Subsection 148-1-III-B - ORGANIZATION'S RECORDKEEPING AND FISCAL MANAGEMENT1. PURPOSE: To establish the recordkeeping and fiscal management standards an organization must meet in order to participate, or continue to participate, in the Child and Adult Care Food Program.
2. STANDARDS: 1. Each organization shall establish procedures to collect and maintain in its central administrative offices all necessary program records which shall Include: a. A copy of the approved agreement with the Department of Human Services;b.1 A completed "Dear Parent" enrollment package for each child enrolled for C.A.C.F.P. participation in each child day care or outside-school-hours care center;2 A completed "Dear Parent" enrollment package for each child day care how provider wishing to claim meals served to her own children. 'Child day care home providers must meet the income guidelines for either "Free" or "Reduced-price" meals in order to quality to claim meals/supplements served to their own children;3 A completed "Dear Household Member" enrollment package for each adult enrolled for C.A.C.F.P. participation in each adult day care center;4 An enrollment package shall be completed no less often than once every 12 months (annually) for every child or adult for whom meals/supplements are to be claimed, regardless of the participant's category of eligibility or the type of facility in which care is being provided; and5 The annual enrollment requirement pertains to all participants in all facilities regardless of the requirements of any other funding source(s).c. A C.A.C.F.P. enrollment form for each child to be claimed for meal/supplement service served in a sponsored child day care home;d. Records indicating each enrolled individual's dates of attendance in the program;e. Child day care centers and outside-school-hours centers wishing to claim two meals and two supplements or three meals and one supplement for any child in attendance, must maintain either: 1 Time-in, time-out information for every child in care in the center with clear indication that two meals and two supplements or three meals and one supplement we re claimed only for those children who were documented to have been in care at least 8 hours, and during the hours of meal/supplement service for each day in question; or2 Records which demonstrate that at least eight hours elapse between the end of the first meal service and the beginning of the fourth meal service for each day for which reimbursement for 2 meals and 2 supplements or 3 meals and 1 supplement is claimed; and3 If neither criteria (e.1.) or (e.2.) is met then the Canter is limited to delivering no more than 2 meals and 1 supplement or 1 meal and 2 supplements per child per day of operation.f. Daily records indicating the number of individuals served at each meal type;g. Daily records indicating the number and types of meals served and claimed for each child or adult;h. Copies of daily menus for both centers and homes, production reports for centers only.i. Records of the daily number of meals/supplements, by type, served to adult staff members of the organization andj. Records documenting conduct of the required annual training session. ., ,Such records shall include: 1 The date of each session;2 The location of each session;3 An agenda showing all topics addressed; and4 Sign-in shoots showing the names of all participants and attendees.2. In addition to the above requirements, organizations operating Adult Day Care centers shall maintain: a. Records which demonstrate that each eligible enrolled person under the age of 60 meets the functional impairment eligibility requirements established under the definition of "Functional Impairment",b. Records adequately showing that the adult day care center is a community based group program designed to meet the needs of each functionally impaired adult through an individual plan of care; andc. Records to show the living arrangements of each enrolled adult and who receives respite while each adult is in day care.3. Each organization shall establish procedures to collect and maintain all necessary fiscal records to include: a. Copies of all invoices/receipts for food and non-food food service related expenditures;b. The administrative costs of operating a food service in adult day care, child day care, and outside-school-hours centers, and of sponsoring child day care homes;c. Operating costs claimed by the organization related to preparing the meals/supplements it serves to adults in adult day care centers, and to children in child day care or outside-school-hours centers;d. All income to the program;e. Copies of all claims for reimbursement submitted to the Department;f. Receipts of all program payments received from the Department including verification that all funds were expended within five days of receipt; andg. Records of claims received from centers and/or homes and payments of the claims.4. Administrative and food service costs in excess of amounts budgeted in the approved agreement shall be disallowed.a. Administrative costs,. direct or indirect, charged on the basis of a percentage of the program may only be based on the operating costs of the organization.b. Center food costs or child day care home meal/supplement reimbursement amounts may not be included when calculating an indirect expense or other administrative amount to be charged to the C.A.C.F.P.5. Each organization shall establish procedures for maintaining records of payments made to all operated centers or sponsored child day care homes. The records shall include: a. Copies of all claims received from operated centers or sponsored child day care haws;b. Amount and date of advance payment made to each operated center or sponsored child day care how; 1 Each sponsoring organization electing to receive advance payments for child day care homes shall disburse such payments, in the form of advance payments, to each of the homes expected to operate under its sponsorship during the month in question upon receipt of the month's advance from the Departments, but not later than the fifth working day following receipt of the funds.2 Advance payments shall be based on the number of meals/supplements projected to be served to enrolled children at each child day care home during the period covered by the advance, multiplied by the applicable payment rate, as specified in Appendix 2 of this manual.3 Advance payments received by the organization shall not be used to reimburse day care homes for a prior month's earnings other than to reconcile a previous advance to match a home's earnings for the month in question.c. Amount and date of reimbursement payment made to each operated center or sponsored child day care home. 1 Each sponsoring organization electing to receive reimbursement payments for homes shall disburse such payments to each operating home within 5 working days of receipt from the Department.2 Such payment shall be based on the number of meals served to enrolled children at each home, less any payments advanced to such home.d. A sponsoring organization shall not deduct from or withhold any payment or portion of payment earned by any child day care home under its sponsorship unless the deduction is to reimburse the organization for the cost of food supplied to the home or to reimburse the organization for an overpayment for meals/supplements made to the provider by the organization. Any such deduction may occur only if the deduction is agreed to in writing as part of the sponsor home agreement.e. Disbursements from organizations operating adult day care, child day care or outside-school-hours care centers shall be made within five working days of receipt of payment by the organization.f. Each organization shall maintain information concerning the dates and amounts of disbursements to each operated or sponsored facility.g. Disbursements of advance payment by the organization may be withheld from facilities which fail to submit reports required herein.6. Each organization shall develop and maintain records of all food, service and administrative equipment purchased with C.A.C.F.P. Food Service and/or Sponsor Administrative Funds. The records shall be maintained as long as such equipment is held by the organization and shall contain: a. A copy of the request too, and notification by the C.A.C.F.P. Program Specialist approving, purchase of equipment;b. Invoices showing final total cost, date of purchase, description of equipment purchased (brand, serial number, and model number) and source of equipment;c. Location of the equipment, use, and condition of equipment; andd. Information regarding disposition of the equipment, i.e. sale price, sold to, traded for, etc.7. Organizations shall obtain approval of the Bureau prior to purchasing, selling, moving, storing, disposing of or trading equipment purchased with U.S.D.A. funds or charged against C.A.C.F.P. advance or reimbursement payments.8. Organizations shall retain all program and financial records for any agreement period for at least 3 years from the final date of the agreement period or until all audits pertaining to that agreement period have been completed and notice has been received stating that the agreement has been closed, whichever is later.9. Each organization shall maintain all program payments in a non-interest bearing account between the date of receipt from the Department and the date of disbursement.10. Organizations shall maintain racial/ethnic census data of the community(ies) served and the racial/ethnic identification of each adult or child enrolled in each facility sponsored or operated by the organization. C.M.R. 10, 148, ch. 1, 148-1-III, subsec. 148-1-III-B