Incentive Awards of Minimal Value
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 or call 1-833-559-2420 for more information.
Nutrition Services Division Management Bulletin
To: Child and Adult Care Food Program Day Care Home Sponsors
Attention: Authorized Representative and Program Contact
Date: January 2018
Reference: Food and Nutrition Service Instruction 796-2, Revision 4
Subject: Incentive Awards of Minimal Value
This management bulletin (MB) establishes a maximum allowable cost for offering incentive awards, for the Child and Adult Care Food Program (CACFP) day care home (DCH) sponsors.
Food and Nutrition Service (FNS) Instruction 796-2, Revision 4, allows DCH sponsors to use the CACFP income on incentive awards of minimal value and authorizes the California Department of Education (CDE) to establish a maximum cost. Examples of minimal value items are length of service pins, certificates of appreciation, and plaques.
Maximum Cost for Awards of Minimal Value
FNS 796-2, Revision 4, Section (VIII)(I)(23)(i)(6), separately identifies awards of minimal value such as length of service pins, certificates of appreciation, floral arrangements, live plants, mugs, plaques, or other items as allowable to the extent the employee receiving the award performed program labor.
As a result of this distinction, the CDE establishes a maximum cost of $25 for incentive awards of minimal value.
Action Required to Receive Prior Written Approval for the Minimal Value Awards
Incentive awards of minimal value must receive prior written approval following the established budget submission procedures before any costs can be incurred. The request is submitted on the DCH sponsor administrative budget, Schedule 21, titled Other. The details in Schedule 21 must include the description of each award, the tentative date(s) or schedule of the awards, and the criteria to justify the costs of the minimal value award.
If you have any questions regarding this MB, please contact your assigned CACFP DCH Specialist. A list of the CACFP DCH Specialists is available on the CDE DCH Specialist Assignments Web page at http://www.cde.ca.gov/ls/nu/cc/cacfpcontact.asp#daycare . You can also contact the Community Nutrition Programs Administration Office Technician (OT), by phone at 916-327-2991 or by e-mail at CACFP@cde.ca.gov to be directed to your assigned DCH Specialist.