(1) The department will conduct a minimum of one announced or unannounced review of each center or sponsor of centers in each three year period.

(2) Each institution must provide all CACFP records to the CACFP review team when the CACFP performs an announced or unannounced review. Records that must be on site and made available to the CACFP during a review include but are not limited to:

(a) monthly attendance records and sign in/out sheets;

(b) food receipts, by month of purchase;

(c) food service labor documentation;

(d) menu plan and food production records;

(e) completed income eligibility forms;

(f) menus;

(g) milk receipts, by month of purchase;

(h) monthly financial reports;

(i) staff training records;

(j) records of facility training performed by the sponsor;

(k) monitoring procedures if a sponsor of centers;

(l) monitor training records if a sponsor of centers;

(m) a copy of the center's license, if the facility or institution is required to be licensed; and

(n) a copy of the health and fire inspection if the center is self-certified.

(3) During an on site review, the CACFP will verify that:

(a) the center is conducting a nonprofit food service;

(b) for profit institutions are eligible to claim reimbursement for meals served;

(c) meals offered and provided to CACFP participants are documented on menu plan and food production records that meet minimum food component and portion size requirements;

(d) completed CACFP income eligibility forms are on site or made available to the CACFP during a review to document that the center is claiming the correct rate of reimbursement for the meals being claimed; and

(e) records are satisfactorily completed to demonstrate which children and meals are claimed each day by each center or sponsored facility.

(4) If a center or sponsor of centers submits a claim for reimbursement for any month, and does not have complete records on site during a review or make records available to the CACFP during a review, the following actions may be taken:

(a) meal reimbursement for the corresponding claim month may be disallowed;

(b) the amount of reimbursement for disallowed meals, as stated in a notice of overclaim from the CACFP, must be paid back to the CACFP;

(c) the meal disallowance total, as stated in a notice of action from the CACFP, is subject to an administrative review (appeal); and

(d) records that are not on site or made available during a review will not be considered by the CACFP when establishing the dollar amount for disallowed meals. An exception may be requested in writing by the institution and must be approved in writing by the CACFP.

(5) When meals are disallowed and an overclaim notice is received by an institution, the institution may request an exception to have records reviewed that were not on site or made available to the CACFP at the time of a review. The request must be submitted to the CACFP within 15 days of receipt of an overclaim notice.

(6) The CACFP will notify the institution of its decision to grant or deny an exception within 15 days of receipt of the request for an exception.

(a) All misclassified income eligibility forms must be corrected back to the date of the signature of the adult household member on the forms.

(7) Exceptions may be granted only for extreme circumstances, such as the accidental destruction of records, and solely at the discretion of the CACFP.

(8) Reimbursement for claims submitted after the date of review may be delayed up to 45 days from receipt of a complete and valid claim if the institution owes money to the CACFP.

(9) Additional corrective actions may be required as a result of missing records. The CACFP may request copies of various records for random months throughout the year to demonstrate compliance with those items as stated in (2), (3), and (4).