Texas Administrative Code
Title 4 - AGRICULTURE
Part 1 - TEXAS DEPARTMENT OF AGRICULTURE
Chapter 25 - SPECIAL NUTRITION PROGRAMS
Subchapter A - CHILD AND ADULT CARE FOOD PROGRAM (CACFP)
Division 2 - ELIGIBILITY OF CONTRACTORS AND FACILITIES
Section 25.17 - Performance Bond Requirements for Sponsors
Current through Reg. 50, No. 13; March 28, 2025
(a) A sponsoring organization applying to participate in CACFP with less than three years of successful administrative and financial history shall be required to obtain and maintain a performance bond from a company designated in United States Treasury Circular 570 as certified to issue bonds for federally funded programs in an amount specified by TDA unless or until it can demonstrate a total of three years of successful administrative and financial history within the preceding seven years or is a governmental entity.
(b) The initial amount of the performance bond will be determined by the sponsor's anticipated enrollment and the sum of the following formula for each meal type served: (Total Enrollment) x (Current Free Reimbursement Rate for Meal Type) x 90.
(c) The bond amount shall be adjusted to reflect actual enrollment or reimbursement as needed based on the following guidelines:
(d) A sponsor may request relief from the bonding requirement once it can demonstrate that it has accumulated three years of successful administrative and financial history within the preceding seven years by submitting a written request to TDA.