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Financial Management - CACFP

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CACFP funds are provided to assist State agencies through grants and other means to initiate and maintain nonprofit food service Programs for eligible children and adult participants in nonresidential institutions that provide care. This Instruction establishes Program standards, principles and guidelines for financial management to:

A. Assure that costs charged to the nonprofit food service are for food service provided principally to enrolled, eligible participants; and where applicable, that costs claimed for reimbursement under the CACFP are necessary and reasonable for effective and efficient operation of the nonprofit food service, and are otherwise allowable under the Federal cost principles and this Instruction;

B. Provide financial management guidance to State agencies pursuant to 7 CFR §226.7(m) for CACFP financial management systems;

C. Provide guidance to institutions in developing the financial information needed to comply with the requirements of the CACFP; and

D. Provide guidance so that to the extent practicable, all institutions of similar type doing the same work will be subject to the same requirements.


The CACFP is authorized by Section 17 of the Richard B. Russell National School Lunch Act, as amended. Program regulations issued by the Department are found in 7 CFR Part 226. USDA codifications of government-wide pronouncements include:

Page updated: March 31, 2021

The contents of this guidance document do not have the force and effect of law and are not meant to bind the public in any way. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies.