[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: 7CFR285.2]

[Page 945]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 285--PROVISION OF A NUTRITION ASSISTANCE GRANT FOR THE COMMONWEALTH OF PUERTO RICO--Table of Contents
 
Sec. 285.2  Funding.

    (a) FNS shall, consistent with the plan of operation required by 
Sec. 285.3 of this part, and subject to availability of funds, provide 
nutrition assistance grant funds to the Commonwealth of Puerto Rico to 
cover 100 percent of the expenditures related to food assistance 
provided to needy persons and 50 percent of the administrative expenses 
related to the food assistance. The amount of the grant funds provided 
to the Commonwealth of Puerto Rico shall not exceed amounts appropriated 
for this purpose for each fiscal year.
    (b) FNS shall, subject to the provisions in Secs. 285.3 and 285.5 in 
this part, and limited by the provisions of paragraph (a) of this 
section, pay to the Commonwealth of Puerto Rico for the applicable 
fiscal year, the amount estimated by the Commonwealth of Puerto Rico 
pursuant to Sec. 285.3(b)(4). Payments shall be made no less frequently 
than on a monthly basis prior to the beginning of each month consistent 
with the Treasury Fiscal Requirement Manual, Volume I, part 6, section 
2030; these letters of credit shall be drawn on an as-needed basis. The 
amount shall be reduced or increased to the extent of any prior 
overpayment or underpayment which FNS determines has been made and which 
has not been previoulsy adjusted. The payment(s) received by the 
Commonwealth of Puerto Rico for a fiscal year shall not exceed the total 
authorized for the grant, or the total cost for the nutrition assistance 
program eligible for funding, whichever is less, for that fiscal year.
    (c) FNS may recover from the Commonwealth of Puerto Rico, through 
offsets to funding during any fiscal year, funds previously paid to the 
Commonwealth of Puerto Rico and later determined by the Secretary to 
have been overpayments. Funds which may be recovered include, but are 
not limited to:
    (1) Costs not included in the approved plan of operation;
    (2) Unallowable costs discovered in audit or investigation findings;
    (3) Funds allocated to the Commonwealth of Puerto Rico which 
exceeded expenditures during the fiscal year for which the funds were 
authorized; or
    (4) Amounts owed to FNS as a result of the nutrition assistance 
grant which have been billed to the Commonwealth of Puerto Rico and 
which the Commonwealth of Puerto Rico has failed to pay without cause 
acceptable to FNS.
    (d) Funds for payment of any prior fiscal year expenditures shall be 
claimed from the funding for that prior year. The payment of funds shall 
not exceed the authorization for that prior fiscal year.

[Amdt. 209, 47 FR 32409, July 27, 1982, as amended by Amdt. 243, 49 FR 
49585, Dec. 21, 1984; Amdt. 274, 51 FR 18752, May 21, 1986; Amdt. 371, 
61 FR 60012, Nov. 26, 1996]