective Services Child Care Licensing (TDFPS CCL) does not allow flavored (sweetened) milk, except for special occasions. 3 USDA requires water be made available at all meals and upon request, but does not take the place of milk. TDFPS CCL requires that water is always available to each child and is served at every snack, mealtime, and after active play in a safe and sanitary manner. 4 Serve two or more kinds of vegetable(s) and/or fruit(s). Full-strength vegetable or fruit juice may be counted to meet not more than one-half of this requirement. TDFPS CCL only allows juice to be served once daily in the amounts of up to 4 ounces of juice for children ages 12 months through 5 years of age and 6 ounces for children ages 6 years and older. 5 Bread, pasta or noodle products, and cereal grains, must be whole-grain or enriched. Cornbread, biscuits, rolls, muffins, etc. must be made with whole grain or enriched meal or flour. Cereal must be whole-grain or enriched or fortified. 6 A serving consists of the edible portion of cooked lean meat or poultry or fish. 7 Alternate protein products must meet requirements in Appendix A of 7 CFR Part 226. 8 Nuts and seeds may meet only one-half of the total Meat/Meat Alternate serving and must be combined with another Meat/Meat Alternate to fulfill the lunch or supper requirement. 1 ounce of nuts or seeds is equal to 1 ounce of cooked lean meat, poultry, or fish. 9 Nuts and seeds are generally not recommended to be served to children ages 1-3 since they present a choking hazard. If served, nuts and seeds should be finely minced. (See your Food Buying Guide for more details.) Chart Revised by TDA F&N – Dec 2011

Managing the Program – 20 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CHILD CARE MEAL PATTERN FOR CHILDREN ONE YEAR OLD OR OLDER (cont.)

SNACKS Age 1 - 2 Age 3 - 5 Age 6 - 121 Select Two of the Four Components

Milk2,3 Milk, fluid 2,3 1/2 cup (4 fl oz) 1/2 cup (4 fl oz) 1 cup (8 fl oz) Vegetables/ Vegetable(s) and/or fruit(s), or 1/2 cup 1/2 cup 3/4 cup 4,5 Fruits Full strength vegetable or fruit 1/2 cup 1/2 cup 3/4 cup juice 4,5, or

An equivalent quantity of any combination of vegetable(s), fruit(s) and juice 4,5 Grains/Breads6,7 Bread 6, or 1/2 slice 1/2 slice 1 slice Cornbread, biscuits, rolls, muffins, 1/2 serving 1/2 serving 1 serving etc.6, or

7 7 7 Cold dry cereal 6, or 1/4 cup or 1/3 oz 1/3 cup or 1/2 oz 3/4 cup or 1 oz

Cooked cereal 6, or 1/4 cup 1/4 cup 1/2 cup

Cooked pasta or noodle products 1/4 cup 1/4 cup 1/2 cup 6, or

Cooked cereal grains 6, or 1/4 cup 1/4 cup 1/2 cup

An equivalent quantity of any combination of Grains/Breads Meat/ Meat Lean meat or poultry or fish8, or 1/2 oz 1/2 oz 1 oz 8,9,10,11 Alternates Alternate protein products9, or 1/2 oz 1/2 oz 1 oz

Cheese, or 1/2 oz 1/2 oz 1 oz

Egg (large), or 1/2 large egg 1/2 large egg 1/2 large egg

Cooked dry beans or peas, or 1/8 cup 1/8 cup 1/4 cup

Peanut butter or soynut butter, or 1 Tbsp 1 Tbsp 2 Tbsp other nut or seed butters, or

10 10 10 Peanuts or soynuts or tree nuts or 1/2 oz = 50% 1/2 oz = 50% 1 oz = 50% seeds 10,11, or

Yogurt - plain or flavored, 2 oz or 1/4 cup 2 oz or 1/4 cup 4 oz or 1/2 cup unsweetened or sweetened, or An equivalent quantity of any combination of the above Meat/Meat Alternates Notes continued on next page

Texas Department of Agriculture – June 2012 Managing the Program – 21 Child and Adult Care Food Program – Child Care Centers Handbook 1 Children ages 13 through 18 must be served minimum or larger portion sizes specified in this column for children ages 6 through 12. 2 USDA requires children ages 2 and older be served low-fat (1%) or non-fat (skim) milk. Texas Department of Family and Protective Services Child Care Licensing (TDFPS CCL) does not allow flavored (sweetened) milk, except for special occasions. 3 USDA requires water be made available at all meals and upon request, but does not take the place of milk. TDFPS CCL requires that water is always available to each child and is served at every snack, mealtime, and after active play in a safe and sanitary manner. 4 Fruit or vegetable juice must be full-strength. You may serve an equivalent quantity of any combination of vegetable(s) or fruit(s), and juice. TDFPS CCL only allows juice to be served once daily in the amounts of up to 4 ounces of juice for children ages 12 months through 5 years of age and 6 ounces for children ages 6 years and older. 5 Juice may not be served when milk is the only other component. 6 Bread, pasta or noodle products, and cereal grains, must be whole-grain or enriched. Cornbread, biscuits, rolls, muffins, etc. must be made with whole grain or enriched meal or flour. Cereal must be whole-grain or enriched or fortified. 7 Either volume (cup) or weight (oz), whichever is less. 8 A serving consists of the edible portion of cooked lean meat or poultry or fish. 9 Alternate protein products must meet requirements in Appendix A of 7 CFR Part 226. 10 Nuts and seeds may meet only one-half of the total Meat/Meat Alternate serving and must be combined with another Meat/Meat Alternate to fulfill the lunch or supper requirement. 1 ounce of nuts or seeds is equal to 1 ounce of cooked lean meat, poultry, or fish. 11 Nuts and seeds are generally not recommended to be served to children ages 1-3 since they present a choking hazard. If served, nuts and seeds should be finely minced. (See your Food Buying Guide for more details.) Chart Revised by TDA F&N – Dec 2011

In addition to the meal pattern requirements, CEs and sites must also adhere to the following guidance:

 Children 12 and older may be served adult size portions but must be served at least the minimum amount for children age 6 to 12.  “Cup” means a standard measuring cup of 8 oz.  Bread, pasta or noodle products, and cereal grains must be wholegrain or enriched. Cornbread, biscuits, rolls, muffins, etc., must be made with wholegrain or enriched meal or flour. Cereal must be wholegrain, enriched, or fortified.  For products made with corn meal or corn flour, such as cornbread or corn tortillas; the label must have: o “Whole corn” (or other “whole” corn designations, such as whole grain corn, whole ground corn, whole cornmeal, whole corn flour, etc.); or o “ Enriched” corn (or other “enriched” corn designations, such as enriched yellow cornmeal, enriched corn flour, enriched corn grits, etc.).  All serving sizes and equivalents must be as specified in the Food Buying Guide (FBG) as published by USDA. A link to the FBG is located on the TDA website at http://squaremeals.org, under F&N Resources, Tools & Links. The FBG Calculator for Child Nutrition Programs is also available. The calculator allows users to build shopping lists of foods from the FBG and determine how much of each item to purchase to provide enough servings for the children in their program.  Juice cannot be used as the second component of a snack if milk is the first component.

Managing the Program – 22 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  The minimum serving size for cereal is measured by volume (cup) or weight (oz.), whichever is less.  At lunch or supper, the CE/site must serve two or more kinds of vegetable and/or fruit. Full strength vegetable or fruit juice may be counted toward a maximum of one-half of this requirement.  The minimum amounts shown for meat, poultry or fish are edible portions as served.

 USDA determines whether a specific tree nut or seed may be served as a meat alternate. At lunch or supper, tree nuts and seeds may be counted toward a maximum of one-half of this requirement. Nuts or seeds must be combined with another meat/meat alternate to fulfill the requirement. For the purpose of determining combinations, one ounce of nuts or seeds is equal to one ounce of cooked lean meat, poultry or fish.  The following items cannot be used to satisfy the meat/meat alternate component for a snack: o Frozen yogurt. o Yogurt bars. o Yogurt covered fruits or nuts. o Yogurt flavored products. o Homemade yogurt.  Fluid milk served to children ages two and older must be pasteurized fluid milk that meets State and local standards, and must be: o Fat-free or low-fat milk o Fat-free or low-fat lactose reduced milk o Fat-free or low-fat lactose free milk o Fat-free or low-fat buttermilk o Fat-free or low-fat acidified milk  Fluid milk may be flavored or unflavored (DFPS regulations prohibit serving flavored milk)  Whole milk and reduced-fat (2%) milk may not be served to children two years and older

NOTE: Commercially added flavorings such as fruit, fruit juice, juice, nuts, seeds, or granola cannot be counted as the second component of a snack.

General Guidelines

TDA is committed to the 3E’s of Healthy Living – Education, Exercise and Eating Right. As part of that commitment, the CACFP initiative “Promoting Healthy Eating and Physical Activity for a Healthier Lifestyle” is the TDA F&N avenue to promote a healthier lifestyle, including healthy eating and physical activity for children ages 2 – 5 years. F&N partnered with CACFP contracting entities from both independent centers and sponsoring organizations to recommend changes to the Child Care Meal Patterns to comply with the 2005 Dietary Guidelines for Americans.

Texas Department of Agriculture – June 2012 Managing the Program – 23 Child and Adult Care Food Program – Child Care Centers Handbook The recommended modifications are voluntary, but if CEs and sites implement these minor changes to the meal patterns, they will lower total fat, saturated fat, trans fatty acids, added sugars and calories. At the same time, they will increase fruit, vegetable, vitamins A and C, fiber and whole grain consumption.

The recommended modifications are as follows:

 Serve juice only once daily, for breakfast or snack (juice must not be served from a bottle).  Serve one fresh or frozen fruit or vegetable daily for a required Vegetables/Fruits component at any meal service.  Serve one good source of Vitamin C daily.  Serve one good source of Vitamin A three days per week. (See the list below for examples of vitamin A and C rich foods)  Serve one whole grain daily (whole grain must be the first ingredient listed), for a required Grains/Breads component at any meal service.  Serve Grains/Breads food items listed in Exhibit A: Group C through Group G of the Food Buying Guide no more than twice a week for a snack only.  Serve ready-to-eat cereals with no more than 10 grams of sugar per serving.  Do not serve vegetable or fruit juice as a Vegetables/Fruits component for lunch or supper.

CEs and sites are encouraged to make these modifications to promote healthier eating habits.

NOTE: The modifications recommended above do not replace the component and serving size requirements in the CACFP Meal Patterns.

Vitamins A and C Rich Foods

Foods for Vitamin A Foods for Vitamin C

¼ cup serving (about 1500 International Units (IU)) ¼ cup serving (about 15-25 milligrams (mg)) Beet greens Broccoli Carrots Brussel sprouts Cherries, red sour Chili peppers, red and green Chili peppers, red Orange juice Collards Oranges Kale Peppers, sweet red and green Mangoes Cantaloupe Mixed Vegetables Cauliflower Mustard greens Collards Peas and carrots (canned or frozen) Grapefruit Peppers, sweet red Grapefruit juice Pumpkin Kiwi fruit Spinach Mangoes Squash, winter (acorn, butternut, hubbord) Mustard greens

Managing the Program – 24 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Sweet potatoes Papayas Turnip greens Pineapple juice (canned-vitamin C restored) Strawberries ¼ cup serving (about 750-1500 IU) Tangerine juice Apricots Tangerines Broccoli Cantaloupe ¼ cup serving (about 8-15 mg) Papayas Asparagus Purple plums (canned) Cabbage Honeydew melon ½ cup serving (about 750-1500 IU) Okra Potatoes (baked, broiled or steamed) Asparagus, green Potatoes (reconstituted instant mashed-vitamin C restored) Chili peppers, green Raspberries, red Endive, curly Sauerkraut Nectarines Spinach Peaches (except canned) Sweet potatoes (except those canned in syrup) Prunes Tomatoes Tomatoes Tomato juice or reconstituted paste or puree Tomato juice or reconstituted paste or puree Turnip greens Vegetable juice

4113.3 Variations in Meal Pattern Requirements for Religious Reasons

F&N may approve variations in meal patterns to meet religious needs. If a CE or site wants to serve meals that vary from USDA Meal Patterns, they must submit an alternate meal pattern with justification to F&N. Sponsored sites must first submit their alternate meal plan to their sponsor; the sponsor must submit their site’s plan to their Community Operations office for final approval. All plans must be approved by F&N prior to the CE or site claiming reimbursement.

Jewish CEs/sites may be exempted from the enrichment portion of the bread requirement if they choose to substitute unenriched matzo for the required grains/breads component during the observance of Passover.

Jewish CEs/sites may also be exempted from the meal pattern requirement that milk be served with all lunches and suppers. This exemption applies only to meals containing meat or poultry since Jewish Dietary Law allows milk to be served with meat alternates such as fish, cheese, eggs, nut and seed butter, and nuts and seeds. Jewish CEs/sites that request an exemption must choose from the following three options:

 Option I – The CE or site may serve an equal amount of full-strength juice in place of milk with lunch or supper. Juice substituted for milk cannot contribute to the vegetable/fruit requirement.

Texas Department of Agriculture – June 2012 Managing the Program – 25 Child and Adult Care Food Program – Child Care Centers Handbook If the CE or site operates five days a week, it may substitute juice for milk twice per week for lunches and twice per week for suppers, but is only allowed one substitution per day.

If the CE or site operates seven days a week, it may substitute juice for milk three times per week for lunches and three times per week for suppers, but is only allowed one substitution per day.

Milk substitutions are limited, since milk is a primary source of calcium and riboflavin. When using Option I, CEs and sites should serve other sources of calcium, e.g., broccoli and greens, and riboflavin, e.g., dark green and yellow fruits and vegetables and whole-grain or enriched breads and cereals.

 Option II – The CE or site may serve milk at an appropriate time before or after the meal service period, in accordance with applicable Jewish Dietary Law.

 Option III – The CE or site may serve a snack juice component at lunch or supper. Serve the lunch or supper milk component as part of a snack.

NOTE: An exemption is not necessary for breakfasts.

Seventh-Day Adventist CEs and sites may use meat analogues (i.e., plant protein products) at the 100 percent level to meet the meat/meat alternate component and quantity requirements for lunches, suppers, and snacks. Refer to the USDA’s Food and Nutrition Service Instruction 783- 14, Rev.1, Variations in Meal Requirements for Religious Reasons: Seventh-Day Adventist Schools, Institutions, and Sponsors, which provides guidance to assist Seventh-Day Adventist entities in:

 Determining contributions the meat analogues listed make to the meat/meat alternate component; and  Purchasing the correct quantities of these products for the number of children to be served.

Meat analogues are nutritionally comparable to and acceptable as meat alternates. They are foods of plant origin, usually soy and wheat, which are made to resemble meat, poultry, and fish in appearance, texture, and flavor.

Managing the Program – 26 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4113.4 Meals for Children/Infants with Disabilities

CEs and sites are required to provide meal component substitutions to a disabled child/infant when supported by a medical statement signed by a licensed physician. The determination of whether or not a child/infant has a disability that restricts his or her diet is to be made on an individual basis by a licensed physician. The physician’s medical statement of the child’s/infant’s disability must be based on the regulatory criteria for “disabled child/infant” and contain a finding that the disability restricts the child’s/infant’s diet.

The medical statement must identify:

 The child’s/infant’s disability and an explanation of why the disability restricts the child’s/infant’s diet;  The major life activity or activities affected by the disability;  The food or foods to be omitted from the child’s/infant’s diet;  The food or choice of foods to be used as substitutions; and  Any other restrictions and/or requirements specific to the child’s/infant’s disability (e.g., caloric modifications or the substitution of a liquid nutritive formula).

NOTE: If the child’s/infant’s disability requires only textural modification(s) to the regular program meal or if a substitution can be made using another creditable food item within the same meal component group, as opposed to a meal pattern substitution, then the medical statement is recommended, but not required. Examples: 1) a child cannot swallow whole raw or cooked carrots, but can swallow pureed carrots; 2) a child is allergic to peanuts so the center substitutes ham and cheese for that child on the day the center provides peanut butter sandwiches for the other children.

Children/infants with food allergies or intolerances, or obese children/infants do not necessarily meet the regulatory criteria for “disabled child/infant”.

However, if the physician’s assessment finds that the food allergy may result in severe, life- threatening reactions (anaphylactic reactions) or the obesity is severe enough to substantially limit a major life activity, then the child/infant meets the definition of “disabled child/infant”, and you must make the substitutions prescribed by the licensed physician and supported by the physician’s medical statement.

CEs and sites must:

 Keep on file a copy of the licensed physician’s medical statement;  Provide the meal substitutions at no additional cost to the child’s/infant’s parent (or guardian); and  Document meal substitutions.

Texas Department of Agriculture – June 2012 Managing the Program – 27 Child and Adult Care Food Program – Child Care Centers Handbook F&N strongly encourages CEs and sites to work closely with the parent (or guardian) for the health, well-being and education of children/infants with disabilities to ensure that reasonable accommodations are made to allow children/infants with disabilities to participate in the meal service. This is particularly important when accommodating children/infants whose disability(ies) requires significant modifications or personal assistance.

The reimbursement rate for meals served to children/infants with disabilities is the same standard rate as all other program meals; however, the added cost of providing meal substitutions is an allowable program cost in your food budget.

4113.5 Meals for Children/Infants with Medical or Special Dietary Needs

Children/infants who are not a “disabled child/infant” but who are unable to consume a food item because of medical or other special dietary needs may be served substitutions. This includes children/infants with food intolerance(s) (e.g., lactose intolerant or food allergy).

The parent (or guardian) of a child/infant with a medical or special dietary need must be supported by a medical statement signed by a recognized medical authority (Exception: this requirement does not apply to milk substitutions that meet requirements as described below). In these cases, recognized medical authority may include physicians, physician assistants or nurse practitioners.

The medical statement must include the following:

 Identification of the medical or special dietary need that restricts the child's/infant’s diet;  Food or foods to be omitted from the child’s/infant’s diet; and  Food or choice of foods to be used as substitutions.

The decision as to whether or not a CE or site will provide the substitutions is at the discretion of the CE or site. CEs and sites are not required to satisfy the unique dietary needs of each child/infant. F&N urges CEs and sites to make every effort to satisfy the unique medical or special dietary needs of each child/infant; however, we recognize that this may not always be possible due to operational and financial constraints.

If a CE or site chooses to provide substitutions for children/infants with medical or special dietary needs, then the CE or site must:

 Provide substitutions on a case-by-case basis;  Maintain the required medical statement, or parental statement, in your files;  Provide the meal at no additional cost to the child’s/infant’s parent (or guardian); and  Document meal substitutions.

Managing the Program – 28 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook EXAMPLE: "Lactose Intolerant" describes a difficulty digesting the sugar found in milk and milk foods. Symptoms associated with lactose intolerance may be reduced or eliminated if:

 Small, frequent portions of milk are consumed rather than large portions;  Milk or milk foods are consumed with other foods or a meal; or  Acidophilus milk, yogurt with active cultures, ice cream, cottage cheese and aged hard cheeses like cheddar and Swiss are consumed.

Children who cannot consume fluid milk due to medical or special dietary needs may be served non-dairy beverages in lieu of fluid milk. Non-dairy beverages must be nutritionally equivalent to milk and meet the nutritional standards for fortification of calcium, protein, vitamin A, vitamin D, and other nutrient levels found in cow’s milk as outlined below:

Nutrient Per Cup Nutrient Per Cup Calcium 276 mg.* Magnesium 24 mg.* Protein 8 g.* Phosphorus 222 mg.* Vitamin A 500 IU.* Potassium 349 mg.* Vitamin D 100 IU.* Riboflavin 0.44 mg.* Vitamin B-12 1.1 mcg.* *mg = milligrams; g = grams; IU = international units; mcg = micrograms

Parents or guardians may request in writing non-dairy milk substitutions without providing a medical statement. CEs and sites must ensure the substitution meets the requirements as stated above. The written request from the parent or guardian must identity the medical or special dietary need that restricts the diet of the child. For example, a parent who has a child who follows a vegan diet may request soy milk be served to their child instead of cow’s milk.

If a child is lactose intolerant, CEs and sites are encouraged to determine the availability of lactose-reduced or lactose-free milk with their milk supplier. CEs and sites are also encouraged to provide lactose-reduced or lactose-free milk as a fluid milk choice as a creditable part of a reimbursable meal. If lactose-reduced or lactose-free milk is substituted for another milk type, additional charges cannot be assessed to the child’s parent (or guardian). If a meal is served without milk, or an approvable substitution as outlined above, to a child, the CE or site cannot claim reimbursement unless a medical statement is maintained and all other requirements are met.

If an infant is lactose intolerant, CEs and sites are encouraged to provide a lactose-free infant formula as a creditable part of a reimbursable meal. Additional charges cannot be assessed to the infant’s parent (or guardian) for the substitution.

Texas Department of Agriculture – June 2012 Managing the Program – 29 Child and Adult Care Food Program – Child Care Centers Handbook NOTE: If the child’s/infant’s disability requires only textural modification(s) to the regular program meal or if a substitution can be made using another creditable food item within the same meal component group, as opposed to a meal pattern substitution, then the medical statement is recommended, but not required. Examples: 1) a child cannot swallow whole raw or cooked carrots, but can swallow pureed carrots; 2) a child is allergic to peanuts so the center substitutes ham and cheese for that child on the day the center provides peanut butter sandwiches for the other children.

