Skip to main content
California Department of Education Logo

Allowability of Cost for Insurance


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.

Nutrition Services Division Management Bulletin

To: Child and Adult Care Food Program Sponsors

Number: 05-210

Attention: Food Program Director

Date: May 2005

Subject: Allowability of Cost for Directors' and Officers' Insurance in the Child and Adult Care Food Program (CACFP)

Reference: United States Department of Agriculture Child and Adult Care Food Program Policy Memo 04-17

This Management Bulletin addresses the extent to which directors' and officers' (D&O) insurance is an allowable administrative cost in the Child and Adult Care Food Program (CACFP).

The cost of D&O insurance is an allowable CACFP administrative cost, provided that the following conditions apply:

  1. The insurance policy actually provides CACFP liability coverage (many policies specifically exclude coverage related to the administration of a Federal program).
  2. The CACFP’s share of the cost is properly allocated, if cost allocation is appropriate.

Therefore, we strongly urge institutions to consider the provisions and exclusions of any insurance policy before purchasing insurance.

If you have any 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.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Wednesday, June 16, 2021
Related Content
Recently Posted in Nutrition
  • Pandemic EBT Local Administrative Grant (added 18-Jan-2022)
    Pandemic EBT Local Administrative Cost Grant Award for School Year 2020–21. The CDE will issue P-EBT Local Administrative Cost Grant awards to eligible LEAs in March 2022.
  • Interstate Meat Dist. Inc. Recalls Ground Beef (added 10-Jan-2022)
    Interstate Meat Dist. Inc. recalls ground beef products due to possible E. Coli O157:H7 contamination.
  • Updates to the Federal Micropurchase Threshold (added 03-Jan-2022)
    This information contains updates to the official policies surrounding the new micropurchase threshold.
  • ECR Funds Now Available for Eligible SNP Operators (added 22-Dec-2021)
    The California Department of Education (CDE) has disbursed the Emergency Operational Costs Reimbursement (ECR) Program funds to all eligible School Nutrition Program (SNP) Operators through the Child Nutrition Information and Payment System (CNIPS).
  • ECR Funds Available for Eligible CACFP Operators (added 22-Dec-2021)
    The California Department of Education (CDE) has disbursed the Emergency Operational Costs Reimbursement Program funds to all eligible Child and Adult Care Food Program Operators through the Child Nutrition Information and Payment System.

  • USDA Policy Memo SP 11-2021 Extensions (added 21-Dec-2021)
    This web page advises SFAs of the extension issued by USDA FNS that 1) extends the ability to serve 1% low-fat flavored milk and 2) extends the prohibition on the use of poultry products from China in the CNPs through February 18, 2022.
  • Webinar: Universal Meals Listening Session #1 (added 21-Dec-2021)
    Recorded by the California Department of Education, Nutrition Services Division on October 5, 2021 is a discussion on California Universal Meals Program and best practices for implementation in the school year 2022-2023.
  • Webinar: Tuesdays at 2 School Nutrition Town Hall (added 21-Dec-2021)
    Recorded by the California Department of Education, Nutrition Services Division on October 26, 2021 is a discussion on best practices for operating school nutrition programs to navigate nationwide waivers and planning quality services for SY 2021–22.
  • Webinar: Universal Meals Listening Session #2 (added 21-Dec-2021)
    Recorded by the California Department of Education, Nutrition Services Division on October 5, 2021 is a discussion on California Universal Meals Program and best practices for implementation in the school year 2022-2023.
  • Universal Meals Listening Session January 11, 2022 (added 14-Dec-2021)
    On January 11, 2022 at 2 p.m. the Nutrition Services Division (NSD) is hosting the third in a series of listening sessions for the newly established California Universal Meals Program.