[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR277.11]

[Page 859-860]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 277--PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE AGENCIES--Table of Contents
 
Sec. 277.11  Financial reporting requirements.

    (a) General. This section prescribes requirements for the State 
agencies to report financial information to FNS.
    (b) Authorized forms and instructions. (1) Only forms specified by 
this part, or other forms authorized by FNS, may be used for obtaining 
financial information from State agencies for the program.
    (2) All instructions for use in connection with the form specified 
in Sec. 277.11(c) shall be followed. FNS may prescribe supplementary 
instructions.
    (3) State agencies shall submit the original and two copies of forms 
required by this section unless FNS approves a waiver of this 
requirement.
    (4) The forms and instructions in this part shall be available to 
the State agency and to the public upon request to FNS Regional Offices 
as set out in Sec. 271.6(b).
    (c) Financial status report--(1) Form. State agencies shall use the 
standard Financial Status Report (Form SF-269) to report program costs.
    (2) Freqency. The report (Form SF-269) shall be required quarterly.
    (3) Exceptions. Those State agencies that receive payments under the 
U.S. Treasury check system shall submit to FNS a Quarterly Report of 
Federal Cash Transactions (Form SF-272).
    (4) Due dates. Quarterly reports shall be due April 30 (for the 
period January through March), July 30 (April through June), October 30 
(July through September), January 30 (October through December). Final 
reports are due December 30 for all completed Federal fiscal years 
(October 1 through September 30) or 90 days after termination of Federal 
financial support. Requests from State agencies for extension of 
reporting due dates may be approved, if necessary.
    (d) Time limit for State agencies to file claims. (1) After the 
deadline in paragraph (c)(4) of this section for the final SF-269 
report, State agencies shall use the form specified by FNS as needed 
within three years of the end of the Federal fiscal year to amend a 
prior expenditure report pertaining to such Federal fiscal year. The 
three-year reporting deadline may be extended by FNS if litigation, an 
audit, or a claim is unresolved at the end of the three-year period. The 
reporting form shall be used to amend prior expenditure reports, and to 
request reimbursement for any additional funding due, or to pay back to 
FNS any inadvertent prior overclaim. Requests for reimbursement will 
only be honored if the claim is filed within the timeframe in paragraph 
(d)(2) of this section. FNS reserves the right to bill State agencies 
for amounts due FNS resulting from an overclaim, even if no reporting 
form has been submitted.
    (2) Subject to the availability of funds from the appropriation for 
the year in which the expenditure was incurred, FNS may reimburse State 
agencies for an allowable expenditure only if the State agency files a 
claim with FNS for that expenditure within two years after the calendar 
quarter in which the State agency (or local agency) incurred the cost. 
FNS will consider non-cash expenditures such as depreciation to have 
been made in the quarter the expenditure was recorded in the accounting 
records of the State

[[Page 860]]

agency in accordance with generally accepted accounting principles.
    (3) For Automated Data Processing (ADP) expenditures approved under 
Sec. 277.18(c), subject to the availability of funds and required FNS 
approval related to the Advance Planning Document, FNS may reimburse 
State agencies for allowable expenditures at the appropriate rate in 
effect at the time the equipment or service was received only if the 
State agency files for a claim with FNS within two years after the 
calendar quarter in which the cost was incurred. FNS will consider non-
cash expenditures such as depreciation to have been made in the quarter 
the expenditure was recorded in the accounting records of the State 
agency in accordance with generally accepted accounting principles.
    (4) States wishing to request an extension of the deadline in 
paragraphs (d)(2) and (d)(3) of this section must submit the request in 
writing to FNS prior to the applicable deadline. The State agency's 
request for an extension must include a specific explanation, 
justification, and documentation of why the claim will be late and when 
the claim will be filed.
    (5) The time limits in paragraphs (d)(2) and (d)(3) of this section 
will not apply to any of the following:
    (i) Any claim for an adjustment to prior year costs previously 
claimed under an interim rate concept;
    (ii) Any claim arising from an audit exception as defined in this 
section. An audit exception means a proposed adjustment by the 
Department to any expenditure claimed by a State agency by virtue of a 
Federal-or State-initiated audit. The audit must comply with the 
requirements of Sec. 277.17 and 7 CFR part 3015, and must have been 
started within 3 years of the date of submission of the final SF-269 of 
the relevant Federal fiscal year to which it applies.
    (iii) Any claim resulting from a court-ordered retroactive payment. 
However, this provision does not bind FNS to a State or Federal court 
decision when FNS was not a party to the action;
    (iv) Any claim for which FNS determines there was good cause for the 
State agency's not filing it within the time limit. Good cause is 
lateness due to circumstances beyond the State agency's control such as 
Acts of God or documented action or inaction of the Federal Government. 
It does not include neglect or administrative inadequacy on the part of 
the State, State agency, legislature, or any of their offices or 
employees.

[Amdt. 188, 45 FR 85702, Dec. 30, 1980, as amended by Amdt. 385, 65 FR 
33440, May 24, 2000]