F&N strongly encourages CEs and sites to work closely with the parent (or guardian) for the health, well-being and education of children/infants with medical or special dietary needs to ensure that reasonable accommodations are made to allow children/infants with medical or special dietary needs to participate in the meal service. This is particularly important when accommodating children/infants whose medical or special dietary need requires significant modifications or personal assistance.

Schools that participate in the National School Lunch Program (NLSP) and operate the CACFP may follow the Fluid Milk Substitutions rule in effect for NSLP, located in Section 13 of the Administrator’s Reference Manual available online at http://www.squaremeals.ortg.

The reimbursement rate for meals served to children/infants with medical or special dietary needs is the same standard rate as all other program meals; however, the added cost of providing meal substitutions is an allowable program cost in your food budget.

4113.6 Water Availability in the CACFP

Potable (suitable for drinking) water must be made available to children one year and older throughout the day, including mealtimes, to drink upon the child’s request. Water does not have to be made available for self-serve. Although water must be made available during mealtimes it is not part of a reimbursable meal and cannot be served in lieu of fluid milk.

Purchasing water (for example, bottled water) is usually an unallowable cost, however there may be circumstances in which safe drinking water is not readily available. In these instances, purchasing water may be considered a reasonable, necessary and allowable cost. If circumstances arise which require the purchase of water, CEs must contact their Community Operations office for approval. Under no circumstances will the purchase of water for adult or employee consumption be an allowable cost.

Managing the Program – 30 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4113.6.1 Water for Infants

USDA recommends that parents consult their infant’s health care provider regarding feeding water to infants. However, it is generally recommended that:

 Formula-fed infants in a normal climate should not be fed more water than the quantity found in properly diluted formula.  Partially breast-fed and formula-fed infants in a hot climate should be fed water (about four to eight ounces per day, unless otherwise indicated by a health care provider).  Breast-fed and formula-fed infants, in a normal climate who are fed a variety of solid foods, especially high protein foods (e.g., meats, egg yolks) should be fed some water (a total of about four to eight ounces per day, unless otherwise indicated by a health care provider).  Exclusively breast-fed infants in hot humid climates should not be fed additional water besides what is in breast milk.

NOTE: CEs and sites should obtain parental approval before feeding water to an infant. When in doubt, parents should consult their infant's health care provider.

Most fruit juices are diluted with water. Infants should only be provided juice in a cup and the amount should be limited (fewer than four ounces of juice). Parents should consult their infant's health care provider regarding the total amount of fruit juice and water to feed an infant each day. Plain water and fruit juice are meant to be fed in relatively small amounts to older infants as a source of fluid, which supplements a nutritionally balanced diet. Feeding infants an excessive amount of water, juice, or other diluted liquid places an infant at risk of water intoxication.

4113.6.2 Water for Children One Year and Older

CEs and sites must ensure that potable water is available upon demand for children throughout the day, including mealtimes. This can be accomplished by:

 Having cups available next to the kitchen sink faucet;  Placing water pitchers and cups out in easy to reach areas for children to access as needed;  Providing water to a child when requested.

CEs and sites are encouraged to provide water during snack meal services when no other beverage is being served, and in place of high calorie sweetened drinks (juice drinks, soda, and sports drinks) served outside of meal times.

Texas Department of Agriculture – June 2012 Managing the Program – 31 Child and Adult Care Food Program – Child Care Centers Handbook 4113.7 Alternate Protein Products

Alternate Protein Products (APP) -- formerly referred to as "Vegetable Protein Products" -- can be credited as a Meat/Meat Alternate on an "ounce-for-ounce" basis for all meals planned using a component-based menu planning system, i.e., a food-based menu planning system.

A CE or site may use commercially prepared Meat/ Meat Alternate products combined with APP or a product that contains only APP. Examples of combination items include beef patties, beef crumbles, pizza topping, meat loaf, meat sauce, taco filling, burritos, and tuna salad. The APP may be used in a non-hydrated, partially hydrated, or fully hydrated form. The moisture content of a fully hydrated APP, if prepared from a dry concentrated form, must be such that the mixture has a minimum of 18 percent protein by weight or equivalent amount for the dry or partially hydrated form (based on the level that would be provided if the product were fully hydrated).

The CE and site must maintain documentation from the manufacturer that an APP meets protein quality standards mandated by the Child Nutrition Programs.

Examples of documentation include but are not limited to:

 A specification sheet;  A letter attesting that the requirements were met;  A food product label with an ingredient listing; or  A Child Nutrition (CN) label.

CEs and sites must accurately describe the menu items that are served. This will assist the CE’s or site’s staff and participants when selecting menu items that are consistent with dietary needs.

CEs and sites must accommodate participants with special dietary needs or disabilities as specified in Item 4113.5, Meals for Children/Infants with Medical or Special Dietary Needs.

It is important to remember that the terms meat and protein are not synonymous and that meal pattern requirements specify the meat/meat alternate component in terms of lean cooked meat, not protein. Refer to Section 11000, Resources, for the Meat Versus Protein Fact Sheet.

4113.8 Grains/Breads Requirements

Each serving of grains/breads must contain at least 14.75 grams (0.52 ounces) of enriched or whole-grain meal or flour, bran or germ, in any combination. Enriched or whole-grain meal or flour, bran or germ does not have to be the main ingredient by weight for an item to count as a grains/breads serving.

Managing the Program – 32 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Some foods, such as enriched, whole-grain or fortified ready-to-eat breakfast cereals that list sugar as the first ingredient may be counted as a grains/breads serving. However, due to the high sugar content, it is recommended that these cereals be served less often than other cereal choices.

NOTE: Items such as bran muffins and other products containing bran or germ are counted at the same level as items made from enriched or whole-grain meal or flour.

Foods that qualify as grains/breads include, but are not limited to:

 Breads that are enriched or whole-grain;  Biscuits, bagels, rolls, tortillas, muffins, or crackers made with enriched or whole-grain meal or flour;  Cooked cereal grains such as rice, bulgur, oatmeal, corn grits, wheat, or couscous that are enriched or whole-grain;  Ready-to-eat breakfast cereals that are enriched, whole-grain, or fortified;  Cereals or bread products that are used as an ingredient in another menu item such as crispy rice treats, oatmeal cookies, or breading on fish or poultry when they are enriched, whole-grain, or fortified;  Cooked macaroni or noodle products that are made with enriched or whole-grain flour;  Toaster pastries, coffee cake, doughnuts, sweet rolls, cookies, cakes, or formulated grain- fruit products that are made with enriched or whole-grain meal or flour;

NOTE: F&N recommends that CEs and sites do not serve sweet snacks more than twice a week.

 Pie crust that is made with enriched or whole-grain meal or flour; and  Hard pretzels, hard bread sticks, and chips that are made from enriched or whole-grain meal or flour.

NOTE: Due to their high fat content, it is recommended that grain-based chips be served less often than more nutritious snack choices.

Use the following criteria as a basis for determining whether an item meets the grains/breads requirement:

1. The item must be whole-grain or enriched or made from whole-grain or enriched meal or flour. Cereal must be whole-grain, enriched, or fortified. 2. The label must show that the product is enriched or whole-grain, fortified, or made from enriched or whole-grain meal or flour, bran or germ, in any combination.

Texas Department of Agriculture – June 2012 Managing the Program – 33 Child and Adult Care Food Program – Child Care Centers Handbook NOTE: Retain a copy of all food labels, including the product name, "Nutrition Facts," and the ingredient list. When conducting a review, F&N may disallow any meals for which the CE or site has not maintained proper documentation.

3. The item must be provided in quantities specified in the regulations. One-quarter (1/4) of a serving is the smallest amount that can be counted toward the minimum quantities of a grains/breads serving. 4. Consider these ingredients when selecting Grains/Breads: o Bran or germ; o Bulgur; o Whole corn meal or enriched corn meal; o Corn (whole corn, whole-grain, whole ground, whole germed, or whole stone ground);

NOTE: If the type of corn is not specified, the CE or site must request a product analysis to verify that it is creditable. A signed statement from a manufacturer indicating the type of corn is acceptable. The manufacturer's statement must be on company letterhead.

o Enriched corn grits; o Oats; o Rice (enriched or whole-grain); and o Whole wheat.

NOTES:  The following terms are not considered whole grains: barley, corn, degermed corn, milled rice, rice, rye, wheat, wheat flour, and yellow degermed corn.

 Cereal bars are not found in the Food Buying Guide. CEs and sites serving cereal bar products as part of a reimbursable meal must obtain factual documentation from the manufacturer to show that they have a creditable amount of grain/bread. This documentation must have information regarding the product’s contribution toward meeting the meal pattern requirements. A sample product formulation statement to assist contractors when documenting the creditable amount of grain/bread in cereal bars and other types of grain/bread products not found in the Food Buying Guide can be found in Section 11000, Resources.

4113.9 Creditability of Breakfast Cereals

A breakfast cereal is creditable if any of the following are true:

1. The cereal is labeled as whole grain (100% of the grain component is whole grain); 2. The cereal is labeled as “enriched”;

Managing the Program – 34 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 3. The cereal is labeled as “fortified”; 4. The ingredient statement shows that the primary grain ingredient is either whole grain, enriched flour or meal, bran or germ; or 5. Manufacturer documentation provides the gram amount of creditable grains per serving.

Refer to the flow chart in Section Three, on Page 3-7 of the Food Buying Guide for Child Nutrition Programs (FBG) for information regarding options to determine the creditability of breakfast cereals.

Some cereal manufacturers, however, no longer attach the words “fortified” or “enriched” to the name of the cereal on the label. In addition, some cereal manufacturers add the words “whole grain” or “made with whole grain” to the product label even if the grain component is not 100% whole grain, thus making it difficult to determine if the cereal is creditable.

If the cereal label does not give enough information to complete the steps in the FBG flow chart mentioned above, CEs and sites may use the nutrient criteria entitled the Food and Nutrition Service (FNS) Nutrient Criteria for Breakfast Cereals below as an option for determining creditability of breakfast cereals.

To provide consistency in determining grains/breads creditability, the FNS Nutrient Criteria for Breakfast Cereals is based on the minimum required amounts of selected nutrients in one slice of enriched bread.

The FNS Nutrition Criteria for Breakfast Cereals does not replace the guidance in the FBG or how to determine the creditability of a grain/bread, as discussed in Item 4113.8; it just provides an additional option to determine creditability.

If CEs and sites use the FNS Nutrient Criteria for Breakfast Cereals to determine creditability, the product must contain the minimum levels of all five nutrients listed below.

Texas Department of Agriculture – June 2012 Managing the Program – 35 Child and Adult Care Food Program – Child Care Centers Handbook FNS Nutrient Criteria for Breakfast Cereals Served to Children Ages One and Older Required Cereal Portion Size Minimum % Minimum Nutrient Ready-to-Eat Ready- Daily Value Weight of (whichever to-Cook (%DV) of or Nutrient per amount Nutrient per Portion weighs less) Portion Thiamin (B1) 1.0 ounce or 25 grams 6.7 % or 0.10 mg ¾ cup dry Riboflavin (B2) 1.0 ounce or 25 grams 3.5 % or 0.06 mg ¾ cup dry Niacin (B3) 1.0 ounce or 25 grams 4.2 % or 0.84 mg ¾ cup dry Folic Acid (B9) 1.0 ounce or 25 grams 5.0 % or 20.0 mcg ¾ cup dry Iron 1.0 ounce or 25 grams 3.9 % or 0.70 mg ¾ cup dry

NOTE: The FNS Nutrient Criteria for Breakfast Cereals are set for specific portion sizes. The portion size for ready-to-eat breakfast cereals is one ounce or ¾ cup, whichever amount weighs less. The portion size for cooked cereal is 25 grams of ready-to-cook dry cereal regardless of the amount of cooked cereal served or the amount of liquid added to cook the cereal.

If the serving size on the Nutrition Facts Label matches the cereal portion listed in the FNS Nutrient Criteria for Breakfast Cereals chart, then CEs and sites can compare the nutrients listed on the Nutrition Facts Label to the FNS Nutrient Criteria for Breakfast Cereals.

If the serving size on the Nutrition Facts Label does not match the cereal portion listed in the FNS Nutrient Criteria for Breakfast Cereals chart, then CEs and sites will need to convert the nutrient values from the label to determine the amount of nutrients in the required cereal portion size.

The nutrient values can be converted using the online United States Department of Agriculture (USDA), Agricultural Research Service (ARS), Nutrient Data Laboratory; National Nutrient Database for Standard Reference or CEs and sites can manually calculate the nutrient values.

It is recommended that CEs and sites use the ARS National Nutrient Database for Standard Reference. The ARS National Nutrient Database for Standard Reference can be found at http://www.nal.usda.gov/fnic/foodcomp/search/.

Managing the Program – 36 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4114 Product-Labeled Food

Commercially prepared products (e.g., ravioli, pizza, egg rolls, Smuckers Uncrustables, etc.) including those prepared by restaurants, “fast food” outlets, etc., must have one of the following in order to identify the food’s contribution to the meal pattern requirements:

 A child nutrition (CN) label;  A product analysis/product formulation statement from the food manufacturer; or  Manufacturer’s specification

For menu items in which a CN label, product analysis/product formulation statement, or manufacturers specification cannot be obtained, it is recommended that additional food items are served that meet the meal pattern requirement to reduce the risk that the meal will be disallowed.

4114.1 CN Labels

Products containing the CN label will have the following information printed on the principal display panel of the label:

 Product name.  Ingredients listed in descending order by weight.  Inspection legend for the appropriate inspection.  Establishment number (for meat, poultry, and seafood items only).  Manufacturers or distributor’s name and address.  CN label statement. The CN label statement must be an integral part of the product label and include the following information: o CN logo, the distinctive border around the CN statement. o Six-digit product identification number which will appear in the upper right hand corner of the CN label statement. o A statement of the product’s contribution toward meal pattern requirements for the Child Nutrition Programs. o A statement specifying that the use of the CN logo and label statement is authorized by USDA FNS. o The month and year the label was approved by FNS.

If a CE or site purchases and serves a product without a CN label and the product does not meet CACFP requirements, the meal/snack will not be reimbursable, unless the CE or site has a product analysis/product formulation statement or manufacturer’s specification for the item. See Item 11510, Unapproved CN Labels for some products that cannot be counted toward a reimbursable meal.

Texas Department of Agriculture – June 2012 Managing the Program – 37 Child and Adult Care Food Program – Child Care Centers Handbook To locate a list of authorized CN labels issued to manufacturers go to the FNS CN Labeling Program website at http://www.fns.usda.gov/cnd/cnlabeling/authorized.htm.

CN Labels are limited to:  Entrée items (Main dish products) which contribute a minimum of 0.5 ounces equivalent meat/meat alternate toward meal pattern requirements. Examples of these products include but are not limited to beef patties, cheese or meat pizzas, meat or cheese and bean burritos, egg rolls, and breaded fish portions; and  50-percent juice drinks and juice drink products which contain at least 50 percent full- strength juice by volume. This includes such products such as grape drink, fruit punch, and juice bars.

Manufacturers may not, under any circumstances, place the CN logo and contribution statement on fact sheets or other product information.

4114.2 Product Analysis/Product Formulation Statements

A product analysis/product formulation statement from a food manufacturer must contain:

 A detailed explanation of what the product actually contains.  The amount of each ingredient in the product by weight or measure, as appropriate.  A certifying statement as to the contribution of the product to the meal pattern.  The signature of a high-ranking official employed by the manufacturer.

CEs and sites are responsible for:

 Reviewing the manufacturer’s product analysis or product formulation statement before serving to determine the credibility of information provided by the manufacturer.  Ensuring the proper documentation is maintained on each commercially prepared product used to meet USDA meal pattern requirements.  Assuring that the food product meets specifications and has the correct code number.

Sample product formulation statements that have been developed to assist CEs and sites when documenting the creditable amount of food in products to meet meal pattern requirements are located in Section 11000, Resources.

Managing the Program – 38 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4114.3 Manufacturer’s Specification

Manufacturer’s specifications can be acquired from the manufacturer of the product to identify the food’s contribution to the meal pattern requirements.

For menu items in which a manufacturer’s specification cannot be obtained, it is recommended that additional food items be served that meet the meal pattern requirement to be counted towards a creditable and reimbursable meal.

4115 Meal Service Schedule

Each meal and snack must be reported individually on the appropriate Centers Claim for Reimbursement. CEs and sites must ensure that the following meal service times are observed:

 Three hours must elapse between the beginning of breakfast and the beginning of lunch.  Four hours must elapse between the beginning of lunch and the beginning of supper, when a snack is not served in between.  Two hours must elapse between the beginning of a: o Meal service and the beginning of a snack. o Snack and the beginning of a meal service. o Snack and the beginning of another snack.

NOTE: When determining meal service times, a snack is not a meal.

The following conditions also apply to the meal service schedule:

 The duration of a meal service must not exceed two hours for lunch and supper and one hour for breakfast;  The duration of a snack service must not exceed one hour; and  Service of supper must begin no earlier than 5:00 p.m., but no later than 7:00 p.m. It must end no later than 8:00 p.m.  A meal service cannot begin any later than 30 minutes before the ending time (close of business) indicated as the normal hours of operations on the Site Application - Centers.

Outside-school-hours care centers may claim lunches served to children:

 Attending schools without lunch programs; and  On weekends, school holidays, or school vacations.

A CE or site with preschool children may also serve breakfast, snack, and supper to children in an outside-school-hours care center program that is distinct from the preschool program.

Texas Department of Agriculture – June 2012 Managing the Program – 39 Child and Adult Care Food Program – Child Care Centers Handbook At-Risk Meal Service Schedule Requirements

At Risk Afterschool Care Centers may claim snacks and meals served to children on school days, weekends, and school holidays during a school's regular session.

Eligible meals include breakfast, lunch and supper. The following requirements apply:

 Breakfast meals may only be claimed during school holidays or weekends during the school year. Breakfast meal service may be no more than two hours in duration;  Lunch meals may only be claimed during school holidays or weekends during the school year, except that lunch meals may be claimed for those children who only attend school half-day, such as pre-school. Lunch meal service may be no more than two hours in duration;  Supper meals may be claimed while school is in session, during school holidays and weekends during the school year and must begin no earlier than the end of the normal school day. Supper meal service may be no more than two hours in duration.  Snack service may be no more than one hour in duration and must begin no earlier than the end of the normal school day and two hours must elapse between the beginning of a meal service and the beginning of a snack service.  Snack/meal counts must be taken at the point of service. The point of service is where you observe that a creditable snack/meal is served to a program participant.

Emergency shelters may claim meals served to children on weekdays and weekends.

CEs and sites may use a different schedule for infants younger than one year old.

NOTES:  Supper and snack meal service times do not have to be the same as the meal service times during the week  Snack meal service does not have to occur prior to supper meal service  A CE and site may be approved to serve two snacks (as opposed to one snack and one meal) with F&N approval – requests must be made in writing and include a justification.

4116 Meal Service Styles

CEs and sites may serve meals:

 As a unit (cafeteria style).  Family style.

Managing the Program – 40 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook An emergency shelter may permit parents or guardians to prepare their own meals using food items provided by the shelter; however, meals must be served and eaten in a congregate setting. Meals that are consumed in private family quarters in a shelter are not reimbursable, with the exception of meals served to infants from birth through age 11 months. Infant meals served in private family quarters that are a part of the shelter may be claimed for reimbursement if the shelter provides all of the required components to the infant's parent or guardian.

In either type of meal service, the CE or site must ensure that the minimum quantities of each meal component are available to each child. At lunch or supper, the minimum quantity of the vegetable and fruit component is the combined amount of each of the two or more fruit or vegetable items that are served. In cafeteria-style meal service, each child must be served at least the minimum amount of each component.

In family-style meal service:

 A sufficient amount of prepared food must be placed on each table to provide the full, required portions of each of the food components for all children at the table, and to accommodate adults if they eat with the children.  Children should initially be offered the full, required portion of each meal component. The family style meal service allows children to make choices in selecting foods and the size of initial servings.  It is the responsibility of the CE/site, during the course of the meal, to actively encourage each child to accept service of the full, required portion for each food component of the meal pattern, e.g., if a child initially refuses a food component, or initially does not accept the full, required portion of a meal component, the CE/site staff should offer the food component to the child again.  Second meals cannot be claimed for reimbursement.

In some instances it may be appropriate to offer only some components family style. However, any component not served family-style, in an otherwise family-style meal service, must be served according to the criteria for cafeteria-style service, which dictates that the full portion of each component must be served to each child. For example, if a CE/site serves a meal family- style with the exception of milk, then each child must be served at least the full, minimum portion of milk.

Offer versus Serve

The “offer vs. serve” option allows children to decline individual meal components and CEs or sites to use prior meal production history to determine how much food should be ordered and prepared based on the types of foods children typically don’t eat.

Texas Department of Agriculture – June 2012 Managing the Program – 41 Child and Adult Care Food Program – Child Care Centers Handbook CEs and sites that contract with a School Food Authority (SFA) to prepare meals may use offer vs. serve if the:

 SFA participates in the National School Lunch Program/School Breakfast Program (NSLP/SBP);  SFA uses offer vs. serve in their NSLP meal service; and  Option to use the NSLP/SBP meal pattern was chosen by the CE or site.

