Centers may operate independently

Centers may operate independently

Some of the centers that participate in the Child and Adult Care Food Program (CACFP) are sponsored centers. This means that an agreement is signed between a sponsoring organization and the Nebraska Department of Education (NDE) Nutrition Services office. Meals served at all sites under a sponsor are claimed on one claim for reimbursement and the reimbursement is sent to the sponsor. The Office of Inspector General (OIG) has alerted USDA that some sponsors are retaining CACFP reimbursement for administrative costs rather than using the reimbursement to feed children.

As a result of OIG’s recommendation, NDE has been asked to advise sponsored centers that they have the option of becoming independent centers. This would mean that a sponsored center would have to secure its own Federal Taxpayer Identification Number (FTIN). A non-profit center would also need to secure its own tax exempt status from the Internal Revenue Service. By entering into an agreement with NDE, a center would assume the administrative and financial responsibility for CACFP operations.