[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: 7CFR277.9]

[Page 877]
 
                          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. 277.9  Administrative costs principles.

    (a) This section prescribes specific policies and procedures 
governing State agencies for funding under this part.
    (b) The incremental cost of certifying TANF households for Food 
Stamp Program benefits are allowable costs for FNS reimbursement.
    (c) When costs for administering the program are claimed for 
reimbursement, the audit trail must identify the specific activities, 
locations, or time periods as defined in this section.
    (1) Direct cost. Allowable direct costs may be charged to the Food 
Stamp Program at the 50 percent or higher funding level as specified in 
this part.
    (2) Indirect cost. Allowable indirect costs may also be claimed at 
the 50 percent or higher reimbursement funding level as specified in 
this part and appendix A.
    (3) Direct and indirect costs claimed for program cost reimbursement 
must be incurred for the time periods, the activities or for the 
locations for which the rates are approved by FNS.
    (d) All State agency Cost Allocation Plans for determining the costs 
of administering the program must be approved by the cognizant Federal 
agency. All Cost Allocation Plans involving program funds shall be 
submitted to FNS for review.

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