Serious Deficiency Process: Annual Update Req.

This Management Bulletin (MB) is follow-up to MB USDA-CACFP-06-2011, which notified Child and Adult Care Food Program (CACFP) agencies of changes in the annual update requirements. This MB notifies CACFP agencies that failure to submit the required update and associated documents by October 10 of each year will result in the California Department of Social Services (CDSS) CACFP Branch declaring the agency seriously deficient on November 1.

Background

The Healthy, Hunger-Free Kids Act of 2010 (Act) requires state agencies to have permanent operating agreements with CACFP sponsors. The Act and Title 7, Code of Federal Regulations (7 CFR), sections 226.6(f)(1) and 226.6(f)(3) also require agencies to submit documents annually to the CDSS CACFP Branch and verify that all information previously provided to the CDSS is current and correct. Therefore, agencies that fail to submit these annual documents are not in full compliance with 7 CFR Part 226.

In the past, the CDSS (and previously the California Department of Education) put a hold on reimbursement if agreements were not “renewed” by the end of October. Those agencies either submitted the required documents, self-cancelled, or were terminated for non-renewal.

New Procedures

Effective immediately, the CDSS will declare any agency that has not submitted complete and correct annual update documents by October 10, seriously deficient on November 1. In order for CDSS staff to have sufficient time to review submitted annual update documents, all agencies must ensure that they submit their Application Packet electronically via the Child Nutrition Information and Payment System (CNIPS) by October 10. In addition, agencies should ensure that the CDSS has received any required CNIPS Checklist items by fax, email, or postal mail no later than October 10.

If an agency does not submit the required annual update, the CDSS will continue to pay valid claims until the agency is terminated.

Agencies Intending to Self-Cancel

Agencies that intend to self-cancel their participation in the CACFP prior to November 1, must complete and submit the Self-Cancellation Request Form (Form ID CACFP 42) no later than 5:00 p.m. on October 31. Agencies may find this form in the Download Forms section of the CNIPS. If an agency has closed or plans to self-cancel before November 1, and fails to submit the annual update documents or the Self-Cancellation Request Form within the timeline noted above, the CDSS will declare the agency seriously deficient, regardless of whether it is operating.

Termination and Disqualification

If an agency does not complete the corrective action required by the notice of serious deficiency by November 15, the CDSS will begin proposed disqualification and termination procedures against the agency. If an agency’s agreement to participate in the CACFP is terminated, the agency and its principals will be placed on the National Disqualified List and may be prohibited from participating in other federal assistance programs for up to seven years.

If you have any questions regarding this MB, please contact the CACFP specialist assigned to your agency. You will find a list of contact information for specialists on the Child and Adult Food Care Program Contact List or in the Download Forms section of the Child Nutrition Information & Payment System (CNIPS) as Form ID CACFP 01.

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Esta institución es un proveedor que ofrece igualdad de oportunidades.