[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: 7CFR277.2]



[Page 885-887]

 

                          TITLE 7--AGRICULTURE

 

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

 

PART 277_PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE AGENCIES

--Table of Contents

 

Sec. 277.2  Definitions.



    For the purpose of this part the term:

    Accrued expenditures means the charges incurred by the State agency



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during a given period for liabilities incurred, benefits received or for 

goods and services used during this period.

    Accrued income means the net value of earnings during a given period 

resulting from services and goods provided whether or not payment has 

been realized.

    Acquisition cost refers to nonexpendable personal property acquired 

by purchase and means the net invoice price of the property including 

any attachments, accessories or auxiliary apparatus necessary to make 

the property usable for the purpose for which it was acquired. Ancillary 

charges such as taxes, duty, protection in-transit insurance, freight or 

installation shall be included in or excluded from acquisition cost in 

accordance with the State agency's regular accounting practices.

    Approval or authorization by FNS means documentation evidencing 

consent prior to incurring specific costs.

    Applicable credits refer to those receipts or reduction of 

expenditure-type transactions which offset or reduce expense items 

allocable to programs as direct or indirect costs. Examples of such 

transactions are: Purchase discounts; rebates or allowances; recoveries 

or indemnities on losses; sale of publications, equipment, and scrap; 

income from personal or incidental services; and adjustments of 

overpayments or erroneous charges.

    Disbursements refers to the transfer of funds by the state agency to 

pay for Program costs resulting from purchased or expired goods and 

services.

    Expendable personal property means all tangible personal property 

other than nonexpendable property.

    Program funds means money, or property provided in lieu of money, 

paid for or furnished by FNS to a State agency.

    Funds available to the State agency may include contributions from 

third parties including other Federal agencies.

    In-kind contributions refers to the value of noncash contributions. 

Only when authorized by Federal legislation may property purchased with 

Federal funds be considered as a State agency's in-kind contribution. 

In-kind contributions may be for the value of real and/or nonexpendable 

personal property or the value of goods and services provided 

specifically to the project or program.

    Nonexpendable personal property means tangible personal property 

having a useful life of more than one year and an acquisition cost of 

more than $300 per unit. A State agency may use its own definition of 

nonexpendable personal property provided that such definition would at 

least include all tangible personal property as defined herein.

    Obligations are the amounts of orders placed, contracts awarded, 

services received, and similar transactions during a given period which 

require payment.

    Offset means a method to recover funds due FNS through use of the 

Letter of Credit system. Recovery is accomplished by accounting 

adjustments to increase Federal funds on hand or disbursed.

    OMB means the Office of Management and Budget.

    Personal property means property of any kind except real property. 

It may be tangible (having physical existence) or intangible (having no 

physical existence) such as patents, inventions and copyrights.

    Program means both the Food Stamp Program and the Food Distribution 

Program on Indian Reservations.

    Program closeout means the process by which FNS determines that all 

applicable administrative and financial processes have been completed by 

the State agency and FNS terminates the program in the affected project 

area or areas.

    Project costs are allowable costs as set forth in this part.

    Real property means land, land improvements, structure and 

appurtenances thereto, excluding movable machinery and equipment.

    State agency means the organization as defined in 7 CFR 271.1.

    State agency costs means the State agency outlays from its funds 

available for program administration. Unless authorized by Federal 

legislation, costs charged to other Federal grants or to other Federal 

contracts may not be considered as State agency costs reimbursable under 

this authority.

    Subagency means the organization or person to which a State agency 

makes any payment for acquisition of goods,



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materials or services for use in administering the program and which is 

accountable to the State agency for the use of funds provided.

    Terms and conditions means legal requirements imposed by the Federal 

Government under statute, regulations, contracts, agreements or 

otherwise.

    Unliquidated obligation represents the amount of obligations not yet 

paid.

    Unobligated balance means the portion of the Federal funds 

authorized less all allowable costs and unpaid obligations of the State 

agency.