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Procedures for Unused Federal Admin. Payments


Nutrition Services Division Management Bulletin

Purpose: Policy, Action Required, Beneficial Information

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

Attention: Authorized Representative and Program Contact

Number: CACFP-04-2017

Date: April 2017

Reference: The Healthy, Hunger-Free Kids Act of 2010, Public Law 111-296; U.S. Department of Agriculture Policy Memoranda CACFP 24-2012(v.3), CACFP 11-2012, CACFP 18-2011, and CACFP 06-2011; California Department of Education Management Bulletins USDA-CACFP-08-2011 and USDA-CACFP-10-2013

Supersedes: California Department of Education Management Bulletin USDA-CACFP-13-2013

Subject: Child and Adult Care Food Program Procedures for Retaining or Returning Unused Federal Administrative Payments


This Management Bulletin (MB) provides updated guidance to the Child and Adult Care Food Program (CACFP) day care home (DCH) sponsors on the procedures for retaining or returning unused federal administrative payments (UFAP) each program year (PY).

Background

In March 2012, the U.S. Department of Agriculture (USDA) issued Policy Memorandum CACFP 11-2012, which allowed state agencies to provide options to DCH sponsors for monthly administrative payments. There are three administrative payment options:

  • Total homes claimed by the current rates
  • Actual costs (not to exceed total homes claimed by the current rates)
  • No administrative payments

For additional information about these three administrative payment options, please refer to the California Department of Education (CDE) MB USDA-CACFP-10-2013, available on the CDE DCH Sponsor Administrative Payment Options Web page at http://www.cde.ca.gov/ls/nu/cc/mbusdacacfp102013.asp.

DCH sponsors are responsible for correctly accounting for all income and costs, as well as maintaining records and sufficient supporting documentation to demonstrate that costs claimed have been incurred, are allowable, and comply with all applicable CACFP regulations and policies.

The UFAP maximum carryover amount of 10 percent of administrative payments received during the PY is limited to only those DCH sponsors that selected option 1 above for calculating administrative payments, total homes claimed by the current rates.

Every year by December 10, sponsors with any UFAP must complete and submit the UFAP spreadsheet to request carryover into the following PY. Any UFAP in excess of 10 percent of the federal administrative payments received during the PY must be returned to the CDE by December 10.

The following procedures only apply to any DCH sponsors that choose option 1 above for receiving administrative payments any time during the PY. Options 2 and 3 do not have UFAP if selected for the entire PY. DCH sponsors are not required to carryover any UFAP. However, if they choose not to carryover any UFAP, they must repay the entire amount of the UFAP to the CDE by December 10.

Calculating Available UFAP for Carryover

DCH sponsors are allowed to carryover up to 10 percent of the federal administrative payments they received during the PY. For example, if a DCH sponsor received $100,000 in federal administrative payments during PY 2016–17, the sponsor is eligible to carryover up to $10,000 of the UFAP into PY 2017–18.

The CDE uses the following calculation to determine the amount of UFAP (if any) a sponsor has at the end of each PY:

  1. PY federal administrative payments received plus approved carryover from the previous PY (if any) equals total federal administrative payments
  2. Actual administrative costs
  3. Total federal administrative payments minus actual administrative costs equals UFAP

The following criteria apply to DCH sponsors’ use of available UFAP:

  • If the UFAP available to carryover are equal to or less than 10 percent of the federal administrative payments received during the PY, the sponsor may carryover all of the UFAP with a request to the CDE by December 10.
  • If the available UFAP to carryover are greater than 10 percent of the federal administrative payments received during the PY, the sponsor may carryover up to 10 percent of the federal administrative payments and must return any amount in excess of the 10 percent limit by December 10.
  • If the sponsor chooses to carryover less than the full 10 percent, they must return all UFAP to the CDE that they choose not to carryover by December 10.

