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Incorporated Providers


Nutrition Services Division Management Bulletin

To: Day Care Home Sponsors

Number: 98-205

From: Child Care Food Program

Date: October 1998

Subject: Incorporated Providers

This Management Bulletin disseminates APB: CAC-98-13, Child Care Food Program (CCFP) guidance received from United States Department of Agriculture (USDA), Western Regional Office regarding incorporated providers.

Key Points
  1. Providers may incorporate their day care home operations. However, incorporation plays no role in the provider’s participation in the CCFP.
  2. The structure for participation of a day care home in the CCFP is presumed to be an individual operation. In accordance with the National School Lunch Act (the law governing child nutrition programs), the sponsor may only enter into a CCFP agreement with a provider as an individual, not as a corporation.
  3. A sponsor/corporation may have one or more day care homes under its umbrella operating a CCFP. However, each home provider must have an individual agreement with the sponsor/corporation.
  4. Each home must have a different provider; a provider may not operate more than one day care home.
  5. Each home must be licensed.
  6. Corporations sponsoring multiple day care homes receive one reimbursement check from the State Agency and must adhere to claims payment requirements for timely reimbursement to participating providers.
  7. Income information for determining children’s eligibility for meals served, including provider’s own children, is based on the income of the household.
  8. Please note USDA’s reference to CACFP’s Eligibility Guidance for Family Day Care Homes as it relates to wages paid and dividends for providers associated with corporations.

Attachment

USDA Directive APB: CAC-98-13 re: Incorporated Providers - available in hard copy only

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Tuesday, October 11, 2016
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