[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: 7CFR248.15]



[Page 438-439]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 248_WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP)--Table of Contents

 

                    Subpart E_State Agency Provisions

 

Sec. 248.15  Closeout procedures.



    (a) General. State agencies shall submit to FNS a final closeout 

report for the fiscal year on a form prescribed by FNS on a date 

specified by FNS.

    (b) Grant closeout procedures. When grants to State agencies are 

terminated, the following procedures shall be performed in accordance 

with 7 CFR part 3016.

    (1) FNS may disqualify a State agency's participation under the 

FMNP, in whole or in part, or take such remedies as may be appropriate, 

whenever FNS determines that the State agency failed to comply with the 

conditions prescribed in this part, in its Federal-State Agreement, or 

in FNS guidelines and instructions. FNS will promptly notify the State 

agency in writing of the disqualification together with the effective 

date.

    (2) FNS may disqualify the State agency or restrict its 

participation in the FMNP when both parties agree that continuation 

under the FMNP would not produce beneficial results commensurate with 

the further expenditure of funds.

    (3) Upon termination of a grant, the affected agency shall not incur 

new obligations after the effective date of the disqualification, and 

shall cancel as many outstanding obligations as possible. FNS will allow 

full credit to the State agency for the Federal share of the 

noncancellable obligations properly incurred by the State agency prior 

to disqualification, and the State agency shall do the same for farmers/

farmers' markets.



[[Page 439]]



    (4) A grant closeout shall not affect the retention period for, or 

Federal rights of access to, FMNP records as specified in Sec. 

248.24(b) and (c). The closeout of a grant does not affect the 

responsibilities of the State agency regarding property or with respect 

to any FMNP income for which the State agency is still accountable.

    (5) A final audit is not a required part of the grant closeout and 

should not be needed unless there are problems with the grant that 

require attention. If FNS considers a final audit to be necessary, it 

shall so inform OIG. OIG will be responsible for ensuring that necessary 

final audits are performed and for any necessary coordination with other 

Federal cognizant audit agencies or State or local auditors. Audits 

performed in accordance with Sec. 248.18 may serve as final audits 

providing such audits meet the needs of requesting agencies. If the 

grant is closed out without an audit, FNS reserves the right to disallow 

and recover an appropriate amount after fully considering any 

recommended disallowances resulting from an audit which may be conducted 

later.