[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: 7CFR275.10]

[Page 834]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 275--PERFORMANCE REPORTING SYSTEM--Table of Contents
 
                 Subpart C--Quality Control (QC) Reviews
 
Sec. 275.10  Scope and purpose.


    (a) As part of the Performance Reporting System, each State agency 
is responsible for conducting quality control reviews. For food stamp 
quality control reviews, a sample of households shall be selected from 
two different categories: Households which are participating in the Food 
Stamp Program (called active cases) and households for which 
participation was denied, suspended or terminated (called negative 
cases). Reviews shall be conducted on active cases to determine if 
households are eligible and receiving the correct allotment of food 
stamps. The determination of whether the household received the correct 
allotment will be made by comparing the eligibility data gathered during 
the review against the amount authorized on the master issuance file. 
Reviews of negative cases shall be conducted to determine whether the 
State agency's decision to deny, suspend or terminate the household, as 
of the review date, was correct. Quality control reviews measure the 
validity of food stamp cases at a given time (the review date) by 
reviewing against the Food Stamp Program standards established in the 
Food Stamp Act and the Regulations, taking into account any FNS 
authorized waivers to deviate from specific regulatory provisions. FNS 
and the State agency shall analyze findings of the reviews to determine 
the incidence and dollar amounts of errors, which will determine the 
State agency's liability for payment errors and eligibility for enhanced 
funding in accordance with the Food Stamp Act of 1977, as amended, and 
to plan corrective action to reduce excessive levels of errors for any 
State agency that is not entitled to enhanced funding.
    (b) The objectives of quality control reviews are to provide:
    (1) A systematic method of measuring the validity of the food stamp 
caseload;
    (2) A basis for determining error rates;
    (3) A timely continuous flow of information on which to base 
corrective action at all levels of administration; and
    (4) A basis for establishing State agency liability for errors that 
exceed the National standard and State agency eligibility for enhanced 
funding.
    (c) The review process is the activity necessary to complete reviews 
and document findings of all cases selected in the sample for quality 
control reviews. The review process shall consist of: (1) Case 
assignment and completion monitoring; (2) case reviews; (3) supervisory 
review of completed worksheets and schedules; and (4) transmission of 
completed worksheets and schedules to the State agency for centralized 
data compilation and analysis.

[Amdt. 149, 44 FR 45893, Aug. 3, 1979, as amended by Amdt. 260, 49 FR 
6304, Feb. 17, 1984; 54 FR 7016, Feb. 15, 1989; Amdt. 328, 56 FR 60051, 
Nov. 27, 1991; Amdt. 373, 64 FR 38294, July 16, 1999]