Nutrition Services Division Management Bulletin
Purpose: Policy, Beneficial Information
To: Summer Food Service Program Operators
Attention: Program Operators
Number: SFSP-02-2019
Date: May 2019
Reference: Management Bulletin NSD-CNP-02-2007
Subject: Reporting Entity Type, Tax ID Number, Name, Address, and Ownership Changes to the CACFP and the SFSP
This management bulletin (MB) reminds Child and Adult Care Food Program (CACFP) and Summer Food Service Program (SFSP) Operators about the requirement of reporting changes to the California Department of Education (CDE).
As stated in the Agreement to Participate that agencies sign when joining the CACFP or the SFSP, if any of the following changes occur, agencies must immediately report such changes to their assigned CACFP and SFSP Specialists:
- Entity type
- Tax ID number
- Agency name
- Agency address
- Ownership or change in responsible principals
Entity Type
A change in entity type can include an agency changing to or from a Sole Proprietor, Individual, or Single Member Limited Liability Corporation (LLC) to or from a Partnership, Estate or Trust, or for-profit (excluding SFSP) or nonprofit Corporation. Such changes must be reported to the agency’s CACFP and SFSP Specialist.
Tax ID Number
A Tax ID number change can occur when there is a change in entity type. For example, changing from an individual using a Social Security number to a Corporation using a Federal Employer Identification Number constitutes a Tax ID number change. Agencies must report this change to their CACFP and SFSP Specialists. A change in Tax ID number renders the agency’s CACFP or SFSP agreement(s) invalid, and requires an agency to sign a new agreement with the CACFP or SFSP.
Agency Name
A name change refers to a change in the legal business name of an agency, to include the addition or deletion of Incorporated or LLC, or the addition or deletion of a doing business as/fictitious business name. Name changes must be reported to the agency’s CACFP and SFSP Specialist.
Agency Address
An agency address change includes a change in the physical location of the agency, in addition to a change in the payment address to which reimbursement warrants are sent.
Note: If an agency is a for-profit (excluding SFSP) or nonprofit Corporation or LLC, the agency must first report these changes to the Internal Revenue Service (IRS) and the California Secretary of State. Agencies must then provide proof of these changes to their assigned CACFP and SFSP Specialists.
Ownership
If an agency has a change in ownership, or a change in its responsible principals, they must also report this change to their assigned CACFP and SFSP Specialists. A change in ownership renders the agency’s CACFP or SFSP agreement(s) invalid, and requires an agency to sign a new agreement with the CACFP or SFSP. For more information on transfer of ownership and reporting to the CDE, please refer to CDE MB NSD-CNP-02-2007: Transfer of Agency Ownership–Both Nonprofit and For-profit Agencies, located on the CDE CACFP MB web page at https://www.cde.ca.gov/ls/nu/cc/mb.asp (The previous webpage is no longer available).
Consequences of Not Reporting Changes
Consequences of not reporting the above changes may result in late or nonpayment of reimbursement, incorrect tax filings with the IRS, and the CDE declaring an agency seriously deficient in the CACFP and the SFSP.
Contact Information
If you have any questions regarding this subject or require further explanation, please contact your assigned CACFP or SFSP Specialist.
CACFP: A list of assigned CACFP Specialists is located in the Download Forms section of the Child Nutrition Information and Payment System (CNIPS), Form ID CACFP 01, in the CACFP module. (The CACFP moved to the California Department of Social Services (CDSS). Information may be found on the CDSS website at https://www.cdss.ca.gov/cacfp.)
SFSP: A list of assigned SFSP Specialists is located in the Download Forms section of the CNIPS, Form ID SFSP 01, in the SFSP module. You can also contact SFSP by email at SFSP@cde.ca.gov.