Example: A DCH sponsor receives $100,000 in administrative payments during PY 2016–17, had approved $8,000 carryover from previous PY 2015–16, and has $85,000 in actual administrative costs. The following table illustrates the CDE’s calculation of available UFAP to carryover:

Item

Description

Amount

1

Total federal administrative payments from PY 2016–17

$100,000

2

10 percent of total federal administrative payments from PY 2016–17 (from Line 1)

Maximum amount that a DCH sponsor can carryover into the following PY

$ 10,000

3

Carryover UFAP from previous PY 2015–16 (if applicable)

$    8,000

4

Total federal administrative payments (from Line 1 and Line 3)

$108,000

5

Actual administrative costs

$  85,000

6

Amount unused (Line 4 minus Line 5)

$  23,000

7

Amount that exceeds the 10 percent allowable carryover (Line 6 minus Line 2)

$  13,000

When applying the calculation of the 10 percent maximum described above, the sponsor may only carryover $10,000 (10 percent of the federal administrative payments received in PY 2016–17) into the following PY. The DCH sponsor must return the $13,000 that exceeds the 10 percent allowable carryover to the CDE by December 10. Alternatively, if the DCH sponsor chooses not to carryover any of the UFAP, it must return the entire $23,000 to the CDE by December 10.

To ensure carryover payments are used for CACFP administrative costs in the following PY, DCH sponsors must use these payments on a first-in, first-out basis after receiving approval from the sponsor’s assigned DCH specialist to carryover the UFAP to the following PY.

UFAP Procedure for Approval of Carryover

Between October 1 and December 10 every year, each DCH sponsor requesting carryover using option 1, the total homes claimed by the current rates, must complete and submit the UFAP worksheet, the first tab of the DCH administrative budget workbook.

The UFAP worksheet calculates the UFAP and the allowable amount to carryover to the next PY (if any). The UFAP worksheet includes directions on the actions necessary to complete and submit by e-mail the required documents to the assigned DCH specialist.

The DCH sponsor cannot submit the UFAP spreadsheet until all prior closing year claims are submitted in the Child Nutrition Information and Payment System (CNIPS).

This procedure is for UFAP carryover for processing and approval only. Revisions to the budget require a separate submission.

After the December 10 deadline, the DCH specialist cannot change the approved carryover amount.

Returning UFAP

By December 10 of each year, any DCH sponsors returning UFAP to the CDE must complete and submit the UFAP form (Form #DCH 07) located in the Download Forms section of the CNIPS. Mail the UFAP form, with a personal or cashier’s check containing your agency’s vendor number, to the CDE’s Cashier Office at the following address:

Cashier Office
California Department of Education
P.O. Box 515006
Sacramento, CA 95851-5006

Note: The CDE will charge a $25 fee if a check is returned for nonpayment.

When returning UFAP, DCH sponsors are also required to e-mail their assigned DCH specialist a scanned copy of the completed UFAP form.

Consequences of Late or Unreturned UFAP
  • If the CDE does not receive the UFAP by December 10, the CDE may deduct the UFAP from the DCH sponsor’s claim for reimbursement. The UFAP deduction may delay delivery of the DCH sponsor’s administrative and provider payments by up to four weeks.
  • For DCH sponsors with UFAP, failure to submit UFAP and associated documents by December 10 of each year may result in the CDE declaring the DCH sponsor seriously deficient.
Contact Information

If you have any questions regarding this subject, please contact your assigned CACFP DCH specialist. A list of the CACFP DCH sponsor specialists is available on the CDE DCH Sponsor Specialist Assignment Web page at http://www.cde.ca.gov/ls/nu/cc/cacfpcontact.asp#daycare. You can also contact Nancy Charpentier, CACFP Unit Office Technician (OT), by phone at 916-327-2991 or by e-mail at ncharpentier@cde.ca.gov, or Leslie Schar, Community Nutrition Programs Administration OT, by phone at 916-324-6153 or by e-mail at lschar@cde.ca.gov to be directed to your assigned DCH specialist.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Tuesday, June 13, 2017
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