[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: 7CFR226.13]



[Page 212-213]

 

                          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. 226.13  Food service payments to sponsoring organizations for day 

care homes.



    (a) Payments shall be made only to sponsoring organizations 

operating under an agreement with the State agency for the meal types 

specified in the agreement served to enrolled nonresident children and 

eligible enrolled children of day care home providers, at approved day 

care homes.

    (b) Each sponsoring organization shall report each month to the 

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

suppers, and supplements) and by category (tier I and tier II), served 

to children enrolled in approved day care homes. Prior to submitting its 

consolidated monthly claim to the State agency, each sponsoring 

organization must conduct reasonable edit checks on the day care homes' 

meal claims which, at a minimum, include those edit checks specified at 

Sec. 226.10(c).

    (c) Each sponsoring organization shall receive payment for meals 

served to children enrolled in approved day care homes at the tier I and 

tier II reimbursement rates, as applicable based on daily meal counts 

taken in the home, and as established by law and adjusted in accordance 

with Sec. 226.4. However, the rates for lunches and suppers shall be 

reduced by the value of commodities established under Sec. 226.5(b) for 

all sponsoring organizations for day care homes which have elected to 

receive commodities. For tier I day care homes, the full amount of food 

service payments shall be disbursed to each day care home on the basis 

of the number of meals served, by type, to enrolled children. For tier 

II day care homes, the full amount of food service payments shall be 

disbursed to each day care home on the basis of the number of meals 

served to enrolled children by type, and by category (tier I and tier 

II) as determined in accordance with paragraphs (d)(2) and (d)(3) of 

this section. However, the sponsoring organization may withhold from 

Program payments to each home an amount equal to costs incurred for the 

provision of Program foodstuffs or meals by the sponsoring organization 

on behalf of the home and with the home provider's written consent.



[[Page 213]]



    (d) As applicable, each sponsoring organization for day care homes 

shall:

    (1) Require that tier I day care homes submit the number of meals 

served, by type, to enrolled children.

    (2) Require that tier II day care homes in which the provider elects 

not to have the sponsoring organization identify enrolled children who 

are eligible for free or reduced price meals submit the number of meals 

served, by type, to enrolled children.

    (3) Not more frequently than annually, select one of the methods 

described in paragraphs (d)(3) (i)-(iii) of this section for all tier II 

day care homes in which the provider elects to have the sponsoring 

organization identify enrolled children who are eligible for free or 

reduced price meals. In such homes, the sponsoring organization shall 

either:

    (i) Require that such day care homes submit the number and types of 

meals served each day to each enrolled child by name. The sponsoring 

organization shall use the information submitted by the homes to produce 

an actual count, by type and by category (tier I and tier II), of meals 

served in the homes; or

    (ii) Establish claiming percentages, not less frequently than 

semiannually, for each such day care home on the basis of one month's 

data concerning the number of enrolled children determined eligible for 

free or reduced-price meals. Sponsoring organizations shall obtain one 

month's data by collecting either enrollment lists (which show the name 

of each enrolled child in the day care home), or attendance lists (which 

show, by days or meals, the rate of participation of each enrolled child 

in the day care home). The State agency may require a sponsoring 

organization to recalculate the claiming percentage for any of its day 

care homes before the required semiannual calculation if the State 

agency has reason to believe that a home's percentage of income-eligible 

children has changed significantly or was incorrectly established in the 

previous calculation. Under this system, day care homes shall be 

required to submit the number of meals served, by type, to enrolled 

children; or

    (iii) Determine a blended per-meal rate of reimbursement, not less 

frequently than semiannually, for each such day care home by adding the 

products obtained by multiplying the applicable rates of reimbursement 

for each category (tier I and tier II) by the claiming percentage for 

that category, as established in accordance with paragraph (d)(3)(ii) of 

this section. The State agency may require a sponsoring organization to 

recalculate the blended rate for any of its day care homes before the 

required semiannual calculation if the State agency has reason to 

believe that a home's percentage of income-eligible children has changed 

significantly or was incorrectly established in the previous 

calculation. Under this system, day care homes shall be required to 

submit the number of meals served, by type, to enrolled children.



[47 FR 36527, Aug. 20, 1982, as amended at 62 FR 903, Jan. 7, 1997; 62 

FR 5519, Feb. 6, 1997; 63 FR 9105, Feb. 24, 1998; 69 FR 53544, Sept. 1, 

2004]