[Code of Federal Regulations]

[Title 7, Volume 4]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR235.8]



[Page 274-275]

 

                          TITLE 7--AGRICULTURE

 

    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 235_STATE ADMINISTRATIVE EXPENSE FUNDS--Table of Contents

 

Sec. 235.8  Management evaluations and audits.



    (a) Each State agency shall provide for audits of State agency 

operations under this part to be made with reasonable frequency, but 

beginning in fiscal year 1978 once every two years. The audits shall 

determine the fiscal integrity of financial transactions and reports, 

and the compliance with applicable laws and regulations and with the 

administrative requirements set forth in 7 CFR part 3015. Audits may be 

made by State Auditors General, by State Controllers, or other 

comparable State audit groups, or by Certified Public Accountants or 

State licensed public accountants.

    (b) Each State agency shall develop a plan for the conduct of such 

audits which shall (1) provide a description of the State agency in 

adequate detail to demonstrate the independence of the audit 

organization, and (2) provide a systematic method to assure timely and 

appropriate resolution of audit findings and recommendations.

    (c) While OA shall rely to the fullest extent feasible upon State 

sponsored audits, it shall, whenever considered necessary, (1) perform 

on-site test audits, and (2) review audit reports and related working 

papers of audits performed by or for State agencies.

    (d) Use of audit guides available from OA is encouraged. When these 

guides are utilized, OA will coordinate its audits with State sponsored 

audits to form a network of intergovernmental audit systems.

    (e) Each State agency shall provide FNS with full opportunity to 

conduct management evaluations of all operations of the State agency 

under this part and shall provide OA with full opportunity to conduct 

audits of all such operations. Each State agency shall make available 

its records, including records of the receipt and expenditure of funds, 

upon a reasonable request by



[[Page 275]]



FNS, OA, or the U.S. Comptroller General.



(Sec. 7, Pub. L. 95-627, 92 Stat. 3621 (42 U.S.C. 1776); secs. 804, 805, 

812, 814, 816, 817 and 819, Pub. L. 97-35, 95 Stat. 521-535 (42 U.S.C. 

1753, 1754, 1756, 1759, 1759a, 1771, 1773, 1774, 1776, and 1785))



[41 FR 32405, Aug. 3, 1976, as amended at 44 FR 51186, Aug. 31, 1979; 

Amdt. 7, 47 FR 18567, Apr. 30, 1982; Amdt. 9, 48 FR 195, Jan. 4, 1983; 

54 FR 2991, Jan. 23, 1989]