Claims and penalties.

CFR · 2024-01-01 · US · Title 7

(a) (2) If FNS determines that any part of the Program funds received by a State agency; or supplemental foods, either purchased or donated commodities; or food instruments or cash-value vouchers, were lost as a result of thefts, embezzlements, or unexplained causes, the State agency shall, on demand by FNS, pay to FNS a sum equal to the amount of the money or the value of the supplemental foods, food instruments, or cash-value vouchers so lost. (3) The State agency shall have full opportunity to submit evidence, explanation or information concerning alleged instances of noncompliance or diversion before a final determination is made in such cases. (4) FNS will establish a claim against any State agency that has not accounted for the disposition of all redeemed food instruments and cash-value vouchers and taken appropriate follow-up action on all redeemed food instruments and cash-value vouchers that cannot be matched against valid enrollment and issuance records, including cases that may involve fraud, unless the State agency has demonstrated to the satisfaction of FNS that it has: (i) Made every reasonable effort to comply with this requirement; (ii) Identified the reasons for its inability to account for the disposition of each redeemed food instrument or cash-value voucher; and (iii) Provided assurances that, to the extent considered necessary by FNS, it will take appropriate actions to improve its procedures. (b) (c) (ii) (iii) (2) (3) (d)

official document · source cfr-2024 · id 7:§ 246.23