6-02 Vendor Program Violations

6.02 Claims Against Vendors

Effective Date: 08/01/2021

PURPOSE:    

To describe the Department’s process for establishing and recovering claims against Vendors.

DEFINITIONS:

Claim means a demand for repayment of funds resulting from Vendor overpayments, improper transactions, or Vendor violations.

Overpayment means reimbursement to a Vendor exceeding the amount allowed under WIC Program requirements.

POLICY:

1. The Department shall establish and recover claims against Vendors for overpayments or other improper reimbursements.

    

2. Claims may result from:

    

   1. Inventory audits;

       

   2. Compliance investigations;

       

   3. Vendor overcharges;

       

   4. Invalid transactions;

       

   5. Fraud or abuse; or

       

   6. Other documented Vendor violations.

    

3. The Department shall notify Vendors in writing of:

    

   1. The amount of the claim;

       

   2. The basis for the claim;

       

   3. Repayment requirements; and

       

   4. Applicable appeal rights.

    

4. The Department may recover claims through:

    

   1. Direct repayment;

       

   2. Offsets against future reimbursements; or

       

   3. Other legal collection methods.

    

5. Failure to repay claims may result in additional sanctions or adverse actions.

References:

7 CFR Part 246.12

Cross-References:

5.04 Inventory Audits

6.01 Vendor Sanction Schedule Overview

7.0 Vendor Appeals