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Taking the Mystery out of the Serious Deficiency Process

Barbara J. Smith, Senior Program Analyst

USDA-FNS-Child Nutrition Programs

Program Monitoring Branch

CACFP Magical Moments ● Orlando, FL ●

April 2016

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7 CFR 226.2

Serious Deficient

“…the status of an institution or a day care home that has been determined to

be non-compliant in one or more aspects of its operation of the Program…”

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The SD Process

End:

Start: SD Determination

SD Resolution

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The SD Process

Proposed Termination Disqualification

Resolution

Correction of SDProposed

Termination/ Disqualification

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Big Picture Serious Deficiency Determination

Notice of Serious Deficiency

Corrective Action

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Big Picture Temporary Deferment

Proposed Termination & Disqualification

Appeal, if requested

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WhoDetermines SD?

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WhoDetermines SD?Sponsoring Organizations1

2 State Agency

3 FNS

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Critical Factors

Frequency of Error

Criteria for determining SD

Severity of Error

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Definite SD

False or Fraudulent Claim

Imminent Threat

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BigMistakes

Failure to Submit

Corrective Action Plan

Disputing SD Determination

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Corrective Action

What?Who

Where? How?

When?

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Time Elapsed

Personnel Changes

Original Problem

Records

Permanent????

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Appeals

Assess SA or SO Action

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NDL

Entities disqualified from participation in the Program

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NDL Removal

No timeframe

Acceptable CAP

Not a priority

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NDL Removal

FNS Concurrence

Debt, Plus Interest

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Remember!

Reinstatement

NDL Removal

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Questions

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Thank You!

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Takig the Mystery out of the Serious Deficiency

Process