The organization or institution may be penalized or disqualified if it is determined administratively or judicially that food stamp benefits were misappropriated or used for purchases that did not contribute to a certified EU’s meals. FNS must approve penalties and/or disqualification. FSD promptly notifies FNS when it has reason to believe that an organization or institution is misusing food stamp benefits.
FSD establishes a claim for overissuances of food stamp benefits held on behalf of residents if any overissuances are discovered during an investigation or hearing procedure for redemption violations and the center acted as the authorized representative. If FNS disqualifies an organization or institution as an authorized retail food store, State Office notifies the county office to suspend the authorized representative status of the facility.
If the treatment center loses its authorization from FNS to accept food stamp benefits, or is no longer certified by the State, its residents are no longer eligible to participate. Residents are not entitled to a notice of adverse action but receive a written notice explaining the termination and when it becomes effective.
NOTE: If FNS suspends the group living arrangement’s status as an authorized representative, residents applying on their own behalf remain able to participate if otherwise eligible.