Florida Regulations 5P-2.006: Fiscal Action
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(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 C.F.R. § 210.10 and 7 C.F.R. § 220.8, incorporated in Fl. Admin. Code R. 5P-2.001, and restoration of funds to the Sponsor’s nonprofit school food service account from a nonfederal source for unallowable costs pursuant to 2 C.F.R. § part 200, incorporated in Fl. Admin. Code R. 5P-2.001
(2) Assessment of Fiscal Action. The Department will assess fiscal action for program deficiencies identified in 7 C.F.R. § 210.18(l)(1) through (2) and 7 C.F.R. § 210.18(l)(4), incorporated in Fl. Admin. Code R. 5P-2.001, 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 C.F.R. § 210.8 and 7 C.F.R. § 220.14, incorporated in Fl. Admin. Code R. 5P-2.001, 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 Florida Statutes § 17.20
(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 C.F.R. § 210.18(k)(3), incorporated in Fl. Admin. Code R. 5P-2.001, the Department will withhold program payments pursuant to 7 C.F.R. § 210.24 and 7 C.F.R. § 220.18, incorporated in Fl. Admin. Code R. 5P-2.001, and for the causes specified in 7 C.F.R. § 210.18(k)(1), incorporated in Fl. Admin. Code R. 5P-2.001
(5) Penalties. Failure to comply with the requirements of this rule chapter will result in the penalties prescribed in Fl. Admin. Code R. 5P-1.004
Rulemaking Authority 570.07(23), 595.404(4), 595.404(10) FS. Law Implemented 595.404, 595.501 FS. History—New 8-9-23.
Terms Used In Florida Regulations 5P-2.006
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(3) Recovery of Payment. The Department’s response to a Sponsor failing to submit an accurate Claim for Reimbursement is governed by 7 C.F.R. § 210.8 and 7 C.F.R. § 220.14, incorporated in Fl. Admin. Code R. 5P-2.001, 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 Florida Statutes § 17.20
(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 C.F.R. § 210.18(k)(3), incorporated in Fl. Admin. Code R. 5P-2.001, the Department will withhold program payments pursuant to 7 C.F.R. § 210.24 and 7 C.F.R. § 220.18, incorporated in Fl. Admin. Code R. 5P-2.001, and for the causes specified in 7 C.F.R. § 210.18(k)(1), incorporated in Fl. Admin. Code R. 5P-2.001
(5) Penalties. Failure to comply with the requirements of this rule chapter will result in the penalties prescribed in Fl. Admin. Code R. 5P-1.004
Rulemaking Authority 570.07(23), 595.404(4), 595.404(10) FS. Law Implemented 595.404, 595.501 FS. History—New 8-9-23.