[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: 7CFR247.27]



[Page 417]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents

 

Sec. 247.27  Financial management.



    (a) What are the Federal requirements for State and local agencies 

with regard to financial management? State and local public agencies 

must maintain a financial management system that complies with the 

Federal regulations contained in part 3016 of this title, while 

nonprofit organizations must comply with the Federal regulations 

contained in part 3019 of this title. The State agency's financial 

management system must provide accurate, current, and complete 

disclosure of the financial status of the program, including an 

accounting of all program funds received and expended each fiscal year. 

The State agency must ensure that local agencies develop and implement a 

financial management system that allows them to meet Federal 

requirements.

    (b) What are some of the major components of the State agency's 

financial management system? In addition to other requirements, the 

State agency's financial management system must provide for:

    (1) Prompt and accurate payment of allowable costs;

    (2) Timely disbursement of funds to local agencies;

    (3) Timely and appropriate resolution of claims and audit findings; 

and

    (4) Maintenance of records identifying the receipt and use of 

administrative funds, funds recovered as a result of claims actions, 

program income (as defined under Sec. 247.25(e)), and property and 

other assets procured with program funds.