[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR220.15]

[Page 108-109]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 220_SCHOOL BREAKFAST PROGRAM--Table of Contents
 
Sec. 220.15  Management evaluations and audits.

    (a) State agencies and school food authorities shall comply with the 
requirements of part 3015 of this title concerning the audit 
requirements for recipients and subrecipients of the Department's 
financial assistance.
    (b) These requirements call for organization-wide financial and 
compliance audits to ascertain whether financial operations are 
conducted properly; financial statements are presented fairly; 
recipients and subrecipients comply with the laws and regulations that 
affect the expenditures of Federal funds; recipients and subrecipients 
have established procedures to meet the objectives of federally assisted 
programs; and recipients and subrecipients are providing accurate and 
reliable information concerning grant funds. States and school food 
authorities shall use their own procedures to arrange for

[[Page 109]]

and prescribe the scope of independent audits, provided that such audits 
comply with the requirements set forth in part 3016 of this title.
    (c) Each State agency shall provide FNS with full opportunity to 
conduct management evaluations (including visits to schools) of all 
operations of the State agency under the programs covered by this part 
and shall provide OA with full opportunity to conduct audits (including 
visits to schools) of all operations of the State agency under such 
programs. Each State agency shall make available its rec ords, including 
records of the receipt and expenditure of funds under such programs, 
upon a reasonable request by FNS or OA. OA shall also have the right to 
make audits of the records and operations of any school.
    (d) In conducting management evaluations, reviews or audits for any 
fiscal year, the State agency, FNS, or OIG may disregard any overpayment 
if the total overpayment does not exceed $600 or, in the case of State 
agency claims in State administered Programs, it does not exceed the 
amount established under State law, regulations or procedure as a 
minimum amount for which claim will be made for State losses but not to 
exceed $600. However, no overpayment is to be disregarded where there is 
substantial evidence of violations of criminal law or civil fraud 
statutes.

(Secs. 805 and 819, Pub. L. 97-35, 95 Stat. 521-535 (42 U.S.C. 1773); 
sec. 812, Pub. L. 97-35, 95 Stat. 521-535 (42 U.S.C. 1759a))

[40 FR 30925, July 24, 1975. Redesignated and amended by Amdt. 25, 41 FR 
34757, 34760, Aug. 17, 1976; 43 FR 59825, Dec. 22, 1978; Amdt. 41, 47 FR 
14135, Apr. 2, 1982; Amdt. 43, 47 FR 18564, Apr. 30, 1982; Amdt. 56, 54 
FR 2990, Jan. 23, 1989; 57 FR 38587, Aug. 26, 1992; 59 FR 1894, Jan. 13, 
1994; 64 FR 50742, Sept. 20, 1999]