CORE-814

MONITORING & OVERSIGHT

Operating a Nonprofit Food Service

In CACFP you frequently hear the term “Nonprofit food service." But what does that mean?

First, as a sponsoring organization, you must document your program funds and reimbursements. You must ensure that these funds are used only for food service operations principally for the benefit of the enrolled participants. 

For more information on this topic, you can look at FNS Instruction 796-2 Rev. 4: All participating institutions and sponsored centers must operate a nonprofit food service principally for the benefit of the enrolled participants and maintain records documenting the operation of that food service.

What kind of documentation would you need to show that you are operating a nonprofit food service?

Revenues for the time period to calculate total revenue:

Claims for reimbursment

Income to the Program

Funds used or restricted to the food program

Total net verifiable expenses for the time period (not inclusive of unallowable costs):

  • Bank statements
  • Canceled checks
  • Receipts
  • Invoices
  • General ledgers
  • Contracts, etc.
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