42 U.S.C. § 1769c : US Code - Section 1769C: Compliance and accountability

Search 42 U.S.C. § 1769c : US Code - Section 1769C: Compliance and accountability

(a) Unified accountability system
There shall be a unified system prescribed and administered by
the Secretary for ensuring that local food service authorities that
participate in the school lunch program under this chapter comply
with the provisions of this chapter. Such system shall be
established through the publication of regulations and the
provision of an opportunity for public comment, consistent with the
provisions of section 553 of title 5.
(b) Functions of system
(1) In general
Under the system described in subsection (a) of this section,
each State educational agency shall -
(A) require that local food service authorities comply with
the provisions of this chapter; and
(B) ensure such compliance through reasonable audits and
supervisory assistance reviews.
(2) Minimization of additional duties
Each State educational agency shall coordinate the compliance
and accountability activities described in paragraph (1) in a
manner that minimizes the imposition of additional duties on
local food service authorities.
(3) Additional review requirement for selected local educational
agencies
(A) Definition of selected local educational agencies
In this paragraph, the term "selected local educational
agency" means a local educational agency that has a
demonstrated high level of, or a high risk for, administrative
error, as determined by the Secretary.
(B) Additional administrative review
In addition to any review required by subsection (a) of this
section or paragraph (1), each State educational agency shall
conduct an administrative review of each selected local
educational agency during the review cycle established under
subsection (a) of this section.
(C) Scope of review
In carrying out a review under subparagraph (B), a State
educational agency shall only review the administrative
processes of a selected local educational agency, including
application, certification, verification, meal counting, and
meal claiming procedures.
(D) Results of review
If the State educational agency determines (on the basis of a
review conducted under subparagraph (B)) that a selected local
educational agency fails to meet performance criteria
established by the Secretary, the State educational agency
shall -
(i) require the selected local educational agency to
develop and carry out an approved plan of corrective action;
(ii) except to the extent technical assistance is provided
directly by the Secretary, provide technical assistance to
assist the selected local educational agency in carrying out
the corrective action plan; and
(iii) conduct a followup review of the selected local
educational agency under standards established by the
Secretary.
(4) Retaining funds after administrative reviews
(A) In general
Subject to subparagraphs (B) and (C), if the local
educational agency fails to meet administrative performance
criteria established by the Secretary in both an initial review
and a followup review under paragraph (1) or (3) or subsection
(a) of this section, the Secretary may require the State
educational agency to retain funds that would otherwise be paid
to the local educational agency for school meals programs under
procedures prescribed by the Secretary.
(B) Amount
The amount of funds retained under subparagraph (A) shall
equal the value of any overpayment made to the local
educational agency or school food authority as a result of an
erroneous claim during the time period described in
subparagraph (C).
(C) Time period
The period for determining the value of any overpayment under
subparagraph (B) shall be the period -
(i) beginning on the date the erroneous claim was made; and
(ii) ending on the earlier of the date the erroneous claim
is corrected or -
(I) in the case of the first followup review conducted by
the State educational agency of the local educational
agency under this section after July 1, 2005, the date that
is 60 days after the beginning of the period under clause
(i); or
(II) in the case of any subsequent followup review
conducted by the State educational agency of the local
educational agency under this section, the date that is 90
days after the beginning of the period under clause (i).
(5) Use of retained funds
(A) In general
Subject to subparagraph (B), funds retained under paragraph
(4) shall -
(i) be returned to the Secretary, and may be used -
(I) to provide training and technical assistance related
to administrative practices designed to improve program
integrity and administrative accuracy in school meals
programs to State educational agencies and, to the extent
determined by the Secretary, to local educational agencies
and school food authorities;
(II) to assist State educational agencies in reviewing
the administrative practices of local educational agencies
in carrying out school meals programs; and
(III) to carry out section 1769b-1(f) of this title; or
(ii) be credited to the child nutrition programs
appropriation account.
(B) State share
A State educational agency may retain not more than 25
percent of an amount recovered under paragraph (4), to carry
out school meals program integrity initiatives to assist local
educational agencies and school food authorities that have
repeatedly failed, as determined by the Secretary, to meet
administrative performance criteria.
(C) Requirement
To be eligible to retain funds under subparagraph (B), a
State educational agency shall -
(i) submit to the Secretary a plan describing how the State
educational agency will use the funds to improve school meals
program integrity, including measures to give priority to
local educational agencies from which funds were retained
under paragraph (4);
(ii) consider using individuals who administer exemplary
local food service programs in the provision of training and
technical assistance; and
(iii) obtain the approval of the Secretary for the plan.
(c) Role of Secretary
In carrying out this section, the Secretary shall -
(1) assist the State educational agency in the monitoring of
programs conducted by local food service authorities; and
(2) through management evaluations, review the compliance of
the State educational agency and the local school food service
authorities with regulations issued under this chapter.
(d) Authorization of appropriations
There is authorized to be appropriated for purposes of carrying
out the compliance and accountability activities referred to in
subsection (c) of this section $6,000,000 for each of fiscal years
2004 through 2009.