[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: 7CFR225.12]



[Page 140-141]

 

                          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. 225.12  Claims against sponsors.



    (a) The State agency shall disallow any portion of a claim for 

reimbursement and recover any payment to a sponsor not properly payable 

under this part, except as provided for in



[[Page 141]]



Sec. 225.10(c). State agencies may consider claims for reimbursement 

not properly payable if a sponsor's records do not justify all costs and 

meals claimed. However, the State agency shall notify the sponsor of the 

reasons for any disallowance or demand for repayment.

    (b) Minimum State agency collection procedures for unearned payments 

shall include:

    (1) Written demand to the sponsor for the return of improper 

payments;

    (2) If after 30 calendar days the sponsor fails to remit full 

payment or agree to a satisfactory repayment schedule, a second written 

demand for the return of improper payments, sent by certified mail, 

return receipt requested;

    (3) If after 60 calendar days following the original written demand, 

the sponsor fails to remit full payment or agree to a satisfactory 

repayment schedule, a third written demand for the return of improper 

payments, sent by certified mail, return receipt requested;

    (4) If after 90 calendar days following the original written demand, 

the sponsor fails to remit full payment or agree to a satisfactory 

repayment schedule, the State agency shall refer the claim against the 

sponsor to the appropriate State or Federal authorities for pursuit of 

legal remedies.

    (c) If FNS does not concur with the State agency's action in paying 

a sponsor or in failing to collect an overpayment, FNS shall notify the 

State agency of its intention to assert a claim against the State 

agency. In all such cases, the State agency shall have full opportunity 

to submit evidence concerning the action taken. The State agency shall 

be liable to FNS for failure to collect an overpayment unless FNS 

determines that the State agency has conformed with this part in issuing 

the payment and has exerted reasonable efforts in accordance with 

paragraph (b) of this section to recover the improper payment.

    (d) The amounts recovered by the State agency from sponsors may be 

utilized to make Program payments to sponsors for the period for which 

the funds were initially available and/or to repay the State for any of 

its own funds used to make payments on claims for reimbursement. Any 

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

accordance with the requirements of this part.