Appellant ran a child daycare home and had participated in the Child & Adult Care Food Program for the past five-to-six years. The CACFP is a federal program that provides reimbursement for meals and snacks provided to children in daycare homes and centers. Daycare homes are supervised by a sponsoring organization. The daycare home provider must sign an agreement that provides for most of the terms and conditions of program participation. Mr. Terrell signed his agreement on October 1, 2004.

Mr. Terrell claimed reimbursement for weekend meals, but when staff from the sponsor stopped by his house over weekends, they were unable to verify attendance of the children on the claim forms. The sponsor also attempted verification by sending questionnaires to the parents of the children in Appellant's care. None of the parent audits were returned. Because of the history of failed verification attempts, the sponsor required Mr. Terrell to have a corrective action plan with the notice of intent to terminate if he failed to correct the deficiencies. Because Mr. Terrell did not take any required steps on the corrective action plan, the sponsor served him with the notice to terminate his CACFP participation. Appellant appealed from that notice.

Federal regulations (7 C.F.R.226.6) enumerate reasons why a daycare home may be terminated from CACFP. Being cited as "seriously deficient" and not correcting the deficiency is one cause for termination. A serious deficiency includes failure to daily record required records. The CACFP operates on public monies and public trust. Appellant's complete refusal to take the reasonable steps required of him to remain in the program shatters the public trust necessary for his participation in the CACFP

The termination of Appellant from CACFP was affirmed.