Incentive Awards of Minimal Value

This management bulletin (MB) establishes a maximum allowable cost for offering incentive awards, for the Child and Adult Care Food Program (CACFP) day care home (DCH) sponsors.

Background

Food and Nutrition Service (FNS) Instruction 796-2, Revision 4, allows DCH sponsors to use the CACFP income on incentive awards of minimal value and authorizes the California Department of Social Services (CDSS) to establish a maximum cost. Examples of minimal value items are length of service pins, certificates of appreciation, and plaques.

Maximum Cost for Awards of Minimal Value

FNS 796-2, Revision 4, Section (VIII)(I)(23)(i)(6), separately identifies awards of minimal value such as length of service pins, certificates of appreciation, floral arrangements, live plants, mugs, plaques, or other items as allowable to the extent the employee receiving the award performed program labor.

As a result of this distinction, the CDSS establishes a maximum cost of $25 for incentive awards of minimal value.

Action Required to Receive Prior Written Approval for the Minimal Value Awards

Incentive awards of minimal value must receive prior written approval following the established budget submission procedures before any costs can be incurred. The request is submitted on the DCH sponsor administrative budget, Schedule 21, titled Other. The details in Schedule 21 must include the description of each award, the tentative date(s) or schedule of the awards, and the criteria to justify the costs of the minimal value award.

Contact Information

If you have any questions regarding this MB, please contact your assigned CACFP DCH Specialist. A list of the CACFP DCH Specialists is available on the Child and Adult Food Care Program Contact List. You can also contact the CACFP Office Technician by email at CACFPinfo@dss.ca.gov to be directed to your assigned DCH Specialist.

This institution is an equal opportunity provider.
Esta institución es un proveedor que ofrece igualdad de oportunidades.