[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: 7CFR225.18]



[Page 155-156]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 225_SUMMER FOOD SERVICE PROGRAM--Table of Contents

 

               Subpart D_General Administrative Provisions

 

Sec. 225.18  Miscellaneous administrative provisions.



    (a) Grant closeout procedures. Grant closeout procedures for the 

Program shall be in accordance with the Department's Uniform Federal 

Assistance Regulations (7 CFR part 3015), subpart N.

    (b) Termination for cause. (1) FNS may terminate a State agency's 

participation in the Program in whole, or in part, whenever it is 

determined that the State agency has failed to comply with the 

conditions of the Program. FNS shall promptly notify the State agency in 

writing of the termination and reason for the termination, together with 

the effective date, and shall allow the State 30 calendar days to 

respond. In instances where the State does respond, FNS shall inform the 

State of its final determination no later than 30 calendar days after 

the State responds.

    (2) A State agency shall terminate a sponsor's participation in the 

Program by written notice whenever it is determined by the State agency 

that the sponsor has failed to comply with the conditions of the 

Program.

    (3) When participation in the Program has been terminated for cause, 

any funds paid to the State agency or a sponsor or any recoveries by FNS 

from the State agency or by the State agency from a sponsor shall be in 

accordance with the legal rights and liabilities of the parties.

    (c) Termination for convenience. FNS and the State agency may agree 

to terminate the State agency's participation in the Program in whole, 

or in part, when both parties agree that the continuation of the Program 

would not produce beneficial results commensurate with the further 

expenditure of funds. The two parties shall agree upon the termination 

conditions, including the effective date, and in the case of partial 

termination, the portion to be terminated. The State agency shall not 

incur new obligations for the terminated portion after the effective 

date, and shall cancel as many outstanding obligations as possible. The 

Department shall allow full credit to the State agency for the Federal 

share of the noncancellable obligation properly incurred by the State 

agency prior to termination. A State agency may terminate a sponsor's 

participation in the manner provided for in this paragraph.

    (d) Maintenance of effort. Expenditure of funds from State and local 

sources for the maintenance of food programs for children shall not be 

diminished as a result of funds received under the Act and a 

certification to this effect shall become part of the agreement provided 

for in Sec. 225.3(c).



[[Page 156]]



    (e) Program benefits. The value of benefits and assistance available 

under the Program shall not be considered as income or resources of 

recipients and their families for any purpose under Federal, State or 

local laws, including, but not limited to, laws relating to taxation, 

welfare, and public assistance programs.

    (f) State requirements. Nothing contained in this part shall prevent 

a State agency from imposing additional operating requirements which are 

not inconsistent with the provisions of this part, provided that such 

additional requirements shall not deny the Program to an area in which 

poor economic conditions exist, and shall not result in a significant 

number of needy children not having access to the Program. Prior to 

imposing any additional requirements, the State agency must receive 

approval from FNSRO.

    (g) Fraud penalty. Whoever embezzles, willfully misapplies, steals, 

or obtains by fraud any funds, assets, or property that are the subject 

of a grant or other form of assistance under this part, whether received 

directly or indirectly from the Department, or whoever receives, 

conceals, or retains such funds, assets, or property to his use or gain, 

knowing such funds, assets, or property have been embezzled, willfully 

misapplied, stolen or obtained by fraud shall, if such funds, assets, or 

property are of the value of $100 or more, be fined not more than 

$100,000 or imprisoned not more than five years, or both, or if such 

funds, assets, or property are of a value of less than $100, shall be 

fined not more than $1,000 or imprisoned for not more than one year, or 

both.

    (h) Claims adjustment authority. The Secretary shall have the 

authority to determine the amount of, to settle, and to adjust any claim 

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.



[54 FR 18208, Apr. 27, 1989, as amended at 55 FR 13471, Apr. 10, 1990; 

64 FR 72488, Dec. 28, 1999]