Transcript PrepARING FOR A CRE

CHILD AND ADULT CARE FOOD PROGRAM
SERIOUSLY DEFICIENT (SD)
TO THE
NATIONAL DISQUALIFIED LIST (NDL)
Presenters: Barbara Smith and Belva Brennan
April 12, 2012
USDA, Food and Nutrition Service, Child Nutrition Division
Program Analysis and Monitoring Branch
Seriously Deficient
Learning Objectives

Serious Deficient Defined and Reg. Citations

SD process

Targeted Management Evaluation “SD”
Findings
Seriously Deficient (SD) Defined
7 CFR 226.2
“…the status of an institution or a day care
home that has been determined to be noncompliant in one or more aspects of its
operation of the Program…”
SD Process Reg Citations
 For New Institutions…
226.6(c)(1)
 For Renewing Institutions…
226.6(c)(2)
 For Participating Institutions…
226.6(c)(3)
 For Day Care Homes…
226.16(l)
Serious Deficiency Process
What exactly is the “serious deficiency
process”?
EVERYTHING after a SD declared…
 begins with the SD determination and
 ends with the resolution of the SD
Serious Deficiency Process
 SD notice is sent by certified mail (or
equivalent private delivery)
 Include name(s) of RPI(s), SDs and
request for CAP
 SA must maintain a State agency list
including SD information
Serious Deficiency Process
 In response to the SD notice, the
institution or provider must submit a CAP
 Acceptable CAP includes:
 Name(s) of institution/provider and
RPIs; Location; RPI birth dates;
assurance that SDs are fully and
permanently corrected.
Serious Deficiency Process
An Acceptable CAP also answers these
questions:
 What are the serious deficiency(ies) and
the procedures that will be implemented
to address the serious deficiency(ies)?
 Who will address the serious deficiency?
Serious Deficiency Process
An Acceptable CAP also answers these
questions:
 When will the procedure for addressing
the serious deficiency be implemented?
 Where will the CAP documentation be
retained?
Serious Deficiency Process
An Acceptable CAP also answers these
questions:
 How will the new procedure(s) be
transmitted to staff and facilities?
 Additional supporting documentation
Serious Deficiency Process
 States must submit the SD notice and
documentation to their FNSRO
 DCH SO must provide SD notice and
documentation to the State agency
 If the CAP is deemed acceptable, SD
determination is temporarily deferred.
Serious Deficiency Process
 If a timely CAP is not submitted or no
CAP is submitted:
 A NPTD, with appeal rights is sent
 If SA action is upheld, a NTD is sent to
institution or provider and RPIs
Serious Deficiency Process
 If SA action is not upheld…
 SD determination is temporarily
deferred
 Institution is not terminated but still
must implement CA
Serious Deficiency Process
 SD fully and permanently corrected…
SD temporarily deferred
 SD not fully and permanently
corrected ...SA issues NTPD
FY2010 and FY2011
TME Findings
Serious Deficiency Process
 Use of “SD” warnings
 Inadequate description of SDs and/or
corrective action
 NSDs or other documents lacked required
information
 Failure to name RPIs
TME Findings: SA Level
 Failure to issue SD-related
correspondence to institution officers
 Exceeding Corrective Action time periods
 Failure to use “abbreviated” appeals
TME Findings: SA Level
 Self-terminate or Terminate for
Convenience
 Failure to issue NSD on a timely basis
 No State agency list or list not
complete/current
TME Findings: SA Level
 Non-compliant appeals process/
procedures
 Failure to resolve appeals within
regulatory timeframes
 Failure to issue Notice of Proposed
Termination/Disqualification (NPTD)
TME Findings: SO Implementation
and SA Oversight
 Inadequate description of SDs and/or
corrective action in NSD
 NSDs or other documents lack required
information
 Failure to issue SD-related
correspondence to institution officers, if
applicable
TME Findings: SO Implementation
and SA Oversight
 “Promise” not to do it again
 Rescission of NSD w/o evaluation/receipt
of corrective action
 Failure to use SD process when license
is revoked
FNS CND Findings
 Multiple Terminations
 Institutions Terminated w/o RPIs
 “Trial Periods” as NDL removal
prerequisite
 Removing DCH providers w/o adequate
Corrective Action
 Failure to collect interest on debt
National Disqualified List (NDL)
Learning Objectives
 NDL Authority
 Provide guidance on what is required for
submissions to the NDL
 Removal from NDL process to include:
 FNS expectations of acceptable CAP
 Collection of Debt and interest
 New Web-Based NDL System
The National Disqualified List
 42 U.S.C. 1766 (d)(5)(E)(i) and (ii), the
Richard B. Russell National School Lunch
Act
 § 226.6(c)(7) of the Program regulations
Submissions to the NDL
Institution:

Name and Address

Termination date;

Amount of debt owed, if any, noting the RPI;

Reason/s for the disqualification
Submissions to the NDL
RPI:

Name

Address

Date of birth; and

Position in the institution
Submissions to the NDL
Provider:

Name(s) of the provider;

Address;

Date of Birth;

Termination date;

Amount of debt owed, if any;

Name of the individual’s sponsor; and

Reason(s) for the disqualification
Submissions to the NDL
 Accurate and complete information
 Incomplete submissions returned
 Review by FNS Regional Office
Removal from the NDL
 No removal if there is a debt owed
 After 7 years from termination
 “Reinstated” records retained 3 years
 Early removal requests
End of 7 Years
 If debt remains upon completing 7 years,
no removal.
 Institution/RPIs/Providers remain on the
State agency list.
 Upon reapplication, SA must ensure
serious deficiencies are fully resolved
prior to approving the application
Early Removal Requests
Institutions and RPIs:
 SA submits supportive documentation
 FNS RO reviews documentation
 FNS National Office concurrence
Early Removal Requests
Day Care Home Providers:
 § 226.6(c)(7)(vi) gives SAs authority to
remove providers from NDL
 FNS’ responsibility
Early Removal Requests
Corrective Action Plans:
 For institutions, § 226.6(c), requires the
submission of corrective actions taken to
the State agency.
 For providers, § 226.16(k)(3)(F)(ii)
requires the submission of corrective
actions to the sponsoring organization.
Debt Collection
 7 CFR §226.14
 Repayment plan
 Effect on NDL
 Uncollectible Debt
Debt Collection
 Assessment of Interest
 Interest accrual on debts
 Responsibility of the State Agency
Debt Collection Example
See Handout
Debt Interest Rate
 One uniform rate (Current Value of Funds
Rate)
 CVFR is published annually at
http://www.fns.treas.gov
The NDL System
MOVING FORWARD
Web-Based NDL System
 A robust, scalable and expandable webbased application for NDL
 Replaces the MS Access NDL application
 Integration with the USDA e-Authentication
system
Web-Based NDL System
Access
 Sponsoring Organization: e-Auth Level 1
 State Agency: e-Auth Level 2
 FNS Regional Office: e- Auth Level 2
 FNS National Office: e-Auth Level 2
Web-Based NDL System
Projected Timeline

Client Verification Testing Period – April to May
2012 (CND and FNS RO staff)

Training Webinars for State agency staff - June
2012 and prior to implementation date

System Forms: OMB Approval Clearance Process
begins mid-June 2012

Launching Live – Beginning of FY2013
(Estimation)
THANK YOU!
QUESTIONS ?????