N.M. Admin. Code § 8.2.2.8

Current through Register Vol. 35, No. 21, November 5, 2024

Section 8.2.2.8 - APPLICATION APPROVAL, RENEWAL AND TERMINATION

A. The children, youth and families department (CYFD) may enter into an agreement for participation in the program with any non-profit 501 (c)(3) organization, government agency or proprietary Title XX organization which meets the established criteria and requirements according to 7 CFR 226.6(b)(1)-(b)(3).

(1) Child care centers must be state licensed, or have tribal approval or military approval if located on a military base and shall comply with 7 CFR Part 226.17.

(2) Adult day care centers must be state licensed, or have tribal approval or military approval if located on a military base and comply with 7 CFR Part 226.19 (a).

(3) Outside-school-hours care centers must be state licensed, or have tribal approval or military approval if located on a military base and comply with 7 CFR Part 226.19.

(4) Family day care homes must be state licensed or registered, or have tribal approval or military approval if located on a military base and comply with 7 CFR Part 226.18.

(5) At risk programs must be state licensed or approved, or have tribal approval or have military approval if located on a military base and comply with 7 CFR Part 226.17a.

B. CYFD shall not enter into an agreement with any new applicant sponsoring organization of family day care homes which does not meet the new sponsor criteria. The criteria are as follows: The new applicant must:

(1) demonstrate the need for a new sponsorship by supplying a list of eligible family child care homes which have expressed an interest in participating in the program;

(2) submit documents to establish financial stability and accountability;

(3) demonstrate their method for covering non-program related costs;

(4) document an adequate level of staffing to administer the program and to provide a responsible sponsor representative and an office in the service area within the state of New Mexico, for program clients and state agency staff during normal working hours;

(5) submit a training plan, describing how the sponsor ensures administrative staff is trained in program requirements;

(6) provide assurance that they will not employ an individual in a responsible administrative capacity who is listed on the national disqualified list or is otherwise ineligible for program duties based on requirements in 7 CFR 226.6(b)(1) through (b)(3).

(7) submit a copy of the organization's by-laws, detail of the organization's structure, officers of the organization and a list of their responsibilities;

(8) submit information about the organization's board of directors, including their responsibility in program management, their role in approving or determining fiscal actions and the relationship of board members to others in the organization;

(9) provide assurance that they will not recruit or allow participation of any child care provider who, is on the national disqualified list or is otherwise ineligible to participate,

(10) submit a complete and accurate application for sponsorship.

C. Any non-profit organization, or proprietary Title XX center, wishing to participate as a sponsoring organization in the program shall complete and submit an application packet that includes at a minimum: a management plan, an administrative budget, non-discrimination and non-pricing policy statement, signed agreement, certificate of authority, copy of current letter to households, civil rights questionnaire, certification regarding lobbying, copy of appeal procedures and internal policies and procedures, public release statement, an affidavit or certification statement that the organization has not been terminated from any publicly funded program for failure to comply with that program's requirements and documentation that all institutions under the sponsor are in compliance with licensing, registration and other approval provisions. In addition, all current and prospective sponsoring organizations must be able to demonstrate that they are financially viable, administratively capable, and have internal controls in place to ensure accountability.

(1) Proprietary Title XX centers shall submit documentation that they are currently providing non residential day care services for which they receive compensation under Title XX, and certification that not less than 25 percent of the enrolled participants in each such center during the most recent calendar month were Title XX beneficiaries or were eligible for free or reduced price meals according to school lunch guidelines.

(2) CYFD shall notify new or renewing institutions of approval or denial of their application for sponsorship in writing within 30 days of filing a complete and correct application. If an institution submits an incomplete application, CYFD will notify the institution of the incomplete application and provide technical assistance.

(3) Renewal applications for continued participation in the program shall be submitted annually. CYFD may grant approval for up to thirty six months. In such cases, the institution shall submit a media release, a management plan and a budget on an annual basis to CYFD.

(4) Renewal applications for the fiscal year beginning October 1 shall be submitted to CYFD by August 15. In its discretion, CYFD may accept late renewals after August 15. Renewal applications submitted after September 30, if approved, will be effective the date all required documents are submitted and may result in loss of reimbursement.

D. CYFD shall not approve an institution's application if, during the past seven years, the institution or any of its principals have been declared ineligible for any other publicly funded program by reason of violating that program's requirements. However, this prohibition does not apply if the institution or the principal has been fully reinstated in, or determined eligible for that program, including the payment of any debts owed, in accordance with 7 CFR Part 226.6(b)(2)(iii)(A).

E. CYFD will notify an institution that it proposes to terminate its program agreement with any institution which fails to satisfactorily and permanently correct a serious deficiency by the date prescribed by CYFD.

(1) CYFD shall not allow more than 90 days for corrective action from the date the institution receives the serious deficiency notice.

(2) CYFD notifies FNS within 15 days of the termination of an institution for failure to correct a serious deficiency. The institution is placed on a national disqualified list.

