Florida Administrative Code › 5 - DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES › 5P - Division of Food, Nutrition and Wellness › Chapter 5P-2 - SCHOOL NUTRITION PROGRAMS › Section 5P-2.006 - Fiscal Action

Current through Reg. 50, No. 138; July 16, 2024
(1) Fiscal Action.
				Fiscal Action is the recovery of overpayment by the Department to a Sponsor
				through direct assessment or offset of future Claims for Reimbursement,
				disallowance of any portion of a Claim for Reimbursement, disallowance of
				overclaims as reflected in unpaid Claims for Reimbursement, submission of a
				revised Claim for Reimbursement, and correction of program records to ensure
				that unfiled Claims for Reimbursement are corrected when filed. Fiscal action
				also includes disallowance of funds for failure to take corrective action to
				meet the meal requirements in 7 CFR 210.10 and
				7 CFR
				220.8, incorporated in Rule
				5P-2.001, F.A.C., and
				restoration of funds to the Sponsor's nonprofit school food service account
				from a nonfederal source for unallowable costs pursuant to 2 CFR 200,
				incorporated in Rule 5P-2.001, F.A.C.
(2) Assessment of Fiscal Action. The
				Department will assess fiscal action for program deficiencies identified in
				7 CFR
				210.18(l)(1) through (2) and
				7 CFR
				210.18(l)(4), incorporated
				in Rule 5P-2.001, F.A.C., identified unallowable costs to the program,
				embezzlement, willful misapplication of funds, theft, or fraudulent
				activity.
(3) Recovery of Payment.
				The Department's response to a Sponsor failing to submit an accurate Claim for
				Reimbursement is governed by 7 CFR 210.8 and
				7 CFR
				220.14, incorporated in Rule 5P-2.001,
				F.A.C., except that the Department will recover current fiscal year
				overpayments from a Sponsor by offsetting future Claims for Reimbursement
				within the same fiscal year. The Department will collect overpayments
				identified from a prior fiscal year from a Sponsor, and any fiscal action
				assessed pursuant to subsection (2) of this rule, through direct assessment
				using the following collection procedures:
(a) The Department will make a written demand
				to the Sponsor stating the Fiscal Action assessed via certified mail, return
				receipt requested. Written demands are deemed received by the Sponsor when it
				is delivered by certified mail, return receipt (or equivalent private delivery
				service). If the written demand is undeliverable, it is considered to be
				received by the Sponsor five days after being sent to the addressee's last
				known mailing address.
(b) If after
				thirty (30) calendar days following receipt of the written demand, the Sponsor
				has failed to remit full payment or agree to a satisfactory repayment schedule,
				a second written demand stating the Fiscal Action assessed will be sent to the
				Sponsor by the Department via certified mail, return receipt
				requested.
(c) If after sixty (60)
				calendar days following receipt of the original written demand, the Sponsor
				fails to remit full payment or agree to a satisfactory repayment schedule, a
				third written demand stating the Fiscal Action assessed will be sent to the
				Sponsor by the Department via certified mail, return receipt requested. This
				third demand will contain a due date of ninety (90) calendar days from the date
				of original demand for the Sponsor to remit full payment or agree to a
				satisfactory repayment schedule.
(d) If after ninety (90) calendar days
				following receipt of the original written demand, the Sponsor fails to remit
				full payment or agree to a satisfactory repayment schedule, the Department will
				begin the procedure for collection of delinquent accounts as set forth in
				Section 17.20, F.S.
(e) While terminated, Sponsors and its
				principles, including their board members, corporate officials, and the
				officials identified on the Sponsor application in the Florida Automated
				Nutrition System at the time of the conduct leading to the termination, shall
				not participate in any Child Nutrition and Food Distribution Program to include
				receiving USDA Foods, conducting business as a contractor, providing consulting
				services, or obtaining program related funds by any other
				means.