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Home My WebLink AboutExhibit 2Bursa u -f ChM. Nutrition Programs s Chi; mare Food Program CONTRACT 26 +7-2008 ATTACHMENT '1 This attachment incorporates those serious deficiencies found it Title 7 Code of Federal Regulations Part 226 and provides examples of nor -compliance with program requirements. Contractors who commit or engage in any serious deficiencies, including but not limited to those incorporated herein, shall be subject to terminator and disqualification from the Child Care Food grogram (CCFP). 1. &&i:rnissicn of false informal' on to the Department • Failure to disclose ineligible officers, directors, key employees O Listing fictitious employees/officers/board members on an application O Claiming fax -exempt status when denied, rescinded, etc. O Submitting the IRS tax-exempt determination ;e;zr of a different or defunct organization • Concealing a conviction for any activity occif- ;:)d•rdng the previous seven years that indicates a lack of business integrity • O Falsification of documentation 2. Per: - tting, ar, ihdiv cl as on the National Disqualified List to serve in a principal capacity with the Contractor or at a site sponsored by the Contractor 3. Failure to operate the CCFP in conformance Vteith prirformanee standards established in Title 7 Code of Federal Regulations §226.6(b)(2)(viii), regarding financial viability and financial management, administrative capability, and program accountability • Failure to ensure provision of adequate financial resources for daily program operations • Failure to maintain adequate funds to withstand temporary interruptions in program payments and/or fiscal claims against the Contractor • Failure to maintain an adequate number and type of qualified staff to ensure proper CCFP operations . • Failure to establish and implement internal controls and other systems to ensure fiscal accountability • Failure of the Board of Directors to provide adequate program oversight 4. Failure to maintain adequate records • Failure to maintain appropriate records to document compliance with CCFP requirements including budgets, approved budget amendments, and when applicable, management plans and records pertaining to facility operations • Consistently missing/incomplete records during different reviews, complaint investigations, agreed -upon - procedures reviews, or audits • Missing/incomplete/incorrect invoices, receipts, canceled checks; inventories resulting in false/inflated/unsubstantiated Maimed costs • • Cost records not maintained according to generally accepted accounting principles resulting in false/inflated/unsubstantiated claimed costs 5. Failure to adjust meal orders to conform to variations in the number of participants • inflated meal counts, such as meals claimed regularly equal the number of meals ordered/planned or the number of participants on the center roster FY 2007-2008 Child S_; ,r . Food Fog: tit ichmen,. P2g-a, 13i .r: U�?ti id:1 ,li o; i.5, _!2, Pailu, . orr.petite;' pror(,. ,OOP'sc N 33rv1cas Anti-cCmF.) titive practices, SL:C? 35 r oifuS;Gr kick` -cks, con,,ic:s _. interes . inclusion of non-coril 1 ve provisions r. "su'ccessfui bidderfcr - contract Fn provide .. "''eu.i. in 3 iL'. -.�., (ac^. G,,. ;:+. ✓tL %eaiS rr.:'st r rw�i lr7^eii L� :; !?^:.: urs&'Maly# Tor of served a 'a%r)r%riy meals d&1ver ed orpianneci 'or; s meals s ,r . ed to participants • Claiming meals for pa tic;pants not present given e dal n particular r leis n day meai • Claiming meals .served to non-existent children ▪ Claiming meals served to non -enrolled children or to staff • inflating faciilFy meal counts • Claiming non-existent and non -participating facilities • Claiming meals for ineligible facilities • Claiming dual participating facilities • Clairnina the same, participant for the same meal at more than one facility tl. Clairrging reimbursement for meals that do not meet CCFP requirements S. Use cf a food service management company that is in violation of health cods 10. Failure. of a sponsoring organization to disburse payments to its facilities in accordance with its management plan and/or CCFP requirements Checks to facilities prepared more than 5 days after receipt of reimbursement Payments sent without endorsements or otherwise incomplete • Payments made for other than the full amount the facility is entitled to • Payments made to a facility other than the facility that earned the payment • Payments made to an entity/person other than the facility without express written permission of the facility • Checks not mailed within 5 day timeframe or first business day thereafter • Failure to transfer full amount of facility payments to facility bank account within 5 day time frame • Failure to maintain full amount of facility payments in commingled bank account until checks clear • Using provider reimbursement funds to pay provider advances • Using day care home funds to pay sponsored centers or center funds to pay day care homes • Retaining sponsored center funds in excess of the amount approved in the management plan 11. History of administrative or financial mismanagement in any USDA child nutrition program • Sponsor left Summer Food Service Program because of a serious documented problem in its operation • Failure to maintain required corrective actions • Sponsor terminated for serious deficiency in one part of the CCFP (child care center for example) applies to administer a different part (day care homes for example) 12. Claiming reimbursement for meals served by a proprietary child care center during a calendar month in which the center does not meet Title XX eligibility requirements or Free and Reduced eligibility requirements, as applicable 13. Failure by a sponsoring organization to properly classify individuals or homes in the correct reimbursement category FY 2007-2008 Child Care Food Program Cont:-act Attachment 1, Page 3 • 14. yaiiire of 3:sponsolring organization to pri p,nriy ?,`.;erci;"'.z, its- oversight d sponsibilities • Failure to dequately monitor • Failure to require full, permanent, and systemic cojreei vv actions . • Failure to impose sanctions on centers; site's, or day care home providers when serious deficiencies are identified • Failure to follow suspension, termination, disqualification and appeal procedures i5. The fact that the Contactor or any of its principals have been declared irie.igible to participate in a pubticiyfunded program due to violating that program's requirements Conviction of the Contractor or any of its principals for any acuity that ccct3rr d during the past seven years and that indicates a tack of business integrity 17. The fc9iowving acts or omissions are also serious deficiencies. • Failure to make l eco,ds associated with the CCFP available :anon request at a• reasonable time and place • Failure to maintain current iicensure requirements • Misuse of CCFP funds • Serious mismanagement (e.g. failure to monitor properly) • Failure to obtain a required audit • Failure to notify the Department of change in IRS status • Violations of IRS regulations • Failure to remit periodic payments (required by statute or regulation) to regulatory agencies (e.g. employee withholding for income taxes, social security, unemployment compensation) • Failure to implement corrective action(s)within required timeframes • Failure to follow-up/require and maintain corrective action for facility review findings • Creating fictitious records • Failure to make required repayment of program funds to the Department • Failure to comply with state incorporation requirements • Paying employees salaries based on the number cf homes/centers recruited paying recruitment bounties or bonuses • Failure to attend training required by the Department • Failure to make payment(s) to subcontractor(s) for program services rendered 18. Failure to comply with any other financial and/or administrative requirements of Title 7 Code of Federal Regulations, Part 226 and/or failure to comply with applicable federal or Department of Health CCFP rules, regulations, policies, instructions, procedures and/or manuals. FY 2007-2008