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HomeMy WebLinkAboutEXHIBIT 2Bureau 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• Listing fictitious employees/officers/board members on an application • Claiming tax-exempt status when denied, rescinded, etc.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 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 missingfrncomplete 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 claimed costs • Cost records not maintained according to generally accepted accounting principles resulting in false/inflated/unsubstantiated claimed costs 5. Failure to adjustmeal 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" r FY 2008-2009 Child Care Food Program Contract Attachment 1, Page 3 17. The following acts or omissions are also serious deficiencies • Fai/ure 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