Sponsor Management Plan and Budget

Guidance to Family Day Care Home Sponsors on Minnesota Department of Education-Food and Nutrition Service Approval of Expenses for Child and Adult Care Food Program Labor

This guidance is intended to assist sponsors of family day care homes when submitting requests to the Minnesota Department of Education (MDE) for approval of hiring when creating a new position or hiring to fill a vacant position.

FNS Instruction 796-2, Rev. 4 VIII (I) (23) describes labor costs as all forms of compensation earned and all forms of payment, cash and noncash, for personnel. To demonstrate that federal dollars are used prudently when requesting approval of a new position or vacant position, implement the following:

· Ensure that proper authority and organizational procedures are followed before creating a new position or filling a vacant position. If a new position is being added, documentation demonstrating approval from the Board of Directors should be submitted with the budget request.
· Advertise and/or post position openings. Postings should contain the Civil Rights Statement and must be reviewed by MDE prior to publication. An exception to this may be when an agency is cooperating with a funding work program that assists applicants in finding work or a program that helps supplement wages. In these cases, the sponsor must submit justification that this is the most efficient way to use federal funding.
· Interview applicants with qualifications that match the position description. Retain records of all applicants interviewed with documentation of the rationale for the selection decision.
· Refer to the procedures for submitting the Annual CACFP Application or a Budget Adjustment on the FDCH Sharepoint.
· If hiring to fill a vacant position, submit a budget adjustment request with supporting documentation. This should include the updated budget workbook with the new employee name and all related costs such as salary, benefits, travel and monitoring allocations. Ensure that the job description included with the management plan is current.
· If the position is new to the organization, include with the budget request an updated Board of Directors approval as mentioned above, an updated organizational chart and a job description.
· Get approval from MDE PRIOR to finalizing the hiring of an individual.
· Disclose any less-than-arms-length relationships with the individual to request specific prior written approval from MDE.
· Submit an updated budget in the Cyber-Linked Interactive Child Nutrition System (CLiCS).