Section 216-RICR-20-05-3.10 - Claims and PenaltiesA. If the state agency determines through a review of the local agency's reports, program or financial analysis, monitoring, audit, or otherwise that any WIC Program funds provided to a local agency for supplemental foods or administrative and program services purposes were, through local agency negligence or fraud, misused or otherwise diverted from the WIC Program purposes, a formal claim will be assessed by state agency against the Local agency. The local agency shall promptly pay the State agency a sum equal to the amount of the administrative and program services funds or the value of supplemental foods or food instruments so misused or diverted.B. If the state agency determines that any part of the WIC Program funds received by a local agency; or supplemental foods, either purchased or donated commodities; or food instruments were lost as a result of thefts, embezzlements or unexplained causes, the local agency shall, on demand, pay a sum equal to the amount of the money or the value of the supplemental foods or food instruments so lost.C. The local agency shall have full opportunity to submit evidence, explanation or information concerning alleged instances of noncompliance or diversion before a final determination is made in such cases.D. Penalties. In accordance with section 12(g) of the National School Lunch Act, whoever embezzles willfully misapplies, steals or obtains by fraud any funds, assets or property provided under Section 17 of the Child Nutrition Act of 1966, as amended, whether received directly or indirectly from USDA, or whoever receives, conceals or retains such funds, assets or property for his or her own interest, knowing such funds, assets or property have been embezzled, willfully misapplies, stolen, or obtained by fraud shall, if such funds, assets or property are of the value of $100 or more, be fined not more than $10,000 or imprisoned not more than five years, or both, or if such funds, assets or property are of a value of less than $100, shall be fined not more than $1,000 or imprisoned for not more than one year, or both, incorporated above at §246.23 of this part.216 R.I. Code R. 216-RICR-20-05-3.10