(X) Policy Memo
January 11, 2011
TO: Sponsors of Family Day Care Homes
RE: Child Nutrition Reauthorization 2010: Administrative Payments to Sponsors of Family Day Care Homes
The Healthy, Hunger-Free Kids Act of 2010 (the Act), Public Law 111-296 modified the requirements for administrative payments to Sponsors of Family Day Care Homes (FDCH) in the Child and Adult Care Food Program (CACFP).
Effective October 1, 2010, administrative reimbursements are determined only by multiplying the number of family day care homes claimed for reimbursement during the month by the administrative reimbursement rate.
Section 334 of the Act amends section 17(f) (3) of the Richard B. Russell National School Lunch Act [42 U.S.C. 1766(f)] to eliminate the "lesser of" cost and budget comparisons for calculating administrative payments to FDCH sponsoring organizations.
To implement these changes, the Oregon Department of Education Child Nutrition Programs (ODE CNP) must make business rule changes in CNPweb claims processing
ODE CNP is currently working with the CNPweb contractor to make the required changes and anticipates the changes will be implemented in time to process the January 2011 reimbursement claims (early February). Detailed instructions and information will be provided when CNPweb changes have been completed.
After the CNPweb changes are made, ODE CNP will re-run the October through December 2010 reimbursement claims using only the number of homes claimed in each month, multiplied by the administrative reimbursement rate, to determine the new administrative expense reimbursement. ODE CNP anticipates that any resulting reimbursement changes due to the recalculation (plus or minus) will be adjusted through the CNPweb claims reimbursement process.
FDCH sponsors are still required to submit annual budgets, and budget revisions that must be approved by ODE CNP. Sponsors remain responsible for correctly accounting for costs and for maintaining records and sufficient supporting documentation to demonstrate that costs claimed have been incurred, are allocable to the Program, and comply with applicable Program regulations and policies. ODE CNP will continue to recover reimbursements that are unallowable or that lack adequate documentation or required prior approval.
Carry Over Funds.
The Act also allows FDCH sponsors to carry over up to 10 percent of their administrative funds into the next fiscal year. ODE CNP will also provide guidance on implementing the carryover before the end of the current fiscal year.
If you have questions, please contact your assigned Child Nutrition Specialist.
Sincerely,
Lynne Reinoso
Manager, Community Nutrition
Child Nutrition Programs
Office of the Superintendent