[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: 7CFR225.10]

[Page 140]
 
                          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.  225.10  Audits and management evaluations.

    (a) Audits. State agencies shall arrange for audits of their own 
operations to be conducted in accordance with the Department's Uniform 
Federal Assistance Regulations (7 CFR part 3015). Unless otherwise 
exempt, sponsors shall arrange for audits to be conducted in accordance 
with 7 CFR part 3015. State agencies shall provide OIG with full 
opportunity to audit the State agency and sponsors. Unless otherwise 
exempt, audits at the State and sponsor levels shall be conducted in 
accordance with OMB Circular A-133 and the Department's implementing 
regulations at 7 CFR part 3052. (To obtain the OMB circular referenced 
in this paragraph, see 5 CFR 1310.3.) While OIG shall rely to the 
fullest extent feasible upon State-sponsored audits of sponsors, it 
shall, when considered necessary, (1) make audits on a State-wide basis, 
(2) perform on-site test audits, and (3) review audit reports and 
related working papers of audits performed by or for State agencies.
    (b) Management evaluations. (1) State agencies shall provide FNS 
with full opportunity to conduct management evaluations (including 
visits to sponsors) of all operations of the State agency. Each State 
agency shall make available its records, including records of the 
receipts and expenditures of funds, upon a reasonable request by FNS.
    (2) The State agency shall fully respond to any recommendations made 
by FNSRO pursuant to the management evaluation.
    (3) FNSRO may require the State agency to submit on 20 days notice a 
corrective action plan regarding serious problems observed during any 
phase of the management evaluation.
    (c) Disregards. In conducting management evaluations or audits for 
any fiscal year, the State agency, FNS or OIG may disregard overpayment 
which does not exceed $100 or, in the case of State agency administered 
programs, does not exceed the amount established by State law, 
regulations or procedures as a minimum for which claims will be made for 
State losses generally. No overpayment shall be disregarded, however, 
when there are unpaid claims for the same fiscal year from which the 
overpayment can be deducted or when there is substantial evidence of 
violation of criminal law or civil fraud statutes.

[54 FR 18208, Apr. 27, 1989, as amended at 71 FR 39518, July 13, 2006]