5P-2.005. Administrative Reviews

(1) Administrative Review. The Department will conduct Administrative Reviews of all Sponsors participating in the School Nutrition Programs in accordance with 7 CFR 210.18, incorporated in Rule 5P-2.001, F.A.C., and the 2018-2019 Administrative Review Manual, which is hereby adopted and incorporated by reference and available online at https://www.flrules.org/Gateway/reference.asp?No=Ref-15523, and by email request to the Department at [e-mail].

(2) Audits. The Department will include applicable findings from federally-required audit activity or from any state-imposed audit requirements in its Administrative Review to prevent duplication of effort when the audit findings pertain to the reviewed school(s) or the Sponsor’s overall operation of the School Nutrition Program and are relevant to the review period.

(3) Disregard of Overpayment. When conducting Administrative Reviews for any fiscal year, the Department will disregard any overpayment to a Sponsor that does not exceed $600, in accordance with 7 CFR 210.19(d) and 7 CFR 220.15(c), incorporated in Rule 5P-2.001, F.A.C.

(4) School Reviews. The Department will review food service operations at each school included in the Administrative Review. If the Department disallows reimbursement for any meals on the basis outlined in 7 CFR 210.18 or the 2018-2019 Administrative Review Manual, then the Sponsor shall provide documentation showing the disallowed meals were deducted from the Claim for Reimbursement submitted to the Department online at https://fans.FDACS.gov, or by mail to 600 S. Calhoun Street (H2), Tallahassee, FL 32399, prior to receiving payment for the remainder of the Claim for Reimbursement.

(5) Program Records. The Sponsor must make available to the Department all program records required to demonstrate compliance with program requirements no later than 5:00 p.m. (EST) on the day of the Exit conference. Documentation will not be accepted after the scheduled Exit Conference, except that the Department may grant a one-time extension, per Administrative Review, to extend the timeframe to provide all required program records by seven (7) calendar days upon written request by the Sponsor when extraordinary circumstances arise, such as temporary school closures, natural disasters, extreme weather conditions, or other circumstances beyond the Sponsor’s control.

(6) Claim Validation. During the Administrative Review, Claims for Reimbursement will be validated by verifying the number of meals claimed to have been served. Meals will be verified using a two-part review process that includes reviewing meal counts taken at the point of service and analyzing program invoices and receipts to determine the accurate number of meals eligible for reimbursement based on the amount and types of food purchased by the Sponsor. If the number of meals cannot be validated using the two-part review process, then Sponsor shall provide the following records to the Department as required to demonstrate that such records validate the meal counts submitted with the Claim for Reimbursement:

(a) Beginning and ending inventory for each claim period (month);

(b) Production records for each meal service provided during the claim period;

(c) Receiving reports prepared at sites or wherever food is received from suppliers and signed by receiving personnel (i.e. delivery slips);

(d) Purchase invoices received from food suppliers;

(e) Records of returns, allowances, cash discounts taken, and other credits when they are not reflected on purchase invoices;

(f) Canceled checks or other forms of receipts showing receipt or proof of payment by the Sponsor; and

(g) Records of major inventory adjustments showing the same kinds of information as inventory records.

(h) Sponsors which contract with School Food Authorities or food service management companies to provide all meals, including supplements, must provide billings by site from the School Food Authority or food service management company, less returns, allowances, discounts, and rebates for the meals delivered and evidence that the Sponsor received or paid for the meals.

(7) Review Expansion. The Department will expand the scope of the Administrative Review beyond the one month review period when any of the program violations as specified in sub-subparagraph 5P-1.004(1)(a)1.f., F.A.C., noncompliance with the cost principles identified in 2 CFR 200, Subpart E, incorporated in Rule 5P-2.001, F.A.C., and conflicts of interest as prohibited by subsection 5P-2.003(4), F.A.C. are identified.

(8) Pre-Exit Debrief. Prior to the exit conference, the Department will hold a pre-exit debrief with the Sponsor to discuss the preliminary and tentative program deficiencies that have been identified prior to the completion of the Administrative Review. Program deficiencies preliminarily identified that result in needed corrective action will be addressed during the exit conference. A preliminary and tentative report will be sent via email, not later than the next business day following the Pre-Exit Debrief.

(9) Exit Conference. The Department will hold an exit conference with the Sponsor after the completion of the Administrative Review to discuss overall program operations, any program deficiencies observed, the extent of the program deficiencies, and the actions needed to correct the program deficiencies.

(10) Report. The Department will provide the Sponsor’s Food Service Director and Superintendent (or an equivalent official) with the Administrative Review Report.

(a) The Administrative Review Report will include the program deficiencies observed, the needed corrective actions, the deadlines for completion of the corrective action, and any potential fiscal action.

(b) The Administrative Review Report will be provided within thirty (30) calendar days of the exit conference at the close of the Administrative Review period. The Administrative Review Report will be sent via email to the Sponsor’s email address on record with the Department. If requested by the Sponsor at the exit conference, the Administrative Review Report will also be sent by regular United States mail. The Administrative Review Report will be deemed received by the Sponsor five (5) calendar days following the date the report was emailed by the Department.

