[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: 7CFR225.10]



[Page 139]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 225_SUMMER FOOD SERVICE PROGRAM--Table of Contents

 

                    Subpart B_State Agency Provisions

 

Sec. 225.10  Audits and management evaluations.



    (a) Audits. State agencies shall arrange for audits of their own 

operations to be conducted in accordance with the Department's Uniform 

Federal Assistance Regulations (7 CFR part 3015). Unless otherwise 

exempt, sponsors shall arrange for audits to be conducted in accordance 

with 7 CFR part 3015. State agencies shall provide OIG with full 

opportunity to audit the State agency and sponsors. Each State agency 

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

expenditure of funds, upon a reasonable request from OIG. While OIG 

shall rely to the fullest extent feasible upon State-sponsored audits of 

sponsors, it shall, when considered necessary, (1) make audits on a 

State-wide basis, (2) perform on-site test audits, and (3) review audit 

reports and related working papers of audits performed by or for State 

agencies.

    (b) Management evaluations. (1) State agencies shall provide FNS 

with full opportunity to conduct management evaluations (including 

visits to sponsors) of all operations of the State agency. Each State 

agency shall make available its records, including records of the 

receipts and expenditures of funds, upon a reasonable request by FNS.

    (2) The State agency shall fully respond to any recommendations made 

by FNSRO pursuant to the management evaluation.

    (3) FNSRO may require the State agency to submit on 20 days notice a 

corrective action plan regarding serious problems observed during any 

phase of the management evaluation.

    (c) Disregards. In conducting management evaluations or audits for 

any fiscal year, the State agency, FNS or OIG may disregard overpayment 

which does not exceed $100 or, in the case of State agency administered 

programs, does not exceed the amount established by State law, 

regulations or procedures as a minimum for which claims will be made for 

State losses generally. No overpayment shall be disregarded, however, 

when there are unpaid claims for the same fiscal year from which the 

overpayment can be deducted or when there is substantial evidence of 

violation of criminal law or civil fraud statutes.