Skip to main content
California Department of Education Logo

Dollar Threshold for Payment of Underpayments


Nutrition Services Division Management Bulletin

Purpose: Policy

To: School Nutrition Program Agencies, Child and Adult Care Food Program Agencies, Summer Food Service Program Agencies

Number: USDA-CNP-05-2008

Attention: Food Service and Program Directors, Business Officials, Owners

Date: September 2008

Subject: Dollar Threshold For Payment of Underpayments from Reviews and Audits Performed for School Nutrition Programs, the Child and Adult Care Food Program, and the Summer Food Service Program

Reference: United States Department of Agriculture 2005 Management Evaluation Recommendation; Improper Payments Information Act of 2002, Public Law 107-300; Title 7 Code of Federal Regulation sections 210.8(b)(1), 210.9(d), 220.11(b), 226.6(e), 226.10(c) and (e), 225.9(d)(6), 225.10(c)

This Management Bulletin establishes the threshold for underpayments generated by findings discovered during reviews and audits of the School Nutrition Programs (SNP), the Child and Adult Care Food Program (CACFP) and the Summer Food Service Program (SFSP) for the prior fiscal year.

The Improper Payments Information Act of 2002 (Public Law 107-300), that was implemented in Fiscal Year 2004, requires the United States Department of Agriculture (USDA) to identify and reduce erroneous payments in various programs, including the SNP, the CACFP, and the SFSP. By definition, an improper payment can be either an overpayment or an underpayment.

The USDA reviewed the California Department of Education’s (CDE) operations and determined that the CDE must establish a dollar threshold for paying underpayments identified through review and audit findings, consistent with Title 7, Code of Federal Regulation (7 CFR) sections 210.19(e), 225.18(f), and 226.25(b). In determining its underpayment threshold, the CDE has taken into consideration the cost to process the underpayment and any conflicts with 7 CFR parts 210, 225 and 226.

Please be advised that effective immediately, the CDE will no longer pay:

  • Any SNP or CACFP agency’s prior fiscal year underpayments of $600 or less
  • Any SFSP agency’s prior fiscal year underpayments of $100 or less.

If you have any questions regarding this information, please contact Catherine Hardin, Manager, Program Integrity Unit at 916-445-7368, or by e-mail at chardin@cde.ca.gov [The previous contact information is no longer current] Summer Nutrition Programs and Grants Unit by email at SFSP@cde.ca.gov. You may also contact your local Nutrition Services Division, Field Services Child Nutrition Consultant at 800-952-5609.

Questions:   Nutrition Services Division | 800-952-5609
Last Reviewed: Thursday, November 6, 2025
Related Content
Recently Posted in Nutrition
  • Professional Standards in the SNP (added 06-Nov-2025)
    Management Bulletin SNP-12-2025: Questions and Answers Professional Standards in the SNPs
  • DoD Fresh Updates and Reminders (added 05-Nov-2025)
    This MB updates the policy for the DoD Fresh entitlement request process, receipting requirements and provides important reminders regarding DoD Fresh and the Fresh Fruit and Vegetable Ordering and Receipting System (FFAVORS).
  • Student Access to Meals and Food (added 05-Nov-2025)
    NSD Guidance and Resources for Accessing Meals and Food.
  • DoD Fresh Fruit and Vegetable Program Reminders (added 03-Nov-2025)
    Management Bulletin FDP-01-2025: U.S. Department of Defense (DoD) Fresh Fruit and Vegetable Program Entitlement Request Process Change and Reminders – Revised
  • 2025 KIT Grant & Retention & Recruitment Grant (added 30-Oct-2025)
    The 2025 KIT Grant competitively awards funding to SFAs to improve the quality of meals served through the NSLP & SBP. The Retention & Recruitment Grant competitively awards funding to support the retention and recruitment of food service staff.