[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: 7CFR247.31]



[Page 419-420]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents

 

Sec. 247.31  Audits and investigations.



    (a) What is the purpose of an audit? The purpose of an audit is to 

ensure that:

    (1) Financial operations are properly conducted;

    (2) Financial reports are fairly presented;

    (3) Proper inventory controls are maintained; and

    (4) Applicable laws, regulations, and administrative requirements 

are followed.

    (b) When may the Department conduct an audit or investigation of the 

program? The Department may conduct an audit of the program at the State 

or local agency level at its discretion, or may investigate an 

allegation that the State or local agency has not complied with Federal 

requirements. An investigation may include a review of any State or 

local agency policies or practices related to the specific area of 

concern.

    (c) What are the responsibilities of the State agency in responding 

to an audit by the Department? In responding to an audit by the 

Department, the State agency must:

    (1) Provide access to any records or documents compiled by the State 

or local agencies, or contractors; and

    (2) Submit a response or statement to FNS describing the actions 

planned or taken in response to audit findings or recommendations. The 

corrective action plan must include time frames for implementation and 

completion of actions. FNS will determine if actions or planned actions 

adequately respond to the program deficiencies identified in the audit. 

If additional actions are needed, FNS will schedule a follow-up review 

and allow sufficient time for further corrective actions. The State 

agency may also take exception to particular audit findings or 

recommendations.

    (d) When is a State or local agency audit required? State and local 

agency audits must be conducted in accordance with part 3052 of this 

title, which contains the Department's regulations pertaining to audits 

of States, local governments, and nonprofit organizations. The value of 

CSFP commodities distributed by the agency or organization must be 

considered part of the Federal award.

    (e) What are the requirements for State or local agency audits? 

State and local agency audits must be conducted in accordance with the 

requirements of part 3052 of this title, which contains the Department's 

regulations pertaining to audits of States, local governments, and 

nonprofit organizations. The State agency must ensure that local 

agencies



[[Page 420]]



meet the audit requirements. The State agency must ensure that all State 

or local agency audit reports are available for FNS review.



(Approved by the Office of Management and Budget under control number 

0584-0293)