Fla. Admin. Code Ann. R. 5P-2.006 - Fiscal Action

(1) Fiscal Action. Fiscal Action is the recovery of overpayment by the Department to a Sponsor through direct assessment or offset of future Claims for Reimbursement, disallowance of any portion of a Claim for Reimbursement, disallowance of overclaims as reflected in unpaid Claims for Reimbursement, submission of a revised Claim for Reimbursement, and correction of program records to ensure that unfiled Claims for Reimbursement are corrected when filed. Fiscal action also includes disallowance of funds for failure to take corrective action to meet the meal requirements in 7 CFR 210.10 and 7 CFR 220.8, incorporated in Rule 5P-2.001, F.A.C., and restoration of funds to the Sponsor's nonprofit school food service account from a nonfederal source for unallowable costs pursuant to 2 CFR 200, incorporated in Rule 5P-2.001, F.A.C.

(2) Assessment of Fiscal Action. The Department will assess fiscal action for program deficiencies identified in 7 CFR 210.18(l)(1) through (2) and 7 CFR 210.18(l)(4), incorporated in Rule 5P-2.001, F.A.C., identified unallowable costs to the program, embezzlement, willful misapplication of funds, theft, or fraudulent activity.

(3) Recovery of Payment. The Department's response to a Sponsor failing to submit an accurate Claim for Reimbursement is governed by 7 CFR 210.8 and 7 CFR 220.14, incorporated in Rule 5P-2.001, F.A.C., except that the Department will recover current fiscal year overpayments from a Sponsor by offsetting future Claims for Reimbursement within the same fiscal year. The Department will collect overpayments identified from a prior fiscal year from a Sponsor, and any fiscal action assessed pursuant to subsection (2) of this rule, through direct assessment using the following collection procedures:

(a) The Department will make a written demand to the Sponsor stating the Fiscal Action assessed via certified mail, return receipt requested. Written demands are deemed received by the Sponsor when it is delivered by certified mail, return receipt (or equivalent private delivery service). If the written demand is undeliverable, it is considered to be received by the Sponsor five days after being sent to the addressee's last known mailing address.

(b) If after thirty (30) calendar days following receipt of the written demand, the Sponsor has failed to remit full payment or agree to a satisfactory repayment schedule, a second written demand stating the Fiscal Action assessed will be sent to the Sponsor by the Department via certified mail, return receipt requested.

(c) If after sixty (60) calendar days following receipt of the original written demand, the Sponsor fails to remit full payment or agree to a satisfactory repayment schedule, a third written demand stating the Fiscal Action assessed will be sent to the Sponsor by the Department via certified mail, return receipt requested. This third demand will contain a due date of ninety (90) calendar days from the date of original demand for the Sponsor to remit full payment or agree to a satisfactory repayment schedule.

(d) If after ninety (90) calendar days following receipt of the original written demand, the Sponsor fails to remit full payment or agree to a satisfactory repayment schedule, the Department will begin the procedure for collection of delinquent accounts as set forth in Section 17.20, F.S.

(e) While terminated, Sponsors and its principles, including their board members, corporate officials, and the officials identified on the Sponsor application in the Florida Automated Nutrition System at the time of the conduct leading to the termination, shall not participate in any Child Nutrition and Food Distribution Program to include receiving USDA Foods, conducting business as a contractor, providing consulting services, or obtaining program related funds by any other means.

(4) Withholding Payments. Notwithstanding 7 CFR 210.18(k)(3), incorporated in Rule 5P-2.001, F.A.C., the Department will withhold program payments pursuant to 7 CFR 210.24 and 7 CFR 220.18, incorporated in Rule 5P-2.001, F.A.C., and for the causes specified in 7 CFR 210.18(k)(1), incorporated in Rule 5P-2.001, F.A.C.

(5) Penalties. Failure to comply with the requirements of this rule chapter will result in the penalties prescribed in Rule 5P-1.004, F.A.C.

Notes

Fla. Admin. Code Ann. R. 5P-2.006

Rulemaking Authority 570.07(23), 595.404 (4), 595.404(10) FS. Law Implemented 595.404, 595.501 FS.

Adopted by Florida Register Volume 49, Number 143, July 25, 2023 effective 8/9/2023.

New 8-9-23.