[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: 7CFR226.25]

[Page 255]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 226_CHILD AND ADULT CARE FOOD PROGRAM--Table of Contents
 
                       Subpart G_Other Provisions
 
Sec.  226.25  Other provisions.


    (a) Grant closeout procedures. Grant closeout procedures for the 
Program shall be in accordance with 7 CFR part 3016 or 7 CFR part 3019, 
as applicable.
    (b) State requirements. Nothing contained in this part shall prevent 
a State agency from imposing additional requirements for participation 
in the Program which are not inconsistent with the provisions of this 
part; however, any additional requirements shall be approved by FNSRO 
and may not deny the Program to an eligible institution.
    (c) Value of assistance. The value of assistance to participants 
under the Program shall not be considered to be income or resources for 
any purposes under any Federal or State laws, including, but not limited 
to laws relating to taxation, welfare, and public assistance programs.
    (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.
    (e) 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 
$10,000 or imprisoned not more than five years, or both, or, if such 
funds, assets, or property are of value of less than $100, shall be 
fined not more than $1,000 or imprisoned for not more than one year, or 
both.
    (f) 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.

[47 FR 36527, Aug. 20, 1982, as amended at 53 FR 52597, Dec. 28, 1988; 
54 FR 13049, Mar. 30, 1989; 69 FR 53547, Sept. 1, 2004; 71 FR 39519, 
July 13, 2006]