[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR247.17]

[Page 410]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247--COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec. 247.17  Claims.

    If FNS determines through a review of the State agency's reports, 
program or financial analysis, monitoring, audit, or otherwise, that any 
Program funds provided to a State agency for administrative purposes 
were, through State agency or local agency negligence or fraud, misused 
or otherwise diverted from Program purposes, a claim shall be made by 
FNS against the State agency, and the State agency shall pay promptly to 
FNS a sum equal to the amount of the administrative funds so misused or 
diverted. Further, if FNS determines that any part of the money received 
by a State agency was lost as a result of thefts, embezzlements, or 
unexplained causes, the State agency shall, on demand by FNS, pay to FNS 
a sum equal to the amount of the money so lost. Claims for losses or 
misuse of supplemental foods shall be handled in accordance with 
Sec. 250.6(m), 7 CFR part 250--Subchapter B--Food Distribution. The 
State agency shall have full opportunity to submit evidence, 
explanations or information concerning alleged instances of 
noncompliance or diversion before a final determination is made in such 
cases.