TDA will notify the contractor in writing that it is subject to audit requirements in accordance with 7 CFR §226.8, 7 CFR Part 3052, and TDA CACFP Handbooks. The notification includes the date by which the contractor must submit an acceptable audit to TDA and also informs the contractor that failure to submit the audit to TDA by the required due date will result in adverse action, up to and including placement into the Serious Deficiency Process, termination of its agreement, and placement of the organization and each responsible principal on the National disqualified list.