[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: 7CFR226.15]



[Page 214-217]

 

                          TITLE 7--AGRICULTURE

 

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

 

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

 

                    Subpart E_Operational Provisions

 

Sec. 226.15  Institution provisions.





    (a) Tax exempt status. Except for for-profit centers and sponsoring 

organizations of such centers, institutions must be public, or have tax 

exempt status under the Internal Revenue Code of 1986.

    (b) New applications and renewals. Each institution must submit to 

the State agency with its application all information required for its 

approval as set forth in Sec. 226.6(b) and 226.6(f). Such information 

must demonstrate that a new institution has the administrative and 

financial capability to operate the Program in accordance with this part 

and with the performance standards set forth in Sec. 226.6(b)(1)(xvii), 

and that a renewing institution has the administrative and financial 

capability to operate the Program in accordance with this part and with 

the performance standards set forth in Sec. 226.6(b)(2)(vii).

    (c) Responsibility. Each institution shall accept final 

administrative and financial responsibility for Program operations. No 

institution may contract out for management of the Program.

    (d) Staffing. Each institution shall provide adequate supervisory 

and operational personnel for management and monitoring of the Program.

    (e) Recordkeeping. Each institution shall establish procedures to 

collect



[[Page 215]]



and maintain all program records required under this part, as well as 

any records required by the State agency. Failure to maintain such 

records shall be grounds for the denial of reimbursement for meals 

served during the period covered by the records in question and for the 

denial of reimbursement for costs associated with such records. At a 

minimum, the following records shall be collected and maintained:

    (1) Copies of all applications and supporting documents submitted to 

the State agency;

    (2) Documentation of the enrollment of each participant at child 

care centers (except for outside-school-hours care centers) and adult 

day care centers. All types of centers must maintain information used to 

determine eligibility for free or reduced-price meals in accordance with 

Sec. 226.23(e)(1). For child care centers, such documentation of 

enrollment must be updated annually, signed by a parent or legal 

guardian, and include information on each child's normal days and hours 

of care and the meals normally received while in care.

    (3) Documentation of: The enrollment of each child at day care 

homes; information used to determine the eligibility of enrolled 

providers' children for free or reduced price meals; information used to 

classify day care homes as tier I day care homes, including official 

source documentation obtained from school officials when the 

classification is based on elementary school data; and information used 

to determine the eligibility of enrolled children in tier II day care 

homes that have been identified as eligible for free or reduced price 

meals in accordance with Sec. 226.23(e)(1). Such documentation of 

enrollment must be updated annually, signed by a parent or legal 

guardian, and include information on each child's normal days and hours 

of care and the meals normally received while in care.

    (4) Daily records indicating the number of participants in 

attendance and the daily meal counts, by type (breakfast, lunch, supper, 

and snacks), served to family day care home participants, or the time of 

service meal counts, by type (breakfast, lunch, supper, and snacks), 

served to center participants. State agencies may require family day 

care homes to record meal counts at the time of meal service only in day 

care homes providing care for more than 12 children in a single day, or 

in day care homes that have been found seriously deficient due to 

problems with their meal counts and claims.

    (5) Except at day care homes, daily records indicating the number of 

meals, by type, served to adults performing labor necessary to the food 

service;

    (6) Copies of invoices, receipts, or other records required by the 

State agency financial management instruction to document:

    (i) Administrative costs claimed by the institution;

    (ii) Operating costs claimed by the institution except sponsoring 

organizations of day care homes; and

    (iii) Income to the Program.

    (7) Copies of all claims for reimbursement submitted to the State 

agency;

    (8) Receipts for all Program payments received from the State 

agency;

    (9) If applicable, information concerning the dates and amounts of 

disbursement to each child care facility or adult day care facility 

under its auspices;

    (10) Copies of menus, and any other food service records required by 

the State agency;

    (11) If applicable, information concerning the location and dates of 

each child care or adult day care facility review, any problems noted, 

and the corrective action prescribed and effected;

    (12) Information on training session date(s) and location(s), as 

well as topics presented and names of participants; and

    (13) Documentation of nonprofit food service to ensure that all 

Program reimbursement funds are used: (i) Solely for the conduct of the 

food service operation; or (ii) to improve such food service operations, 

principally for the benefit of the enrolled participants.

    (14) For sponsoring organizations, records documenting the 

attendance at training of each staff member with monitoring 

responsibilities. Training must include instruction, appropriate to the 

level of staff experience and duties, on the Program's meal patterns, 

meal counts, claims submission and



[[Page 216]]



claim review procedures, recordkeeping requirements, and an explanation 

of the Program's reimbursement system.

