Skip to content
Printer-friendly version

Serious Deficiency Process Updates--Day Care Homes

Nutrition Services Division Management Bulletin
Purpose: Policy

To: Child and Adult Care Food Program
Day Care Home Sponsors

Number: USDA-CACFP-21-2012

Attention: Food Program Director

Date: November 2012

Subject: Updates to the Serious Deficiency Process—Day Care Home Providers

Reference: Title 7, Code of Federal Regulations, sections 226.6(l) and 226.16(l); Management Bulletin USDA-CACFP-06-2010; USDA Policy Memo CACFP 14-2012

This Management Bulletin (MB) provides updates to MB USDA-CACFP-06-2010, Serious Deficiency Process—Day Care Home Providers, and provides guidance and instruction on the implementation of the serious deficiency (SD) process for day care home (DCH) providers operating the Child and Adult Care Food Program (CACFP). In accordance with Title 7, Code of Federal Regulations (7 CFR), Section 226.6(c)(3)(ii)(R), failure by a sponsoring organization to properly implement and administer the DCH termination and administrative review provisions set forth at paragraph (l) of this section and Section 226.16(l) is an SD, and could jeopardize the sponsoring organization’s participation in the CACFP.

Corrective Action

U.S. Department of Agriculture (USDA) Policy Memo CACFP 14-2012 (page 5) Sample Corrective Action Plan for a Provider, states that at a minimum the following information must be included in the provider’s corrective action:

Per the USDA, the location of the provider’s CAP does not have to be specific. The provider can indicate that the CAP is maintained at their home address and ensure the CAP is available upon request.

Proposed Termination and Proposed Disqualification
If a DCH sponsor (hereinafter sponsor) proposes termination of a provider’s CACFP Agreement and proposes to disqualify the provider from future CACFP participation, those actions are appealable in accordance with 7 CFR Section 226.6(l)(2). If the provider submits a CAP to the sponsor prior to or with a request for appeal, the sponsor may consider the CAP. If the sponsor determines that the CAP permanently corrects the SD findings, the sponsor may rescind the proposed termination and proposed disqualification actions and temporarily defer the SD determination.

If the request for appeal has been forwarded to the sponsor’s hearing officer, and the provider submits documentation to the hearing officer that the hearing officer identifies as an acceptable CAP, the hearing officer may refer the documentation back to the sponsor for their review and approval. If the sponsor accepts the provider’s documentation, the sponsor must notify the hearing officer in writing that the sponsor accepts the provider’s CAP. The hearing officer will then issue a letter to the sponsor and provider that dismisses the appeal.

If the hearing officer determines that the sponsor’s findings are unsubstantiated or, without input from the sponsor, determines that the provider’s CAP permanently corrects the SD, the hearing officer may make a determination to overturn the sponsor’s proposed actions. If the hearing officer determines that the sponsor has properly implemented the SD process and the provider has not provided adequate proof to overturn the proposed actions, the hearing officer must uphold the proposed actions.

Terminating Providers in the Child Nutrition Information and Payment System

The sponsor must access the Child Nutrition Information and Payment System (CNIPS) and terminate the provider on the date the sponsor: (1) determines a provider is terminated; or (2) receives the hearing officer’s decision to uphold the sponsor’s proposed termination action.

Sponsors must complete the following steps in the CNIPS to ensure that the provider is immediately identified as terminated and disqualified, which prevents the provider from joining  another sponsor during any lapse of time before the sponsor notifies the California Department of Education (CDE) of the termination:

  1. Access the CNIPS
    1. Select Applications
    2. Select Application Packet—DCH Sponsor
    3. Select Provider Application(s)
  1. Select Provider
    1. Select Details
    2. Drop Provider
      1. In the empty box, enter cancellation date (this date is either the day after the appeal deadline or in the case of an appeal, the date the hearing officer issues the decision)
      2. Enter cancellation code (select Provider Terminated)
      3. Enter cancellation reason (SD)
    3. Select Save
Removal from the National Disqualified List

In accordance with 7 CFR Section 226.6(c)(7)(v), once the provider is included on the National Disqualified List (NDL), the provider (responsible individual) remains on the list until such time as the USDA’s Food and Nutrition Service, in consultation with the state agency, determines that the SD that led to their placement on the list has been corrected, or until seven years have lapsed since they were disqualified from participation. However, if the provider has failed to repay debts owed under the program, they will remain on the list until they have paid their debts. The following process is used to remove a provider from the NDL prior to seven years:

Note: If the sponsor does not accept the provider’s written request, the sponsor must respond to the provider in writing detailing why they denied the request.

Please share this information with your agency’s management, monitors, hearing officials, and other business personnel, as appropriate.

If you have any questions regarding the MB, please contact Joshua Michel, Analyst, Program Integrity Unit at 916-322-4047 or by e-mail at or Chianti Jones, Analyst, Program Integrity Unit at 916-323-1344 or by e-mail at

Related Content
Questions:   Nutrition Services Division | 800-952-5609
Download Free Readers

The USDA and the CDE are equal opportunity providers and employers.
Esto explica qué hacer si usted cree que se le ha tratado injustamente.