[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR248.11]

[Page 422-423]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 248_WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP)--Table of Contents
 
                    Subpart E_State Agency Provisions
 
Sec.  248.11  Financial management system.

    (a) Disclosure of expenditures. The State agency shall maintain a 
financial management system which provides accurate, current and 
complete disclosure of the financial status of the FMNP. This shall 
include an accounting for all property and other assets and all FMNP 
funds received and expended each fiscal year.
    (b) Internal controls. The State agency shall maintain effective 
controls over and accountability for all FMNP funds. The State agency 
must have effective internal controls to ensure that expenditures 
financed with FMNP funds are authorized and properly chargeable to the 
FMNP.
    (c) Record of expenditures. The State agency shall maintain records 
which adequately identify the source and use

[[Page 423]]

of funds expended for FMNP activities. These records shall contain, but 
are not limited to, information pertaining to authorization, receipt of 
funds, obligations, unobligated balances, assets, liabilities, outlays, 
and income.
    (d) Payment of costs. The State agency shall implement procedures 
which ensure prompt and accurate payment of allowable costs, and ensure 
the allowability and allocability of costs in accordance with the cost 
principles and standard provisions of this part, 7 CFR part 3016, and 
FNS guidelines and Instructions.
    (e) Identification of obligated funds. The State agency shall 
implement procedures which accurately identify obligated FMNP funds at 
the time the obligations are made.
    (f) Resolution of audit findings. The State agency shall implement 
procedures which ensure timely and appropriate resolution of claims and 
other matters resulting from audit findings and recommendations.
    (g) Reconciliation of food instruments. The State agency shall 
reconcile FMNP coupons in accordance with Sec.  248.10(h).
    (h) Transfer of cash. The State agency shall establish the timing 
and amounts of its cash draws against its Letter of Credit in accordance 
with 31 CFR part 205.

[59 FR 11517, Mar. 11, 1994, as amended at 60 FR 49747, Sept. 27, 1995]