CACFP Administrative Manual Section 1.3Child and Adult Care Food Program Administrative Manual Section 1.3: Program Agreement Type.
Section 1: Program Eligibility
1.3 Program Agreement Type
Federal regulations define two ways that centers may enter into an agreement with the CDE in order to participate in the CACFP; they may be independent centers or center sponsors.
An independent center is an agency that operates the CACFP at a single physical site. Independent centers enter into an agreement with the CDE to assume financial and administrative responsibility for program operations.
A center sponsor is an agency that manages food service programs at multiple, approved center sites. Center sponsors enter into an agreement with the CDE to assume financial and administrative responsibility for program operations at all sponsored sites. Per CACFP regulations, center sponsors must also meet additional monitoring requirements that help ensure each site remains in compliance.
Center sponsors may manage either affiliated centers (sites owned and operated by the sponsoring organization) or unaffiliated centers.
Sponsors of Unaffiliated Centers
Unaffiliated centers are sites that are owned by another business entity, but have entered into an agreement with a center sponsor for the management of their food service program. SOUCs must submit a list of responsible principals (including a name, a date of birth, and a nonbusiness address) for all unaffiliated sites prior to state agency approval. SOUCs are subject to the same monitoring requirements as center sponsors.
Private, for-profit sponsors may not sponsor any unaffiliated centers.
Agencies may not subcontract program management functions to a third party. Program management functions include monitoring, corrective action, and preparation of application or reimbursement claim materials.
Day Care Home Sponsors
To participate in the CACFP, DCH sponsors must be either public or private nonprofit agencies. DCH providers are eligible to participate in the CACFP only under a DCH sponsor. The DCH provider signs a permanent agreement directly with its sponsor.
References: 7 CFR, sections 226.2, 226.15(c), 226.16(b)(2), 226.16(b)(3), 226.17(a), 226.17a(a)(1)(i), 226.18(b), 226.19(a), and 226.19a(a); MB NSD-CACFP-05-2013 Contracting Out for Management Functions