Any FDCH wishing to participate in the CACFP must sign an agreement. An agreement is the legal contract allowing FDCH to participate in the CACFP, subject to the requirements of the program. No organization other than an FDCH is legally required to enter into an agreement with a sponsorship organization. However, in many cases, sponsors require institutions other than institutions to reach an agreement with the sponsor so that the rights and responsibilities of each party are clearly defined. In response to a recommendation from the CACFP Paperwork Reduction Group, we are publishing this memorandum to re-publish previous guidelines for facility requests and agreements. The working group felt that, in some cases, public authorities still need institutions and institutions to transmit information much more often than necessary or necessary. This memorandum summarizes the requirements for applications and schedule agreements and outlines the flexibility available to governments to implement these requirements. Issues related to reflection and agreements have been addressed in the second intermediate rule training, but we also plan to update and rework these guidelines in the near future. Once a state agency has approved an agency`s application, an organizing organization can enter into an agreement with that agency and the institution may be reimbursed for meals served (NOTE: the conditions under which an institution can obtain a refund for meals served before its application is approved by the public authority are set out in a May 14 memorandum. 2001, which is attached to this memorandum). For FDCH and many sponsored centres, reaching an agreement is the final step in the approval process. The agreement often contains the approved application „as a reference,“ so that the information presented in the application becomes an integral part of the legal agreement between the organizing body and the organization. The USDA has transposed these legal requirements into Section 226.18 B of the Regulations.

This section requires public authorities to develop a standard agreement between sponsors and FDCH or to approve an FDCH agreement drawn up by a sponsor. The regulations also provide that the agreement between sponsors and FDCHs is permanent and that the agreement includes a number of specific rights and obligations of each party. There are no regulatory requirements regarding the content or duration of agreements between agencies and sponsors for any type of institution other than the HDF. It also gives public authorities considerable leeway to define the content and duration of agreements between institutions (other than CSDs) and sponsors. In short, requests and agreements serve different (albeit complementary) objectives. The first request for participation by an organization must contain sufficient information to allow the sponsor and the public agency to determine the eligibility and capacity of the organization. In addition, other information that the proponent needs to perform critical management functions, such as accurate monitoring and payment of damages, must be submitted either on the original application or on any other document submitted on that date. The agreement is a legal document that was signed at the end of the application process and which generally contains the application of the body „by reference“ and which constitutes the legal basis for the reimbursement of eligible meals served by the institution. The legal requirements for agreements reached by organizations with their sponsors are quite limited.

The NSLA authorizes the USDA to require public authorities to develop a standardized facility agreement for FDCH sponsors.