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For other sponsorship-related costs, it requires procurement guidance, supporting documentation, submitted budget-cost calculations, and notes consequences for failure to identify or disclose required information.",{"@graph":14,"@context":77},[15,34,56],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/healthcare/","Healthcare",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/child-and-adult-care-food-program-less-than-arms-length-transactions-budget-procedures/537463/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/child-and-adult-care-food-program-less-than-arms-length-transactions-budget-procedures/537463.png","ImageObject",300,407,{"name":42,"@type":43},"Indoniesian Boy","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-11-01","2026-10-10",true,{"@type":52,"interactionType":53,"userInteractionCount":55},"InteractionCounter",{"@type":54},"ViewAction",5,{"@type":57,"mainEntity":58},"FAQPage",[59,65,69,73],{"name":60,"@type":61,"acceptedAnswer":62},"What qualifies as a less-than-arms-length transaction in CACFP guidance?","Question",{"text":63,"@type":64},"It is a transaction where one party can control or substantially influence the actions of the other(s), including relationships among divisions, common-control organizations, and related individuals or entities holding a controlling interest.","Answer",{"name":66,"@type":61,"acceptedAnswer":67},"What must institutions do regarding less-than-arms-length relationships?",{"text":68,"@type":64},"All less-than-arms-length relationships involving the CACFP must be disclosed to ISBE. Costs for such transactions require scrutiny and may be limited.",{"name":70,"@type":61,"acceptedAnswer":71},"How are less-than-arms-length annual rental amounts calculated for CACFP?",{"text":72,"@type":64},"Use property acquisition cost minus value of land, multiplied by the square feet occupied by the CACFP, divided by 30 years total square feet. If there is personal use, further prorate by the time used for the CACFP.",{"name":74,"@type":61,"acceptedAnswer":75},"What happens if an institution fails to identify or disclose related-party and less-than-arms-length transactions?",{"text":76,"@type":64},"The cost will be disallowed and the institution and responsible parties may face administrative and legal remedies available to the State agency and FNS.","https://schema.org",{"og:url":32,"og:type":79,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":81,"canonical":32},"index,follow",{"doc_id":83,"site_id":7},537463,1791879823,{"code":4,"msg":86,"data":87},"success",[88,92,96,100,104,109,113,118,123,126,130],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":89,"show_sort_weight":90,"slug":91},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":93,"show_sort_weight":94,"slug":95},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":97,"show_sort_weight":98,"slug":99},"Exam",70,"exam",{"id":55,"doc_module":4,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},"Comic",60,"comic",{"id":105,"doc_module":4,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},6,"Technology",50,"technology",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":111,"slug":112},7,40,"healthcare",{"id":114,"doc_module":4,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},8,"Research & Report",30,"research-report",{"id":119,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},9,"Religion & Spirituality",20,"religion-spirituality",{"id":121,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":121,"slug":125},"World Cup","world-cup",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":127,"slug":129},10,"Lifestyle","lifestyle",{"id":131,"doc_module":4,"doc_module_name":25,"category_name":132,"show_sort_weight":55,"slug":133},19,"General","general",{"code":4,"msg":86,"data":135},{"doc_id":83,"user_id":136,"nickname":42,"user_avatar":137,"doc_module":4,"category_id":110,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":138,"file_id":139,"file_url":140,"file_type":141,"file_size":142,"view_count":55,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":26,"language":143,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":144,"faqs":145,"seo_title":146,"seo_description":12,"update_tm":147,"read_time":55,"preview_page_count":4},962090760608,"https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c","Illinois State Board of Education  \nNutrition Programs Division  \nBudget Procedures  \nChild and Adult Care Food Program  \nDay Care Home Sponsoring Organization  \nLess-Than-Arms-Length Transactions  \nThe definition of a less-than-arms-length transaction is one under which one party to the transaction is able to control or substantially