Food and Nutrition Programs

Administrative Payments for Family Day Care Homes (FDCH)

To:	Child and Adult Care Food Program (CACFP) Family Day Care Sponsors
From:	Kathleen C. Millet, Executive Director Office for Nutrition, Health and Safety Programs
Date:	January 14, 2011

The Healthy, Hunger-Free Kids Act of 2010 (the Act), Public Law 111-296, was signed into law by the President on December 13, 2010. Section 334 of the Act amends section 17(f)(3) of the Richard B. Russell National School Lunch Act (42 U.S.C. 1766(f)) to eliminate the "lesser of" cost and budget comparisons for calculating administrative payments to FDCH sponsoring organizations. Instead, effective October 1, 2010, administrative reimbursements are to be determined only by multiplying the number of family and group day care homes submitting a claim for reimbursement during the month by the appropriate annually adjusted administrative reimbursement rate. The Massachusetts Department of Elementary and Secondary Education (ESE), which has reimbursed FDCH sponsoring organizations for the months of October, November, and December based on the previously required "lesser of" calculations, will recalculate payments based only on the number of homes submitting claims in those months multiplied by the applicable administrative rate. Any resulting reimbursement owed to FDCH sponsoring organizations will be paid retroactively back to October 1, 2010. Sponsoring Organizations are still required to submit annual budgets that must be approved by ESE. Further, sponsoring organizations remain responsible for correctly accounting for costs and for maintaining records and sufficient supporting documentation to demonstrate that costs claimed have been incurred, are allocable to the Program, and comply with applicable Program regulations and policies. ESE will continue to recover reimbursements that are unallowable or that lack adequate documentation. The Act also allows FDCH sponsoring organizations to carry over up to 10 percent of their administrative funds into the next fiscal year. Due to the complexities associated with this provision, however, we will provide separate guidance on implementing the carryover before the end of the current fiscal year. Sponsors should direct any questions concerning this guidance Anne Marie Mc Donald at 781-338-6492 or amcdonald@doe.mas.edu.

Last Updated: January 27, 2011