@TaxGuyBill You are correct that the standard meal allowance is available only to daycare providers using their own home (which they might be calling a "Center," who knows).  But Google AI disagrees about what the IRS Audit Technique Guide says about netting.  I don't know if 1099's are being issued for these payments, but if not, they probably should be.  

"Netting is not recommended: Some providers are incorrectly advised to "net" their reimbursements and expenses. The IRS Audit Technique Guide for child care providers recommends reporting the full reimbursement as income and taking the full deduction for food expenses."

Added later -- Here is what it says:

A. How to Report Food Reimbursement Payments
(1) Food reimbursement payments are sometimes reported on a Form 1099. If a provider received a Form 1099, the best way for the provider to report those payments is under the “Other Income” section of the Schedule C and writing in “CACFP Income.” The provider should not include the amount of the payments for his/her own children because it is not taxable. Clearly reporting the CACFP payments in this manner will assist the IRS in the selection of returns for examination. If no 1099 is received, the provider can report it under other
income or as an alternative method net the payments against the food expense.