Serious Deficiency: It’s Not a Joke Avoiding Serious Deficiency as a Sponsor of Centers

What is Seriously Deficient? “The status of an institution or day care home that has been determined to be non-compliant in one or more aspects of its operation of the Program.”

What is a Serious Deficiency? Submitting of false information on application Permitting someone on the National Disqualified List (NDL) to serve in a principal capacity Failing to show Viability, Capability and Accountability (VCA) Failing to comply with bid/contract procedures ***Failing to maintain adequate records (this includes menus, meal counts, attendance, soy milk notification forms, etc.)

Failing to adjust meal orders to conform to variations in the number of participants Claiming reimbursement for meals not served to participants Claiming reimbursement for a significant number of meals that do not meet Program requirements Serving meals from a FSMC in violation of health codes What is a Serious Deficiency?

For profit centers: claiming meals during months when less than 25% of children are eligible for F/RP meals or Title XX beneficiaries For profit adult day care center: claiming meals during months when less than 25% of enrolled adults are Title XIX or Ttitle XX beneficiaries

What is a Serious Deficiency? Failing to properly train or monitor sponsored facilities Failing to perform any financial and administrative responsibilities Any other action affecting the institution’s ability to administer the Program in accordance with requirements

What Happens if I’m “SD”? The State Agency will require… A corrective action plan outlining how you plan to fully and permanently correct deficiencies Example: 7 CFR (e) Required State Agency Corrective Action Brainy Babies CDC Submitted Corrective Action State Agency Response to Action Submission Income Eligibility Statements Submit a detailed description of how Brainy Babies will ensure every enrolled child has a completed IES form on file. Ms. Oliver will include the IES form in every intake packet and review the form with parents. Ms. Oliver will be the determining official and Ms. Jenkins will verify each IES. CORRECTIVE ACTION IS COMPLETE or INCOMPLETE 7 CFR (e) Required State Agency Corrective Action Brainy Babies CDC Submitted Corrective Action State Agency Response to Action Submission Income Eligibility Statements Submit a detailed description of how Brainy Babies will ensure every enrolled child has a completed IES form on file. Ms. Oliver will include the IES form in every intake packet and review the form with parents. Ms. Oliver will be the determining official and Ms. Jenkins will verify each IES. CORRECTIVE ACTION IS COMPLETE or INCOMPLETE

What Happens if I’m “SD”? The State Agency will also require… Payment for over claims Follow-up to ensure changes are permanent

What Happens if I’m “SD”? Deficiencies are fully and permanently corrected Deficiencies are not fully and permanently corrected Resume normally with the CACFP SD status temporarily deferred State Agency initiates action to terminate the Institution from the CACFP State Agency will initiate action to disqualify the Institution and its Principals by adding them to the National Disqualified List (NDL)

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