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This action implements statutory requirements and policy improvements to strengthen administrative oversight and operational performance of the Child Nutrition Programs. Strong integrity safeguards for taxpayer investments in nutrition are fundamental to earning and keeping the public confidence that make these programs possible. As FNS continues to work towards improving integrity in these programs, this final rule establishes criteria and procedures for:

1. Implementation of fines, referred to as assessments in the proposed rule;

2. Prohibition of participation of any terminated entity or terminated individual;

3. Termination and disqualification of summer sponsors and unaffiliated child care centers or unaffiliated adult care centers through extension of the serious deficiency process;

4. Termination of permanent agreements of summer sponsors and child or adult care institutions and facilities;

5. More frequent reviews of child care institutions and adult care institutions that are at risk of having serious management problems;

6. State agency liability for payments when hearings for child care institutions or adult care institutions are delayed;

7. Additional State agency funding for audits of child care institutions and adult care institutions;

8. Increased financial oversight of sponsoring organizations’ bank account activity and reporting requirements;

9. Informal purchase methods for child care institutions and adult care institutions;

10. Contracts between school food authorities and food service management companies; and

11. Annual procurement training for school nutrition professionals. The changes described in this rule are designed to increase accountability, maximize operational efficiency, and ensure that the National School Lunch Program, School Breakfast Program, Special Milk Program, Summer Food Service Program, and Child and Adult Care Food Program deliver important nutrition benefits and protect scarce Federal resources with the highest level of integrity.