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 DeficientLearning Objectives

Serious Deficient Defined and Reg. Citations

Targeted Management Evaluation “SD” Findings

SD process

Seriously Deficient (SD) Defined

7 CFR 226.2

“…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…”

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 FY2011TME 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

“Promise” not to do it again

TME Findings: SO Implementation and SA Oversight

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

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

The National Disqualified List

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

No removal if there is a debt owed

After 7 years from termination

“Reinstated” records retained 3 years

Early removal requests

Removal from the NDL

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

One uniform rate (Current Value of Funds Rate)

CVFR is published annually at http://www.fns.treas.gov

Debt Interest Rate

The NDL System

MOVING FORWARD

A robust, scalable and expandable web-based application for NDL

Replaces the MS Access NDL application

Integration with the USDA e-Authentication system

Web-Based NDL System

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 SystemAccess

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)

Web-Based NDL SystemProjected Timeline

THANK YOU!

QUESTIONS ?????