The Child and Adult Care Food Program (CACFP) is a lifeline for your business because it provides essential reimbursement funds to serve nutritious meals. However, to get that funding, you must play by the rules. Even small, repeated mistakes—like buying unapproved items, losing receipts, or making simple math errors in claims—can cause big problems. In fact, did you know they can even trigger serious CACFP adverse actions like paying funds back or being removed from the Program?
So what’s the good news? Staying on track is easier than you think! Here’s a simple checklist to help protect your reimbursement.
1. Only Purchase Allowable Items
Did you know that CACFP funds can only be spent on specific, approved items? Using them for unallowable expenses—even by accident—can cause CACFP adverse actions, including having to pay back some of your reimbursement funds.
✅ Look before you buy: Make sure your cart only has allowable items.
✅ Separate unallowable purchases: If you need to buy something unallowable, pay for it in a separate transaction.
✅ Make Program finances easy: Set up a separate CACFP bank account for your reimbursement deposits and Program expenses.
✅ Ask for help: When in doubt, contact your sponsor or state agency for guidance.
💡 Pro Tip: Want help finding allowable food items? Check out the USDA Food Buying Guide!
2. Keep Accurate Financial Records
Want a way to prove you’re purchasing allowable items? Save those receipts! If they’re missing, messy, or incomplete, you could end up paying some funds back—even if purchases were allowable.
✅ Check over receipts: Make sure they include:
- Store name.
- Date.
- Item descriptions and prices.
- Total amount and payment method.
✅ Go digital: Snap pictures of your receipts using a mobile app to avoid losing or damaging them.
✅ Review finances regularly: Check over receipts and financial records often to make sure they’re accurate.
✅ Use the right tools: Use accounting software or professional services to keep your financial records audit-ready.
💡 Pro Tip: Organize and file receipts as soon as you make a purchase.
✋ Need help with CACFP finances? Click here to learn more.
3. Keep Accurate Payroll Records
If you use reimbursement funds to pay staff, did you know you’re required to keep detailed records of their hours and tasks? Any missing or inaccurate documentation can snowball into CACFP adverse actions.
✅ Track their daily hours: Record hours worked for staff paid with CACFP funds.
✅ Use payroll software: This creates an electronic trail that makes it easier during audits.
✅ Review your labor regularly: Only count staff who are listed on your CACFP budget.
✅ Train staff: Make sure they know how to properly track and report their time.
💡 Pro Tip: Update your budget any time staff changes to make sure you’re only claiming who’s approved.
4. Check Your Program Records
You can only request reimbursement for meals served to eligible participants. Even simple math errors here can eventually lead to CACFP adverse actions!
✅ Keep participant forms current: Make sure enrollment and income eligibility forms are accurate and up-to-date.
✅ Use CACFP software: Prepare meals and track your attendance with CACFP-approved software.
✅ Cross-check meal counts with day care attendance records: Only claim meals for participants who were there during the meal service.
✅ Double-check claim totals: Review claims before submitting them so you can catch and correct any math errors.
💡 Pro Tip: Leverage CACFP software to send email and SMS reminders for parents to update participant forms!
Final Thoughts: Stay Ahead, Stay Funded
Following CACFP rules doesn’t need to be overwhelming. A little planning can go a long way! By purchasing approved items, keeping track of receipts, double-checking staff and payroll records, and ensuring meal counts are accurate, you can help protect your reimbursement and avoid CACFP adverse actions.
Self-audits are your best friend when it comes to catching and fixing problems early. Taking time to review things like receipts, menus, and attendance records, and getting your team involved can help ensure nothing gets overlooked. A checklist helps keep things simple and organized, giving peace of mind so you can get back to what matters most.
Want more tips? Stay tuned for our next post: “Steps to Quickly Resolve a CACFP Adverse Action.” 🚀