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CACFP Administrative Manual Section 6.1

CACFP Administrative Manual Section 6.1: Centers Budgets.
Important Notice: CACFP Program Moved to CDSS

The Early Childhood Development Act of 2020 (Senate Bill (SB) 98, Chapter 24, Statutes of 2020) authorized the transfer of child care and development programs administered by the California Department of Education to the California Department of Social Services (CDSS) effective July 1, 2021. The content on this page may not be current and involves the Child and Adult Care Food Program (CACFP) that has moved to CDSS. Visit the CDSS CACFP web page External link opens in new window or tab. or call 1-833-559-2420 for more information.

Table of Contents
Terms, Definitions, and Acronyms

Section 6: Financial Management

Sections 6.1 Centers Budgets

Centers must submit an annual budget in the CNIPS that reflects program expenditures during the program year (October 1—September 30).  After the CDE approves the initial budget, the agency must adhere to the budget or receive approval from the CDE for budget revisions.

Because the CDE considers an SFA’s successful operation of the NSLP as sufficient evidence of administrative capability and financial viability, SFAs are not required to submit budgets for the ARA Meals Component of the CACFP. This exemption, however, only applies to costs that require prior approval, and not to costs that require specific prior written approval. Please refer to Section 6.2 for more information on allowable costs.

Estimating the Child and Adult Care Food Program Budget

The CACFP budget should be based on the center’s projected enrollment, and meals claimed for the upcoming program year as well as the USDA’s meal and snack reimbursement rates. Agencies must adhere to their approved CNIPS budget or submit and receive approval in the CNIPS for additional revisions prior to exceeding any budget line. For more information, refer to MB CACFP-03-2017: Prior Approval for CACFP Allowable Costs located on the CDE CACFP MB Web page.

Expenses and Funding Sources

The budget in the CNIPS must reflect expenses related to the CACFP only. There are three columns in the CNIPS budget:

  • Expense Amount—this is the total expense for each line item.
  • Income: CACFP Funding Amount—this is the total CACFP reimbursement that will be used to fund a line item.
  • Income: Other Income Amount—this is the total other income (non-CACFP income) that will be used to fund a line item.

Expense Amount = CACFP Funding Amount + Other Income Amount. For example, if a center anticipates a food expense of $50,000 for the program year and this expense is entirely funded by CACFP reimbursement, then:

  • the Expense Amount = $50,000;
  • the CACFP Funding Amount = $50,000; and
  • the Other Income Amount = $0.

Centers must ensure that their budget is in compliance with program regulations and standards. Refer to Section 6.2 for information on CACFP allowable expenses.

References: Title 2, Code of Federal Regulations, Part 200; 7 CFR, sections 226.6, 226.7(g), 226.15(b), and 226.16(b)(1); MB CACFP-03-2017 Prior Approval for CACFP Allowable Costs and MB CACFP-06-2014 Streamlining CACFP ARA Meal Participation for SFAs; USDA FNS Instruction 796-2, Revision 4, and USDA Guidance for Management Plans and Budgets Handbook

Questions:   Child and Adult Care Food Programs Branch | 800-952-5609, Option 3
Last Reviewed: Monday, June 28, 2021
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