Offer vs. serve may only be used for breakfast, lunch and supper meal services; it may not be used for snacks. When using offer vs. serve, the CE or site must ensure that each child receives a reimbursable meal.

Offer vs. serve is not encouraged for preschool children as the goal is to introduce new healthier foods to children. Children who only have food options they are accustomed to does not promote this goal.

F&N encourages CEs and sites with preschool age children to continue to use cafeteria style without the offer vs. serve option, or family style meal services.

Regardless of which meal service style is chosen, CEs and sites may not separate children based on gender during a meal service, whether or not that child is participating in the meal service. Refer to Section 6000 for further information.

4120 Meal Counts, Second Servings and Field Trips

4121 Limit on Quantity of Reimbursable Meals

CEs and sites may serve any or all of the following:

Traditional Child Care Center Meals Snacks Breakfast A.M. Lunch P.M. Supper Evening

At-Risk Afterschool Care Center Meals Snack Breakfast Afterschool Lunch Supper

Managing the Program – 42 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CEs and sites participating under traditional CCC may claim reimbursement for a maximum of two meals and one snack or two snacks and one meal per child per day, and CEs and sites participating under at-risk may claim reimbursement for a maximum of one meal and one snack per child per day, if the meals meet pattern requirements and are:

 Served to children who are enrolled for child care (traditional);  Served to children who are participating in the educational or enrichment program (at- risk)  Eaten in the center;  Served to children who meet CACFP age requirements; and  Supplied by the center*.

*EXCEPTION: Refer to Item 4112, Meal Pattern Charts, for exceptions concerning infant meals provided by the parent/guardian.  Served at a time that F&N has approved;  Served by a CE or site that F&N has approved for participation in the CACFP;  Prepared by a source (self-prep or vended) that F&N has approved;  Served in a for-profit center in any month in which the center receives Title XX benefits for at least 25% of its enrolled children or licensed capacity (whichever is less), or at least 25% of the enrolled children or licensed capacity (whichever is less) are eligible for free or reduced-price meals; and  Counted at the point of service (where it is observed that the child receives a reimbursable meal).

EXCEPTION: For-profit CEs or sites must not claim reimbursement for meals or snacks served to children in any month in which less than 25 percent of the children in care (enrolled or licensed, whichever is less) were eligible for free or reduced price meals or were Title XX beneficiaries. Children who only receive at-risk snacks/meals must not be included in this percentage.

CEs and sites cannot claim reimbursement for meals or snacks that are provided by a child’s parent/guardian, e.g., a sack lunch.

CEs and sites cannot claim reimbursement for meals or snacks that are served to:

 Adults.  Children in excess of the licensed capacity.  Children not properly enrolled.

Emergency shelters may claim three meals or two meals and one snack per child per day on weekdays and weekends. If an emergency shelter has an afterschool program that is separate

Texas Department of Agriculture – June 2012 Managing the Program – 43 Child and Adult Care Food Program – Child Care Centers Handbook from the residential shelter, and is approved to claim at-risk snacks/meals, those snacks and meals served to non-residential children may be claimed. NOTE: CEs and sites cannot claim reimbursement under at-risk for snacks/meals while school is out of session over the summer break.

4121.1 Excess Meals

CEs and sites must plan and prepare meals with the intent of serving one meal per child per approved meal type per day. However, due to unanticipated fluctuations in participation a CE or site could produce more meals than participants in attendance to consume them. Should this occur, CEs and sites are encouraged to seek alternatives to avoid food waste before discarding the excess foods.

Some potential alternatives include, but are not limited to:

 Refrigerating the food for next day use (recycling); and/or  Donating the excess foods to homeless shelters, food banks or food pantries.

CEs and sites must ensure they follow all local health and sanitation codes before sharing or donating food.

CEs and sites that have excess food and set up a sharing table or donate the excess food must adhere to the following requirements:

 Documentation of: o Date of excess food; o Reason for the excess food; and o What was done with the excess food (i.e., donated).  For donated food, a written agreement with the agency receiving the donated food that includes at minimum: o Terms of the agreement; o Duties of the agency; duties of the CE or site; nondiscrimination; o Representatives of the agency receiving donated food is not an officer, employee, or agent of the CE or site; o Liability o Hold harmless and indemnification; and o Certification of liability insurance.

A sample agreement is located in Section 11000, Resources, of this handbook.

Managing the Program – 44 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook The instances of excess food should be extremely limited and CEs and sites must ensure that they adhere to CACFP requirements in planning and preparation of meals.

4122 Meal Counts

CE’s and site’s meal count system must provide accurate counts of reimbursable meals served to eligible children. A meal is reimbursable if an eligible child receives all required components in the correct quantities.

4122.1 Meal Service Record

CEs and sites must record meal counts and attendance on a daily basis. Meal counts must be recorded at the point of service where CE and site staff observes that an eligible child receives a creditable meal. A meal is creditable when a child receives all required components in the correct quantities. If a CE or site serves meals cafeteria style, a staff member must be stationed at the end of the serving line to count the meals as they are served. If a CE or site serves meals family style, a staff member must count the meals when they are served.

CEs and sites must record meal counts on Form H1535, Daily Meal Count and Attendance Record, and/or Form H1535-AT, Daily Meal Count and Attendance Record (At-risk) or an alternate form. Form H1535, H1535-AT, or alternate form must be completed in ink or other non-erasable form and all changes to the form must be initialed and dated by the person making the change. CEs and sites using alternate documentation must ensure all information, including the certification statement, contained on the TDA developed forms is contained on the CE or sites alternate documentation and available for review, to avoid disallowances.

CEs and sites must ensure that all items on the form are completed, including the:

 Date of food service.  Day of the week.  Names of all children enrolled in day care; or for at-risk, names of children participating in the education or enrichment program.  Age of each child.  Meal counts, by meal type, for each participant.  Total participant meals, program staff meals and non-program meals served.

Forms H1535 and H1535-AT contain a certification statement that must be signed and dated by the CE or site representative.

Texas Department of Agriculture – June 2012 Managing the Program – 45 Child and Adult Care Food Program – Child Care Centers Handbook CEs and sites that possess the means to complete Forms H1535 or H1535-AT, or an alternate electronically at the point of service may do so provided that they:

 Submit to TDA Form H1548, Application/Management Plan Change, explaining the method they will use and how they will ensure program requirements are met, (i.e., point of service meal counts, daily completion); and  Have the ability to print the form on demand, to ensure compliance with the records availability requirements as outlined in Item 5200, Administrative Reviews. CEs and sites must have a plan in place to address technical difficulties such as system failures.  Print the form, upon completion, sign and date by a center or emergency shelter representative and retain in program files.

4122.2 Second Meals during One Meal Service

CEs and sites must plan and prepare meals with the intent of serving no more than one of each approved meal type per child per day.

Second meals may be claimed only if:

 The second meals were served due to an unanticipated fluctuation in participation resulting from conditions beyond the CE’s or site’s control.  The meals were served cafeteria-style. CEs and sites may not claim second meals under any condition when the meals are served family-style.  The second meals complied with USDA meal patterns.  The second meals were served to eligible program participants.  The CE or site submits documentation justifying the second meals.  F&N approves the justification for serving second meals due to reasons beyond the CE’s or site’s control.

CE’s and site’s meal production records, or other documentation, must show that the quantity of each prepared component was adequate for each meal served (including any second meals) and contained the minimum of each required component.

EXAMPLE: Based on the number of children eating breakfast, the cook prepares lunch for 100 children. Threatening weather conditions caused the parents of 50 children to pick them up before lunch. In this situation, weather caused a fluctuation in attendance, which in turn resulted in sufficient food being prepared to serve the remaining 50 children a complete second meal. Therefore, if all the above requirements are met, the CE or site may claim second meals served to the 50 children remaining at the center.

Managing the Program – 46 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4123 Field Trips

The Texas Department of Family and Protective Services (DFPS) consider organized activities directly related to the provision of child care, e.g., field trips, to be an “extension of the center and subject to regulation.” Therefore, CEs and sites may claim reimbursement for meals that are served during a field trip if:

 The activity is directly related to child care.  All program requirements are met.

Program requirements include, but are not limited to, the following:

 Meals must meet meal pattern requirements for the appropriate age group and must be served to eligible children.  All state and local health department standards, including maintaining food at proper temperatures, must be followed.  Daily meal production records (Forms H1530, H1530-A) that include the food items and amounts of food prepared must be maintained.  Meal counts for meals served to eligible children must be documented on Form H1535, Daily Meal Count and Attendance Record, or an alternate meal count form.  Meals must be provided by the approved source (self-prep or vended) named in the Site Application - Centers. If a food service management company (FSMC) supplies the meals, they must be provided in a manner and detail prescribed in the Invitation for Bid and Contract.  Meals purchased from restaurants or “fast food” outlets are not reimbursable without a product analysis from the food manufacturer.  Meals that are served to children who are in transit to the center or their homes cannot be claimed as reimbursable meals.

Field trips must be documented in writing, and must include the following information:

 Date of trip;  Destination of trip;  Duration (departure and return time) of the trip;  Meal types served on the trip;  A description of the location where the meal was served;  A description of the method used to ensure that foods are held at proper temperatures;  A list of foods served on the field trip; and  A list of everyone that participated in the field trip.

Texas Department of Agriculture – June 2012 Managing the Program – 47 Child and Adult Care Food Program – Child Care Centers Handbook In addition, the employee completing the documentation of the field trip must sign a certification statement that reads:

"I certify that to the best of my knowledge the information reported about this field trip is true and correct. I understand misrepresentation may result in prosecution under applicable state or federal statutes. I certify that meals were prepared, delivered, and served in accordance with all state and local health department standards."

CEs and sites are not required to obtain prior approval from F&N when planning a field trip. However, a sponsor may require that sites obtain prior approval for field trips as a condition of reimbursement for meals served off-site. Occasionally, field trips may include a visit to a Summer Food Service Program (SFSP) site. CEs and sites cannot claim reimbursement for meals that are provided and served by SFSP sites.

A sample form, Field Trip Food Service Documentation, is provided in Section 11000, Resources. CEs and sites are not required to use this form, but must ensure that the required elements are recorded on the day of the field trip.

4200 Claims for Reimbursement

4210 Eligibility for Free or Reduced-Price Meals

CEs and sites participating in the CACFP are responsible for determining eligibility for free or reduced-price meals to include:

 Ensuring that each parent or guardian receives: o A parent letter; o A copy of the current income standards; o The CACFP Meal Benefit Income Eligibility Form (Child Care);  Reviewing returned forms to ensure all required elements are completed as appropriate; and  Determining each child’s eligibility category.

NOTES:  Free and reduced-price eligibility is valid for the entire 12 months from the signature date of the determining official, for example, a form signed October 5, 2011 is valid through October 31, 2012.  Households are not required to report changes in circumstances, such as an increase in income, a decrease in household size, or when the household is no longer certified as eligible for SNAP, TANF, or FDPIR during that 12 month period.

Managing the Program – 48 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Households of children no longer categorically eligible for free meals under EHSP, HSP or Even Start must be provided the opportunity to apply for free or reduced-price meals via the CACFP Meal Benefit Income Eligibility Form.

Emergency Shelters

Emergency shelters are not required to conduct eligibility determinations for children participating in the CACFP. Additionally, there is no enrollment requirement for children residing in emergency shelters.

Emergency shelters must maintain a roster of the children residing in their shelter. The roster must include the:  Child’s name;  Arrival and withdrawal date;  Age; and  Parent or guardian’s name.

Emergency shelters must use Form H1535, Daily Meal Count and Attendance Record, or alternate, to record attendance and meal counts. Emergency shelters may claim reimbursement for children through age 18 years. Children with disabilities are eligible without regard to age. Emergency shelters may claim all eligible meals in the free category for reimbursement.

At-Risk Afterschool Care Centers

Organizations participating in the at risk afterschool care center component are not required to conduct eligibility determinations for children attending their site. Additionally, there is no enrollment requirement.

At-risk afterschool care centers must maintain a daily attendance log or roster of the children attending their educational or enrichment program. The daily attendance roster must contain each child’s name and age.

At-risk afterschool care centers must use Form H1535-AT, or alternate, to record attendance and meal counts. If the at-risk afterschool care center uses TDA form H1535-AT it will satisfy the attendance log or roster requirement.

At-risk afterschool care centers may claim reimbursement for children up though age 18 or 19 if the child turns 19 during the school year. Children with disabilities are eligible without regard to age.

Texas Department of Agriculture – June 2012 Managing the Program – 49 Child and Adult Care Food Program – Child Care Centers Handbook At-risk afterschool care centers may claim all eligible snacks/meals in the free category for reimbursement.

Outside School Hours Care Centers (OSHCC)

OSHCCs are required to conduct eligibility determinations for children attending their center following the eligibility guidelines. However, there is no enrollment requirement.

OSHCCs must maintain a daily attendance log or roster of children attending their program. The log or roster must contain each child’s name and age. OSHCCs must use Form H1535, Daily Meal Count and Attendance Record, or alternate, to record attendance and meal counts. If the OSHCC uses TDA form H1535 it will satisfy the attendance log or roster requirement.

OSHCCs may claim reimbursement for children 12 years of age and under, and children of migrant workers age 15 and under. Children with disabilities are eligible without regard to age.

Foster Children

Foster children formally placed in a home by the State or a court are categorically eligible for free meals. CEs and sites must obtain from the household the Texas Department of Family and Protective Services (DFPS) Form 2085FC, Placement Authorization Foster Care/Residential Care. No further application for free meals is needed for the foster child/children. If Form 2085FC is not available, the household may complete a CACFP Meal Benefit Income Eligibility Form (Child Care) for the foster child/children.

Households with both foster and non-foster children may include the foster child/children as household members, as well as any personal income earned by the foster child/children, on the same CACFP Meal Benefit Income Eligibility Form (Child Care) that includes non-foster children, if the addition of the foster child/children as household members help the household qualify for free or reduced-price meals. Categorical eligibility for free meals for the foster child/children does not convey eligibility for free meals to the other non-foster children in the household. CEs and sites must make a determination of free or reduced-price eligibility for the remainder of the household based on the household’s income, whether or not that includes income from foster children.

NOTE: CEs and sites cannot make completion and submission of the CACFP Meal Benefit Income Eligibility Form (Child Care) a condition of enrollment. Completion and submission is voluntary for parents/guardians.

Managing the Program – 50 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4211 Application

CEs and sites must provide parents of current and potential participants the CACFP Meal Benefit Income Eligibility Form (Child Care) as well as the CACFP Meal Benefit Income Eligibility Form Letter to Households (Child Care). CEs and sites must ensure that the parents of each enrolled child receive the appropriate forms. CEs and sites may mail or personally deliver these forms. This requirement does not apply to emergency shelters or organizations that only participate in the at-risk afterschool care center component of the CACFP.

EXCEPTION: A contractor is not required to distribute the CACFP Meal Benefit Income Eligibility Form for children for whom the contractor retains documentation that certifies that they are eligible for free meals based on their participation in a HSP, EHSP or an Even Start program.

When the CE or site receives the CACFP Meal Benefit Income Eligibility Form, the CE or site must verify whether it contains: 1. Name of child(ren) for whom the application is made; 2. A signature of an adult household member; 3. The date of signature; 4. TANF Number – a nine-digit case number beginning with “0” or “1” or any eight digit number that does not begin with a “0”; or a 5. SNAP case number; or a  Acceptable SNAP case numbers include: o Eligibility Determination Group Number (EDG#) – an eight digit or nine- digit number located on the provider’s TIERS letter. The eight-digit number can begin with any number except “0”. The nine-digit number can begin with any number between “0” and “9”. o SAVERR case number – a nine-digit number beginning with a “0” or “1”. 6. FDPIR case number.

NOTES:  Eligibility Benefits Transfer (EBT) or Lone Star Card account numbers are not acceptable SNAP case numbers on the application. If this occurs, contact the applicant to obtain the valid SNAP or TANF eligibility number.  A copy of the SAVER award letter (Form H1009) is not acceptable documentation for eligibility.

Texas Department of Agriculture – June 2012 Managing the Program – 51 Child and Adult Care Food Program – Child Care Centers Handbook If an appropriate TANF, SNAP, or FDPIR case number is not provided, the CE or site must verify whether the form contains:

 The names of all household members;  The last four digits of the social security number of the adult household member who signs the form. If the adult household member signing the form does not have a social security number, the box “I do not have a Social Security Number” must be checked; and  The current income of each household member by source of income, (including the child(ren) enrolled for child care if they have income).

Family size and income standards change each July 1. F&N will post on the TDA website, and send via email the current standards. If income is received in different frequencies, use the following calculations to obtain the annual income to determine the resident child’s eligibility for free or reduced-price meals:

 Multiply monthly income by 12.  Multiply bi-weekly income by 26.  Multiply weekly income by 52.  Multiply bi-monthly income by 24.  Do not round the result.

The determining official must sign and date the CACFP Meal Benefit Income Eligibility Form acknowledging receipt, review and completion of the form. If a child is ineligible for free or reduced-price meals, the CE and site must claim that child in the paid category and is only required to retain proof of proper enrollment for the child.

4212 Income Standards

Form H1625-A, Income Eligibility Guidelines for Determining Free and Reduced-Price Benefits, contains the family size and income standards for reduced-price meals. CEs and sites must give the H1625-A, along with the CACFP Meal Benefit Income Eligibility Form, to parents/guardians of enrolled children annually and must provide the document to parents/guardians that inquire about child care.

4213 Pricing and Non-Pricing Programs

If a CE or site charges children separately for their meals, then that CE or site operates a pricing program. If a CE or site has a general tuition fee that includes the cost of the children's meals, then that CE or site operates a non-pricing program. Emergency shelters must provide all meals free of charge to children residing in their facilities. At-Risk afterschool care centers must provide all snacks free of charge to children attending their educational or enrichment program.

Managing the Program – 52 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4213.1 Pricing Programs

EXCEPTION: This section does not apply to emergency shelters and organizations that only participate in the at-risk afterschool care center component of the CACFP.

If a child qualifies for free meals, then CEs and sites cannot charge a child for the meals that it serves. If a child qualifies for reduced-price meals, then CEs and sites may charge an amount for the meals that it serves to the child as long as the charge does not exceed the limit established by USDA each year. F&N will notify participating CEs of this limit each year.

CEs and sites cannot use CACFP reimbursement or the charges for reduced-price meals to subsidize the cost of meals that are served to non-program participants and program participants in the paid category.

NOTE: CEs and sites must not overtly identify children who receive free or reduced-price meals.

4213.2 Non-Pricing Programs

If a CE or site operates a non-pricing food program, it cannot separately charge children for the meals that they are served, regardless of their eligibility for free, reduced-price, or paid meals.

4214 Eligibility Based on Household Size and Income

The USDA has determined that the Earned Income Tax Credit (EITC) should be excluded as income in determining eligibility for child nutrition programs.

Therefore, CEs and sites must exclude the EITC refund/payment as income in determining a household’s eligibility category for the appropriate reimbursement level (free, reduced-price or paid) for child nutrition program benefits.

The $600 subsidy provided to Medicare beneficiaries and the availability of negotiated prices on prescriptions provided through the drug discount card must not be counted as income when determining eligibility for free and reduced-price meals.

Child care benefits available under the TANF At Risk Child Care Program and the Child Care and Development Block Grant are not considered income and should also be excluded as income in determining eligibility for child nutrition programs.

Texas Department of Agriculture – June 2012 Managing the Program – 53 Child and Adult Care Food Program – Child Care Centers Handbook 4214.1 Deployed Military Members

Determining Household Size

When a CE or site determines household size, deployed service members should be considered family members living apart on a temporary basis. These military personnel, whether deployed temporarily or for an extended period of time, are counted in the number of household members.

Determining Household Income

A CE or site should count only that portion of the deployed service member’s income made available by them or on their behalf to the household as income to the household. Instruct households to include the names and that portion of income made available to the household from deployed service members on the CACFP Meal Benefit Income Eligibility Form (Child Care). The determining official will count the service member as part of the household in establishing a child’s eligibility.

When calculating total household income for purposes of determining eligibility for free and reduced price meals in the CACFP, the following types of income for military families must be:

Included:  Base pay  Regular housing allowance  Subsistence  Clothing allowance  Hazardous duty  Hostile fire  Flight pay  Incentive pay

Excluded:  Military Housing Privatization Initiative – Housing allowance for households living on bases participating in this initiative. A list of the military bases participating in this initiative can be accessed at http://www.acq.osd.mil/housing. This income exclusion is not an allowable exclusion for households living off-base in the general commercial/private real estate market.  Family Subsistence Supplemental Allowance (FSSA) – Payments provided to the families of service members by the Department of Defense.  Earned Income Tax Credit (EITC)- This applies to both military and non-military households.

Managing the Program – 54 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Agent Orange Compensation Exclusion Act.  Veteran’s Educational Assistance Act of 1964 (GI Bill).  Rebate checks resulting from the economic stimulus act- This applies to both military and non-military households.  Military Combat Pay: o Combat pay is excluded if it is received in addition to the service member’s basic pay; received as a result of the service member’s deployment to or service in an area that has been designated as a combat zone, and not received by the service member prior to his/her deployment to or service in the designated combat zone*. o Deployment Extension Incentive Pay (DEIP) is given to active-duty service members who agree to extend their military service by completing deployment with their units without re-enlisting. This exemption applies only until the service members return to their home station. Any additional DEIP payments provided to service members serving at their home station is considered income as they are no longer considered deployed.

