The KANSAS AGING PROJECTS COMMODITY MANUAL (KAPCM)

8000  CLAIMS

USDA requires states to be accountable for all commodities received through NPE and to take appropriate claim and collection action in certain situations.

SRS, all participating projects, all participating projects facilities, warehousemen, food processors, carriers and other persons are subject to a claim determination and the corresponding repayment responsibility as a result of the following:

1. Improper use of commodities;

2. Loss of commodities which is caused by neglect, carelessness, and/or willful mishandling. ("Loss" means any quantity of commodities that is unaccounted for or which has become unusable for human consumption); and

3. Damage to commodities which is caused by neglect, carelessness and/or willful mishandling.

NOTE: Anytime it is discovered or reported that a situation has occurred involving (1), (2), or (3) above, the procedures outlined in Section 8300 are to be followed.

8100  ESTABLISHING CLAIMS - A "claim" is any demand, or basis for a demand, for money or for replacement of a lost or improperly distributed/used commodity. Once the SRS Food Distribution Unit has received all information regarding situations requiring claim action, a claim determination will be made in order to decide the existence or nonexistence of a liability. If it is determined that a claim is necessary, the SRS Food Distribution Unit will do the following:

1. Determine the dollar value of the products involved, based upon the USDA replacement cost at the time of the loss or discovery of the loss;

2. Determine the liable party(s);

3. Contact USDA as mandated by federal instructions regarding the establishment of claims;

4. Where appropriate, make three formal written demands for repayment; and/or

5. Take legal action for recovery.
   
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8200  RIGHT TO FILE CLAIMS

1. USDA may assert claims against liable NPE participating states.

2. SRS may assert claims against liable carriers, warehousemen, processors, participating projects, participating projects facilities or other persons to whom commodities are delivered. SRS is required to take appropriate collection actions in order to obtain restitution where liability is involved.

3. Participating projects or their facilities have the right to assert claims. A project or the project's facility may assert a claim in the event a loss or inappropriate use of commodities has occurred. Such claims may be established against persons or companies with whom the project or the project's facility has placed the responsibility for care, handling, or use of commodities (i.e. employees, volunteers, storage facilities, etc.).

Projects and their facilities shall have the right to pursue restitution through appropriate legal channels in addition to claim action taken through this program.

8300  CLAIM REPAYMENTS - Once established, all claims must be repaid.

8301  Repayment to USDA - Claims assessed against SRS by USDA will be dealt with at the state level.

Money received by SRS for the repayment of SRS established claims will be returned to USDA or used by SRS for commodity program funding as mandated by federal regulations.

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8302  Repayment to SRS - Claims assessed against participating project's facilities, warehousemen, carriers, and/or other persons by SRS will be completed by the SRS Food Distribution Unit. Repayment of these claims to SRS shall be completed as follows:

1. Payments to SRS should be made for the full amount due, unless an approved payment or replacement plan is established with the SRS Food Distribution Unit for the receipt of partial payments.

2. Payments should include a message stating that the repayment is for a Commodity Program Claim and should clearly identify the organization making the payment.

3. Payments should be made payable to:  
   
                   Department of Social and Rehabilitation Services

4. Payments should be mailed to:
   
                   Dept Social and Rehabilitation Services  
                   EES Food Distribution Unit 
                   915 SW Harrison, 681-W 
                   Topeka, KS 66612-1505

5. The Food Distribution Unit will send an acknowledgment letter after receiving each payment. This letter will include the previous balance, the total current payment received, and the new balance due (if any).

8303  Repayment to Participating Projects or their Facilities - Repayments of claims assessed against employees, volunteers, storage facilities or others by participating projects or their facilities may be handled in several ways.

EXAMPLE: SRS has determined that a participating project or their facility is liable for a loss and has assessed a claim against the project or their facility. The project or their facility determines that an employee, volunteer, storage facility or other person was responsible for the liability and files their own claim or takes legal action against the liable party. The organization receives repayments as a result of a claim they assessed or other legal action taken. This repayment money may be handled as follows:

1. If SRS has been paid in full for the claim established against the project or the project's facility, the project or their facility may keep the repayment money;
   
   OR

2. If SRS has not been paid in full the project or their facility may contact SRS Food Distribution Unit and work out a payment plan. Money received by the project or their facility as a result of a project or facility claim or other legal action must be used to pay any unpaid claim balance due SRS.

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