[Code of Federal Regulations]
[Title 7 Volume 4]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR275.15]

[Page 859-860]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 275--PERFORMANCE REPORTING SYSTEM--Table of Contents
 
                 Subpart D--Data Analysis and Evaluation
 
Sec. 275.15  Data management.


    (a) Analysis. Analysis is the process of classifying data, such as 
by areas of program requirements or use of error-prone profiles, to 
provide a basis for studying the data and determining trends including 
significant characteristics and their relationships.
    (b) Evaluation. Evaluation is the process of determining the 
cause(s) of each deficiency, magnitude of the deficiency, and geographic 
extent of the deficiency, to provide the basis for planning and 
developing effective corrective action.
    (c) Each State agency must analyze and evaluate at the State and 
project area levels all management information sources available to:
    (1) Identify all deficiencies in program operations and systems;
    (2) Identify causal factors and their relationships;
    (3) Identify magnitude of each deficiency, where appropriate (This 
is the frequency of each deficiency occurring based on the number of 
program records reviewed and where applicable, the amount of loss either 
to the program or participants or potential participants in terms of 
dollars. The State agency shall include an estimate of the number of 
participants or potential participants affected by the existence of the 
deficiency, if applicable);
    (4) Determine the geographic extent of each deficiency (e.g., 
Statewide/individual project area or management unit); and,
    (5) Provide a basis for management decisions on planning, 
implementing, and evaluating corrective action.
    (d) In the evaluation of data, situations may arise where the State 
agency identifies the existence of a deficiency, but after reviewing all 
available management information sources sufficient information is not 
available to make a

[[Page 860]]

determination of the actual causal factor(s), magnitude, or geographic 
extent necessary for the development of appropriate corrective action. 
In these situations, the State agency shall be responsible for gathering 
additional data necessary to make these determinations. This action may 
include, but is not limited to, conducting additional full or partial ME 
reviews in one or more project areas/management units or discussions 
with appropriate officials.
    (e) Deficiencies identified from all management information sources 
must be analyzed and evaluated together to determine their causes, 
magnitude, and geographic extent. Causes indicated and deficiencies 
identified must be examined to determine if they are attributable to a 
single cause and can be effectively eliminated by a single action. 
Deficiencies and causes identified must also be compared to the results 
of past corrective action efforts to determine if the new problems arise 
from the causal factors which contributed to the occurrence of 
previously identified deficiencies.
    (f) Data analysis and evaluation must be an ongoing process to 
facilitate the development of effective and prompt corrective action. 
The process shall also identify when deficiencies have been eliminated 
through corrective action efforts, and shall provide for the 
reevaluation of deficiencies and causes when it is determined that 
corrective action has not been effective.
    (g) Identification of High Error Project Areas/Counties/Local 
Offices. FNS may use quality control information to determine which 
project areas/counties/local offices have reported payment error rates 
that are either significantly greater than the State agency average or 
greater than the national error standard of the Program. When FNS 
notifies a State agency that a ``high error'' area exists, the State 
agency shall ensure that corrective action is developed and reported in 
accordance with the provisions of Sec. 275.17. If FNS identifies a 
``high error'' locality which a State agency has previously identified 
as error-prone and taken appropriate action, no further State agency 
shall be required. If a State agency's corrective action plan fails to 
address problems in FNS-identified ``high error'' areas, FNS may require 
a State agency to implement new or modified cost-effective procedures 
for the certification of households.


[Amdt. 160, 45 FR 15909, Mar. 11, 1980, as amended by Amdt. 266, 52 FR 
3409, Feb. 4, 1987; Amdt. 320, 55 FR 6240, Feb. 22, 1990]