1. A. CYFD does not enter into an agreement with any applicant sponsor identifiable through its corporate organization, officers, employees, or otherwise, as an institution which participated in any federal child nutrition program and was seriously deficient in its operation of any such program.
2. B. CYFD terminates the Program agreement with any sponsor which it determines to be seriously deficient in its operation of the Program.

3. C. CYFD imposes sanctions in the form of a meal disallowance for the following;

   (1) Failure to record meals, types of food and amounts prepared, in the Menu Record Book;

   (2) Meals which lack one or more required components;

   (3) Meals which contain non creditable foods as a required component; or

   (4) The menu records and/or food receipts indicate that not enough food was served, or recorded as served, to have given each participant the minimum portion size of each component. The State agency uses the USDA Food Buying Guide to determine how many servings of each component were available. If the number of servings available is less than the number of participants served as listed on the Menu Record Book, the difference is the number of meals disallowed.

   (5) Lack of CN labels or Product Analysis sheets for commercially prepared food products.

[8.2.3.18 NMAC – Rp 8 NMAC 2.3.18, 11-30-01]