NOTE: If both parents/guardians are deployed, count their children as part of the household with whom they are temporarily residing. Also include the deployed parents or guardians in the host household’s count.

*A combat zone is any area that the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat.

4214.2 Letter to Parents

EXCEPTION: This section does not apply to emergency shelters and organizations that only participate in the at-risk afterschool care center component of the CACFP.

If a CE or site operates a pricing program, they must ensure that the parents of each enrolled child receive the CACFP Meal Benefit Income Eligibility Form Letter to Households (Child Care Centers), and Form H1625-A, Income Eligibility Guidelines for Determining Free and Reduced-Price Benefits. The letter to households explains the purpose of the CACFP Meal Benefit Income Eligibility Form (Child Care), provides general information about the Child Nutrition Programs, and notifies parents that households with incomes at or below the levels listed on Form H1625-A are eligible for CACFP benefits. The letter to households also informs parents that children participating in a Head Start Program, Early Head Start Program or Even Start Program may be eligible for CACFP benefits.

Texas Department of Agriculture – June 2012 Managing the Program – 55 Child and Adult Care Food Program – Child Care Centers Handbook If a CE or site operates a non-pricing program, they must ensure that the parents of each enrolled child receive the CACFP Meal Benefit Income Eligibility Form Letter to Households (Child Care Centers), and Form H1625-A, Income Eligibility Guidelines for Determining Free and Reduced-Price Benefits. The letter to households provides general information about the Child Nutrition Programs and encourages parents with households at or below the income levels listed on Form H1625-A to seek eligibility for free or reduced-price meals. The letter also informs parents that children participating in a Head Start Program, Early Head Start Program or Even Start Program may be eligible for CACFP benefits.

Each of these forms is available in English and Spanish.

4214.3 Head Start Program Eligibility

A child is automatically eligible for free meals while enrolled in a Head Start Program (HSP).

4214.3.1 Requirements for Centers that Operate Head Start Programs

For all children who participate in the centers HSP, the CE or site must maintain enrollment documentation in order to claim reimbursement for the meals that are served to them. All children properly enrolled in the HSP are categorically eligible for free meals and the CE or site does not need to verify income.

Children who participate in the HSP at a center that operates the HSP may attend another child care facility that participates in the CACFP CCC. If the HSP receives a request from the child’s parent/guardian for verification of enrollment in the HSP, the CE or site must provide a statement certifying that the child is enrolled in the HSP to the child’s parent/guardian.

4214.3.2 Requirements for Centers that Do Not Operate Head Start Programs

If a child participates in the HSP at a different location, the CE or site must obtain documentation certifying enrollment in the HSP from the parent/guardian of the child in order to claim the child in the free category. The certification must be signed and dated by an authorized HSP employee. The CE or site may assume that the person who signs the certification on behalf of the HSP is authorized to do so. All children properly enrolled in a HSP, for whom the CE or site has obtained a statement of certification, are categorically eligible for free meals and the CE or site does not need to verify income. Refer to Section 11000, Resources, for a sample statement of Certification.

4214.4 Even Start Family Literacy Program Eligibility

A child is automatically eligible for free meals while enrolled as a participant in the Even Start Family Literacy Program (ESP), if they have not yet entered kindergarten.

Managing the Program – 56 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4214.4.1 Requirements for Centers that Operate Even Start Programs

A child who is enrolled as a participant in a CE’s or site’s Even Start Family Literacy Program (ESP) and who has not yet entered kindergarten is automatically eligible for free meals. CEs and sites must retain an approved ESP application or a statement of enrollment in their program and documentation that the child has not yet entered kindergarten to claim reimbursement for free meals that are served to the child. The CE or site must provide these documents for inspection during a CACFP review, audit, or other official visit.

NOTE: CEs and sites are not required to obtain the CACFP Meal Benefit Income Eligibility Form (Child Care) for any child for whom they have this documentation.

Each year (every 12 months), CEs and sites must determine and document an ESP participant's automatic eligibility for free meals. CEs and sites must retain an approved ESP application or a statement of enrollment in their program and documentation that the child has not yet entered kindergarten to claim reimbursement for free meals that are served to the child.

If at any time during the year a child's participation in the ESP ends, or if the child enters kindergarten, the child is not automatically eligible for free meals in the CACFP-CCC. The CE or site must obtain the CACFP Meal Benefit Income Eligibility Form (Child Care) to determine the child's eligibility for free or reduced-price meals, for any child they claim in the free or reduced-price category.

4214.4.2 Requirements for Centers That Do Not Operate Even Start Programs

A child who is enrolled as a participant in the Even Start Family Literacy Program (ESP) and who has not yet entered kindergarten is automatically eligible for free meals in the CACFP.

CEs and sites must retain an approved ESP application or a statement of enrollment in their program and documentation that the child has not yet entered kindergarten to claim reimbursement for free meals that are served to the child. CEs and sites must provide these documents for inspection during a CACFP review, audit or other official visit.

The parent or guardian of the child must submit a statement certifying that the child is an ESP participant and has not yet entered kindergarten. The certification must be signed and dated by an authorized ESP employee. CEs and sites may assume that the person who signs the certification on behalf of the ESP is authorized to do so.

NOTE: CEs and sites are not required to obtain the CACFP Meal Benefit Income Eligibility Form (Child Care) for any child for whom they have this documentation.

Texas Department of Agriculture – June 2012 Managing the Program – 57 Child and Adult Care Food Program – Child Care Centers Handbook Each year (every twelve months), CEs and sites must determine and document an ESP participant's automatic eligibility for free meals. The parent/guardian of the child must again submit a statement certifying that the child is an ESP participant and has not yet entered kindergarten.

If at any time during the year a child's participation in the ESP ends, or if the child enters kindergarten, the child is not automatically eligible for free meals in the CACFP-CCC. The CE or site must obtain the CACFP Meal Benefit Income Eligibility Form to determine the child's eligibility for free or reduced-price meals, for any child they claim in the free or reduced-price category.

4214.5 Early Head Start Program Eligibility

A child is automatically eligible for free meals while enrolled in an EHSP.

4214.5.1 Requirements for Centers that Operate Early Head Start Programs

For all children who participate in the centers EHSP, the CE and site must maintain enrollment documentation in order to claim reimbursement for the meals that are served to them. All children properly enrolled in the EHSP are categorically eligible for free meals and the CE or site does not need to verify income.

Children who participate in the EHSP at a center that operates a EHSP may attend another child care facility that participates in the CACFP CCC. If the EHSP receives a request from the child’s parent/guardian for verification of enrollment in the EHSP, the CE or site must provide a statement certifying that the child is enrolled in the EHSP to the child’s parent/guardian.

4214.5.2 Requirements for Centers that Do Not Operate Early Head Start Programs

If a child participates in the EHSP at a different location, the CE or site must obtain documentation certifying enrollment in the EHSP from the parent/guardian of the child in order to claim the child in the free category. The certification must be signed and dated by an authorized EHSP employee. The CE or site may assume that the person who signs the certification on behalf of the EHSP is authorized to do so. All children properly enrolled in an EHSP, for whom the CE or site has obtained a statement of certification, are categorically eligible for free meals and the CE or site does not need to verify income. Refer to Section 11000, Resources, for a sample statement of certification.

Managing the Program – 58 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4215 Annual Renewal of Eligibility

EXCEPTION: This section does not apply to emergency shelters and organizations that only participate in the at-risk afterschool care center component of the CACFP CCC.

Each year, CEs and sites must determine a child's eligibility for free or reduced-price meals as follows:

 CEs and sites must obtain a new CACFP Meal Benefit Income Eligibility Form (Child Care) every 12 months for any child who is included in the free or reduced-price eligibility category. EXAMPLE: A form dated February 5, 2011 is valid through February 28, 2012.  HSP, EHSP or ESP - Each year, CEs and sites must establish whether the child continues to meet the categorical eligibility for free meals based on HSP, EHSP or ESP participation. Follow the instructions provided in this handbook.

A child must be included in the paid category until the CE or site receives a new CACFP Meal Benefit Income Eligibility Form (Child Care) or obtains verification of a child’s categorical eligibility based on HSP, EHSP or ESP participation. CEs and sites must ensure they have a system in place to obtain new forms or documentation annually.

4216 Record Retention

CEs and sites must retain documentation of each child's eligibility as part of their CACFP records, and make it available for inspection during a CACFP review, audit, etc. Emergency shelters and at-risk afterschool care centers must retain copies of their rosters (Forms H1535/ H1535-AT) and/or attendance logs to support their claims for reimbursement.

4217 Confidentiality

CEs and sites must protect the confidentiality of any information that has been provided by a household, or received from a School Food Authority (SFA) for determining eligibility for free, reduced-price or paid meals. CEs and sites may only use the information to determine eligibility. The CE and site must not release any information that contains a program participant’s name or other individual information. Summary information, such as the number of program participants eligible for benefits, can be released.

SFAs operating the National School Lunch Program/School Breakfast Program (NSLP/SBP) and Special Milk Program (SMP) may disclose children’s names and all eligibility information, including eligibility status (whether they are eligible for free or reduced price meals or free milk), to persons directly connected with the administration of other Federal child nutrition programs authorized under the National School Lunch Act (NSLA) and the Child Nutrition Act of 1966, which includes the Child and Adult Care Food Program (CACFP).

Texas Department of Agriculture – June 2012 Managing the Program – 59 Child and Adult Care Food Program – Child Care Centers Handbook SFAs are not required to give prior notice or receive consent from the household before sharing this information; therefore the information obtained from the SFA is subject to the same confidentiality and disclosure requirements as information obtained directly from a household.

The term “persons directly connected” with the administration of another child nutrition program can include organizations that participate in the CACFP. Not all employees of a CE or site are entitled access to eligibility information. “Persons directly connected” with the administration of the CACFP must legitimately “need to know” the eligibility information in order to carry out their program responsibilities.

EXAMPLE: The individual responsible for documenting the eligibility of a site would have clear need to access eligibility information, while an individual serving meals or conducting recreation programs, would not.

There is specific information that CEs or sites must obtain and use as documentation to determine that a child is eligible for free or reduced price meals.

CEs or sites wanting to use information from an SFA would need to obtain from the SFA, or provide information to the SFA, to:

 Document that the eligibility information applies to the specific child in question; and  Verify the source/validity of the information. For example, the name of the SFA and the person providing the information, the date the information was obtained, and the person at the child care center who obtained the information.

It is preferable that eligibility information received from an SFA be documented in writing by the SFA; however, documentation of verbal communication is sufficient to verify the information.

The CE or site and SFA should share the least amount of information needed to identify the child; however, it is understood that in some cases, it may be necessary to share more than the child’s name to ensure that the eligibility determination applies to a specific child.

EXAMPLE: A CE attempting to document the income eligibility of a child named “John Smith” may need to provide the child’s date of birth to the SFA so that the SFA can verify that the information being provided applies to the “John Smith” in question.

For-profit child care centers may use eligibility information obtained from SFAs to document that 25% of the enrolled children or 25% of the licensed capacity (whichever is less) are eligible for free or reduced price meals, as described in Item 2100, Eligibility Requirements in this handbook.

Managing the Program – 60 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook TDA has developed a template form titled, Shared Income Eligibility Documentation for CEs and sites to use to document eligibility information received from the SFA. CEs and sites can either provide the template to the SFA for completion or may complete the template based on verbal information received from the SFA.

The template located in Section 11000, Resources, may be used or CEs and sites can develop a form of their own to document the eligibility information. If CEs and sites choose to develop their own form, they must ensure it captures all the required elements to document eligibility.

The following are the required elements:  Name of SFA;  Telephone number;  Date information obtained from SFA;  Name of SFA representative providing the eligibility information;  Name of student;  Student’s eligibility category; and  Printed name, title, signature and date of signature of CACFP representative.

NOTE: The disclosure of information by the SFA is the SFA’s option and not required by regulations to be provided.

The privacy and confidentiality of personal data must be protected and it must be made clear that the CE or site staff receiving eligibility information cannot share the information with any other entity*. CEs and sites must also ensure that the information is securely stored and the number of individuals that have access to it is limited.

CEs and sites must maintain control over the use of all eligibility information and guard against improper disclosure.

*Refer to handbook Item 4420, Availability of Records, for additional information.

4300 Program Administration

If a CE creates, develops or produces materials with federal funds, the USDA FNS may reproduce or publish the material. USDA FNS may also authorize others to reproduce, use, or publish the material. A CE may reproduce any material developed by TDA or USDA as long as the reproduction is:

 Used in an FNS program.  Not used for profit.

Texas Department of Agriculture – June 2012 Managing the Program – 61 Child and Adult Care Food Program – Child Care Centers Handbook 4310 Management and Monitoring

A CE that is a sponsor is responsible for the management and monitoring of the sites that it sponsors. These responsibilities include:

 Making pre-approval visits.  Enrolling and deleting sites.  Ensuring sites maintain a current license/certification and enrollment documents.  Conducting training.  Conducting monitor reviews.  Providing technical assistance.  Disbursing payments to sites.

4311 Pre-Approval Visits of Sites

Before a sponsor enrolls a site, the sponsor must make a pre-approval visit to the site. During the visit, the sponsor must discuss program benefits and requirements and determine whether the site can provide food service in accordance with CACFP requirements.

NOTE: The sponsor must use Form H1606-P, Facility Pre-Approval Visit, to document pre- approval visits. Alternate versions of this form will not be accepted.

The sponsor must inform sites that are not part of the same legal entity that they may be eligible for participation in the CACFP as an independent CE.

4312 Parental Notification

CEs must notify the households of all enrolled children that the CE participates in the CACFP. Additionally, sponsors must ensure that their sites provide the same notification to the households of all the sites’ enrolled children. The CE may provide this information or may require the sites to provide this information to the households. FNS has developed the Building for the Future flyer to satisfy this requirement. The flyer presents the information in English and Spanish (other translations will be made available upon request) and provides:

 A brief statement about the CACFP.  Notice of the CE’s/site’s participation in the CACFP.  The USDA and TDA toll-free telephone numbers for households with questions or concerns about the CACFP.  The name and telephone number of the CE with administrative oversight of the center or sponsored site.

Managing the Program – 62 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CEs must retain documentation of its method of distribution. CEs and/or sites must distribute the flyer annually by the beginning of each CACFP Program Year and must also provide the flyer to households who enroll children for child care during the CACFP Program Year.

Additionally, CEs and sites must ensure that the English and Spanish versions of this flyer are posted where it can be easily seen.

Sponsors must also post the English and Spanish versions of the flyer in their administrative office(s).

Refer to Section 11000, Resources, for a copy of each flyer for use.

4313 Distribution of Women, Infants, and Children (WIC) Supplemental Food Program Materials

CEs and sites are required to distribute information regarding the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) annually to households with children enrolled for care.

F&N provides the updated WIC information is English and Spanish each year on the TDA website at http://www.squaremeals.org, via email and regular mail.

4314 Enrollment of Children

CEs and sites must maintain proof of proper enrollment for all children who receive meals that are claimed for reimbursement.

The following information must be included on an enrollment form, in enrollment documentation or in alternate documentation if a child is to be considered properly enrolled:

 Child’s name;  Child’s date of birth;  Meals/snacks normally served to the child while in care;  Days and hours the child is normally in care;  Enrollment and withdrawal dates;  Parent’s or guardian’s signature; and  Date of signature

The enrollment documentation must be completed and submitted by the parent/guardian, and the parent/guardian must sign the enrollment documentation upon completion. The enrollment documentation must provide spaces for the parent/guardian to indicate each of the required enrollment elements.

Texas Department of Agriculture – June 2012 Managing the Program – 63 Child and Adult Care Food Program – Child Care Centers Handbook Providing lines to write on, check boxes, instructions to circle the applicable information, can do this.

EXAMPLE:

Meals/snacks normally served to the child while in care (circle all that apply):

Breakfast, AM Snack, Lunch, PM Snack, Supper, Evening Snack

Days and hours the child is normally in care:

Days: M T W TH F S Su Hours: ______am to _____ pm

In the above examples the parent/guardian will complete the required information.

CEs and sites must not complete or alter any of the information after the parent/guardian has signed and dated the document. CEs and sites can include on the enrollment documentation the center’s hours of operation and the meals the center provides, thereby informing the parent/guardian of the provider’s normal hours and meals; however including this information does not replace the requirement for the parent or guardian to indicate the “meals and snacks the child normally receives while in care” and the “days and hours the child is normally in care”.

Emergency shelters, at-risk afterschool care centers and Outside-School-Hours Care Centers are exempt from the enrollment requirement, but must maintain a daily roster or sign-in/sign out sheets. See Item 4210 for more information.

Enrollment information must be updated annually (that is, at least every 12 months). CEs and sites can provide the previous enrollment documentation to the parent/guardian to indicate changes and re-sign and re-date; or they can obtain all new enrollment documentation. CEs and sites may not provide the parent/guardian with a statement to sign saying the information had not changed and attach it to the previous enrollment documentation. The parent/guardian must be given the opportunity to review the information, make any changes and re-sign and re- date.

The CACFP Meal Benefit Income Eligibility Form (Child Care) can be used to document some of the required enrollment information, but the remainder of the required information would have to be captured on other enrollment documentation and maintained with the child’s file.

Managing the Program – 64 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook The Texas Department of Family and Protective Services (DFPS) Form 2935, Admission Information – Centers, contains all the required elements for enrollment. The form can be obtained from the DFPS website at www.dfps.state.tx.us, select “Child Care Licensing” in the menu on the left hand side of the screen, scroll approximately half way down the screen and choose “Forms”.

If a CE or site does not have enrollment documentation for a child who receives care, the child’s enrollment documentation is missing all or some of the required elements, or the enrollment documentation is older than 12 months, the CE and site cannot claim reimbursement for that child until the enrollment requirements are met, but they must include the child in the eligibility mix on the claim form (excluding children participating in only at- risk afterschool care centers or in emergency shelters).

EXCEPTION: For-profit child care centers must not include children who only receive at- risk snacks/meals in the eligibility when determining if 25 percent of the children in care (enrolled or licensed capacity, whichever is less) were eligible for free or reduced-price meals or were Title XX beneficiaries.

4315 Policy Statement

The Contracting Entity Management Plan – Centers contains the Free and Reduced-Price Policy Statement which CEs must agree to in order to participate in the CACFP. CEs must sign this statement with their initial application and with the renewal application, if needed.

4316 State Government Privacy Policy

Texas’ State Government Privacy Policy legislation stipulates that an individual has the right to review their personal information as maintained by a state agency. An individual also has the right to request the correction of inaccurate information. TDA is required to consider the request, but reserves the right to determine whether the requested correction is appropriate.

A privacy statement is written at the bottom of all TDA forms that request personal information about a specific individual, and at the bottom of the TX-UNPS logon page under TDA Disclaimer.

Texas Department of Agriculture – June 2012 Managing the Program – 65 Child and Adult Care Food Program – Child Care Centers Handbook 4317 Monitoring a Food Service Management Company Contract or Vendor Agreement

If a CE or site contracts with a Food Service Management Company (FSMC) or vendor to provide food service, the CE or site must conduct an annual on-site monitoring review of each food preparation site used by the FSMC/vendor to provide meals for their contract. The review must be conducted during each CACFP Program Year (October 1 through September 30 of any given year). CEs and sites must use Form H1529, Food Service Management Company / Vendor Monitor Review, to conduct the monitoring review.

Sponsors may conduct this review in conjunction with the required on-site monitoring reviews of the food service operation in each of their sites, but are not required to do so.

4320 Adding, Terminating or Making Changes to Sites

Sponsors must inform sites that are not part of their same legal entity that they are eligible to apply for participation in the CACFP as an independent CE.

CEs must submit all documentation to TDA by the 25th day of the month for the request to be effective for that month. If the 25th of the month is a non-workday, all documentation, via TX- UNPS and paper, must be received no later than the preceding workday.

If the documentation is received after the 25th of the month, the requested addition or change will not be effective until the following month, unless the CE provides evidence showing that the documentation was mailed on or before the 21st of the month, thereby providing proof that the documentation was mailed in sufficient time to have reached TDA by the due date under normal circumstances.

F&N accepts as proof of submission a postmark affixed by the U.S. Postal Service or equivalent documentation from a private postal service showing when the item was mailed.

Add New Sites

To add a new site, sponsors may complete the site application and the budget detail in TX- UNPS and mail, fax or email the remaining required documentation to TDA, or they may complete the site application and the budget detail on paper and mail, fax or email it, along with the remaining required documentation to TDA.

Managing the Program – 66 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook The following information must be submitted:

 Form H1604, Changes in Child Care Facility Participation (for those CEs not using TX-UNPS);  Sponsoring Organization Monitoring Staff Information-Centers (applies to sponsors of 25 or more sites, including sites being added);  Contracting Entity Budget Detail – Centers and Budget Justification and Disclosure - Centers, amending the sponsor’s budget as the addition of sites will increase the budget;  Site Application – Centers for each site;  Documentation of area eligibility (if at-risk afterschool care center);  Documentation of educational or enrichment program (if at-risk afterschool care center); and  A copy of the site's license/certification to provide day care services, exemption from licensing and/or health and safety documentation.

