[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: 7CFR274.9]



[Page 811-812]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 274_ISSUANCE AND USE OF COUPONS--Table of Contents

 

Sec. 274.9  Closeout of a coupon issuer.



    (a) Definition of responsibilities. Whenever the services of a 

coupon issuer or bulk storage point are terminated, the State agency 

shall perform the responsibilities described below. If a coupon issuer 

or bulk storage point has more than one functioning unit and one of 

these facilities is terminated, the coupon issuer or bulk storage point 

shall fulfill the responsibilities described in paragraphs (b) and (c) 

of this section. The coupon issuer or bulk storage point shall notify 

the State agency of the pending termination of any of its



[[Page 812]]



services prior to the actual termination. The State agency shall 

promptly notify FNS as provided in Sec. 274.1(d).

    (b) Closeout accountability. The State agency shall perform a 

closeout audit of a coupon issuer or bulk storage point within 30 days 

of termination of the issuance or storage point. The State agency shall 

report the findings of the audit to FNS immediately upon its completion. 

If the audit determines that the final Form FNS-250 is incorrect, the 

State agency shall promptly provide a corrected report to FNS.

    (c) Transfer of coupon inventory. (1) Prior to the transfer of 

coupon inventory to another coupon issuer or bulk storage point, the 

State agency shall perform an actual physical count of coupons on hand.

    (2) The State agency shall transfer the inventory to another coupon 

issuer or bulk storage point, preferably within the same project area. 

The transfer of coupons shall be properly reported and documented by 

both the point being terminated and the point receiving the inventory.

    (d) Maintenance of participant service. (1) At least 30 days before 

actual termination of a coupon issuer, the State agency shall notify 

project area participants of the impending closure. Notification shall 

include identification of alternative issuance locations and available 

public transportation. The State agency shall post notices at the 

offices of the coupon issuer of the impending closure and may use mass 

media or notices with allotments to advise participants about the 

expected closure of the issuance office.

    (2) If closure of the issuer will affect a substantial portion of 

the caseload or a specific geographic area, the State agency shall take 

whatever action is necessary to maintain participant service without 

interruption.

    (3) If a coupon issuer or bulk storage point is to be closed for 

noncompliance with contractual requirements and alternative issuance 

facilities or systems are not readily available, the State agency may 

continue to use the coupon issuer or bulk storage point for a limited 

time. In this situation, the State agency shall perform weekly onsite 

reconciliations of coupon issuance. The State agency shall continue to 

actively seek other issuance or storage alternatives.