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Audit Requirements


Nutrition Services Division Management Bulletin
Purpose: Policy, Action Required, Beneficial Information

To: Child and Adult Care Food Program

Number: NSD-CACFP-03-2007

Attention: Food Program Director, Executive Officers and Financial Officials

Date: October 2007

Subject: Audit Requirements - Child and Adult Care Food Program (CACFP)

Reference: United States Department of Agriculture CACFP Policy Memo 05-06; Title 7, Code of Federal Regulations, Part 3052; Management Bulletin NSD-CNP-01-2007

This Management Bulletin clarifies the annual audit requirement for all agencies (including for-profit entities) that participate in a component of the Child and Adult Care Food Program (CACFP).

The United States Department of Agriculture (USDA) requires state agencies to establish an audit policy for for-profit agencies, including the frequency of the required audit and the threshold for the audit. The California Department of Education (CDE) is extending to for-profit agencies the audit policy now imposed upon all other agencies that participate in the CACFP.

All agencies participating in the CACFP are required to adhere to the following audit policy:

  1. Each agency participating in the CACFP must annually complete and submit to the CDE, Audits and Investigations (A&I) Division, an Annual Audit Status Certification (AASC) form in which they advise the CDE whether they expended $500,000 or more in federal assistance and if an organizational-wide audit must be submitted to CDE (see Management Bulletin NSD-CNP-01-2007).
  2. Agencies that expend $500,000 or more in federal financial assistance during their fiscal year must submit an organizational-wide audit to A&I within nine months, or less, of the close of that fiscal year.
  3. Multi-state agencies (agencies that operate the CACFP in one or more states besides California) must submit an organizational-wide audit to the state agency administering the CACFP in the state in which the for-profit agency’s headquarters office is located. Such agencies are to indicate to CDE on their AASC form which state will be receiving their annual organizational-wide audit.

This audit policy does not negate the authority of the CDE or the USDA to perform, or cause to be performed, audits, reviews, or other monitoring activities on any agency that participates in the CACFP.

The prorated share of audit costs are allowable administrative costs in the CACFP; however, participating center sponsors continue to be limited to using no more than 15 percent of the CACFP meal reimbursement for administration of the program.

If you have any questions, please contact Joseph Waltz, Audit Manager, A&I, at 916-323-6799 or by e-mail at jwaltz@cde.ca.gov. You may also contact Laurie Pennings, Child and Adult Care Food Program Unit Manager, at 916-324-7133 or by e-mail at lpennings@cde.ca.gov; or Michele Vasquez, Program Integrity Unit Manager, at 916-445-7368 or by e-mail at mvasquez@cde.ca.gov.

Questions:   Nutrition Services Division | 800-952-5609
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