[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR235.7]

[Page 279-280]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 235_STATE ADMINISTRATIVE EXPENSE FUNDS--Table of Contents
 
Sec. 235.7  Records and reports.

    (a) Each State agency shall keep records on the expenditure of State 
administrative expense funds provided under this part and part 225 of 
this title. Such records shall conform with the applicable State plan 
for use of State administrative expense funds. The State agency shall 
make such records available, upon a reasonable request, to FNS, OIG, or 
the U.S. Comptroller General and shall maintain current accounting 
records of State administrative expense funds which shall adequately 
identify fund authorizations, obligations, unobligated balances, assets, 
liabilities, outlays and income. The records may be kept in their 
original form or on microfilm, and shall be retained for a period of 
three years after the date of the submission of the final Financial 
Status Report, subject to the exceptions noted below:
    (1) If audit findings have not been resolved, the records shall be 
retained beyond the three-year period as long as required for the 
resolution of the issues raised by the audit.
    (2) Records for nonexpendable property acquired with State 
Administrative Expense Funds shall be retained for three years after its 
final disposition.
    (b) Each State agency shall submit to FNS a quarterly Financial 
Status Report (SF-269) on the use of State administrative expense funds 
provided for each fiscal year under this part. Reports shall be 
postmarked and/or submitted to FNS no later than 30 days after the end 
of each quarter of the fiscal year and, in case of funds carried over 
under Sec. 235.6(a), each quarter of the following fiscal year until 
all such funds have been obligated and expended. Obligations shall be 
reported for the fiscal year in which they occur. Each State agency 
shall submit a final Financial Status Report for each fiscal year's 
State administrative expense funds. This report shall be postmarked and/
or submitted to FNS no later than 30 days after the end of the fiscal 
year following the fiscal year for which the funds were initially made 
available. Based on guidance provided by FNS, each State agency shall 
also use the quarterly SF-269 to report on the use of State funds 
provided during the fiscal year. Each State agency shall also submit an 
annual report containing information on School Food Authorities under 
agreement with the State agency to participate in the National School 
Lunch or Commodity School programs.
    (c) State agencies operating those programs governed by parts 210, 
215, 220 and 226 and those State agencies which are distributing 
agencies eligible for SAE funds shall participate in surveys and studies 
of programs authorized

[[Page 280]]

under the National School Lunch Act, as amended, and the Child Nutrition 
Act of 1966, as amended, when such studies and surveys are authorized by 
the Secretary of Agriculture. The aforementioned State agencies shall 
encourage individual School Food Authorities, child and adult care 
institutions, and distributing agencies (as applicable) to participate 
in such studies and surveys. Distribution of State Administrative 
Expense funds to an individual State agency is contingent upon that 
State agency's cooperation in such studies and surveys.

(Sec. 14, Pub. L. 95-166, 91 Stat. 1338 (42 U.S.C. 1776); sec. 7, Pub. 
L. 95-627, 92 Stat. 3621 (42 U.S.C. 1776); 93 Stat. 837, Pub. L. 96-108 
(42 U.S.C. 1776); secs. 804, 816, 817 and 819, Pub. L. 97-35, 95 Stat. 
521-535 (42 U.S.C. 1753, 1756, 1759, 1771, 1773 and 1785); sec. 7(a), 
Pub. L. 95-627, 92 Stat. 3622, 42 U.S.C. 1751)

[41 FR 32405, Aug. 3, 1976, as amended at 43 FR 37173, Aug. 22, 1978; 44 
FR 48958, Aug. 21, 1979; 45 FR 8563, Feb. 8, 1980; Amdt. 9, 48 FR 195, 
Jan. 4, 1983; Amdt. 11, 48 FR 27892, June 17, 1983; Amdt. 12, 49 FR 
18989, May 4, 1984; Amdt. 14, 51 FR 27152, July 30, 1986; Amdt. 17, 55 
FR 1378, Jan. 16, 1990; 60 FR 15463, Mar. 24, 1995]