Reimbursement

For the Child & Adult Care Food Program

The Child and Adult Care Food Program is set up under a two-tiered reimbursement structure, based on whether or not you are located in a low-income area or if you qualify by your income.

The following rates are in effect July 1, 2008 through June 30, 2009

RATES ARE ADJUSTED ANNUALLY

After receiving a license from the state of Minnesota and approval on the CACFP, all providers qualify for Tier II rates.

Child care homes are classified as Tier I:

• by location of the home in a low income area ("area eligibility") or

• by the provider's income ("income eligibility").

Once a home has been classified as Tier I by income, all qualifying program meals served to enrolled children are reimbursed at Tier I rates. However, if the Tier I classification is based on area eligibility, the provider must still submit an income application in order to receive reimbursement for meals served to his/her own children.

Area eligibility is defined as follows: a child care home that is located in an area served by a school enrolling elementary students in which at least 50 percent of the total number of children enrolled are certified eligible to receive free or reduced price meals; or under certain circumstances a child care home that is located in a low-income geographic area, as defined by census data. Once the family child care home is identified as being within the geographical low-income area, the Tier I reimbursement rate will be in effect for at least three (3) years.
The Department of Children, Families, and Learning (CFL) makes these determinations.

Income eligibility is defined by provider household income. A child care home that is operated by a provider whose household meets the income guidelines is income eligible. The income must be reported to CCCI on a Family Size and Income Data form (FSID) along with verification of income (such as a tax form 1040 and schedule C, current check stubs, documentation of child support, etc.) An approved FSID is needed in order to claim your own children or receive Tier I rates if you are not area eligible. Separate FSID forms are needed to claim foster children. You must apply annually for income eligibility.

If you do not meet either of the above criteria, you may still qualify as a Mixed Tier II home. You can do this by requesting family FSID packets to distribute to all the families with children in your care. Families return the completed forms to CCCI. CCCI determines if the families qualify for Tier I or Tier II rates. You will receive Tier I rates for the children whose families are income eligible. You could receive Tier I rates for some children and Tier II rates for others.

Income Eligibility Forms and Instructions

Getting Paid Flow Chart

PROVIDER FORMS

Direct Deposit Enroll Frm for FP.pdf