Withholding payments and establishing fines.

CFR · 2024-01-01 · US · Title 7

(a) (b) (i) Failed to correct severe mismanagement of the Program; (ii) Disregarded a Program requirement of which the school food authority or school had been informed; or (iii) Failed to correct repeated violations of Program requirements. (2) FNS may direct the State agency to establish a fine against any school food authority when it has determined that the school food authority or school meets the criteria set forth under paragraph (b)(1) of this section. (3) Funds used to pay a fine established under this paragraph must be derived from non-Federal sources. The State agency must calculate the fine based on the amount of Program reimbursement earned by the school food authority or school for the most recent fiscal year for which full year data is available, provided that the fine does not exceed the equivalent of: (i) For the first fine, 1 percent of the amount of reimbursement for milk earned for the fiscal year; (ii) For the second fine, 5 percent of the amount of reimbursement for milk earned for the fiscal year; and (iii) For the third or subsequent fine, 10 percent of the amount of reimbursement for milk earned for the fiscal year. (4) The State agency must inform FNS at least 30 days prior to establishing a fine under this paragraph. The State agency must send the school food authority written notification of the fine established under this paragraph and provide a copy of the notification to FNS. The notification must: (i) Specify the violations or actions which con

official document · source cfr-2024 · id 7:§ 215.15