Getting on the CACFP National Disqualified List (NDL) has serious consequences and can even jeopardize your center’s reimbursement. It may seem like only sponsors could be put on this list, but your center – and even staff – can end up here for failing to comply with Program requirements.
Here’s what to know about the list, how to be removed from it, and how to stay off it entirely.
What is the CACFP National Disqualified List (NDL)?
It’s a federal database managed by USDA, and it lists centers and individuals terminated from CACFP due to serious noncompliance. While on this list, you’re no longer eligible to participate in CACFP or other USDA nutrition programs.
How Can You End Up on the NDL?
Some reasons include:
- Inaccurate financial records during an administrative review.
- Spending CACFP funds on unallowable expenses.
- Failing to correct serious noncompliances.
- Failing to repay funds when required.
- Serving meals that don’t follow Program requirements.
- Submitting false or inaccurate claims and meal data.
- Employing CACFP staff who are listed on the NDL.
Want to learn more about serious issues that can affect your CACFP reimbursement? Click here.
What Happens When You’re on the NDL?
- You lose your CACFP participation – and your reimbursement.
- You’re disqualified for at least 7 years, or longer if Program debts are still owed.
- Your reputation can suffer, affecting future business opportunities.
- You’re barred from other USDA programs, like Summer Food and School Nutrition.
Can You Get Off the NDL?
Yes, but it’s not easy. You remain on the list for a minimum of seven years, or longer if debts are still owed. However, early removal is possible in some limited cases.
Early Removal Eligibility
You can request early removal for resolving issues that don’t involve dishonesty or fraud, such as:
- Administrative errors.
- Honest record-keeping mistakes.
Early removal is not possible if issues include:
- Outstanding CACFP debts, such as claim adjustments or overpayments.
- Falsifying records, such as financial documents, meal counts, attendance logs, or invoices.
- Any other unlawful/illegal business practices.
Steps to Submit an Early Removal Request
If eligible to request early removal:
- Submit a corrective action plan that demonstrates problems have been permanently corrected.
- Repay any outstanding debt, such as claim adjustments or overpayments.
- Provide documentation supporting why you’re now eligible to resume participating in CACFP.
- Submit the Removal Request Form.
What Happens Next?
- The state agency reviews your request and forwards it to USDA if corrective actions are satisfactory.
- USDA makes the final decision regarding removal.
- If your request is denied, the decision is final and cannot be appealed.
- If your request is approved, you must submit a new CACFP application to be approved for Program participation again.
How to Avoid NDL Placement
Staying off the CACFP National Disqualified List starts with a proactive mindset.
- Keep accurate financial records—especially your CACFP budget and expenses.
- Track reimbursements and expenses carefully to ensure you’re spending CACFP funds appropriately and reconciling them regularly.
- Monitor operations regularly – including your financial processes – to quickly identify and address issues before they escalate.
- Follow meal pattern requirements to ensure meals served and claims submitted are accurate.
- Attend required training and ensure staff are familiar with CACFP guidelines.
- Communicate with your sponsor or state agency and ask for help when needed to prevent problems from escalating.
Safeguard Your Reimbursement
The CACFP National Disqualified List (NDL) isn’t just a penalty – it’s a major disruption that will cost you your reimbursement. Remember, compliance is your responsibility, not just that of your sponsor or state agency. Help protect your center by keeping accurate records, following CACFP guidelines, and proactively resolving issues.
Wondering what happens if your center is terminated from CACFP? Stay tuned for our next post, “What Happens If a Center is Removed from CACFP?”🚀