[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: 7CFR246.13]



[Page 371]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 246_SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND 

CHILDREN--Table of Contents

 

                    Subpart E_State Agency Provisions

 

Sec. 246.13  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 Program. This shall 

include an accounting for all property and other assets and all Program 

funds received and expended each fiscal year.

    (b) Internal control. The State agency shall maintain effective 

control over and accountability for all Program grants and funds. The 

State agency must have effective internal controls to ensure that 

expenditures financed with Program funds are authorized and properly 

chargeable to the Program.

    (c) Record of expenditures. The State agency shall maintain records 

which adequately identify the source and use of funds expended for 

Program 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 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 Program 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) Use of minority- and women-owned banks. Consistent with the 

national goals of expanding opportunities for minority business 

enterprises, State and local agencies are encouraged to use minority- 

and women-owned banks.

    (h) Adjustment of expenditures. The State agency must adjust 

projected expenditures to account for redeemed food instruments and for 

other changes as appropriate.

    (i) Transfer of cash. The State agency shall have controls to 

minimize the time elapsing between receipt of Federal funds from the 

U.S. Department of Treasury and the disbursements of these funds for 

Program costs. In the Letter of Credit system, the State agency shall 

make drawdowns from the U.S. Department of Treasury's Regional 

Disbursing Office as close as possible to the actual date that 

disbursement of funds is made. Advances made by the State agency to 

local agencies shall also conform to these same standards.

    (j) Local agency financial management. The State agency shall ensure 

that all local agencies develop and implement a financial management 

system consistent with requirements prescribed by FNS and the State 

agency pursuant to the requirements of this section.



[50 FR 6121, Feb. 13, 1985; 50 FR 8098, Feb. 28, 1985, as amended at 65 

FR 83286, Dec. 29, 2000]