[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: 7CFR246.19]



[Page 392-393]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 246_SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND 

CHILDREN--Table of Contents

 

                     Subpart F_Monitoring and Review

 

Sec. 246.19  Management evaluation and monitoring reviews.





    (a) Management evaluations and reviews. (1) FNS and each State 

agency shall establish a management evaluation system in order to assess 

the accomplishment of Program objectives as provided under this part, 

FNS guidelines, instructions, and the Federal-State agreement with the 

Department. FNS will provide assistance to States in discharging this 

responsibility, establish standards and procedures to determine how well 

the objectives of this part are being accomplished, and implement 

sanction procedures as warranted by State Program performance.

    (2) The State agency must submit a corrective action plan, including 

implementation timeframes, within 60 days of receipt of an FNS 

management evaluation report containing a finding that the State agency 

did not comply with program requirements. If FNS determines through a 

management evaluation or other means that during a fiscal year the State 

agency has failed, without good cause, to demonstrate efficient and 

effective administration of its program, or has failed to comply with 

its corrective action plan, or any other requirements contained in this 

part or the State Plan, FNS may withhold an amount up to 100 percent of 

the State agency's nutrition services and administration funds for that 

year.

    (3) Sanctions imposed upon a State agency by FNS in accordance with 

this section (but not claims for repayment assessed against a State 

agency) may be appealed in accordance with the procedures established in 

Sec. 246.22. Before carrying out any sanction against a State agency, 

the following procedures will be followed:

    (i) FNS will notify the Chief State Health Officer or equivalent in 

writing of the deficiencies found and of FNS' intention to withhold 

nutrition services and administration funds unless an acceptable 

corrective action plan is submitted by the State agency to FNS within 60 

days after mailing of notification.

    (ii) The State agency shall develop a corrective action plan with a 

schedule according to which the State agency shall accomplish various 

actions to correct the deficiencies and prevent their future recurrence.

    (iii) If the corrective action plan is acceptable, FNS will notify 

the Chief State Health Officer or equivalent in writing within 30 days 

of receipt of the plan. The letter approving the corrective action plan 

will describe the technical assistance that is available to the State 

agency to correct the deficiencies. The letter will also advise the 

Chief State Health Officer or equivalent of the sanctions to be imposed 

if the corrective action plan is not implemented according to the 

schedule set forth in the approved plan.

    (iv) Upon notification from the State agency that corrective action 

as been taken, FNS will assess such action, and, if necessary, will 

perform a follow-up review to determine if the noted deficiencies have 

been corrected. FNS will then advise the State agency of whether the 

actions taken are in compliance with the corrective action plan, and 

whether the deficiency is resolved or further corrective action is 

needed.

    (v) If an acceptable corrective action plan is not submitted within 

60 days, or if corrective action is not completed according to the 

schedule established in the corrective action plan, FNS may withhold 

nutrition services and administration funds through a reduction of the 

State agency Letter of Credit or by



[[Page 393]]



assessing a claim against the State agency. FNS will notify the Chief 

State Health Officer or equivalent of this action.

    (vi) If compliance is achieved before the end of the fiscal year in 

which the nutrition services and administration funds are withheld, the 

funds withheld shall be restored to the State agency's Letter of Credit. 

FNS is not required to restore funds withheld if compliance is not 

achieved until the subsequent fiscal year. If the 60-day warning period 

ends in the fourth quarter of a fiscal year, FNS may elect not to 

withhold funds until the next fiscal year.

    (b) State agency responsibilities. (1) The State agency shall 

establish an on-going management evaluation system which includes at 

least the monitoring of local agency operations, the review of local 

agency financial and participation reports, the development of 

corrective action plans to resolve Program deficiencies, the monitoring 

of the implementation of corrective action plans, and on-site visits. 

The results of such actions shall be documented.

    (2) Monitoring of local agencies must encompass evaluation of 

management, certification, nutrition education, participant services, 

civil rights compliance, accountability, financial management systems, 

and food delivery systems. If the State agency delegates the signing of 

vendor agreements, vendor training, or vendor monitoring to a local 

agency, it must evaluate the local agency's effectiveness in carrying 

out these responsibilities.

    (3) The State agency shall conduct monitoring reviews of each local 

agency at least once every two years. Such reviews shall include on-site 

reviews of a minimum of 20 percent of the clinics in each local agency 

or one clinic, whichever is greater. The State agency may conduct such 

additional on-site reviews as the State agency determines to be 

necessary in the interest of the efficiency and effectiveness of the 

program.

    (4) The State agency must promptly notify a local agency of any 

finding in a monitoring review that the local agency did not comply with 

program requirements. The State agency must require the local agency to 

submit a corrective action plan, including implementation timeframes, 

within 60 days of receipt of a State agency report of a monitoring 

review containing a finding of program noncompliance. The State agency 

must monitor local agency implementation of corrective action plans.

    (5) As part of the regular monitoring reviews, FNS may require the 

State agency to conduct in-depth reviews of specified areas of local 

agency operations, to implement a standard form or protocol for such 

reviews, and to report the results to FNS. No more than two such areas 

will be stipulated by FNS for any fiscal year and the areas will not be 

added or changed more often than once every two fiscal years. These 

areas will be announced by FNS at least six months before the beginning 

of the fiscal year.

    (6) The State agency shall require local agencies to establish 

management evaluation systems to review their operations and those of 

associated clinics or contractors.



[50 FR 6121, Feb. 13, 1985, as amended at 59 FR 11508, Mar. 11, 1994]