The sponsor must also obtain from an unaffiliated site, and maintain in the site’s file, a copy of the following:

 Articles of Incorporation, Assumed Name Certificate or Certificate of Formation;  IRS 501(c)(3) (if applicable);  Organizational chart; and  Governing Body Awareness.

Sponsors must maintain on file the original Site Application – Centers and Form H1630, Permanent Agreement Between Contracting Organization and Child Care Facility, for each site they sponsor and will enter the dates of signature for both the sponsor representative and site representative from the agreement on the site application (applies to unaffiliated sites only).

These documents must be provided, upon request, to F&N. In addition, the completeness and accuracy of these documents will be evaluated during administrative and site reviews.

Making Changes to Site Application (Revisions)

To make a change to a site (such as changing meal times), independent CEs and sponsors may complete the site application in TX-UNPS and mail, fax or email the remaining required documentation to TDA, or they may complete the site application on paper and mail, fax or email it, along with the remaining required documentation to TDA.

Texas Department of Agriculture – June 2012 Managing the Program – 67 Child and Adult Care Food Program – Child Care Centers Handbook The following information must be submitted:

 Form H1604, Changes in Child Care Facility Participation, providing a description of the change being submitted (for those CEs not using TX-UNPS);  Site Application – Centers; and  Any additional documentation needed dependent on the change. For example, if the change is an address change, you must submit a copy of the new license that reflects the address change and proves the site is licensed to operate at that location.

Sponsors do not have to obtain the unaffiliated sites’ signatures on the site application for changes the sponsor makes on behalf of the site, however; the sponsor must provide the site a copy of the site application with the changes indicated and maintain a copy on file. The sponsor can print the site application from TX-UNPS to accomplish this, or if completed via paper mail the paper copy to the site. F&N will verify compliance with this requirement.

Terminating a Site

To terminate (close) a site, sponsors may complete the process in TX-UNPS and mail, fax or email any required documentation to TDA, or they may complete Form H1604, Changes in Child Care Facility Participation and mail, fax or email it, along with any required documentation to TDA.

The following information must be submitted:

 Form H1604 Changes in Child Care Facility Participation, indicating the reason for termination and effective date of termination (for CEs not using TX-UNPS);  Sponsoring Organization Monitoring Staff Information – Centers (applies to sponsors of 25 or more sites, this is not needed if the termination of sites decreases your sponsorship to below 25); and  Contracting Entity Budget Detail – Centers and Budget Justification and Disclosure - Centers, amending the sponsor’s budget as the termination of sites will decrease the budget.

NOTE: A site may only participate with one sponsor at a time and may only transfer to another sponsor as specified in handbook Item 4324, Transfers.

F&N will not approve a site's participation, and you may not claim reimbursement for meals served at a site, before the latest of the following dates:  Effective date of the site's license;  Date of the pre-approval visit;  Beginning effective date on the agreement (Form H1630 – unaffiliated sites);

Managing the Program – 68 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Latest date that site application (applies to affiliated sites only) or Form H1630 (applies to unaffiliated sites only) is signed by the site or CE; or  Date of participation that F&N assigns.

Example: The beginning effective date on the agreement (Form H1630) is February 21, 2011; the site's license is effective March 1, 2011, the pre-approval visit was conducted March 10, 2011 and the approvable application was received by TDA on March 25, 2011. The earliest the site could begin claiming would be March 10, 2011, the date of the pre-approval visit.

Example: The beginning effective date on the agreement (Form H1630) is February 21, 2011; the site's license is effective March 1, 2011, the pre-approval visit was conducted March 10, 2011 and the approvable application was received by TDA on March 26, 2011. The earliest the site could begin claiming would be April 1, 2011, because the application was submitted after the 25th of the month.

NOTES:  Reference handbook Item 2225, Licensing, for exemptions from licensing requirements.  Submitting additions, terminations and changes via paper may delay the approval process. TDA highly recommends CEs use TX-UNPS.

4321 Denials

A site’s participation will be denied if:

 The site is already participating with another sponsor.  The site is requesting a transfer, but you do not attach a transfer approval letter from F&N.  The site, responsible principal(s) and/or responsible individual(s) has been declared seriously deficient and is on the National Disqualified List, or debarred from participating in the CACFP.  The site is currently participating in the program and signs the site application or H1630 prior to June 1 or after September 30.  The site signed the site application and H1630 with multiple sponsors between June 1 and September 30. The sponsor whose Form H1630 shows the earliest sign date of both the site and the sponsor representative has the legally binding application and agreement.  A copy of the site’s license or alternate documentation, if applicable, was not submitted.

Texas Department of Agriculture – June 2012 Managing the Program – 69 Child and Adult Care Food Program – Child Care Centers Handbook 4322 Resuming Site Participation

If an otherwise eligible site whose agreement has been terminated wishes to resume their participation in the same Program Year, the site must participate with the same sponsor, unless:

 The site has "good cause" for a transfer and F&N approves the site to transfer to another sponsor. Reference Item 4362.2, Good Cause, for more information.  The site signs an agreement for the next program year during the open enrollment period (June 1 through September 30 of each program year).  The site applies to participate directly with TDA.

Sponsors must submit the same items as required in Item 4320, Adding, Terminating or Making Changes to Sites, to resume a site’s participation.

4323 Open Enrollment

Sites may select a new sponsor, without our prior approval, between June 1 and September 30 of each program year. Agreements (Form H1630) signed during the open enrollment period are effective October 1 of the following program year.

A new site can sign an agreement with a sponsor at any time during the program year. If the agreement is signed between June 1 and September 30, the new site may choose another sponsor before the end of the open enrollment period to be effective October 1 of the following program year.

If a site signs a site application and H1630 with more than one sponsor during open enrollment, the Form H1630 that was signed earliest by both the sponsor representative and the site is legally binding. Once a site has selected a sponsor, the site may not transfer to another sponsor without prior approval from F&N.

NOTE: A site may terminate its agreement with the sponsor and apply to participate directly with TDA at anytime during the year.

4324 Transfers

Prior to open enrollment, sponsors may not recruit nor enter into a sponsorship agreement for the next program year with sites that are currently participating or had participated with a sponsor in the CACFP in the current program year.

Sites that show good cause for transferring from a sponsor may, with prior approval from F&N, enter into an agreement with another sponsor at any time during the program year.

Managing the Program – 70 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook

If a site wants to transfer to another sponsor, the site must:

 Request in writing, and receive, prior approval for the transfer from F&N.  Demonstrate good cause for the transfer request.  Submit a letter to their current sponsor stating the intention to terminate their agreement and the effective date of termination.

"Good cause" for transferring from the sponsorship of one sponsor to another during the program year is limited to the following conditions:

 A sponsor denies a site access to the program.  A sponsor reduces the level of benefit a site receives under the program, for example, the sponsor: o Will not allow sites to claim suppers or weekend meals because the sponsor does not want to monitor these meal services. o Requests and receives approval to withhold more than 15% of the meal reimbursement annually for allowable administrative costs thereby reducing the reimbursement received by the site.  Any other good cause as determined by TDA.

It is the site's responsibility to demonstrate that such conditions exist.

EXAMPLE: A site moved to an area where the current sponsor does not provide service.

When approving a transfer based on good cause, F&N will specify the earliest dates on which a new agreement may be signed or become effective. Transfers may be approved any time throughout the program year when there is good cause. The approval granted by F&N to transfer is only effective one time. A site may not use the same transfer letter to transfer between multiple sponsors. Sponsors must submit the approval to transfer letter with all other required documentation when adding a site.

Occasionally, a sponsor will cease participation in the CACFP prior to the end of the program year. When this happens, F&N notifies the sites that they are approved to transfer to another sponsor. No sponsor may execute an agreement with a site that has been approved for transfer prior to the date in the notification.

Sponsors adding a site that was previously under the sponsorship of a sponsor that terminated during the same program year must submit the termination letter/approval to transfer letter with all other required documentation when adding the site.

Texas Department of Agriculture – June 2012 Managing the Program – 71 Child and Adult Care Food Program – Child Care Centers Handbook Any costs sponsors incur while recruiting a current or former sponsor's sites, prior to June 1 or prior to the date that F&N has approved a site's transfer, are unallowable. At a minimum, sponsors records must include:

 Itemized accounts, including the source of non-Program revenue, of recruiting costs.  The first date of contact with the site.

Failure to properly request these changes may delay the processing of your claim or result in a reduced reimbursement.

4330 Training

4331 Training Requirements for Sponsoring Organizations

 A new site must receive training prior to the site’s participation in the Program and annually thereafter.  A participating site must attend training annually.  A new employee of the sponsoring organization (SO) or site who performs key activities must receive training prior to beginning key activities.  A current employee of the SO must receive training annually.

Sponsors must plan trainings that are appropriate to the experience level and duties of the sponsor’s and site’s staff. Experienced and inexperienced staff should not get the same training year after year; however, repetition of some information may be necessary to ensure continued Program compliance.

Although all topics must be included in the annual training, a sponsor may provide more information on some topic than others. A sponsor’s training should always address areas in which deficiencies have been identified.

There is no requirement for the amount of time spent on training. Therefore, a sponsor may only need a short review on some topics, while other topics require a longer period of time.

Training may be conducted in a variety of ways to meet the needs of the sponsor’s and site’s staff. Sponsors may use classroom style, on-site, distance learning (with the exceptions listed below), or other innovative training techniques, provided the training is properly documented and the training accomplishes the regulatory requirements for training content and frequency.

Managing the Program – 72 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook However, sponsors may not fulfill the training requirements by providing a training video to and requiring staff to certify that they watched it. Training on video, CD-ROMS, web-based training, and/or other independent learning approaches are only permitted to fulfill the requirement if there are means to verify that each trainee has actually received the training, i.e., pre- and post-tests, activities, exercises, etc. Sponsors may use electronic signatures to verify that sponsor and site staff has completed electronic training.

4331.1 New Site and Sponsor Staff

The sponsor, their staff and new site staff who perform key CACFP activities must participate in or receive training in the following areas and subtopics:

 Program Meal Pattern o Infant and child meal pattern o Serving sizes for age groups o Creditable foods o Meal service styles o Accommodating special needs diets o Menu planning  Meal Counts o Daily (point of service) o Weekly o Monthly  Claims Submission o Due date o Late claims o Adjusted claims  Claims Review Procedures o Review elements o Adverse Action o Appeal rights  Recordkeeping Requirements o Daily, weekly, monthly forms o CACFP Meal Benefit Income Eligibility Form (Child Care) and letter to households o Annual enrollment information o Meal production records o Attendance records o Financial records o Record retention  Purchase meals (FSMC/Vendor)

Texas Department of Agriculture – June 2012 Managing the Program – 73 Child and Adult Care Food Program – Child Care Centers Handbook  Reimbursement System o Claiming percentage o Administrative fee o Payment schedule  Civil Rights

NOTE: F&N is not the entity providing the training to site and sponsor staff on the above training topics.

F&N provides Civil Rights training materials on the TDA website at http://www.squaremeals.org, click on F&N Resources, then Training and finally Civil Rights Training.

F&N may require sponsors to attend additional training during the program year. Sponsors will be notified if and when mandatory training is scheduled.

Key CACFP activities include:

 Budget  Procurement  Enrollment  Eligibility Determination  Attendance Records  Meal Preparation  Meal Service  Meal Counting  Claim Preparation  Monitoring  Civil Rights  Training

4331.2 Participating Sites and Current Sponsor Staff

After a sponsor’s first program-year of participation, the sponsor, their staff and site staff that performs key CACFP activities must participate in or receive training annually in the same areas and subtopics as listed in 4331.1.

NOTE: F&N is not the entity providing the training to sites and sponsor staff on the above training topics.

Managing the Program – 74 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook F&N may also require sponsors to attend additional training during the program year. Sponsors will be notified when mandatory training is scheduled. During the program year site staff may change. Any new staff hired by a site is required to be trained on the areas and subtopics. It is the sponsor’s responsibility to ensure new site employees who will be performing key activities receive training prior to beginning these CACFP functions. The sponsor can develop a method to ensure this training is performed and compliance with the requirement for the staff member to participate is met. This can include the sponsor providing the training as needed or developing a training plan with the site for a trained site employee to provide the training. All documentation requirements apply in either situation. The sponsor is responsible for verifying compliance with the training requirements during their review of the site, if the site personnel provided the training.

4332 Training Requirements for Independent Centers

CEs must train each staff member before they assume any CACFP duty (see 4331.1 for a list of CACFP activities) and must train each staff member annually thereafter. Civil Rights training must be provided each year, and the training materials mentioned above in 4331.1 can be used to meet this requirement.

Training must cover the following topics:

 Program Meal Pattern  Meal Counts  Claims Submission  Claims Review Procedures  Recordkeeping Requirements  Reimbursement System  Civil Rights

Training for each staff member can be specific to their CACFP duties or can include all topics as listed above. Training must be documented as indicated below.

4333 Training Documentation

CEs must maintain documentation of all training sessions that include the following:

 Date of training,  Location of training,  Training topics,  Names of participants, and  Written or electronic signature of the participants.

Texas Department of Agriculture – June 2012 Managing the Program – 75 Child and Adult Care Food Program – Child Care Centers Handbook When a site completes a required training course, the sponsor must present the site with written documentation acknowledging their completion of the training. The documentation must include the:

 Name of the site.  Title of the training.  Date that the training was completed.  Name of the sponsoring organization.  Name of the trainer who provided the training.  Written or electronic signature of an authorized representative of the sponsoring organization.

NOTE: F&N materials are produced using federal funds for F&N-sponsored training events and as a tool for attendees to reference and use for training their own staff. No part of F&N’s publications may be reproduced in any form or by any means for profit or for any purpose other than use in USDA FNS programs. F&N cannot guarantee that non-F&N sponsored program training will contain current or correct information. CEs should contact TDA if there are any questions about information received during training.

4340 Monitor Reviews – Sponsoring Organizations

Sponsors must conduct monitoring reviews of each of their sites to determine compliance with all program requirements.

Sponsors must use Form H1606, Monitor Review, during each visit. All questions on Form H1606 are considered critical. However, each entry on Form H1606, in and of itself, does not ensure that an organization fulfills its fundamental management responsibilities. Some entries are essential to ensuring that the program’s intent is being met with integrity. Other entries denote that technical federal and state requirements are being met. Sponsors must ensure the form is completed in its entirety.

Sponsors that fail to complete all elements on Form H1606 will be subject to serious deficiency.

NOTE: Sponsors are not permitted to use or develop an alternate version of Form H1606.

Sites participating in the CACFP are subject to unannounced as well as announced reviews by the sponsor, TDA, USDA or other State or Federal officials.

Managing the Program – 76 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Sponsors must notify each site that:

 They may be reviewed on an announced or unannounced basis;  The sponsor will only make announced or unannounced reviews during the site’s normal hours of operations, including evenings and weekends if applicable;  Monitors conducting announced or unannounced reviews will have photo identification that is current and must clearly identify the individual by name and the name of the sponsoring organization; and  State or Federal officials that visit the site will carry photo identification that identifies them by name and agency.

A Texas Driver’s License or Texas ID card is not sufficient to meet the photo identification requirement because it does not identify the individual as an employee of the sponsoring organization. State or Federal officials that visit the site will carry photo identification that identifies them by name and agency.

Sponsors are required to review each of their sites:

 At least three times per year (based on the 12-month monitoring review period of each site) unless the sponsor is averaging reviews.  Once within the first four weeks of Program operations with the sponsor.  At least once every six months (unless the sponsor is averaging reviews).

NOTE: See Item 4342, Review Averaging, for procedures and requirements for review averaging.

Two of the reviews conducted must be unannounced (unscheduled); the third review may be announced or unannounced at the sponsor’s discretion, during each site’s 12-month monitoring review period.

Prior to conducting an announced review, sponsors must notify the sites in writing.

When planning unannounced reviews sponsors must ensure that the planning of the reviews does not allow for the unannounced review of a specific site to be conducted at the same time each year. For example, reviews that always occur during the third week of any given month, or never occur during the first week of a month when claims are being processed.

Unannounced reviews are designed to help sponsors ensure sites are operating the Program in accordance with regulations and policies, and unannounced reviews that are always scheduled at the same time, therefore are known to be expected by a site, are less likely to uncover management deficiencies and Program abuse, and undermine the intent of unannounced reviews.

Texas Department of Agriculture – June 2012 Managing the Program – 77 Child and Adult Care Food Program – Child Care Centers Handbook A sponsor must observe a meal service at each required review. Only one review during the site’s 12-month monitoring review period may include the observation of a snack rather than a meal. If a site participates on Saturday or Sunday, the sponsor must attempt to conduct at least one of the reviews on a Saturday or Sunday.

A sponsor must provide oversight of all types of meal services being claimed by its sites. In order to provide adequate oversight, the sponsor must review all meal service types being claimed by all of their sites, including weekend meals. Monitoring all meal service types does not require a sponsor to annually conduct reviews of all meal services being claimed at each site. As long as, in the total of all reviews conducted, the sponsor provides oversight of all meal service types being claimed, the sponsor has met its responsibility. Meal service types include: breakfast, at-risk breakfast, lunch, at-risk lunch, supper, at-risk supper, snacks (am/pm/eve/at- risk) and/or weekend meals.

Sponsors may not observe the same meal service type at all reviews conducted for the same site.

EXCEPTION: If a site only serves one meal type, each review must include the observation of that meal service.

The following is a recommendation and not a requirement when monitoring meal service: The number of breakfast, lunch, or supper monitoring reviews should be roughly the same percentage as the percentage of breakfast, lunch, or suppers claimed for reimbursement.

EXAMPLE: If 20% of the meals claimed by the sites are suppers, then 20% of the sponsor’s effort should be devoted to reviewing suppers. The sponsor must keep records of the locations, dates, times, and findings for each review. The sponsor is responsible for using the reviews as an opportunity for training the site. If problems are identified during a monitoring review, the sponsor must require corrective action to ensure that the problems are corrected. F&N expects reviews of sites that are experiencing difficulty operating the program to exceed the minimum number and frequency.

4341 Monitor Review Requirements for At-Risk Afterschool Care Centers

The monitoring review requirements for sites participating in the at-risk afterschool care centers component are as follows:

 The minimum number of required annual monitor reviews is 3 visits;  The maximum length of time between monitor reviews is 6 months; and,  The maximum period of time between the start of a new site’s operation and the first monitoring review is 4 weeks.

Managing the Program – 78 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook The annual monitoring review requirements are based upon the individual site’s start date in the CACFP.

4342 Review Averaging

Sponsors may choose to average their monitoring reviews as a means to better utilize resources, by conducting only two unannounced monitoring reviews of sites with few or no Program non- compliances or findings at the last 2-3 reviews, three monitoring reviews for the bulk of their sites, and four monitoring reviews per year of those sites that need closer oversight and technical assistance.

Sponsors are not required to obtain prior approval from F&N to implement monitoring review averaging. However, sponsors are responsible for informing F&N of their intent to utilize the option and to provide a description of their implementation plan. If a sponsor decides to implement or to stop averaging during renewal application processing, or during the program year, they must submit a revised Contracting Entity Application – Centers in TX-UNPS or via paper. If the request is to begin using review averaging, the sponsor must also submit their implementation plan.

A sponsor’s plan must include the criteria it will use to determine which sites will receive two, three or four reviews and monitor review procedures for its organization. F&N will evaluate and approve the plan to ensure that all monitoring reviews will be conducted and performed according to program regulations. Regardless of the sponsor’s monitoring review schedule, F&N will review and monitor the sponsor’s operation for compliance to determine if reviews are being conducted as required.

Review Averaging Exceptions

Sponsors that average their monitoring reviews must include the review requirements found in Item 4340 and/or 4341, with the following exceptions:

1. There can be no more than 9 months between monitoring reviews if a site is receiving two monitoring reviews.

2. The minimum number of monitoring reviews a site may receive is two per year.

3. A site that has a serious finding during the monitoring review year must receive at least three monitoring reviews.

Texas Department of Agriculture – June 2012 Managing the Program – 79 Child and Adult Care Food Program – Child Care Centers Handbook 4342.1 How to Establish the Averaging Cycle

In order to implement the review averaging option successfully, the sponsor’s review cycle must correspond with the CACFP Program Year (PY) (October 1 – September 30). If the sponsor has been conducting monitoring reviews on a schedule other than the CACFP PY (for example, sites approved participation date, calendar year, etc.), the new review averaging cycle must have a beginning date of October 1 for all participating sites.

Step 1. Calculate the number of total monitoring reviews that must be conducted.

Number of participating sites as of October 1 multiplied by 3 equals the total number of required monitoring reviews over the entire PY.

EXAMPLE: 5 sites x 3 = 15 total number of required reviews that must be conducted during the PY (October 1 – September 30).

Step 2. Construct a profile to determine which sites need more or fewer monitoring reviews.

The following is an example of how a sponsor may determine which sites would require more frequent review and which would require less frequent review.

Sites that need only two monitoring reviews:

 Sites that had no findings on their last 2-3 monitoring reviews.  Sites that have participated for several years that have only minor findings on their last monitoring review.

