[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: 7CFR274.11]

[Page 815]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 274_ISSUANCE AND USE OF COUPONS--Table of Contents
 
Sec. 274.11  Issuance and inventory record retention, and forms 
security.

    (a) Availability of records. The State agency shall maintain 
issuance, inventory, reconciliation, and other accountability records 
for a period of three years as specified in Sec. 272.1(f) of this 
chapter. This period may be extended at the written request of FNS.
    (1) Issuance, inventory, reconciliation, and other accountability 
records shall include all Agency, State, and local forms involved in the 
State agency's receipt, storage, handling, issuance, and destruction of 
coupons completed by contract agents or any other individuals or 
entities involved in issuance or inventory, as well as those completed 
by the State agency.
    (2) In lieu of the records themselves, easily retrievable microfilm, 
microfiche, or computer tapes which contain the required information may 
be maintained.
    (b) Control of issuance documents. The State agency shall control 
all issuance documents which establish household eligibility while the 
documents are transferred and processed within the State agency. The 
State agency shall use numbers, batching, inventory control logs, or 
similar controls from the point of initial receipt through the issuance 
and reconciliation process. The State agency shall also ensure the 
security and control of authorization documents in transit from the 
manufacturer to the State agency.
    (c) Accountable documents. (1) HIR cards, authorization documents, 
and mandated Photo ID cards shall be considered accountable documents. 
The State agency shall provide the following minimum security and 
control procedures for these documents:
    (i) Preprinted serial numbers;
    (ii) Secure storage;
    (iii) Access limited to authorized personnel;
    (iv) Bulk inventory control records;
    (v) Subsequent control records maintained through the point of 
issuance or use, and
    (vi) Periodic review and validation of inventory controls and 
records by parties not otherwise involved in maintaining control 
records.
    (2) For notices of change which initiate, update or terminate the 
master issuance file, and blank ID cards, the State agency shall, at a 
minimum, provide secure storage and shall limit access to authorized 
personnel.

[54 FR 7004, Feb. 15, 1989, as amended at 60 FR 20183, Apr. 25, 1995]