If your center is sponsored in the Child and Adult Care Food Program (CACFP), you might feel you’re safe if any serious noncompliance issues are found. A lot of centers believe that if something goes wrong, it’s the sponsor’s problem—not theirs.
That’s a dangerous assumption.
The truth is, anyone who is involved in CACFP can be held accountable. If your center isn’t following CACFP rules, your sponsor has to step in and make sure you correct the problem. If it’s not fixed, your center can be declared seriously deficient (SD) and even placed on the National Disqualified List (NDL).
What does “Seriously Deficient” mean in CACFP?
A serious deficiency means your center has failed to meet important CACFP requirements. This includes:
- Incomplete or inaccurate financial documents
- Failing to implement adequate systems and software to manage CACFP funds
- Serving meals that don’t meet CACFP requirements
- Poor recordkeeping
Want more details? Check out the CACFP Handbook.
If problems aren’t corrected, your center – and even some of your staff – can be terminated from CACFP and placed on the National Disqualified List (NDL). This is a public list of individuals and organizations banned from participating in the program.
Need to know how to access the National Disqualified List? Click here.
Let’s break down the myths vs. reality to help you stay in compliance and protect your CACFP reimbursement funds.
Myths vs. Reality About Serious Deficiency
❌ MYTH: “My sponsor is responsible for CACFP compliance, so I can’t be seriously deficient.”
✅ REALITY: Your sponsor and state agency provide guidance, but you are still responsible for following CACFP rules. Violations like failing to keep records, serving non-compliant meals, or submitting false claims can make your center seriously deficient, even if your sponsor didn’t know about the issue.
❌ MYTH: “Only sponsors can be declared seriously deficient.”
✅ REALITY: Both sponsors and centers can be declared SD. If your sponsor or state agency identifies serious issues, your sponsor must begin this process. If problems aren’t fixed, your center can be terminated from CACFP and placed on the NDL.
❌ MYTH: “If my sponsor is declared seriously deficient, I’m safe.”
✅ REALITY: If your sponsor is declared SD and terminated from CACFP, you’ll need a new sponsor to keep receiving CACFP funds. However, if your center contributed to the compliance issues—like submitting false claims or ignoring meal pattern rules—you could also be declared SD and terminated from CACFP.
Common Reasons Centers Are Declared Seriously Deficient
- Missing or inaccurate financial records.
- Disorganized or inadequate expense tracking.
- Falsifying meal counts or claiming meals not served.
- Inability to maintain required records (attendance, menus, receipts, etc.).
- Serving meals that don’t meet CACFP requirements.
- Repeated late claim submissions.
- Assigning CACFP tasks to someone who is on the National Disqualified List (NDL).
If any of these apply to your center, now is the time to correct them.
What Happens If Your Center is Found Seriously Deficient?
If your center is found seriously deficient, here’s what happens next:
1️⃣ Serious Deficiency Notice – Your sponsor sends you a letter detailing the problems.
2️⃣ Corrective Action Plan (CAP) – You submit a detailed plan to permanently fix the issues.
3️⃣ SD Removal – If your plan is accepted, the SD determination may be lifted.
4️⃣ Notice of Proposed Termination and Disqualification – If your plan is rejected or if issues continue, you’ll receive this letter and can appeal.
5️⃣ Notice of Final Termination and Disqualification – If your appeal is denied or if you don’t submit one, you’ll be put on the NDL and can no longer participate in CACFP.
Need help navigating corrective action plans? Check out some tips here.
How to Help Avoid Serious Deficiency in CACFP
- Stay informed on CACFP rules and updates.
- Keep accurate, organized records.
- Work closely with your sponsor and ask for help when needed.
- Act quickly to correct problems.
Bottom Line: Compliance is Everyone’s Responsibility
Being on a sponsor doesn’t mean you’re exempt from being seriously deficient. Your center must actively follow CACFP rules to stay in good standing.
By staying on top of compliance and taking serious deficiency seriously, you can continue participating in CACFP and receiving the reimbursement funds you rely on.
Wondering what types of issues can get a center declared seriously deficient?
Catch the next post in our series: “What Makes a CACFP Center Seriously Deficient?”