[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: 7CFR215.13]



[Page 77-78]

 

                          TITLE 7--AGRICULTURE

 

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

 

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

 

Sec. 215.13  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 and prescribe 

the scope of independent audits, provided that such audits comply with 

the requirements set forth in part 3015 of this title.



[[Page 78]]



    (c) Each State agency shall provide FNS with full opportunity to 

conduct management evaluations (including visits to schools and child-

care institutions) of any operations of the State agency under the 

Program and shall provide OA with full opportunity to conduct audits 

(including visits to schools and child-care institutions) of all 

operations of the State agency under the Program. Each State agency 

shall make available its records, including records of the receipt and 

expenditure of funds under the Program, 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 or child-care institution.

    (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))



[Amdt. 14, 41 FR 31175, July 27, 1976, as amended at 43 FR 58925, Dec. 

22, 1978; Amdt. 23, 47 FR 14135, Apr. 2, 1982; Amdt. 25, 47 FR 18564, 

Apr. 30, 1982; Amdt. 36, 54 FR 2990, Jan. 23, 1989; 57 FR 38586, Aug. 

26, 1992; 59 FR 1894, Jan. 13, 1994; 64 FR 50742, Sept. 20, 1999]