Sponsoring Unaffiliated Centers: A Strategy to Increase Viability and Improve Program Integrity

PRESENTED BY SHARON RAY President Improving Program Integrity GAIL BIRCH Chief Executive Officer Start Up and Marketing VICKI LIPSCOMB Executive Director Financial Concerns and Budgeting

Sponsored Centers Advantages to : State Agencies Centers Sponsors

Advantages to SA Reduces the caseload of State Agency staff Sponsored centers receive more oversight because there is an ongoing data stream Sponsors will have significantly more knowledge of regulations and policies than center personnel SHARON RAY

Advantages to SA Centers receive more training Monthly claim integrity strengthened Fewer over-claims for centers Program Integrity: Sponsored centers have on site reviews more often (3 per year VS once per 3 years) Increased Oversight = Accountability

Advantages to Centers Improved claim integrity and accuracy Rely on sponsor’s CACFP knowledge Nutrition training for all staff Improved meal service Participation can begin sooner

Advantages to Centers Assistance with budgeting and allowable costs Sponsor accepts financial responsibility for mistakes or over claims. Sponsor accepts responsibility for the center’s CACFP participation.

Advantages to Sponsors Additional Revenue Stream=Improved Financial Viability Increased Community Presence Available Training Sites Supports the mission to reach more low income children Enables centers that may not otherwise participate

3 STEPS to Start Up STEP 1 : Costs Analysis & Funding STEP 2 : Fine Tune the Plan STEP 3 : Recruitment and Marketing GAIL BIRCH

Feasibility Study Start up Budget Board of Directors Funding Sources STEP 1 Costs & Funding Analysis

Start Up Budget Estimating Admin Expenses Includes: Wages (office and field) Fixed Costs Administrative Overhead Determines Cost of Sponsoring Center

Present to Board of Directors Feasibility Study Projected Budget Determine Source of Funding

Funding Resources Home admin funds are not allowable Possible Resources Private Donors Volunteer Time Director or part time staff Beware of wage and hour issues General Funds Account Sponsor or umbrella agency Grants

Learn the Center Program Management Plan Develop Center Training Material Train Staff STEP 2 Fine Tune the Plan

General Marketing Identifying Prospects Targeted Marketing Design Outreach Materials STEP 3 Marketing & Materials

General Marketing Partnerships State Agency Child Care Licensing Resource and Referrals Family Child Care Homes

Identifying Prospects Lists Analysis Delete Current Participants? For/Non-Profit License Capacity Low Income Areas Organize Prospects Geographically

Targeted Marketing Walk-in Visits Cold Calls Mailings

Outreach Materials Look at Current Materials Tap into Other Sponsors

Financial Concerns and Budgeting VICKI LIPSCOMB

What Is Sustainability? Nonprofits have to make money to sustain the organization in order to continue to fulfill their mission Ensures the home program stays afloat Our current model for child care is changing Fewer family child care providers are providing care Center participation is growing Effects on viability As the child care model changes, so must our organizations….and our budgeting process The Future of CACFP

Payment Methods Determine method of payment Evaluate your current method of paying independent centers (State Option) Actuals Per child, per meal, by F/R/P rate Blended Blended for all or by site Percentage Percentage for all or by site

Differences in Payment Methods Actuals Per child, per day, based on F/R/P determination more labor intensive option for the child care site and sponsor Larger paperwork burden Blended or Percentage for all while this may be equitable for affiliated sites it does result in discriminatory practices for unaffiliated. Blended or Percentage by site (Recommended ) Each site is paid based on their own blended rate based on enrollment just as if they were reporting directly to the State.

Administrative Payments 15% each month-the maximum allowed If sponsor overspends, the organization is operating at a loss (year end) Homes money does not supplement center income or vise versa

Communicate with Your Sponsors Communicate your expectation of your sponsors on methods to report and allocate their income and expenses. Actual Center specific software Actual employee time Allocation based on time and/or space Office Space Rent Telephone

Tracking Center Expenses Add one or two centers and work with them for a while to determine these variables. How much time will it take? What resources will be needed? Additional postage Additional mileage Additional staff time The Sponsor should carefully track expenses

Other Budget Concerns Sponsor income from centers will vary each month Expenses should be more consistent Sponsors should track average per child costs and average per child income Useful in planning as new sites come on Summer income will be higher since school age children will participate all day

Sample Income/Expense Flow

Review Outcomes Sponsors should monitor their budget Report expenses in the same manner as budgeted and approved Budget estimates may not be reality Analyze real expenses and real income each month Adjust budget and cost allocation accordingly

In Summary Sponsors can ensure greater integrity of independent sites if you are able to work as a team with a common goal Sponsors will need your support and training Program management becomes more complicated Budgeting is more complicated It’s worth your time to help the sponsoring organization support the independent center

Together We Make a Difference There are child care centers that need additional support, assistance in order for their children to benefit from the CACFP. Your collaboration ensures that these children are not left behind. Your efforts do make a difference!