Charlene DeZwarte runs a child daycare home in Knoxville and has participated in the Child and Adult Care Food Program (CACFP) for a year. This program is administered by the United States Department of Agriculture through the Iowa Department of Education's Bureau of Nutrition Programs. It provides reimbursement to the day care provider for meals and snacks for the children in the provider's care. The Southern Iowa Economic Development Association (SIEDA) is Ms. DeZwarte's sponsoring organization. SIEDA's responsibility is to hold Ms. DeZwarte accountable for how she uses public funds in her role of child care provider.

SIEDA issued a Notice of Seriously Deficient Practice to Ms. DeZwarte on June 1 to put her on notice that she had submitted one or more false claims for reimbursement. The Notice of Seriously Deficient Practice also informed Ms. DeZwarte of the Corrective Action Plan required to demonstrate full and permanent compliance with CACFP rules . A Notice of Intent to Terminate is not issued until the sponsor is satisfied that a home provider continues to violate CACFP rules after being advised (via the Notice of Seriously Deficient Practice) that the provider needs to change how she conducts her daycare.

During July SIEDA noticed that Ms. DeZwarte claimed reimbursement for children who were not in her care on June 28. Therefore, on August 7, 2006, SIEDA gave Ms. DeZwarte Notice of Proposed Termination and Disqualification from participation in CACFP for her failure to permanently and fully correct the seriously deficient practice of making false claims. At the hearing, Ms. Dezwarte explained the false claims were a "mistake" and caused by "human error". However, SIEDA still has the obligation to safeguard the misuse of public funds.

The proposed termination of Ms DeZwarte from the Child and Adult food program by SIEDA is AFFIRMED.