(3) Serious deficiencies which are grounds for denial of applications and for proposed termination of program participation include, but are not limited to, any of the following:

(a) non-compliance with the applicable bid procedures and contract requirements of federal child nutrition program regulations;

(b) submission of false information to CYFD on the institution's application, including, but not limited to, a determination that the institution has concealed a conviction for any activity that occurred during the past seven years and that indicates a lack of business integrity; a lack of business integrity includes, but is not limited to, fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, obstruction of justice or any other activity indicating a lack of business integrity as defined by the state agency;

(c) failure to return to CYFD any advance payments which exceeded the amount earned for serving eligible meals or failure to return disallowed start-up or expansion payments;

(d) failure to maintain adequate records;

(e) failure to adjust meal orders to conform to variations in the number of participants;

(f) claiming reimbursement for meals not served to participants;

(g) claiming reimbursement for a significant number of meals that do not meet program requirements;

(h) use of a food service management company that is in violation of health codes;

(i) failure of a sponsoring organization to disburse payments to its facilities within five days of receipt from CYFD as required by 7 CFR Part 226.16(h);

(j) failure by a sponsoring organization of day care homes to properly classify day care homes as Tier I or Tier II in accordance with 7 CFR Part 226.15(f);

(k) claiming reimbursement for meals served by a for profit child care center or a for profit outside-school-hours center during a calendar month in which less than 25 percent of the children in care (enrolled or licensed capacity, whichever is less) were eligible for free or reduced price meals or were Title XX beneficiaries;

(l) failure to properly implement and administer the day care home termination and administrative review provisions set forth in 7 CFR Part 226.6(l) and Part 226.16(l);

(m) permitting an individual who is on the national disqualified list to serve in a principal capacity with the institution or, if a sponsoring organization, permitting such an individual to serve as a principal in a sponsored center or as a day care home;

(n) failure to operate the program in conformance with the performance standards set forth in paragraphs 7 CFR Part 226.6(b)(1)(xvii) and Part 226.6(b)(2)(vii);

(o) failure by a sponsoring organization to properly train or monitor sponsored facilities in accordance with 7 CFR Part 226.16(d);

(p) use of day care home funds by a sponsoring organization to pay for the sponsoring organization's administrative expenses;

(q) the fact the institution or any of the institution's principals have been declared ineligible for any other publicly funded program by reason of violating that program's requirements; however, this prohibition does not apply if the institution or the principal has been fully reinstated in, or is now eligible to participate in, that program, including the payment of any debts owed;

(r) conviction of the institution or any of its principals for any activity that occurred during the past seven years and that indicates a lack of business integrity; a lack of business integrity includes, but is not limited to, fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, obstruction of justice, or any other activity indicating a lack of business integrity as defined by the state agency; or

(s) any other action affecting the institution's ability to administer the program in accordance with program requirements, and

(t) failure to respond to CYFD requests for investigations of integrity report findings.

F. Sponsoring organizations of family day care home providers shall ensure that all family day care home providers are registered, licensed or tribal or military approved prior to signing an agreement with the sponsoring organization to participate in the program.

G. Sponsoring organizations of family day care homes must initiate action to terminate the agreement of a family day care home for cause if the sponsoring organization determines the family day care home has committed one or more serious deficiency listed in paragraph 7 CFR Part 226.16(l)(2) . Serious deficiencies for family day care homes include the following:

(1) submission of false information on the application;

(2) submission of false claims for reimbursement;

(3) simultaneous participation under more than one sponsoring organization;

(4) non-compliance with the program meal pattern;

(5) failure to keep required records;

(6) conduct or conditions that threaten the health or safety of a child(ren) in care, or the public health or safety;

(7) a determination that the day care home has been convicted of any activity that occurred during the past seven years and that indicated a lack of business integrity; a lack of business integrity includes, but is not limited to, fraud, antitrust violations, embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, receiving stolen property, making false claims, obstruction of justice, or any other activity indicating a lack of business integrity as defined by CYFD, or the concealment of such a conviction;

(8) failure to participate in training; or

(9) any other circumstance related to non-performance under the sponsoring organization-day care home agreement, as specified by the sponsoring organization or CYFD, including, but not limited to:

(a) the provider is found not at home during stated hours of meal service on two or more consecutive visits and has not notified the sponsoring organization of the intended absence ahead of time;

(b) chronic non compliance with program menu and record keeping requirements;

(c) serving meals outside of the provider's required time frame as documented on the application for participation;

(d) whenever a block claim submitted by the provider cannot be validated by an unannounced visit or parent audits conducted by the sponsor.

H. Sponsoring organizations shall send a notice to family day care home providers advising them of the serious deficiencies in accordance with 7 CFR 226.16(l)(3). Family day care home providers must complete corrective action as soon as possible but no later than 30 days after receipt of the seriously deficient notice.

I. Sponsoring organizations shall notify CYFD within 30 days of terminating a family day care home provider.

J. Terminated providers are placed on a national disqualified list. Once included on the national disqualified list, a family day care home will remain on the list until such time as CYFD determines that the serious deficiency(ies) that led to its placement on the list has(ve) been corrected, or until seven years have elapsed since its agreement was terminated for cause. However, if the day care home has failed to repay debts owed under the program, it will remain on the list until the debt has been repaid.

N.M. Admin. Code § 8.2.2.8

8.2.2.8 NMAC - Rp, 8 2.2.8 NMAC, 06-15-09