Allowable Vs. Unallowable Expenses in the CACFP Program

Only CACFP-approved purchases should be made with CACFP funds.

This means your CACFP reimbursement funds can only be used to purchase items approved in your CACFP budget. Below are the key categories and examples of allowable expenses. 

Allowable Expenses

1. Food (CACFP-acceptable items only):
   • Fruits/vegetables
   • Meats
   • Grain/bread items
   • Milk
2. Supplies/Equipment (as listed in your CACFP budget):
   • Paper plates/cups/utensils/napkins
   • Cleaning supplies/rags
   • Sponges/scrubbers
   • Serving utensils
   • Brooms/mops
   • Hand sanitizer
   • Disinfectant wipes
   • Trash bags
   • Rubber/latex gloves
   • Laundry detergent
3. CACFP Staff Labor:
   • Must be listed on your CACFP Budget. 
   • The CACFP budget lists the % of daily labor which is approved.

Unallowable Expenses

1. Prohibited Food Items
   • Grain-based desserts (cookies, cake, etc)
   • Candy/sodas
   • Bottled water
   • Restaurant food
   • Premium food items, such as steak & shrimp
   • Medicine/vitamins
   • Pop-Tarts, Toaster Pastries
2. Prohibited Supply Items:
   • Bathroom cleaners
   • Bar soap/spray soap
   • Office supplies (except for pens/pencils/plain copy paper)
   • Batteries
   • Diapers
   • Kleenex/facial tissue
   • Air fresheners
   • Fabric softener

Best Practices When Tracking CACFP Purchases

1. Track Purchases Separately

• Always separate CACFP-approved purchases from personal or non-CACFP business expenses.
• Do not include unapproved items on the same receipt as CACFP purchases.

2. Make Separate Transactions

• Purchase only CACFP-approved items in a single transaction.
• Use a separate transaction for non-CACFP items, even if purchased during the same shopping trip.

3. Submit Receipts Through Zoho Expenses

• Upload receipts promptly using the Zoho Expenses app.
• Ensure each receipt includes only CACFP-allowable items to streamline processing.

How CACFP Solutions Helps

When you submit receipts through your Zoho Expenses app,  we process these for you according to Program guidelines. 

• We categorize each item as either Food or Supply.
• We list your purchases on a CACFP expense summary form (4502 pg 2).
• When receipts are processed by CACFP Solutions, all purchased items will be counted as CACFP expenses. So any unallowable items must be purchased in separate transactions from those that include CACFP purchases.

Additional Resources

For a more comprehensive list of allowable and unallowable expenses, refer to this document.

If you have additional questions about allowable versus unallowable expenses, please reach out to us directly at help@cacfpsolutions.com.