[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR215.13]

[Page 78-79]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 215_SPECIAL MILK PROGRAM FOR CHILDREN--Table of Contents
 
Sec.  215.13  Management evaluations and audits.

    (a) Unless otherwise exempt, audits at the State and school food 
authority/child care institution levels shall be conducted in accordance 
with Office of Management and Budget Circular A-133 and the Department's 
implementing regulations at 7 CFR part 3052. For availability of the OMB 
Circular mentioned in this paragraph, please refer to 5 CFR 1310.3.
    (b) Each State agency shall provide FNS with full opportunity to 
conduct management evaluations (including visits to schools and child-
care institutions) of any operations of the State agency under the 
Program and shall provide OIG with full opportunity to conduct audits 
(including visits to schools and child-care institutions) of all 
operations of the State agency under the Program. Each State agency 
shall make available its records, including records of the receipt and 
expenditure of funds under the Program, upon a reasonable request by FNS 
or OIG. OIG shall also have the right to make audits of the records and 
operations of any school or child-care institution.
    (c) In conducting management evaluations, reviews or audits for any 
fiscal year, the State agency, FNS, or OIG

[[Page 79]]

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))

[Amdt. 14, 41 FR 31175, July 27, 1976, as amended at 43 FR 58925, Dec. 
22, 1978; Amdt. 23, 47 FR 14135, Apr. 2, 1982; Amdt. 25, 47 FR 18564, 
Apr. 30, 1982; Amdt. 36, 54 FR 2990, Jan. 23, 1989; 57 FR 38586, Aug. 
26, 1992; 59 FR 1894, Jan. 13, 1994; 64 FR 50742, Sept. 20, 1999; 71 FR 
39516, July 13, 2006]