Nonprofit Food Service. A CE must operate a nonprofit food service in compliance with Program requirements. CEs must use all Program funds to conduct or improve the food service operation principally for the benefit of the enrolled participants. Refer to Section 7000, Financial Management for guidance on proper use of funds and financial management, and Section 9000, Terms, Definitions and Acronyms for the definition of nonprofit food service. By entering into an agreement with TDA, the CE assumes final administrative and financial responsibility for management of a proper, efficient, and effective food service, and will comply with all Program requirements. CEs that are sponsoring organizations accept final administrative and financial responsibility for food service operations in all of its sites. CEs may not contract out the management of the Program; however, they may contract some Program activities required in the administration of the CACFP. Should the CE choose to retain the services of a contractor to perform one or more Program activity, the CE is required to retain oversight of the work performed, and accepts final administrative and financial responsibility for the work performed by the contractor, including repayment of any funds due to non-compliance(s). CEs may not contract the following Program activities: • Monitoring, • Corrective action, • Preparation of application materials, and • Claims submission. It is important to note that, although a CE may not contract out the responsibility for certain activities, it is acceptable to contract for services in support of that activity. For example, the CE must retain responsibility for the monitoring activity; however, it may contract for the performance of monitoring reviews. These administrative and financial responsibilities are described in federal and state laws, regulations, and policies, and in the CE’s approved application and Permanent Agreement. The CE must not deviate from its approved application/management plan or budget without TDA’s prior written approval. Specific Program activities that may be subcontracted include, but are not limited, to: • Bookkeeping, • Auditing, • Data processing, • Service of a nutritionist, • Staff trainings, and • Monitoring reviews. In order to contract specific Program activities, the CE must ensure that the • Services to be performed by the contractor are required in the administration/ management of the CACFP; • Services have been properly procured according to Program procu...
Nonprofit Food Service. All food service operations conducted by the Institution or Facility principally for the benefit of enrolled participants, from which all of the Program reimbursement funds are used solely for the operations or improvement of such food service.
