HomeMy WebLinkAboutExhibit 2FWRIDA D�ARFM�4I DP
HEALT
Bureau of Child Nutrition Programs
Child Care Food Program
CONTRACT 2008-2009
ATTACHMENT 1
This attachment incorporates those serious deficiencies found in Title 7 Code of Federal Regulations Part 226 and
provides examples of non-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 termination and
disqualification from the Child Care Food Program (CCFP).
1. Submission of false information to the Department
• Failure to disclose ineligible officers, directors, key employees
• Listing fictitious employees/officers/board members on an application
• Claiming tax-exempt status when denied, rescinded, etc.
• Submitting the IRS tax-exempt determination letter of a different or defunct organization
• Concealing a conviction for any activity occurring during the previous seven years that indicates a lack of
business integrity
• Falsification of documentation
2. Permitting an individual 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 with performance standards established in Title 7 Code of
Federal Regulations Part 226.6(b)(2)(vii), 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 intemal 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/infiated/unsubstantiated claimed costs
• Cost records not maintained according to generally accepted accounting principles resulting in
false/infiated/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
6. Non-compliance with applicable bid procedures and contract requirements of federal child nutrition
programs
• Failure to competitively procure goods and services
• Anti -competitive practices, such as collusion, kickbacks, conflicts of interest
• Inclusion of non-competitive provisions in a bid, e.g., "successful bidder for a contract to provide meals
must establish a scholarship fund"
FY 2008-2009
Attachment 1, Page 2
7. Claiming reimbursement for meals not served to participants
• Claiming meals delivered or planned for as meals served to participants
• Claiming meals for participants not present on a given day or for a particular meal
• Claiming meals served to non-existent children
• Claiming meals served to non -enrolled children or to staff
• inflating facility meal counts
• Claiming non-existent and non participating facilities
• Claiming meals for ineligible facilities
• Claiming dual participating facilities
• Claiming the same participant for the same meal at more than one facility
8. Claiming reimbursement for meals that do not meet CCFP requirements
9. Use of a food service management company that is in violation of health codes
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 eamed 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 forexample) applies to
administer a different pad (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
14. Failure of a sponsoring organization to properly exercise its oversight responsibilities
• Failure to adequately monitor
• Failure to require full, permanent, and systemic corrective actions
• Failure to impose sanctions on centers, sites, or day care home providers when serious deficiencies are
identified
• Failure to follow suspension, termination, disqualification and appeal procedures
15. The fact that the Contractor or any of its principals have been declared ineligible to participate in a
publicly funded program due to violating that program's requirements
16. Conviction of the Contractor or any of its principals for any activity that occurred during the past seven
years and that indicates a lack of business integrity
FY 2008-2009
Child Care Food Program Contract
Attachment 1, Page 3
17. The following acts or omissions are also serious deficiencies
• Failure to make records associated with the CCFP available upon request at a reasonable time and place
• Failure to maintain current licensure 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 of 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 2008-2009