[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR210.29]



[Page 59-61]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 210_NATIONAL SCHOOL LUNCH PROGRAM--Table of Contents

 

                     Subpart F_Additional Provisions

 

Sec. 210.29  Management evaluations.



    (a) Management evaluations. FNS will conduct a comprehensive 

management evaluation of each State agency's administration of the 

National School Lunch Program.

    (b) Basis for evaluations. FNS will evaluate all aspects of State 

agency management of the Program using tools such as State agency 

reviews as required under Sec. 210.18 or Sec. 210.18a of this part; 

reviews conducted by FNS in accordance with Sec. 210.18 of this part; 

FNS reviews of school food authorities and schools authorized under 

Sec. 210.19(a)(4) of this part; follow-up reviews and actions taken by 

the State agency to correct violations found during reviews; FNS 

observations of State agency reviews; and audit reports.

    (c) Scope of management evaluations. The management evaluation will 

determine whether the State agency has taken steps to ensure school food 

authority compliance with Program regulations, and whether the State 

agency is administering the Program in accordance with Program 

requirements and good management practices.

    (1) Local compliance. FNS will evaluate whether the State agency has 

actively taken steps to ensure that school food authorities comply with 

the provisions of this part.

    (2) State agency compliance. FNS will evaluate whether the State 

agency has fulfilled its State level responsibilities, including, but 

not limited to the following areas: use of Federal funds; reporting and 

recordkeeping; agreements with school food authorities; review of food 

service management company contracts; review of the claims payment 

process; implementation of the State agency's monitoring 

responsibilities; initiation and completion of corrective action; 

recovery of overpayments; disallowance of claims that are not properly 

payable; withholding of Program payments; oversight of school food 

authority procurement activities; training and guidance activities; 

civil rights; and compliance with the State



[[Page 60]]



Administrative Expense Funds requirements as specified in 7 CFR part 

235.

    (d) School food authority reviews. FNS will examine State agency 

administration of the Program by reviewing local Program operations. 

When conducting these reviews under paragraph (d)(2) of this section, 

FNS will follow all the administrative review requirements specified in 

Sec. 210.18(a)-(h) of this part. When FNS conducts reviews, the 

findings will be sent to the State agency to ensure all the needed 

follow-up activity occurs. The State agency will, in all cases, be 

invited to accompany FNS reviewers.

    (1) Observation of State agency reviews. FNS may observe the State 

agency conduct of any review and/or any follow-up review as required 

under this part. At State agency request, FNS may assist in the conduct 

of the review.

    (2) Section 210.18 reviews. FNS will conduct administrative reviews 

or follow-up reviews in accordance with Sec. 210.18(a)-(h) of this part 

which will count toward meeting the State agency responsibilities 

identified under Sec. 210.18 of this part.

    (3) School food authority appeal of FNS findings. When 

administrative or follow-up review activity conducted by FNS in 

accordance with the provisions of paragraph (d)(2) of this section 

results in the denial of all or part of a Claim for Reimbursement or 

withholding of payment, a school food authority may appeal the FNS 

findings by filing a written request with the Chief, Administrative 

Review Branch, U.S. Department of Agriculture, Food and Nutrition 

Service, 3101 Park Center Drive, Alexandria, Virginia, 22302, in 

accordance with the appeal procedures specified in this paragraph:

    (i) The written request for a review of the record shall be 

postmarked within 15 calendar days of the date the appellant received 

the notice of the denial of all or a part of the Claim for Reimbursement 

or withholding payment and the envelope containing the request shall be 

prominently marked ``REQUEST FOR REVIEW''. FNS will acknowledge the 

receipt of the request for appeal within 10 calendar days. The 

acknowledgement will include the name and address of the FNS 

Administrative Review Officer (ARO) reviewing the case. FNS will also 

notify the State agency of the request for appeal.

    (ii) The appellant may refute the action specified in the notice in 

person and by written documentation to the ARO. In order to be 

considered, written documentation must be filed with the ARO not later 

than 30 calendar days after the appellant received the notice. The 

appellant may retain legal counsel, or may be represented by another 

person. A hearing shall be held by the ARO in addition to, or in lieu 

of, a review of written information submitted by the appellant only if 

the appellant so specifies in the letter of request for review. Failure 

of the appellant school food authority's representative to appear at a 

scheduled hearing shall constitute the appellant school food authority's 

waiver of the right to a personal appearance before the ARO, unless the 

ARO agrees to reschedule the hearing. A representative of FNS shall be 

allowed to attend the hearing to respond to the appellant's testimony 

and to answer questions posed by the ARO;

    (iii) If the appellant has requested a hearing, the appellant shall 

be provided with a least 10 calendar days advance written notice, sent 

by certified mail, return receipt requested, of the time, date, and 

place of the hearing;

    (iv) Any information on which FNS's action was based shall be 

available to the appellant for inspection from the date of receipt of 

the request for review;

    (v) The ARO shall be an independent and impartial official other 

than, and not accountable to, any person authorized to make decisions 

that are subject to appeal under the provisions of this section;

    (vi) The ARO shall make a determination based on information 

provided by FNS and the appellant, and on Program regulations;

    (vii) Within 60 calendar days of the receipt of the request for 

review, by written notice, sent by certified mail, return receipt 

requested, the ARO shall inform FNS, the State agency and the appellant 

of the determination of the ARO. The final determination shall take 

effect upon receipt of the written



[[Page 61]]



notice of the final decision by the school food authority;

    (viii) The action being appealed shall remain in effect during the 

appeal process;

    (ix) The determination by the ARO is the final administrative 

determination to be afforded to the appellant.

    (4) Coordination with State agency. FNS will coordinate school food 

authority selection with the State agency to ensure that no unintended 

overlap exists and to ensure reviews are conducted in a consistent 

manner.

    (e) Management evaluation findings. FNS will consider the results of 

all its review activity within each State, including school food 

authority reviews, in performing management evaluations and issuing 

management evaluation reports. FNS will communicate the findings of the 

management evaluation to appropriate State agency personnel in an exit 

conference. Subsequent to the exit conference, the State agency will be 

notified in writing of the management evaluation findings and any needed 

corrective actions or fiscal sanctions in accordance with the provisions 

Sec. 210.25 of this part and/or 7 CFR part 235.



[56 FR 32949, July 17, 1991, as amended at 57 FR 38586, Aug. 26, 1992. 

Redesignated at 64 FR 50741, Sept. 20, 1999]