Sites that need three monitoring reviews:

 New sites that have previously participated with another sponsor.  Sites that had findings on their last 2 monitoring reviews.  Sites that are doing well, but need additional technical assistance in a particular area.

Sites that need four monitoring reviews:

 New sites that have never participated in the CACFP.  Sites that had serious findings on their last monitoring review, and/or a principal or individual of the site were in the serious deficiency process.  Sites that are having difficulties.  Sites that have a combination of the above.

Managing the Program – 80 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Fluctuations due to adding and terminating sites will affect the sponsor’s review averaging plan. To help manage the total number of required monitoring reviews the sponsor must perform, a separate averaging plan may be beneficial for new participating sites added during the PY. New sites added during a PY will then be added to the total monitoring reviews for the following PY.

For New Sites Beginning within a Program Year Site Beginning Participation Date Minimum Number of Monitoring Reviews in PY

October 1-December 30 3

January 1-March 31 3

April 1-June 30 2

July 1-September 30 1

EXAMPLE: If a new site begins participation on December 3, three monitoring reviews must be conducted for the PY. If a new site begins participation on May 2, two monitoring reviews are required.

Step 3. Determine exactly how many sites will get two, three, or four monitoring reviews.

In order to get the total number of monitoring reviews required, the sponsor will need to have the same number of sites receiving two monitoring reviews as receive four monitoring reviews.

EXAMPLE: If 300 monitoring reviews are required, a sponsor’s schedule might have:

 10 sites receiving 2 monitoring reviews.  80 sites receiving 3 monitoring reviews.  10 sites receiving 4 monitoring reviews.

Step 4. Develop a plan to track monitoring reviews.

Tracking monitoring reviews shows the timing of monitoring reviews for each site throughout the year, and identifies which monitoring reviews will be announced and unannounced.

Texas Department of Agriculture – June 2012 Managing the Program – 81 Child and Adult Care Food Program – Child Care Centers Handbook A sponsor’s tracking plan should keep a running tally, by month and by year-to-date, of:

 The number of monitoring reviews conducted.  The number of unannounced monitoring reviews conducted.  The number of announced monitoring reviews conducted.

Step 5. Frontload reviews.

Conducting a majority of the monitoring reviews early in the PY (“frontloading”) allows for more flexibility if circumstances occur later in the year that forces a revision to the review averaging plan.

Step 6. Revise the schedule.

The sponsor’s review averaging plan will need to be reassessed periodically. The more sites the sponsor has, the more times the schedule will need to be assessed.

Anticipate changes such as:

 The number of participating sites changes due to new, terminated or temporarily inactive sites.  One or more monitors leave the position.  Bad weather prohibits the monitoring review.  The monitor has car problems and all monitoring reviews for the day cannot be conducted.

Averaging will work differently for each organization, depending on how the site profile is developed, the organization is structured, and other factors. Sponsors that implement review averaging should remember it is a tool to use to focus more technical assistance and oversight on problematic and new sites.

4343 Meal Edit Checks

Sponsors must use monthly edit checks to review meal counts submitted by each site to ensure the accuracy of the sponsor’s monthly claim.

The edit checks will ensure that sites are:

 Reimbursed only for approved meal types.  Not reimbursed for more meals than they could have served during the claiming period.

Managing the Program – 82 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Edit checks can reveal problems with sites’ meal data that need to be resolved before the sponsor submits their claim to F&N. A failed edit check must always result in further investigation or follow-up by the sponsor.

The edit checks required are:

 Approved Meal Types Edit Check: Compare the meal types claimed to the meal types for which the site has been approved. This basic edit check can detect obvious claiming errors. It ensures, for example, that a site approved to serve breakfast, lunch and PM snacks does not attempt to receive reimbursement for AM snacks and suppers.

FOLLOW-UP ACTION: Sponsors must follow their own procedures for handling invalid documentation submitted by a site. However, all meal types claimed that are not approved must be disallowed. For example, the sponsor could contact the site to determine if a revision should be submitted to change the approved meal types. Sponsors may not retroactively revise the approved meal types in order to reimburse the site for meals already claimed.

 Maximum Number of Meals Edit Check: Identifies the total reported counts that exceed the maximum number of meals that a site could claim in a month. This maximum number equals the site’s total enrollment, times the maximum number of approved meals that can be claimed per child (3), times the number of operating days in the claiming period.

EXAMPLE: If a site has 50 children enrolled and serves breakfast, AM snack and lunch for 20 operating days, it can claim a maximum of 1,000 for each meal type, and a maximum of 3,000 total meals; 50 enrolled X 3 meal types X 20 operating dates = 3,000 maximum total meals that can be claimed for the month.

When the sponsor prepares the claim, each site’s total meals/snacks reported must be compared with the site’s enrollment figure for that month. The sponsor must develop a procedure to ensure that it’s using the most current information on enrollment for the claim month to conduct this edit check. NOTE: Outside school hours care centers, at-risk afterschool care centers and emergency shelters are not required to maintain enrollment forms. Use the attendance number in place of the enrollment number.

FOLLOW-UP ACTION: If the meals/snacks count reported for reimbursement fails the maximum number of meals edit check, you must follow-up with a more complete review to determine whether the meal count is accurate. If the meal count is incorrect, follow your own procedures for handling inaccurate meal counts.

Texas Department of Agriculture – June 2012 Managing the Program – 83 Child and Adult Care Food Program – Child Care Centers Handbook NOTE: Although block claim edit checks are not required, sponsors may use it as a tool to determine potential training needs or claiming concerns with a particular site. Block claim edit checks identify data submitted by a site for which the number of meals for one or more meal type submitted for reimbursement is identical for 15 or more consecutive days within a claiming period.

4343.1 Five-Day Reconciliation

During each monitoring review sponsors must conduct a reconciliation of meal counts to enrollment and attendance records for five consecutive days during the current and/or prior claiming period.

The five-day reconciliation is done by comparing enrollment, attendance and meal counts by child, and by meal type. Use the information obtained from the meal count, attendance and enrollment records to complete Form H1606, Monitor Review.

Before beginning the reconciliation, the sponsor must:

 Review the enrollment and attendance records to ensure they are current and accurate.  Compare the site’s total enrollment to the recorded daily attendance to ensure the number of children in attendance does not exceed the number enrolled. If attendance does exceed enrollment, for any day or for any shift (if shift care is provided), the sponsor must determine the source of the error (for example, inaccurate attendance records, missing enrollment forms) before the five-day reconciliation can be performed.

To perform the five-day reconciliation, compare the enrollment forms, meal counts and attendance records for each child claimed during the five-day period chosen for the reconciliation to determine if:

 The meals claimed were consistent with the meals indicated by the parent/guardian as meals the child will normally receive. If not, the site must explain the discrepancy.  The days and hours the child was claimed for meals are consistent with the days and hours indicated by the parent/guardian as days and hours the child would normally be in care. If not, the site must explain the discrepancy.  The attendance records indicate the child was in attendance for the meal service(s) being claimed. If not, the meal(s) must be disallowed.

If the site is unable to provide a reasonable explanation, or the sponsor is unable to reconcile the discrepancies, the sponsor must use the household contact procedure to verify the validity of the meal counts, attendance and enrollment records. Upon completion of the household contact

Managing the Program – 84 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook process, if the sponsor is still unable to reconcile the difference between meal counts, attendance and enrollment, the sponsor must determine whether meals must be disallowed. NOTE: If there are circumstances that warrant the review of a five-day period from an earlier month (for example, there are indications of an inaccurate meal count in an earlier month, but not the current or previous month), the sponsor may look at the earlier month’s records as well.

4343.2 Household Contacts

Household contacts are an oversight tool that must be used as a means to check the accuracy of meal counts when there are unusual CACFP participation/claiming patterns detected at a monitoring review or during the consolidation of meal count data.

Household contacts will help verify that claimed meals in question were:

 Served to children enrolled in care.  Served to children in attendance when the meal was served.

At a minimum, the sponsor must call parents/guardians of children whose attendance/enrollment is in question when one or more of the following situations occur:

 There is an unexplainable difference in the number of meals claimed from what the sponsor verifies at the monitoring review.  There is no acceptable explanation for a significant variation (10% or more) in the attendance on the day of the monitoring review.  Maximum capacity is claimed consistently except on the day of the monitoring review.  There is a suspicious claiming pattern discovered during review of the monthly meal count data submitted.  Children are only absent on the day of the monitoring review.  Complaints are received that indicate meals are claimed fraudulently.  Enrollment form and/or attendance record appears to be completed or altered without parental consent.  Any other claiming pattern and/or program participation concerns that the sponsor identifies.

Contacting Households

 Do not notify the site prior to initiating household contacts.  Households may be contacted by written correspondence, email, phone, personal visit, or any other means the sponsor chooses to make. Letters are strongly encouraged as families may be hesitant to share this type of information with a stranger over the phone. When using letters, include a self-addressed stamped envelope to increase the chances the household will respond.

Texas Department of Agriculture – June 2012 Managing the Program – 85 Child and Adult Care Food Program – Child Care Centers Handbook A minimum of three documented attempts must be made to contact the household. If all attempts to contact the household fail, verify that the contact information is the most current by using the secondary verification process. Secondary verification of participation is only acceptable when the sponsor can document compliance with the requirement to make a minimum of three attempts to contact the parent/guardian.

Examples of secondary verification are:

 Itemized deposit slips or receipts showing the child-care payments were received for the child during the time period in question.  Collateral contact such as a member of the child’s family other than the parent/guardian, or the parent or family member of another child in care who can verify that the child was enrolled for care and received meals during the time in question.  Sign in/out sheets that show that the child was present during the meal service during the time in question.  Trip sheets and/or field trip permission forms that show the child was present during the meal service time in question.

Initiate the household contact within 30 calendar days from the date of the monitoring review, or the date the claim in question was processed. No more than 45 calendar days may elapse from the start of the household contact process to the end.

A response rate of 50% or more of the households contacted is considered successful. If contact cannot be made with at least 50% of the selected households, meaning the household contact procedure was unsuccessful, the sponsor may use other approaches (additional unannounced reviews, more detailed review(s) of claim history, etc.) to investigate and explain the program concern. Regardless of other approaches used, the sponsor must document all subsequent actions taken to an unsuccessful household contact.

Contact Documentation

Document household contact and attempts; including the following data:

 Name of site.  Name of person conducting the household contact.  Name of child/children in household in question.  Name of household contact (parent/guardian).  Circumstances that initiated the household contact.  Date of household contact or attempted household contact.  Method of household contact.

Managing the Program – 86 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Circumstances for unsuccessful household contact.  Information obtained from household contact.  Any additional information the sponsor wants to include. The sponsor must establish their own written policies and procedures regarding corrective action and reimbursement when discrepancies are verified.

A sample household contact form is included in Section 11000, Resources, but a sponsor may develop their own contact form.

4350 Nonprofit Food Service

CEs must operate a nonprofit food service principally for the benefit of enrolled children and must document all aspects of the food service operation. Nonprofit status does not require that the CE operate at a break-even or loss. Nonprofit food service status is determined by the scope of the food service activities conducted by the CE and the use of nonprofit food service revenues through:

1. Identifying all nonprofit food service revenues; 2. Deducting allowable net expenses; 3. Identifying the excess of all nonprofit food service revenues over nonprofit food service expenses; and 4. Verifying that any excess of revenues over expenses is retained and used only in the nonprofit food service operation.

Food service revenue includes:

 CACFP reimbursement.  Income to the Program, which is income earned from activities supported by the food service.  All other funds used or restricted for use in the nonprofit food service, such as donations.

CEs can maintain a maximum of three months' average expenditures in the non-profit food service account. The non-profit food service account, or net cash resources, should not exceed three months’ average expenditures. If a CE approaches the maximum amount allowed in the nonprofit food service account, they should contact TDA for assistance. To determine if an excess balance exists, complete the following calculations:

A. Total Net Cash Resources B. Year’s Expenditure

$______$______

Number of months’ operation x 3 months

Texas Department of Agriculture – June 2012 Managing the Program – 87 Child and Adult Care Food Program – Child Care Centers Handbook If A exceeds B the CE must develop a plan to reduce the excess balance.

Managing the Program – 88 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CEs must account for all nonprofit food service costs using generally accepted accounting principles (GAAP). CEs are responsible for accounting for costs accurately and for maintaining records to demonstrate that costs claimed have been paid, are allowable to the program, and comply with financial management requirements found in FNS Instruction 796-2, Rev. 3, Financial Management – Child and Adult Care Food Program located at http://www.squaremeals.org, under F&N Resources, select Tools & Links, then select Links and choose FNS Instruction 796-2 under the Government heading. In all cases, allowable costs must be prior approved. Levels of required approval are described in the above mentioned FNS Instruction.

Unallowable costs may be necessary and reasonable for the operation of an organization but are not allowed as nonprofit food service costs, even when the majority of the organization's revenue is from the CACFP. For example, cost to obtain or maintain corporation status is an unallowable cost.

For budgeting purposes, the cost of an expense may be estimated; however, the nonprofit food service accounting system and the CE’s supporting documentation must show only actual costs. In addition, costs must be necessary and reasonable to the operation of the nonprofit food service. A necessary cost must represent an activity or function that is generally recognized as ordinary and necessary for the operation of the nonprofit food service. A reasonable cost must not exceed what a prudent person would pay under the same circumstance.

Allowable costs can be either direct or indirect costs. Direct costs are those costs that can be specifically identified as costs for the nonprofit food service. Indirect costs are those costs that are incurred for a common purpose within the organization, but a portion cannot be easily assigned to the nonprofit food service. If the CE will be claiming indirect costs, the rate must be part of their cost allocation plan. A cost allocation plan is a written explanation of how costs are classified.

Allowable costs can be categorized as "operating costs" or "administrative costs."

4351 Operating Costs

Operating costs are allowable expenses for serving meals to eligible participants in eligible sites. Although operating costs do not affect the amount of reimbursement the CE or site receives,

CEs, and sites, must keep records of operating costs to show that the food service is nonprofit.

Texas Department of Agriculture – June 2012 Managing the Program – 89 Child and Adult Care Food Program – Child Care Centers Handbook Operating costs include:

 Food.  Facilities and space (rent, utilities and other space costs).  Supplies and equipment (durable supplies, expendable material/supplies, and equipment).  Purchased services (security services, maintenance and janitorial).  Financial costs (accounting, audits, and bonding).  Media costs (advertising, public relations, communications, publications, printing).  Contracting organization costs (training, travel, appeals, legal expenses, meetings and conferences, membership, subscriptions and other professional organization activities).  Other costs (any other cost associated with the nonprofit food service).

All CEs (sponsors and independent) must compute the cost of food used in the nonprofit food service. Allowable food cost is determined by the net cost of food used, not the cost of all food purchased. CEs must follow the guidance found in FNS Instruction 796-2, Rev. 3, Financial Management – Child and Adult Care Food Program located at http://www.squaremeals.org, under F&N Resources, select Tools & Links, then select Links and choose FNS Instruction 796-2 under the Government heading.

Records of the cost and quantity of food purchased, cost reductions, and amounts of food used must be maintained. Required food cost records include:

 Procurement documents, including bids and contracts;  Purchase orders;  Delivery receipts;  Invoices;  Canceled checks;  Itemized cash receipts;  Purchase records;  Credits, returns, and rebates; and  Inventory records.

If a CE or site purchases prepared meals from a vendor, such as a food service management company, the CE or site must keep delivery slips from each delivery. The CE or site must verify the count and counter-sign the delivery notice. Durable supplies have a life expectancy of one year or more and include stoves, dishwashers, microwaves, garbage disposals, etc. Durable supplies are charged to the nonprofit food service account at the time of purchase.

Managing the Program – 90 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Expendable materials and supplies have a life expectancy of less than one year and include straws, napkins, paper plates, and dishwashing soap. Expendable materials and supplies are charged to the nonprofit food service as they are used each month. CEs and sites must keep receipts, invoices, and bills to document these purchases.

Purchased services are the costs of services required by the food service operation. CEs may claim the costs if they are allocated specifically to the food service operation. CEs must keep receipts, invoices, billings, and rental agreements to document these costs.

The following types of purchased services may be claimed:

 Rental of food service equipment or facilities.  Maintenance, repair, or upkeep of food service equipment if the repair does not add to the equipment's value or prolong its intended life.  Cost of utilities, security, and janitorial service if these costs are not included in rent, indirect costs, or other charges for space.  Cost of renting space in privately owned buildings if the space is procured according to appropriate bid procedures.

4351.1 Documentation Requirements for Operating Labor Costs

An individual's compensation must be reasonable for the services provided and conform to the organization's written compensation policy. Operating labor is labor that is necessary for:

 Menu planning,  Preparing and serving meals,  Clean-up,  Supervision of children during the meal service, and  On-site preparation of CACFP records (such as meal count and menu records).

The cost of labor includes:

 Salaries or hourly rates for operating labor (these are reasonable when the rates that are charged are the same as the rates paid for similar work throughout the organization);  The employer's share of federal, state, and local employment taxes such as Social Security, withholding tax and state unemployment taxes, as well as the employer's share of fringe benefit costs such as vacation leave, military leave, health benefits, life and disability insurance, paid non-work holidays, and retirement benefits;  Payment of overtime, holiday pay for work performed on a non-work holiday, and compensatory leave is allowed with specific prior written approval for each instance, except for cases of emergencies. CEs must contact TDA within two working days of any emergency situation;

Texas Department of Agriculture – June 2012 Managing the Program – 91 Child and Adult Care Food Program – Child Care Centers Handbook  Incentive payments and awards. Except for awards of nominal or minimal value, specific prior written approval is required for costs of an incentive payment or award given to an employee. Awards of minimal value include length of service pins, certificates of appreciation, floral arrangements, live plants, mugs, and plaques; and  Severance or dismissal pay (compensation paid to an employee whose employment is terminated). The cost of severance pay is allowed on a case-by-case basis, with specific prior written approval from TDA.

Documentation requirements for operating labor costs include:

 An established and maintained written compensation policy for every element of compensation charged to the nonprofit food service. At a minimum, the written compensation policy must identify: (a) rates of pay; (b) hours of work, including breaks and meal periods; and (c) the organization's policy and payment schedule for regular compensation, overtime, compensatory time, holiday pay, benefits, awards, severance pay, and payroll tax withholding. The written compensation policy and approved budget must be in agreement for labor costs to be allowable.  Time and attendance reports for all labor costs. These reports must identify the total time actually worked by the employee and not just the time spent on nonprofit food service activities. At a minimum, these reports must include (a) start time; (b) end time; and (c) absences.  Time distribution reports. To establish the portion of costs that may be claimed as operating labor, a daily log or time distribution method must be used. Time distribution reports must be: o Completed by all employees and account for the total activity for which each employee is compensated (this includes employees who spend 100 percent of time on nonprofit food service activities); o Prorated by the amount of time spent on nonprofit food service activities; o Completed for each employee separately; o An after-the-fact determination of the actual activity of each employee; and o In intervals no less than every 15 minutes. In addition, the report must be compiled at least monthly and coincide with one or more pay periods. For employees who 100 percent of time on food service activities may sign a certification statement monthly when they do not deviate from their regular work schedule. All other employees must complete time distribution reports. Budget estimates and time studies of any kind are not acceptable documentation.  In all cases, time and attendance and time distribution reports must be completed by the employee and signed and certified as true and correct by the employee and a responsible supervisor.

Managing the Program – 92 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Payroll records. At a minimum, a record for each employee containing: o Employee name; o Employee identification number; o Rate of pay; o Hours worked; o Benefits earned; o Any reductions or increases to the employee's base compensation, e.g., overtime pay, incentive award, etc.; o Gross pay; o Net pay; o Date of payment to employee; o Method of payment, i.e., check, cash, Electronic Funds Transfer (EFT); and o Verification that the employee has been paid, i.e., canceled checks or EFT deposit verification. For cash payments, an original signature certifying receipt of payment is required.

4351.2 Depreciation

Depreciation is the expense associated with the organization's use of space, facilities, and equipment. Depreciation is based on the cost and life expectancy of the item. A use allowance can only be applied to items that have been fully depreciated by the organization before being placed into use for the nonprofit food service. Any generally accepted method of computing depreciation might be used.

Whether privately or publicly owned, buildings can be depreciated using 30-year straight-line or the depreciation method used and accepted for federal income tax reporting purposes. In addition, the acquisition cost upon which depreciation is based must exclude the value of land. Any other depreciation method requires specific prior written approval from F&N.

The organization may use either 15-year straight-line depreciation (five years for ADP equipment and vehicles), or the depreciation method used and accepted for federal income tax reporting purposes. Any other depreciation methods require specific prior written approval. All depreciation charged to the program must be documented through depreciation records indicating the amount of depreciation taken each period and, when appropriate, prorated between program and non-program use.

4352 Administrative Costs

Administrative costs are limited to the organization's allowable expenses for planning, organizing, and managing the nonprofit food service, e.g., salaries, wages, and fringe benefits for staff that approve income eligibility forms, provide training, and monitor sites.

Texas Department of Agriculture – June 2012 Managing the Program – 93 Child and Adult Care Food Program – Child Care Centers Handbook F&N must approve a CE’s administrative costs as part of their annual budget and whenever budget amendments are submitted.

