What is a Texas Child and Adult Care Food Program (CACFP) Performance Bond?

Learn about this bond today!

Texas CACFP Performance BondNon-governmental organizations with less than three years of successful financial and administrative history that wish to be a Texas Child and Adult Care Food Program (CACFP) Sponsoring Organization are required to post a surety bond.

The Texas CACFP Performance Bond is a mandatory CACFP license requirement stated in Chapter 25 of the Texas Administrative Code.


How much is the bond amount?

The surety bond amount will depend on the Sponsoring Organization’s expected enrollees and the sum of the formula below for each meal type the said organization wishes to claim.

(Total enrollment) x (Current Tier I Reimbursement Rate for Meal Type) x 90

For example, a Sponsoring Organization has a daycare with a total enrollment of 13 kids. The said daycare would like to claim breakfast, lunch, and dinner.

Tier I reimbursement is as follows:

Breakfast –      $1.00

Lunch –            $1.00

Dinner –          $1.00


TOTAL            $ 3.00 combined Tier I rate for each meal type

Computation: 13 kids x $3.00 x 90 = $3,510 is the Sponsoring Organization’s minimum initial bond amount

The bond amount must be increased based on the following:

  • If the enrollment or reimbursement increased by 50% from the original enrollment or reimbursement
  • Each time the enrollment or reimbursement increases by 50% from the time the bond was last increased

The bond amount increase should be submitted to the Texas Department of Agriculture within 45 days.

If there is a decrease in enrollment, a written request for a reduction in bond amount may be submitted to the Texas Department of Agriculture.


What are the (CACFP) Performance Bond conditions?

  • The bond amount will be specified by the Texas Department of Agriculture
  • The bond should reflect any adjustments made on the bond amount
  • The issuing surety bond agency should be part of the United States Treasury Circular 570 list of accredited sureties
  • Since this is a performance bond, the bond will be maintained until the Sponsoring Organization proves a successful administrative history as well as the financial capability for three years


How can I obtain this type of bond?

You can obtain a CACFP Performance Bond by seeking the expertise of a reputable surety bond agency such as Surety Bond Authority.

We will first ask you to apply for this bond.

We will guide you through the bonding process and clear up any confusions you may have by carefully explaining the conditions.

An underwriter will then evaluate your financial history, job performance history, and credit score. Once this process is done, we will execute the bond and send it to you.


What are the other requirements to become a CACFP Sponsoring Organization?

  • Completed application for participation
  • Each member of the organization must submit a government-issued identification and proof of residential address
  • Texas Department of Agriculture may require a criminal background history

Are you ready to get this bond? Apply here!

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