In the March 31, 2016, Federal Register, USDA's Food and Nutrition Service ("FNS") proposed to codify several provisions of the Healthy, Hunger-Free Kids Act of 2010 affecting the integrity of the Child Nutrition Programs (the "Programs"). Specifically, the proposed rule sets criteria for assessments against state agencies and program operators who jeopardize the integrity of the Programs. The proposed rule also establishes certain procedures, such as for the termination and disqualification of entities in the Summer Food Service Program, and to prohibit the participation of entities or individuals terminated from any of the Programs. It also establishes state liability for reimbursements incurred as a result of a state's failure to conduct timely hearings in the Child and Adult Care Food Program ("CACFP"), and establishes criteria for increased state audit funding for CACFP, among others. In addition, the proposed rule makes several operational changes to improve oversight of an institution's financial management. Comments are due May 31, 2016.

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