[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: 7CFR220.15]

[Page 108-109]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 220_SCHOOL BREAKFAST PROGRAM--Table of Contents
 
Sec.  220.15  Management evaluations and audits.

    (a) Unless otherwise exempt, audits at the State and 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) of all 
operations of the State agency under the programs covered by this part 
and shall provide OIG with full opportunity to conduct audits (including 
visits to schools) of all operations of the State agency under such 
programs. Each State agency shall make available its records, including 
records of the receipt and expenditure of funds under such programs, 
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.
    (c) In conducting management evaluations, reviews, or audits in a 
fiscal year, the State agency, FNS, or OIG may disregard an overpayment 
if the overpayment does not exceed $600. A State agency may establish, 
through State law, regulation or procedure, an alternate disregard 
threshold that does not exceed $600. This disregard may be made once per 
each management evaluation, review, or audit per Program within a fiscal 
year. However, no overpayment is to be disregarded where

[[Page 109]]

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))

[40 FR 30925, July 24, 1975. Redesignated and amended by Amdt. 25, 41 FR 
34757, 34760, Aug. 17, 1976; 43 FR 59825, Dec. 22, 1978; Amdt. 41, 47 FR 
14135, Apr. 2, 1982; Amdt. 43, 47 FR 18564, Apr. 30, 1982; Amdt. 56, 54 
FR 2990, Jan. 23, 1989; 57 FR 38587, Aug. 26, 1992; 59 FR 1894, Jan. 13, 
1994; 64 FR 50742, Sept. 20, 1999; 71 FR 30563, May 30, 2006; 71 FR 
39517, July 13, 2006]