[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: 7CFR215.12]



[Page 76-77]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 215_SPECIAL MILK PROGRAM FOR CHILDREN--Table of Contents

 

Sec. 215.12  Claims against schools or child-care institutions.



    (a) State agencies, or FNSROs where applicable, shall disallow any 

portion of a claim and recover any payment made to a School Food 

Authority or



[[Page 77]]



child-care institution that was not properly payable under this part. 

State agencies will use their own procedures to disallow claims and 

recover overpayments already made.

    (b) [Reserved]

    (c) The State Agency may refer any matter in connection with this 

section to FNSRO and CND for determination of the action to be taken.

    (d) Each State agency shall maintain all records pertaining to 

action taken under this section. Such records shall be retained for a 

period of three years after the date of the submission of the final 

Financial Status Report, except that, if audit findings have not been 

resolved, the records shall be retained beyond the three-year period as 

long as required for the resolution of the issues raised by the audit.

    (e) If CND does not concur with the State Agency action in paying a 

claim or a reclaim, or in failing to collect an overpayment FNSRO shall 

assert a claim against the State Agency for the amount of such claim, 

reclaim or overpayment. In all such cases, the State Agency shall have 

full opportunity to submit to CND evidence or information concerning the 

action taken. If in the determination of CND, the State Agency's action 

was unwarranted, the State Agency shall promptly pay to FNS the amount 

of the claim, reclaim, or overpayment.

    (f) The amounts recovered by the State Agency from schools and 

child-care institutions may be utilized, first, to make reimbursement 

payments for milk served during the fiscal year for which the funds were 

initially available, and second, to repay any State funds expended in 

the reimbursement of claims under the program and not otherwise repaid. 

Any amounts recovered which are not so utilized shall be returned to FNS 

in accordance with the requirements of Sec. 215.5(c).

    (g) With respect to schools or child-care institutions in which 

FNSRO administers the Program, when FNSRO disallows a claim or a portion 

of a claim, or makes a demand for refund of an alleged overpayment, it 

shall notify the School Food Authority or child-care institutions of the 

reasons for such disallowance or demand and the School Food Authority or 

child-care institutions shall have full opportunity to submit evidence 

or to file reclaim for any amount disallowed or demanded in the same 

manner afforded in this section to schools or child-care institutions 

administered by State Agencies.

    (h) The Secretary shall have the authority to determine the amount 

of, to settle, and to adjust any claims arising under the Program, and 

to compromise or deny such claim or any part thereof. The Secretary 

shall also have the authority to waive such claims if the Secretary 

determines that to do so would serve the purposes of the Program. This 

provision shall not diminish the authority of the Attorney General of 

the United States under section 516 of Title 28, U.S. Code, to conduct 

litigation on behalf of the United States.



(47 FR 745, Jan. 7, 1982 (44 U.S.C. 3506; secs. 804, 816 and 817, Pub. 

L. 97-35; 95 Stat. 521-535 (42 U.S.C. 1753, 1756, 1759, 1771 and 1785))



[32 FR 12587, Aug. 31, 1967, as amended by Amdt. 5, 37 FR 14686, July 

22, 1972; Amdt. 13, 39 FR 28418, Aug. 7, 1974; Amdt. 14, 41 FR 31175, 

July 27, 1976; 47 FR 745, Jan. 7, 1982; Amdt. 24, 47 FR 14133, Apr. 2, 

1982]