As a busy daycare or afterschool facility participating in CACFP, you’re juggling a million things—and sometimes, mistakes happen. Receiving CACFP adverse actions can feel like a punch in the gut, but it doesn’t have to be the end of the world. Fix issues and protect your reimbursement with prompt action and a clear plan.
1. Identify the Problems
Maybe you misplaced some receipts, claimed unallowable purchases, or made errors in meal counts. A written notice of what needs to be corrected will be sent by your sponsor or state agency.
What to Do:
- Read your notice carefully: Look for details about the specific issues, such as financial mistakes, missing documentation, or claim errors.
- Gather records: Retrieve financial reports, receipts, payroll documents, and other records that you need to submit.
- Ask for help: Reach out to your sponsor or state agency with questions or if you need help identifying how to correct problems.
2. Fix Them – Permanently
Whether you need to find missing documents, set up better oversight processes, or repay funds, act quickly to show you’re serious about compliance. Here are some ways to correct common issues that can result in CACFP adverse actions.
- Missing Financial Records or Receipts:
- Locate missing financial statements or correct inaccurate ones.
- Use accounting software or professional services to ensure financial records are easily accessible and audit-ready.
- If you’ve lost receipts, contact stores for copies.
- Use a mobile app to scan and organize receipts electronically, so they’re always easy to find.
- Payroll & Staff Labor:
- Retrieve missing payroll records and timesheets.
- Make sure timesheets clearly show the correct hours spent on CACFP-related tasks.
- Retrain staff how to correctly document daily hours spent on CACFP-related tasks.
- Update your CACFP budget to reflect current staff helping with your Program.
- Use a digital payroll system to make tracking easier and prevent mistakes.
- Claim Errors:
- Locate any missing meal records and participant forms.
- Update participant enrollment and income eligibility forms to ensure they’re current.
- Use CACFP software to complete daily records, reducing the chance of errors.
Repay Funds if Necessary
If you can’t produce missing records or some are inaccurate/incomplete, your sponsor or state agency may require you to pay back some funds. If this happens, take action immediately. Make a deposit to show you’ve reimbursed the required amount or set up a payment plan.
Want tips on how to avoid getting CACFP adverse actions in the first place? CLICK HERE!
3. Draft a Corrective Action Plan (CAP)
Write a detailed plan explaining how you fixed the problems. Your Corrective Action Plan (CAP) helps your sponsor or state agency determine if CACFP adverse actions can be lifted. It’s your chance to demonstrate you’ve taken the necessary steps to ensure they don’t happen again.
How to Write an Effective CAP:
- Focus on Solutions: Clearly explain how issues happened and how you’ve corrected them.
- Locate missing financial records, receipts or other records.
- Correct inaccurate/incomplete documents, if possible.
- Establish improved procedures to review documentation on a regular basis.
- Repay funds immediately, if required by your sponsor or state agency.
- Ensure Future Compliance: Show how you’ll avoid these problems in the future.
- Use CACFP software to track meal counts, participant forms, and receipts.
- Complete regular self-audits to spot errors before things escalate.
- Have regular staff training on topics like CACFP allowable purchases, meal patterns, and recordkeeping.
- Provide Evidence: Attach supporting documents, such as:
- Updated policies
- Training logs
- Missing/corrected records
Resolve CACFP Adverse Actions with Confidence
Dealing with CACFP adverse actions can feel overwhelming, but it doesn’t have to be. Protect your reimbursement with quick action and the right strategies.
Unsure where to start or need help creating effective solutions? We can help you address CACFP adverse actions and guide you through how to draft a corrective action plan that meets sponsor and state agency requirements.
👉 CLICK HERE to schedule a free call with our team and get personalized support to ensure your Program stays on track.