    (f) Day care home classifications. Each sponsoring organization of 

day care homes shall determine which of the day care homes under its 

sponsorship are eligible as tier I day care homes. A sponsoring 

organization may use current school or census data provided by the State 

agency or free and reduced price applications collected from day care 

home providers in making a determination for each day care home. When 

using elementary school or census data for making tier I day care home 

determinations, a sponsoring organization shall first consult school 

data, except in cases in which busing or other bases of attendance, such 

as magnet or charter schools, result in school data not being 

representative of an attendance area's household income levels. In these 

cases, census data should generally be consulted instead of school data. 

A sponsoring organization may also use census data if, after reasonable 

efforts are made, as defined by the State agency, the sponsoring 

organization is unable to obtain local elementary school attendance area 

information. A sponsoring organization may also consult census data 

after having consulted school data which fails to support a tier I day 

care home determination for rural areas with geographically large 

elementary school attendance areas, for other areas in which an 

elementary school's free and reduced price enrollment is above 40 

percent, or in other cases with State agency approval. However, if a 

sponsoring organization believes that a segment of an otherwise eligible 

elementary school attendance area is above the criteria for free or 

reduced price meals, then the sponsoring organization shall consult 

census data to determine whether the homes in that area qualify as tier 

I day care homes based on census data. If census data does not support a 

tier I classification, then the sponsoring organization shall reclassify 

homes in segments of such areas as tier II day care homes unless the 

individual providers can document tier I eligibility on the basis of 

their household income. When making tier I day care home determinations 

based on school data, a sponsoring organization shall use attendance 

area information that it has obtained, or verified with appropriate 

school officials to be current, within the last school year. 

Determinations of a day care home's eligibility as a tier I day care 

home shall be valid for one year if based on a provider's household 

income, five years if based on school data, or until more current data 

are available if based on census data. However, a sponsoring 

organization, State agency, or FNS may change the determination if 

information becomes available indicating that a home is no longer in a 

qualified area. The State agency shall not routinely require annual 

redeterminations of the tiering status of tier I day care homes based on 

updated elementary school data.

    (g) Payment to employees. No institution that is a sponsoring 

organization of family day care homes and that employs more than one 

person is permitted to base payment (including bonuses or gratuities) to 

its employees, contractors, or family day care home providers solely on 

the number of new family day care homes recruited for the sponsoring 

organization's Program.

    (h) Claims submission. Each institution shall submit claims for 

reimbursement to the State agency in accordance with Sec. 226.10.

    (i) Program agreement. Each institution shall enter into a Program 

agreement with the State agency in accordance with Sec. 226.6(b)(4).

    (j) Commodities. Each institution receiving commodities shall ensure 

proper commodity utilization.

    (k) Special Milk Program. No institution may participate in both the 

Child and Adult Care Food Program and the Special Milk Program at the 

same time.

    (l) Elderly feeding programs. Institutions which are school food 

authorities (as defined in part 210 of this chapter) may use facilities, 

equipment and personnel supported by funds provided under this part to 

support a nonprofit nutrition program for the elderly, including a 

program funded under the Older Americans Act of 1965 (42 U.S.C. 3001 et 

seq.).



[[Page 217]]



    (m) Regulations and guidance. Each institution must comply with all 

regulations issued by FNS and the Department, all instructions and 

handbooks issued by FNS and the Department to clarify or explain 

existing regulations, and all regulations, instructions and handbooks 

issued by the State agency that are consistent with the provisions 

established in Program regulations.

    (n) Information on WIC. Each institution must ensure that parents of 

enrolled children are provided with current information on the benefits 

and importance of the Special Supplemental Nutrition Program for Women, 

Infants, and Children (WIC) and the eligibility requirements for WIC 

participation.



[47 FR 36527, Aug. 20, 1982, as amended at 48 FR 21530, May 13, 1983; 50 

FR 8580, Mar. 4, 1985; 52 FR 15298, Apr. 28, 1987; 52 FR 36907, Oct. 2, 

1987; 53 FR 52590, Dec. 28, 1988; 54 FR 26724, June 26, 1989; Amdt. 22, 

55 FR 1378, Jan. 14, 1990; 56 FR 58174, Nov. 16, 1991; 61 FR 25554, May 

22, 1996; 62 FR 903, Jan. 7, 1997; 62 FR 23619, May 1, 1997; 63 FR 9105, 

Feb. 24, 1998; 64 FR 72260, Dec. 27, 1999; 67 FR 43490, June 27, 2002; 

69 FR 53544, Sept. 1, 2004; 70 FR 8503, Feb. 22, 2005; 70 FR 43262, July 

27, 2005]