(11) Corrective Action. For any program deficiencies identified by the Department through an Administrative Review, Sponsors must submit a corrective action plan with supporting documentation to the Department online at https://fans.FDACS.gov, or by mail to 600 S. Calhoun Street (H2), Tallahassee, FL 32399, within thirty (30) calendar days of receipt of the Administrative Review Report. The corrective action plan must include:

(a) Each identified program deficiency;

(b) The corrective action required;

(c) The timeframe by which the corrective action will be, or was completed; and

(d) Documentation to demonstrate corrective action was completed as prescribed in the Administrative Review Report.

(12) Extension Requests. The Department will extend the timeframe(s) specified to complete the required corrective action(s) upon the written request of the Sponsor when:

(a) A request to extend the timeframe(s) to complete the required corrective action(s) is submitted by the Sponsor to the Department online at https://fans.FDACS.gov, or by mail to 600 S. Calhoun Street (H2), Tallahassee, FL 32399, within thirty (30) calendar days of receipt of the Administrative Review Report; and

(b) The request includes a justification that demonstrates good cause beyond the Sponsor’s control for why the corrective action plan cannot be submitted by the original completion date and specify the Sponsor’ proposed completion date. Good cause includes unanticipated closures, temporary closures, natural disasters, extreme weather conditions, or other circumstances beyond the Sponsor’s control.

(13) Department Follow-up Reviews. Department Follow-up reviews of Sponsors and schools will be conducted:

(a) If the Sponsor is declared Seriously Deficient as a result of an Administrative or School Review;

(b) If a food safety deficiency is noted during an Administrative Review;

(c) If the number of meals claimed by a Sponsor for a school on any of the five preceding days of operation is 50% or more higher than the number of meals served as observed by the Department or its designated representative during a School Review; or

(d) To ensure that corrective action has been taken as prescribed by the Department in the Administrative Review Report.

(14) If during the follow-up review, the Department determines that significant, repeated operational issues still exist at the Sponsor or school level, the Sponsor will be declared seriously deficient by the Department. A significant operational issue exists if, during the follow-up review, one or more of the following repeat operational issues still exist at the Sponsor level or for at least 50% of the Sponsor schools being reviewed:

(a) Failure to count meals at the point of service as prescribed in paragraph 5P-2.002(3)(a) that results in fiscal action exceeding ten (10) percent of the Claim for Reimbursement reviewed with the meal counts submitted during the follow-up review;

(b) Failure to maintain program records as prescribed in 7 CFR 210.8(a)(5) and 220.8(a)(3), incorporated in Rule 5P-2.001, F.A.C., that results in fiscal action that exceeds the $600 overpayment disregard as prescribed in 7 CFR 210.19(d) and 220.15(c);

(c) Noncompliance with meal service times as prescribed in 7 CFR 210.10(l) and 220.8(l), incorporated in Rule 5P-2.001, F.A.C., that results in fiscal action that exceeds the $600 overpayment disregard as prescribed in 7 CFR 210.19(d) and 220.15(c);

(d) Claiming of reimbursement payments for meals not served as prescribed in 7 CFR 210.18(g)(1) that results in fiscal action that exceeds the $600 overpayment disregard as prescribed in 7 CFR 210.19(d) and 220.15(c);

(e) Serving of meals that do not meet the meal component or portion size requirements as prescribed in 7 CFR 210.10(c) and 220.8(c), incorporated in Rule 5P-2.001, F.A.C., that results in fiscal action that exceeds the $600 overpayment disregard as prescribed in 7 CFR 210.19(d) and 220.15(c);

(f) Noncompliance with applicable procurement procedures and contract requirements of 2 CFR 200, incorporated in Rule 5P-2.001, F.A.C.;

(g) Unallowable expenses charged to the non-profit school food service account or improperly coded to the School Nutrition Program that exceed the $600 overpayment disregard as prescribed in 7 CFR 210.19(d) and 220.15(c); or

(h) Failure to maintain proper sanitation and health standards in conformance with all applicable State and local laws and regulations.

(15) If a Sponsor is declared seriously deficient during an Administrative or School Review and is also declared seriously deficient during the follow-up review, or the follow-up review identifies a repeat violation of health, safety and sanitation standards, the Sponsor will immediately be terminated in accordance with paragraph 5P-1.004(1)(a), F.A.C.

(16) While terminated, Sponsors and its principals, 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.

(17) Ad Hoc Reviews. The Department will conduct ad hoc Administrative Reviews, Claim Reviews, Site Visits, or Technical Assistance Visits of Sponsor’s operation of the School Nutrition Programs at its discretion and when the following circumstances exist:

(a) The Department receives a complaint regarding the Sponsor’s operation of the School Nutrition Programs; or

(b) The Department identifies unusual data or trends within the Sponsor’s claims for reimbursement and any other information collected by the Department about the Sponsor’s operation of the School Nutrition Programs, such as “block claiming” or meal counts that are disproportionate to enrollment. For the purposes of the School Nutrition Programs, a block claim is a claim with no variation in meal counts, for any single meal type or combination of meal types, for any continuous 15-day period within the claim month.

Rulemaking Authority 570.07(23), 595.404(4), 595.404(10) FS. Law Implemented 595.404, 595.501 FS. History‒New 8-9-23.