[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR226.11]



[Page 209-210]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 226_CHILD AND ADULT CARE FOOD PROGRAM--Table of Contents

 

                      Subpart D_Payment Provisions

 

Sec. 226.11  Program payments for centers.



    (a) Payments shall be made only to institutions operating under an 

agreement with the State agency for the meal types specified in the 

agreement served at approved child care centers, adult day care centers 

and outside-school-hours care centers. A State agency may develop a 

policy under which centers are reimbursed for meals served in accordance 

with provisions of the Program in the calendar month preceding the 

calendar month in which the agreement is executed, or the State agency 

may develop a policy under which centers earn reimbursement only for 

meals served in approved centers on or after the effective date of the 

Program agreement. If the State agency's policy permits centers to earn 

reimbursement for meals served prior to the execution of a Program 

agreement, Program reimbursement must not be received by the center 

until the agreement is executed.

    (b) Each child care institution or outside-school-hours care 

institution must report each month to the State agency the total number 

of meals, by type (breakfast, lunch, supper, and snack), served to 

children, except that such reports must be made for a for-profit center 

only for calendar months during which not less than 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. 

Each adult day care institution shall report each month to the State 

agency the total number of meals, by type (breakfasts, lunches, suppers, 

and supplements), served to adult participants, except that such reports 

shall be made for a for-profit center only for calendar months during 

which no less than 25 percent of enrolled adult participants



[[Page 210]]



were title XIX or title XX beneficiaries. Prior to submitting its 

consolidated monthly claim to the State agency, each sponsoring 

organization must conduct reasonable edit checks on the sponsored 

centers' meal claims which, at a minimum, include those edit checks 

specified at Sec. 226.10(c).

    (c) Each State agency must base reimbursement to each child care 

institution or outside-school-hours institution on the number of meals, 

by type (breakfast, lunch, supper, and snack), served to children 

multiplied by the assigned rates of reimbursement, except that 

reimbursement must be payable to for-profit child care centers or for-

profit outside-school-hours care centers only for calendar month during 

which at least 25 percent of children in care (enrolled or licensed 

capacity, whichever is less) were eligible for free or reduced price 

meals or were title XX beneficiaries. Each State agency must base 

reimbursement to each adult day care institution on the number of meals, 

by type, served to adult participants multiplied by the assigned rates 

of reimbursement, except that reimbursement must be payable to for-

profit adult day care centers only for calendar months during which at 

least 25 percent of the enrolled adult participants were beneficiaries 

of title XIX, title XX, or a combination of titles XIX and XX. In 

computing reimbursement, the State agency must either:

    (1) Base reimbursement to child care centers and adult day care 

centers on actual time of service meal counts, and multiply the number 

of meals, by type, served to participants eligible to receive free 

meals, served to participants eligible to receive reduced-price meals, 

and served to participants from families not meeting such standards by 

the applicable national average payment rate; or

    (2) Apply the applicable claiming percentage or percentages to the 

total number of meals, by type, served to participants and multiply the 

product or products by the assigned rate of reimbursement for each meal 

type; or

    (3) Multiply the assigned blended per meal rate of reimbursement by 

the total number of meals, by type, served to participants.

    (d) If the State agency elects to reimburse its institutions 

according to the lesser of rates or actual costs, total Program payments 

to an institution during any fiscal year, including any cash payments in 

lieu of commodities, shall not exceed allowable Program operating and 

administrative costs, less income to the Program. The State agency may 

limit payments for administrative costs to the amount approved in the 

annual administrative budget of the institution. The State agency may 

prohibit an institution from using payments for operating costs to pay 

for administrative expenses.

    (e) Each institution shall maintain records as prescribed by the 

State agency's financial management system.



[47 FR 36527, Aug. 20, 1982, as amended at 48 FR 21530, May 13, 1983; 52 

FR 36907, Oct. 2, 1987; 53 FR 52590, Dec. 28, 1988; 62 FR 23618, May 1, 

1997; 69 FR 53543, Sept. 1, 2004; 70 FR 43262, July 27, 2005]