Administrative labor costs include salaries and benefits for administrative personnel, e.g., secretaries and monitors. Each element of an individual's compensation must be reasonable for the services provided by the individual and conform to the organization's written compensation policy.

The cost of labor identifies:

 Salaries or hourly rates for administrative labor are reasonable when the rates that are charged are the same as the rates paid for similar work throughout the organization.  The employer's share of federal, state, and local employment taxes such as Social Security, withholding tax, and State unemployment taxes. The employer's share of fringe benefit costs such as vacation leave, military leave, health benefits, life and disability insurance, paid non-work holidays, and retirement benefits.  Payment of overtime, holiday pay for work performed on a non-work holiday, and compensatory leave are allowed with specific prior written approval for each instance, except for cases of emergencies. CEs must contact TDA within two working days of any emergency situation.  Except for awards of nominal or minimal value, specific prior written approval is required for costs of an incentive payment or award given to an employee. Awards of minimal value include length of service pins, certificates of appreciation, floral arrangements, live plants, mugs, and plaques.  Severance or dismissal pay is compensation paid to an employee whose employment is terminated. The cost of severance pay is allowed on a case-by-case basis, with specific prior written approval from F&N.

4352.1 Documentation Requirements for Administrative Labor Costs

CEs must maintain documentation to support administrative labor costs, including:

 An established and maintained written compensation policy for every element of compensation charged to the nonprofit food service. At a minimum, the written compensation policy must identify: (a) rates of pay; (b) hours of work, including breaks and meal periods; and (c) the organization's policy and payment schedule for regular compensation, overtime, compensatory time, holiday pay, benefits, awards, severance pay, and payroll tax withholding. The written compensation policy and approved budget must be in agreement for labor costs to be allowable.

Managing the Program – 94 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Time and attendance reports for all labor costs. These reports must identify the total time actually worked by the employee and not just the time spent on nonprofit food service activities. At a minimum, these reports must include: (a) start time; (b) end time; and (c) absences.  Time distribution reports. To establish the portion of costs that may be claimed as administrative labor, a daily log or time distribution method must be used. Time distribution reports must be: o Completed by all employees and account for the total activity for which each employee is compensated (this includes employees who spend 100 percent of time on nonprofit food service activities). o Prorated by the amount of time spent on nonprofit food service activities. o Completed for each employee separately. o An after-the-fact determination of the actual activity of each employee. o In intervals no less than every 15 minutes.

In addition, the report must be compiled at least monthly and coincide with one or more pay periods. Employees who spend 100 percent of time on food service activities may sign a certification statement monthly when they do not deviate from their regular work schedule. All other employees must complete time distribution reports. Budget estimates and time studies of any kind are not acceptable documentation.

 In all cases, time and attendance and time distribution reports must be completed by the employee and signed and certified as true and correct by the employee and a responsible supervisor.

 Payroll records. At a minimum, a record for each employee containing: o Employee name. o Employee identification number. o Rate of pay. o Hours worked. o Benefits earned. o Any reductions or increases to the employee's base compensation, e.g., overtime pay, incentive award, etc. o Gross pay. o Net pay. o Date of payment to employee. o Method of payment, i.e., check, cash, EFT. o Verification that the employee has been paid, i.e., canceled checks or EFT deposit verification. For cash payments, an original signature certifying receipt of payment is required.

Texas Department of Agriculture – June 2012 Managing the Program – 95 Child and Adult Care Food Program – Child Care Centers Handbook CEs may include the cost of establishing and maintaining accounting and other information systems required for management of the nonprofit food service. CEs may not claim the cost of maintaining central accounting records to meet all of its organization's requirements.

CEs may include the organization's costs for administrative appeals pursuant to the CACFP regulations.

CEs may claim the cost of advertising media to solicit bids for the procurement of program goods and services, recruitment of personnel for the nonprofit food service, and disposal of scrap or surplus materials acquired in the performance of the nonprofit food service. Advertising media include newspapers, magazines, radio and television, direct mail, web pages, and trade papers.

If funds are available, CEs may be reimbursed for the cost of audits required for the administration and management of the program.

CEs may include the cost of premiums on bonds for employees who handle program funds and for pre-agreement and post-agreement costs of bonding imposed by regulation.

Communications includes the costs of supplies and services such as telephone, telegrams, fax, licensing fees for electronic mail software, Internet services, postage, and messenger services. Costs for communication supplies and services must be prorated accordingly.

To be classified as equipment, an item must cost at least $5,000 per unit and have a useful life of at least one year. Instead of using depreciation, an organization, with specific prior written approval, can charge the nonprofit food program for certain types of equipment at the time the items are purchased. CEs must keep invoices, bills of sale, purchase orders, leases, contracts, and procurement documents to meet documentation requirements.

Space and facilities costs may be charged through rental/lease fees or depreciation. Whether in privately or publicly owned buildings, the total cost for space and facilities cannot exceed the rental costs of comparable space and facilities for privately owned buildings in the same locality. When a private residence owned by the organization or a related party is used for the nonprofit food service, the costs claimed must meet all IRS requirements for business use of a home and must be supported by the records used to meet IRS requirements for documenting the business use of the home.

Managing the Program – 96 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Financial expenses that must be incurred in the normal cost of administering the nonprofit food service are allowable costs. Allowable financial costs include:

 Purchase price of checks.  Fees charged by financial institutions for stop payment of checks.  Fees for use of ATM machines.  Monthly service fees for maintaining a bank account.

Financial costs that are unallowable include:

 Interest charged on loans.  Credit card balances.  Insufficient funds/returned check charges assessed by financial institutions and retailers.  Late payment fees.

CEs may include insurance costs that are required for the administration of the nonprofit food service.

CEs may include legal expenses required for the administration of the nonprofit food service. However, CEs may not claim the cost of maintaining a legal staff with general responsibilities.

Materials and supplies include durable supplies and expendable materials and supplies. Durable supplies have a life expectancy of one year or more and include desks, chairs, and computers. Durable supplies are charged to the nonprofit food service account at the time of purchase. Expendable materials and supplies have a life expectancy of less than one year and include copy paper, pens, and pencils. Expendable materials and supplies are charged to the nonprofit food service as they are used each month.

CEs may include some of the costs of attending meetings and conferences that include federal, state, county, national, or regional child care conferences. Meetings and conference costs are not the same as training costs. Allowable costs include:

 With prior approval, the travel and registration fees for attending meetings and conferences devoted solely to the CACFP.  With specific prior written approval, the prorated share of travel and registration fees when the CACFP is only a portion of a larger child care-related agenda.

Texas Department of Agriculture – June 2012 Managing the Program – 97 Child and Adult Care Food Program – Child Care Centers Handbook Membership costs in civic, business, technical and professional organizations and subscriptions to professional and technical periodicals are included in this category. Allowable costs include:

 Membership fees and annual dues for the organization's membership in business, technical, and professional organizations related to the program.  Membership fees and annual dues for one individual membership per organization in business, technical, and professional organizations related to the nonprofit food service when the organization will only accept individual and not organizational memberships.  Costs for the organization's subscription to periodicals related to the nonprofit food service.

If a CE or one of its employees uses his own or the CE’s vehicle to conduct administrative business, the reasonable cost is an allowable administrative cost.

CEs must document mileage expenses to include records of:

 The date of each trip.  The driver's name.  The mileage.  The origin and destination of each trip.  Parking costs.  The reason for each trip.

CEs may develop their own travel form containing these elements.

Procurement service costs include the cost of soliciting bids, preparing and awarding contracts, and all phases of a CE’s contract administrative system related to the nonprofit food service.

Publication, printing, and reproduction include the costs for in-house and outside publication, printing, and reproduction costs. All allowable costs are limited to the direct costs for publication, printing, and reproduction of materials related solely to the nonprofit food service, or the prorated share when necessary.

With prior approval, funds can be used to cover public relation costs for pamphlets, news releases, and other information services to inform individuals, groups, or the general public about the CACFP, or to increase an organization's CACFP participation.

Costs of utilities, purchased security and janitorial service, etc., not already included in space costs or labor compensation costs, are allowable.

Costs for supplies, storage, and maintenance of records necessary for the administration of the nonprofit food service are allowable.

Managing the Program – 98 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Costs to lease space, facilities, vehicles, and equipment for use in the nonprofit food service are allowable. Rental fees must be prorated when necessary. Written rental agreements must be properly procured from a third party.

Taxes or payments in lieu of taxes that the organization is legally required to pay as a result of operating the nonprofit food service are allowable. Unallowable costs include personal income taxes, corporate income taxes, and taxes resulting from non-program operations.

An organization's cost for providing training to administrative staff is an allowable nonprofit food service cost.

With prior approval, the following administrative costs are allowed:

 Rental costs of properly procured meeting and conference room space.  Fees for speakers who are not employees, officers, directors or trustees of the organization, or immediate family members.  Costs for meals and nonalcoholic beverages served to participants, but not guests, when nonprofit food service training is presented concurrent with the meal service.

Travel costs are expenses for transportation, lodging, subsistence, and related costs for employees, officers, directors, or trustees performing nonprofit food service work.

Costs for nonprofit food service travel may be charged on an actual per diem or mileage basis provided that the method used results in charges consistent with those normally allowed by the organization in its non-program operations. F&N cannot require that CE use the state, federal General Services Administration (GSA), or IRS mileage and travel rates instead of the rates used for non-federally funded travel. However, F&N can limit the amounts charged for mileage or other travel costs when the amount requested is unreasonable or when the requested rate will divert needed financial resources from activities required to meet CACFP requirements.

Texas Department of Agriculture – June 2012 Managing the Program – 99 Child and Adult Care Food Program – Child Care Centers Handbook 4352.2 Unallowable Administrative Costs

Unallowable administrative costs include:

 Administrative costs not approved by F&N.  Bad debts.  Compensating an individual, employee, or subcontractor based on the number of sites recruited. This includes cash and non-cash compensation.  Compensating an individual, employee, or subcontractor based on increased program participation, as measured by meals, children or sites.  Contingencies.  Contributions and donations (For example, the funds an employer provides for an employee’s retirement fund is frequently referred to as a “contribution”).  Costs (such as advertising, marketing, travel, telephone, wages, etc.) for recruiting sites who are already participating in the Program with another sponsor.  Entertainment.  Fines and penalties.  Fundraising.  Interest and certain other financial costs, such as insufficient funds/returned check charges and late payment fees.  Legislative or lobbying expense.  Political or partisan costs.  Subcontracted services that do not meet CACFP requirements. (Refer to Item 3140, Program Management).  Under recovery of costs under grant agreements (These are costs exceeding income in other federal programs, including all grant agreements regardless of funding source or program year. Also included are disallowed costs in the CACFP in the current or prior program years).

4353 Program Income

Program income includes, but is not limited to, funds used in the operation of the CACFP from:

 Money from other government sources.  Children’s tuition and payment for meals and food service fees.  Cash donations.  Grants from organizations or individuals.  All interest earned on reimbursements and advances.

Managing the Program – 100 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Income to the program may not be used to pay costs that are not considered allowable in the CACFP. For example:

 Incentives and bonuses provided to sites to participate in the program.  Training related to, but not required for Program participation, such as training to maintain licensing/certification requirements.

The receipt of all funds related to the CACFP, including grants, donations, and loans, regardless of their source, must be documented in writing. All loans must satisfy F&N financial management system requirements including, but not limited to, the following criteria:

 A written agreement specifying the terms and conditions of the loan, including a repayment schedule, must be signed by both parties.  Loans may not be entered into retroactively.

EXAMPLE: A donation or grant may not be converted to a loan agreement after the fact.

 Interest accrued on the loan is not an allowable program cost.

Donations, such as food, building use, services, and labor are not considered program income. However, a CE must maintain and make available documentation of each donation to demonstrate how it manages the Program on the CACFP reimbursement. CEs that submit a budget that does not reflect an acceptable level of food costs to support the number and type of meals it intends to claim should submit this documentation with the application to explain the discrepancy.

4354 Net Costs

Net costs are a CE’s total operating costs minus income to the program. A CE’s CACFP reimbursement may not exceed its net costs.

EXAMPLE: A CE’s reimbursement is $10,000 per year. Records support costs of $11,000 with $1,000 income. Since the net costs ($11,000 - $1000) and CACFP reimbursement is the same, the CE has shown that the program is nonprofit.

CEs must always report costs as they are accrued, not as they are paid. For example, a CE may pay payroll taxes quarterly, but must report them monthly as they accrue the expense.

F&N is able to observe a CE’s daily operation of the program only in the course of administrative reviews and audits. Therefore, F&N must rely on the records a CE keeps to determine compliance with program standards and the amount of reimbursement to which the CE is entitled.

Texas Department of Agriculture – June 2012 Managing the Program – 101 Child and Adult Care Food Program – Child Care Centers Handbook If a CE’s records do not support its eligibility, the eligibility of its sites or the claims for reimbursement, the CE will be required to repay any amounts they were paid improperly.

4360 Filing Claims

A CE’s claim is its actual participation report submitted for the purpose of receiving reimbursement for costs associated with food service. F&N reimburses claims depending on the availability of funds.

In order to process a CE’s claims, TDA must have approved a Form FND-101, Certificate of Authority for External Users, for the CE.

CEs submit claims electronically via the Internet, through the Texas Unified Nutrition Programs System (TX-UNPS). Upon approval of a CE’s application and FND Permanent Agreement, TDA will set up a TX-UNPS account for each authorized representative indicated on the FND- 101, Certificate of Authority for External Users. Each authorized representative will receive an email with a user ID and temporary password. Once logged into the system, the user will be prompted to change the password. A user manual is available on-line at http://TXUNPS.TexasAgriculture.gov.

The user manual gives instructions on how to:

 Access/log on to TX-UNPS;  Submit a claim for reimbursement; and  Obtain help if they are having trouble with their user ID or password, or with accessing TX- UNPS.

Once the CE’s claim has been successfully submitted, a confirmation number will appear, and the claim status will be “accepted”. CEs can print the screen, which contains a confirmation number, to reference when calling to confirm or ask questions about the claim.

CEs that call to confirm the receipt of their claim or make inquiries about their claim must have the confirmation number available. F&N Business Operations/Claim Processing office hours are 8:00 a.m. to 5:00 p.m. Central Standard Time (CST).

If TX-UNPS is unavailable on the last day of the filing deadline (“the system is down”), CEs may submit a paper claim via fax, mail, or by personal delivery to the F&N Business Operations office in the Stephen F. Austin Building in Austin. However, the claim must be postmarked or received by Business Operations/Claims Processing before close of business on the 60 th day or it will be received as a late claim. CEs must attach a cover letter explaining why they could not submit their claim electronically via TX-UNPS.

Managing the Program – 102 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook If a CE waits until the 60th day to submit a claim electronically and then is unable to access TX- UNPS due to any problem other than TX-UNPS being down, the CE must:

 Find an alternate site to access TX-UNPS and submit their claim before the deadline, or  Submit their claim via the paper process as a late claim. See Item 4362 for information on the processing of late claims.

NOTE: Original or adjusted claims submitted after the 60-day claim submittal deadline (late claims) cannot be submitted via TX-UNPS, and must be submitted via the paper claim. The CE must also submit an explanation for submitting the late claim or amendment and a corrective action plan as described in Item 4362 below.

Paper claims must be mailed to:

Texas Department of Agriculture Food & Nutrition Attn: Business Operations – Claims Processing P.O. Box 12847 Austin, Texas 78711

Faxed claims must be faxed to (888) 232-2759. CEs must call and confirm receipt of faxed claims. The number to call is (800) 264-5732 (TDD number 1-888-440-4997).

NOTES:

 CEs should not mail their claim if they fax it or submit it electronically.  It may take up to 45 days to process valid claims, no matter the method of submittal.

The purchase of a computer and Internet Service Provider (ISP) support is considered an allowable operating cost. If a CE uses the automation equipment and ISP for any activity, personal or business, other than the operation of their nonprofit food service, the CE must prorate the cost. The only allowable cost is the portion used in the operation of the CE’s nonprofit food service.

4361 Submittal Deadline

To ensure that claims are eligible for reimbursement, CEs must have them postmarked (paper claims) or received (paper, fax or electronic claims) by TDA no later than 60 days after the last day of the claim month. If the 60th day is on a weekend or holiday, the claim must be postmarked or received no later than midnight on the following workday.

Texas Department of Agriculture – June 2012 Managing the Program – 103 Child and Adult Care Food Program – Child Care Centers Handbook Sponsors will complete Form H1540, Documentation of Meals Served, monthly when preparing their claim for reimbursement and maintain the form(s) with their program files.

F&N recommends that CEs always have a back-up person designated to submit claims. Doing so could lessen the chance of submitting a late claim that may be denied for payment. If a CE receives advance payments, it should submit the claim as early as possible after the end of the claim month, as a delay in submitting the claim could affect receipt of advance payments.

4362 Late Claims

Claims postmarked or received by F&N later than 60 days after the last day of the claim month (i.e. late claim) will be processed in the following manner:

Corrective Action Plan (CAP)

The submission of a late claim is a program noncompliance; therefore, CEs must submit an approvable CAP that includes the:

 Reason for submitting a late claim;  Actions to be taken to avoid repetition of the situation linked to the late claim submission;  Actions to be taken to avoid any future late claim submission from the same or other causes; and  Signature of an Authorized Representative designated to act on the organization’s behalf per FND-101, Certificate of Authority for External Users.

Once a CE has submitted an approvable CAP, F&N will determine if it is eligible for the one- time exception payment provision.

NOTE: F&N will accept as proof of submission of a claim a postmark affixed by the U.S. Postal Service or equivalent documentation from a private postal service showing when the item was mailed. F&N will not accept as proof of submission of a claim a postmark affixed by a postage meter.

4362.1 One-Time Exception

A one-time exception may only be used once within a 36-month time period for each USDA Child Nutrition Program (CNP) in which the CE participates. The CACFP is one CNP, regardless of whether a CE participates in only CCC or if they also participate in Adult Day Care and/or Day Care Homes. A one-time exception granted to a CE does not eliminate the CE from consideration for a one-time exception for another CNP claim, for example, the Summer Food Service Program.

Managing the Program – 104 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook If the CE has … Then the CE may … Not used the one-time exception Choose or request to use the one-time exception provision within the 36-month time payment or receive no payment for the late claim. period, If the CE submits claims for more than one month at the same time, then the CE may choose the claim month for which to apply the one-time exception. Already used the one-time exception Request a good cause exception. provision within the 36-month time period,

4362.2 Good Cause

Requesting a Good Cause Exception

If a CE … Then F&N … Requests a good cause exception, Will consider each request on a case-by-case basis. The CE must demonstrate that the noncompliance occurred due to circumstances beyond its control (i.e., Good Cause).

If F&N… Then F&N… Approves the Will forward the request to request, USDA for approval. Do not approve Will deny payment of the late the request, claim.

Does not request a good cause Will deny payment of the late claim. exception,

Examples of good cause beyond a CE’s control may include, but are not limited, to:

 A catastrophic incident such as a tornado, flood, or fire; or  A life-threatening injury or illness to the person responsible for submitting the claim.

NOTE: Catastrophic incidences, life-threatening injuries or illnesses do not automatically entitle a CE to be granted a good cause exception. The responsibility is upon the CE to demonstrate how the catastrophic incident, life-threatening injury or illness caused a situation that made submitting the claim within 60 days unreasonable/impossible.

Texas Department of Agriculture – June 2012 Managing the Program – 105 Child and Adult Care Food Program – Child Care Centers Handbook Examples of reasons that would not be considered good cause beyond a CE’s control include, but are not limited to:

 Absence of personnel on the 60th day, for reasons other than a life-threatening injury or illness;  TX-UNPS is down or inaccessible for electronic filing;  A malfunction of power or equipment at the CE’s facility; or  Failure to get the claim in the mail in time to get it postmarked on the 60th day.

If USDA determines that a CE’s request for a good cause exception does not demonstrate that the noncompliance occurred due to good cause, payment of the late claim will be denied. CEs cannot appeal USDA’s denial of a claim. However, CEs may appeal F&N’s denial to submit the CE’s request for a good cause exception to USDA for consideration of payment.

4363 Adjusted Claims

A CE may have a reason to submit an adjusted claim (that is, make a change to an already submitted claim) to amend any of the information submitted. An adjusted claim that results in TDA owing the CE money (an upward adjustment), will be included in the CEs next regular reimbursement payment. If the adjustment results in the CE owing TDA money (a downward adjustment), the amount will be deducted from the CEs next claim or claims until the funds have been repaid.

A CE that needs to adjust an already submitted claim may do so by following the instructions in the TX-UNPS user manual located at http://TXUNPS.TexasAgriculture.gov.

Occasionally, a CE may be required to submit an adjusted claim as the result of disallowances taken during an administrative review or as the result of claim validation. If this occurs, F&N will notify the CE in writing and provide instructions. Failure of a CE to submit an adjusted claim as a result of a review or claim validation could result in adverse action, up to and including placement in the serious deficiency process and termination of the CEs FND Permanent Agreement.

4363.1 Upward Adjusted Claims

The corrective action procedures stated in Item 4362, Late Claims, also apply to any upward adjusted claim postmarked or received by TDA more than 60 days after the last day of the adjusted claim month.

