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Tier I Eligibility and Sponsor/Provider Agreements


Nutrition Services Division

To: Child and Adult Care Food Program, Day Care Home Component

Number: 05-209

Attention: Food Program Director

Date: April 2005

Subject: Tier I Eligibility and Sponsor/Provider Agreements

Reference: Child and Adult Care Food Program Second Interim Rule: Title 7, Code of Federal Regulations, Part 226, Section 6(f)(1)(x)

This Management Bulletin transmits new information regarding Tier I eligibility and the sponsor/provider agreement.

Formerly, providers who were classified as Tier I based upon free and reduced-price school data had a three year eligibility period before sponsors were required to reassess their Tier I status. With the Child Nutrition and WIC Reauthorization Act of 2004 (Reauthorization), the eligibility period for such Tier I providers has been extended to five years. The eligibility period of providers whose classification as Tier I is based upon either income eligibility or national census data remains unchanged, with income eligible providers eligible for one year and census data eligible providers eligible until the 2010 census.

Reauthorization also requires sponsors to have permanent program agreements with their providers by July 1, 2005, meaning that such agreements should become permanent as they are updated or revised. A permanent agreement, however, has the following qualifications:

  1. A sponsor may amend the agreement as needed.
  2. A sponsor may terminate the agreement of a provider for convenience or cause. If it is for cause, the sponsor must follow the serious deficiency process for providers.
  3. A provider may terminate the agreement for convenience, following the program's transfer policy as appropriate.
  4. A permanent agreement is contingent upon the availability of program funds.

A sample permanent agreement may be found on the California Department of Education Web site at:

http://www.cde.ca.gov/ls/nu/cc/fm.asp

If you have questions, please contact the CACFP specialist assigned to your agency in the Child Nutrition Information Payment System (CNIPS). You will find a list of contact information for specialists in the Download Forms section of the CNIPS. You may also contact the Help Desk by phone at 800-952-5609, option 6.

Attachment

Standard Agreement Between Sponsor and Provider (DOC; 71KB; 5pp.)

Questions:   Nutrition Services Division | 800-952-5609
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