(1) Fiscal Action. Fiscal Action is defined as the recovery of overpayment 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. § 225.16(d), incorporated in Fl. Admin. Code R. 5P-3.001, and restoration of the nonprofit 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-3.001
    (2) Assessment of Fiscal Action. Fiscal Action must be assessed when program deficiencies include:
    (a) Inaccurate meal counting and claiming identified during the Administrative Review occurring at the site or sponsor-level;
    (b) Meals that were counted as reimbursable meals, but were ineligible for reimbursement, such as second meals exceeding the two percent (2%) limit and adult meals;
    (c) Meals served that were counted as reimbursable meals but were observed to be missing meal components;
    (d) Meals that were not supported by program records (e.g., no records or insufficient records were provided);
    (e) Meals served at unapproved sites;
    (f) Meals served that cannot be validated, or
    (g) Identified unallowable costs to the program, embezzlement, willful misapplication of funds, theft, or fraudulent activity.
    (3) Recovery of Payment. The department will recover any fiscal action assessed pursuant to subsection (2) of this rule, per the collection procedures outlined in 7 C.F.R. § 225.12(b), incorporated in Fl. Admin. Code R. 5P-3.001, and the following 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 the 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. The 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., the Sponsor will be declared Seriously Deficient, and the department will move to terminate the Sponsor pursuant to Fl. Admin. Code R. 5P-1.004(1)(a)
    (4) 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, and 7 C.F.R. § 225.11(c) and 7 C.F.R. § 225.11(f), incorporated in Fl. Admin. Code R. 5P-3.001
Rulemaking Authority 570.07(23), 595.404(4), 595.404(10) FS. Law Implemented 595.404, 595.501 FS. History-New 4-7-19, Amended 12-6-22.