The purpose of this FNS Instruction is to provide guidance regarding the number of applications that must be reviewed by state agencies conducting verification of eligibility for free and reduced price meals under the Child and Adult Care Food Program.
CACFP has long been recognized for its nutritional goals of providing nutritious meals to children and helping them establish good eating habits at a young age. Family style meal service provides a further opportunity to enhance these goals by encouraging a pleasant eating environment that will support and promote mealtime as a learning experience.
Sections 226.6 (d) and (e) of the CACFP regulations require that state agencies establish procedures to annually review information submitted by institutions to ensure that all participating facilities meet program licensing/approval requirements.
Administering agencies have in the past expressed concern over two federal income tax issues connected with Child Care Food Program operations in day care homes: (1) tax status of program reimbursement to providers and (2) possible responsibility of home sponsors for Social Security and unemployment contributions for providers.
This Instruction clarifies the FNS policy regarding the reimbursement of meals and milk served on weekends through the National School Lunch Program, the Commodity School Program, the School Breakfast Program, and the Special Milk Program.