influence the actions of the other(s) . Such transactions include, but are not limited to, those between divisions of an organization; organizations under common control through common officers, directors, or members; and an organization and a director, trustee, officer, key employee of the institution or immediate family members, either directly or through corporations, trusts, or similar arrangements in which a controlling interest is held. (FNS Instruction 796-2 , Revision 3 Exhibit A Glossary T)  \nAll less-than-arms-length relationships involving the CACFP must be disclosed to ISBE. All costs for less-than-arms-length transactions require scrutiny and the allowable cost to the CACFP may be limited.  \nLess-Than-Arms-Length Transactions for Rental Costs  \nWhen the space or equipment rented by the CACFP is owned by a party related to the sponsoring organization, specific rules limiting the amount of costs allowed to be charged to the CACFP must be followed. When the space is part of a residence, the square feet of space occupied by the CACFP and the amount of time used for the CACFP must be considered. The FNS Instruction 796-2, Revision 3 (VIII I 36 d) states: ”Costs under-lessthan-arms-length arrangements, no matter how represented, may not exceed the amount that would be allowed had the item been owned by the institution. All transactions between related parties are less-than-arms-length.”  \nThe calculation for the annual rental amount for less-than-arms-length arrangements follows:  \nProperty acquisition cost minus value of land X  Sq ft of CACFP  \n30 years Total sq ft  \nIf this area also has personal use, the amount would then be further prorated by the amount of time used for the CACFP. The calculation would be as follows:  \nValue from above calculation X ~~ ~~HouTrso~~t~~aol~~ ~~fhoo~~p~~uerrsionvailfora~~b~~lhfe~~ ~~CACor~~ ~~useFP  \nLess-Than-Arms-Length Transaction for Other Than Rental Costs  \nWhen a less-than-arms-length relationship exists for the sponsorship for other costs, the required guidance for procurement must be fully supported to establish that the costs presented were obtained in good faith and at reasonable rates for the services or product offered. All lessthan-arms-length transactions require disclosure to ISBE when presented as a budget cost of the CACFP. Calculations of submitted budget costs must be included.  \nRegulation FNS Instruction 796-2, Revision 3 VIII (B) states:  \nThe failure of the institution to identify related party transactions, less-thanarmed-length transactions, ownership interests in equipment, supplies, vehicles and facilities, or disclose any other information to the State agency that inhibits the State agency’s ability to make informed assessment of the allowability of a particular cost will result in the disallowance of the cost and may subject the institution, its principals, employees, consultants, or others to the administrative and legal remedies available to the State agency and FNS.","cbCaioOHP1CU51Lb","https://ap.wps.com/l/cbCaioOHP1CU51Lb","pdf",17581,"English","# Less-Than-Arms-Length Transactions Overview\n## Definition and Disclosure Requirements\n## Rental Costs for Less-Than-Arms-Length Transactions\n## Annual Rental Amount Calculation\n## Other Than Rental Costs for Less-Than-Arms-Length Transactions\n## Consequences of Failure to Disclose","[{\"question\":\"What qualifies as a less-than-arms-length transaction in CACFP guidance?\",\"answer\":\"It is a transaction where one party can control or substantially influence the actions of the other(s), including relationships among divisions, common-control organizations, and related individuals or entities holding a controlling interest.\"},{\"question\":\"What must institutions do regarding less-than-arms-length relationships?\",\"answer\":\"All less-than-arms-length relationships involving the CACFP must be disclosed to ISBE. Costs for such transactions require scrutiny and may be limited.\"},{\"question\":\"How are less-than-arms-length annual rental amounts calculated for CACFP?\",\"answer\":\"Use property acquisition cost minus value of land, multiplied by the square feet occupied by the CACFP, divided by 30 years total square feet. If there is personal use, further prorate by the time used for the CACFP.\"},{\"question\":\"What happens if an institution fails to identify or disclose related-party and less-than-arms-length transactions?\",\"answer\":\"The cost will be disallowed and the institution and responsible parties may face administrative and legal remedies available to the State agency and FNS.\"}]","Child and Adult Care Food Program - Less-Than-Arms-Length Transactions - Budget Procedures | PDF",1791604753]