[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: 7CFR220.15]



[Page 107-108]

 

                          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 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.



[[Page 108]]



    (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]