Managing the Program – 106 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4364 Limitations on Administrative Reimbursement for Sponsoring Organizations

Sponsors may only withhold an amount not to exceed 15% of the CACFP reimbursement paid annually as a source of income for paying actual allowable administrative costs incurred in supporting the operation of the nonprofit food service in its sites. The sponsor must maintain documentation to support the percentage of CACFP reimbursement withheld.

Each claim month, sponsored sites submit their food service participation information to the sponsor who then consolidates the information and prepares the Claim for Reimbursement, for submittal. Upon receiving the reimbursement for a claim month, sponsors must determine each site’s reimbursement and deduct from each site’s reimbursement the amount the sponsor withholds for administrative costs in an amount not to exceed 15%.

Sponsors may not include the cash-in-lieu amount when calculating the administrative cost amount, and sponsors must also have back-up documents to support the percentage of reimbursement withheld each month. The percent withheld cannot exceed the actual amount spent for allowable administrative costs. Therefore the percentage withheld from each site may fluctuate each month. Sponsors must use Form H4503, Sponsoring Organization Disbursement Record to prepare this information and to document their compliance with this requirement.

Sponsors must also use Form H4503 for any financial transaction in which the sponsor receives CACFP funds from TDA, including reimbursements related to advance payments, initial claim payments and adjusted claim payments.

Form H1630, Permanent Agreement Between Sponsoring Organization and Child Care Facility, prohibits the sponsor from charging the facility for CACFP services (see page 1, Rights and Responsibilities of the Sponsor, Number 5).

A sponsor requiring a site to use software or services the sponsor provides must include the cost of the software or services in the allowable percentage of administrative reimbursement the sponsor can withhold each month, and cannot charge a separate amount in addition to the allowable percentage, regardless of whether the software or services are paid for out of CACFP funds or non-CACFP funds.

In addition, a sponsor requiring a site to use software or services provided by another source must reduce the allowable percentage of administrative reimbursement they can withhold each month by the amount paid by the site to that third party, regardless of whether the software or services are paid for out of the CACFP funds or non-CACFP funds by the site.

Texas Department of Agriculture – June 2012 Managing the Program – 107 Child and Adult Care Food Program – Child Care Centers Handbook Sponsors charging a site for software or services, or requiring a site to purchase software or services from another source, in addition to withholding administrative reimbursement, exceeding 15%, will be required to reimburse the site for excess charges and may be placed in the serious deficiency process.

4364.1 Sponsors of Affiliated Sites

A sponsor of affiliated sites must only use an amount not to exceed 15% of each month’s total CACFP reimbursement to pay for actual allowable administrative costs. The sponsor must use the remaining amount of each month’s CACFP reimbursement to enhance the quality of the food service operation.

The sponsor must indicate on the Form H4503 the total amount of the CACFP reimbursement it received for the corresponding claim month and the amount the sponsor withheld to apply to its actual allowable administrative costs. A sponsor of affiliated sites only completes Section 2 of Form H4503.

4364.2 Sponsors of Unaffiliated Sites

A sponsor of unaffiliated sites must only withhold an amount not to exceed 15% of each month’s CACFP reimbursement to pay for actual allowable administrative costs. Sponsors of unaffiliated sites must disburse reimbursements to its sites within 5 days of receipt of payment from TDA, this includes advances if applicable. A sponsor of unaffiliated sites must complete all sections of Form H4503.

Each month Sponsors of unaffiliated sites must provide to each site written documentation that details the reimbursement the site is receiving that month, and includes the:  Name of the site;  Total meals/snacks claimed, by type, by the site for the month;  Total meals/snacks disallowed, by type, including the reason(s) for the disallowances, for the month, if applicable;  Total meals/snacks submitted for reimbursement (minus disallowances, if applicable);  Eligibility category of enrolled participants (totals by free, reduced-price and paid);  Total reimbursement for meals/snacks claimed and submitted for reimbursement for the month (minus cash-in-lieu);  Total cash-in-lieu for the month, if applicable;  Total withheld for allowable administrative expenses for the month; and  Total reimbursement paid to the site for the claim month.

The Forms H4502, Claim for Reimbursement Worksheet-Meals and H4503, Sponsoring Organization Disbursement Record as well as the claim summary in TX-UNPS can be used in preparing this documentation for each site.

Managing the Program – 108 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook Texas Department of Agriculture – June 2012 Managing the Program – 109 Child and Adult Care Food Program – Child Care Centers Handbook 4364.3 Sponsors of Both Affiliated and Unaffiliated Sites

A sponsor of both affiliated and unaffiliated sites must only withhold an amount not to exceed 15% of each month’s total CACFP reimbursement to pay for actual allowable administrative costs. A sponsor of both affiliated and unaffiliated sites must: a. Indicate in Section 2 of Form H4503 the total amount of the CACFP reimbursement it received for the corresponding claim month and the amount the sponsor withheld to apply to its actual allowable administrative costs for unaffiliated sites only. b. Complete Section 3 of Form H4503 for the unaffiliated sites only. c. Disburse reimbursements to its unaffiliated sites within 5 days of receipt of payment from TDA, this includes advances if applicable.

Sponsors must have an internal accounting system in place to show how much and where the funds including overages were applied and must ensure the funds are used to enhance and support the nonprofit food program.

4364.4 Waiver to Limitation on Administrative Reimbursement for Sponsoring Organizations

CEs that are sponsors may request approval to withhold a percentage of reimbursement that exceeds 15% for allowable administrative costs, if the sponsor:  Does not have an outstanding debt to the Texas Department of Agriculture (TDA);  Is not currently in the serious deficiency process; and  Is in good standing with the Comptroller of Public Accounts

To request a waiver, the sponsor must:  Complete the Contracting Entity Request for Waiver of 15% Limit for Allowable Administrative Costs form, as well as have the required documentation listed on the form to support the request available for review prior to approval of the waiver.  Complete the Budget Justification and Disclosure – Centers form showing the change in the budget.  Revise the Contracting Entity Budget Detail screen in TX-UNPS using the information from the Budget Justification and Disclosure – Centers form.  Mark the Administrative Waiver Documentation Checklist item and indicate the date the waiver form was submitted, in TX-UNPS. Select the red “Submit for Approval” button to transmit your request.  Submit the completed Contracting Entity Request for Waiver of 15% Limit for Allowable Administrative Costs form to F&N.

Managing the Program – 110 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook If approved, the:

 Approval would be effective no earlier than two full months* from the approval date;  Sponsor must obtain a signed Acknowledgement By Sponsored Child Care Care Facility and Permanent Agreement Between Sponsoring Organization and Child Care Facility Amendment #1 from each currently participating unaffiliated site and each new unaffiliated site they sign an agreement with.

*For example, the sponsor’s request is approved November 20, 2011 the earliest they could begin withholding the higher amount would be February 2012. This gives the sponsor and sites time to execute the amendment, or the sites time to choose one of the other options given them on the amendment form.

A site that is currently participating with a sponsor at the time the sponsor receives an approved waiver has the following options:

 Execute the amendment and agree to allow the sponsor to retain more than 15%;  Terminate its agreement with the sponsor and apply to participate directly with TDA;  Request a “good cause” transfer from TDA to transfer to another sponsor during the current program year;  Terminate its agreement with the sponsor and apply with another sponsor during the open enrollment period of June 1 through September 30.

A CE that has received an approved waiver must notify their current and potential sites of the approved waiver, and what it means to the site’s reimbursement amount, prior to signing an agreement and amendment with that site. Failure to do so could result in adverse action, up to placement in the Serious Deficiency Process and termination of the CE’s FND Permanent Agreement.

4370 Food Service Operations

4371 On-Site Food Preparation

Independent centers and sponsored sites usually prepare their own meals. Those who do are responsible for their own purchasing, menu planning, cooking, serving, and cleanup. CEs and sites must also keep their own records of the daily menus, meal production and meal counts and attendance, and must comply with all state and local health and sanitation laws.

Texas Department of Agriculture – June 2012 Managing the Program – 111 Child and Adult Care Food Program – Child Care Centers Handbook 4372 Estimating Costs

CEs and sites may use the following procedure to determine the cost of each serving for their menus. Although estimating costs is a good management practice, it is not mandatory.

Step 1: List all foods, except seasonings, needed to produce a meal. Step 2: Determine the amounts of food needed. Step 3: Multiply the amount of food needed by the cost per unit (such as cost per pound or #10 can). Step 4: Divide the total cost of the meal by the number of meals. Step 5: Add 1 and 1/2 cents ($0 .015) to each meal cost for items such as seasonings, margarine used for spread, and salad dressings.

The following example breaks down the price per meal for a lunch prepared for 12 children's portions: EXAMPLE

Step 2: Step 3: Step 1: Food Amount Cost per Total Cost Food Items Needed Market Unit of Food

ground beef .75 lb. 1.89/lb. $1.42 processed cheese .50/lb. 2.69/lb. 1.35 eggs 2 each 1.09/doz. .18 enriched flour 2 cups (.59 lb.) .30/lb. .18 tomato paste 12 oz. can .59/12 oz. can .59 fresh spinach 1/2 lb. .89/lb .45 iceberg lettuce 1/2 lb. .50 lb. .25 2% milk 1/2 gal. 2.39/gal. 1.20 - - - TOTAL $5.62 Step 4: $5.62 / 12 children = $ .4683 per child Step 5: ADD .0150 cents per meal for seasonings: $.4683 + .0150 = $ .4833 or $ .48 per meal per child

Managing the Program – 112 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook 4373 Inventories

At a minimum, CEs and sites must conduct inventories at the end of each program year (September). The CE/site will inventory all items they use to operate the program, including any food and nonfood items they provide. If it is a large operation, the CE/site should conduct monthly inventories to minimize losses.

CEs and sites may choose one of the following inventory methods:

 Perpetual inventory  Physical inventory

A perpetual inventory is a continuous record of supplies purchased, in storage, and used. A CE/site must not use perpetual inventory records as a substitute for actual counts of items in storage. Discrepancies between actual counts and written records may indicate problems with storage procedures or personnel.

CEs and sites can develop a simple card system for a perpetual inventory. Keep the cards in alphabetical order and update them routinely.

Sample card: Supply: Paper, Copier Date Quantity Unit Price Quantity Cash In Out On Hand Value

9/1/2011 4 reams $4.00 7 reams $28.00

Physical inventories are periodic physical counts of all items in storage. Physical inventories are simple and suitable for small CEs/sites. They are useful for indicating needed purchases. Physical inventories are easier to keep if the CE or site:

 Keeps supplies of the same kind together.  Keeps supplies stored in an orderly manner.  Labels weights or capacities on large containers or barrels.  Records the date supplies are received.  Uses supplies on a first-in/first-out basis.

Sample inventory form:

Texas Department of Agriculture – June 2012 Managing the Program – 113 Child and Adult Care Food Program – Child Care Centers Handbook Supply Unit Unit Date Quantity Cash Value Item Price On Hand On Hand

Copier ream $4.00 9/1/2011 6 reams $24.00 paper

4374 Inventory Adjustments

Inventory adjustments are reductions in inventory because of fire, water damage, or spoilage. Insured or insurable losses are also inventory adjustments. CEs and sites must deduct inventory adjustments from the cost of operating the program.

CEs and sites are not required to count as inventory adjustments small losses of less than $100.

4375 Recycled Food

CEs and sites may recycle leftover food according to the following conditions:

 State and local health department requirements must be met.  Food must be held at the proper temperature.  Food can be recycled one time.  Food served family style cannot be recycled.  Food that has been served cannot be recycled unless it is individually wrapped or self contained (for example, apples, oranges, milk packaged as individual servings, etc.).  Recycled food must be recorded on Form H1568, Record of Recycled Food.

4376 Storage

CEs and sites are responsible for storing all CACFP supplies in a manner that will minimize potential loss.

4377 Vended Programs

CEs and sites may choose to purchase meals from a:

 Food service management company/vendor.  School Food Authority that participates in the NSLP/SBP.  Another CACFP CE.

Managing the Program – 114 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CEs and sites may purchase meals in bulk or as units. Whether the CE or site prepares its own meals or purchases meals for delivery, the CE and site is responsible for ensuring the meals meet CACFP meal pattern requirements.

CEs and sites purchasing meals must do so according to the procurement policies in this handbook.

4377.1 Food Service Management Companies

Food service management companies (FSMC) are generally for-profit vendors, e.g., caterers. If a CE or site wants to contract with an FSMC, they must follow the procurement guidelines provided in Section 7000, Procurement.

4377.2 Program Meals Obtained from a School Food Authority that Participates in the NSLP/SBP

CEs and sites that obtain their meals through a contract with a school food authority (SFA) that participates in the National School Lunch Program/School Breakfast Program (NSLP/SBP) are allowed to substitute the NSLP/SBP meal pattern requirements, including offer vs. serve, for the CCC meal pattern requirements. CEs and sites that purchase/obtain their meals from a SFA that participates in the NSLP/SBP must follow the following procedures:

 Meal Production Records - The CE or site may use the meal production records provided by the SFA as program documentation for the CACFP meal service.

CEs and sites are required to keep the delivery receipt from the SFA for each day’s meal service as documentation of the meal offered. The delivery receipt must indicate the following:

o Identify the menu items; o Amount/quantity of each menu item delivered; o Number of servings of each item; and o Serving instructions, such as what constitutes a serving and which serving utensil to use.

 Food Service Management Company/Vendor Site Monitoring Review – CEs and sites do not have to complete an on-site monitoring review of the food preparation facility, however; the CE or site must complete Form H1529, Food Service Management Company/Vendor Monitor Review, Sections 3 and 5, for an observed meal service.

 Meal Analysis – The meals provided by the SFA are subject to a meal analysis conducted by F&N when monitoring the SFA’s participation in the NSLP/SBP. As such, Community Operations will conduct a limited meal analysis.

Texas Department of Agriculture – June 2012 Managing the Program – 115 Child and Adult Care Food Program – Child Care Centers Handbook REMINDER: This only applies to CEs and sites that purchase program meals from a SFA that participates in the NSLP/SBP. For more information on offer vs. serve see Item 4116, Meal Service Styles.

4378 Operation of a Child Nutrition Program During a Pandemic

Child Nutrition Programs are designed to support institutional feeding operations. The regulations require that programs will operate in a congregate setting, whether in schools or child care facilities. During the outbreak of a pandemic disease, the public health officials anticipate the need for “social distancing” as a means of minimizing the spread of illness by limiting person-to-person contact. Thus, when social distancing measures are in effect, schools and other facilities may be closed, and the operation of the Child Nutrition Programs will probably not be possible.

School facilities and equipment normally used in the operation of the NSLP/SBP may be used for other activities during a pandemic outbreak. In addition, in a Presidentially-declared disaster, USDA-Foods and other foods would be available for distribution to community groups or public agencies. However, although school facilities or USDA-Foods could be used, their use would not be related to the NSLP/SBP.

Depending on the nature and scope of the outbreak, some program requirements may be waived in areas adjacent to, but not directly affected by, a pandemic outbreak. Provisions related to operational procedures, review requirements or meal patterns have been waived, either on a short-term or longer-term basis, in previous disasters. The usefulness and applicability of such waivers during a pandemic would, of course, be dependent on the scope of the outbreak and the limitations of person-to-person contact in any given area.

Further information, policies and/or procedures will be provided if needed as they are received.

4379 Use of USDA Foods

CEs and sites may participate in both CACFP and the Texas Commodity Supplemental Assistance Program (TEXCAP). TEXCAP is an emergency food assistance program that supplies USDA Foods to eligible recipients through organizations such as soup kitchens, pantries, or other organizations. Federal regulations require that if USDA Foods are distributed or used in prepared meals, recipients must not be required to make any payments in money, materials, or services for or in connection with the receipt of USDA Foods.

Managing the Program – 116 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook CACFP cash-in-lieu funds must be kept separate from other funds (including TEXCAP administrative funds), since the CACFP cash-in-lieu funds must be used only to purchase or obtain foods for use in CACFP. CEs and sites may use CACFP cash-in-lieu funds at food banks for obtaining non-USDA Foods. Refer to Section 3000, Program Agreement, for more information regarding USDA Foods.

4400 Program Documentation

4410 Retention Period

CEs must keep the FND Permanent Agreement and all amendments for at least three years from the end of the CE’s final program year. CEs and sites must retain all documents relating to their participation in the program, such as claims and supporting documents that are specific to a particular program year, for at least three years from the end of that program year. For example, all documents specific to the CACFP 2010 program year must be retained until September 30, 2013.

EXCEPTION: If audit findings, claims, or litigation have not been resolved, all forms and records must be retained beyond the required time period until all issues are resolved.

4420 Availability of Records

CEs and sites must allow TDA, USDA, Government Accountability Office, and representatives of other appropriate agencies to inspect facilities and records and to audit, examine, and copy records during normal business hours, which at a minimum are 8:00 a.m. to 5:00 p.m., Monday through Friday.

CEs must maintain their CACFP records separately from records of other programs; additionally sponsors must maintain separate records for each of its sites.

4430 Types of Records

CEs and sites* must keep complete and accurate records of the program including, but not limited to, the following:

 Records of expenditures for supplies and services including: o Cash register tapes, invoices, delivery slips, and receipts. o Receiving reports from vendors signed by authorized staff. o Itemized purchase invoices. o Records showing costs of processing, distributing, transporting, storing, and handling food (if these costs are in addition to the cost on the purchase invoice). o Credits - if they are not shown on invoices.

Texas Department of Agriculture – June 2012 Managing the Program – 117 Child and Adult Care Food Program – Child Care Centers Handbook o Canceled checks or other forms of receipts for payments. o Inventory records (including records of major inventory adjustments). o Records of insurance claims and collections.  Procurement records, including the basis for the cost or price and the reason for selecting a particular: o Method. o Contract type. o Contractor.  Mileage logs to support transportation costs (see Business Mileage Record in the Resources section of this handbook).  Time Distribution Reports.  Payroll records (such as payroll ledgers, IRS Form W-2, IRS Form 941, and cancelled payroll checks).  Field trip documentation.  Records of the cost of purchased services (such as utilities and rent).  Records of administrative costs (such as payroll records and invoices).  Daily record of the number of meals, by type, served to enrolled children (including names).  Daily record of the number of meals served as second meals, if any.  Documentation sufficient to justify the service of second meals (if claimed for reimbursement).  Records of meal service times (beginning and ending) for each meal.  Records of all income to the program.  Records of donations to the program, such as food, services, supplies or labor.  Enrollment records for each child Exception: Emergency shelters, at-risk afterschool care centers and outside school hours child care (OSHCC) are not required to collect enrollment information for participating children.  Daily meal production records (Forms H1530, H1530-A, H1530-B) that include the food items and amounts of food prepared.  Daily records of the names and number of children in attendance (H1535, H1535-AT).  Daily records of the number of meals, by type, served to adults working in the food service (H1535, H1535-AT).  Daily records of the number of non-program meals, by type, served to adults and/or children (H1535, H1535-AT).  Copies of medical statements with prescribed substitutions for children with disabilities or who require special diets.  Canceled checks (or checking account statements).  Copies of CACFP claims and receipts for payment from TDA.  Rosters for children residing in emergency shelters with their parents or guardians (including the arrival and withdrawal dates, the child’s name and age).  Attendance rosters for children participating in at-risk afterschool care centers (Form H1535- AT).

Managing the Program – 118 Texas Department of Agriculture – June 2012 Child and Adult Care Food Program – Child Care Centers Handbook  Family size and income information (CACFP Meal Benefit Income Eligibility Form). Note: does not apply to emergency shelters or at-risk afterschool care centers.  Copies of the CACFP application and all supporting documents.  Documentation of a child's eligibility based on Head Start, Early Head Start or Even Start participation.  Copies of the CE’s FND Permanent Agreement.  Documentation of training sessions.  Documentation of attendance at training provided by F&N.  Documents that show the food service is nonprofit. (CEs must use all CACFP funds to conduct or improve the food service operation, principally for the benefit of the enrolled children.)  Copies of audits.  Records of dates and amounts of food service payment to each of the sponsor’s sites.  Records of site reviews (locations, dates, problems noted, corrective action prescribed, and technical assistance provided), including completed Form H1606, Monitor Review.  Records of pre-approval visits (Form H1606-P).  Records of applications and agreements with sites (Site Application - Centers/Form H1630).

*Not all records pertain to sponsored sites, for example the FND Permanent Agreement.

4440 Required Forms

CEs and sites must use forms provided by F&N to administer and operate the CACFP with the exception of the forms listed below.

The following forms are provided for CE and site use in documenting compliance with the operation of the Program. CEs and sites may develop their own forms or documentation to capture the information contained in these forms. CEs and sites must ensure that they maintain this information as required and that it is available for review. Failure to capture all required information, including certification statements and signatures (as applicable), could result in disallowances.

 Governing Body Awareness  H1530, Daily Meal Production Record  H1530-A, Daily Meal Production Record for Infants  H1530-B, Daily Meal Production Record for At-Risk Afterschool Program  H1535, Daily Meal Count and Attendance Record  H1535-AT, Daily Meal Count and Attendance Record (At-Risk)  H1540, Documentation of Meals Served  H1568, Record of Recycled Food  H4502, Claim for Reimbursement Worksheet – Meals  H4503, Sponsoring Organization Disbursement Record

Texas Department of Agriculture – June 2012 Managing the Program – 119 Child and Adult Care Food Program – Child Care Centers Handbook

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