[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: 7CFR277.5]



[Page 888-889]

 

                          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. 277.5  Methods of payment



    (a) This section sets forth FNS methods for authorizing funds for 

State agencies.

    (b) The ``Letter of Credit'' (LOC) (SF-1193A) is the document by 

which an official of FNS authorizes a State agency to draw funds from 

the United States Treasury. This shall be the preferred method of 

payment for State agencies which receive at least $120,000 per year and 

meet the requirements prescribed in OMB Circular A-102, Attachment J.

    (c) State agencies shall request payment(s) by submitting Request 

for Payment on Letter of Credit and Status of Funds Report (Treasury 

Form SF-183) to the appropriate United



[[Page 889]]



States Treasury Regional Disbursing Office with a copy to FNS.

    (d) State agencies not meeting the requirements for the LOC method 

of payment or failing to meet LOC reporting requirements, including 

those requiring adjustments to cash balances to liquidate amounts owed 

to FNS, shall be provided funds by Treasury check in accordance with the 

provisions of Department of the Treasury Circular 1075.

    (e) Payments for proper charges incurred by State agencies will not 

be withheld unless such payments are suspended or disallowed pursuant to 

Sec. 277.16. When a payment is withheld, payment adjustments will be 

made in accordance with Sec. 277.16. When FNS collects an indebtedness, 

whether due to a disallowance or an offset for amounts which the State 

agency has been billed but which it has failed to pay without cause 

acceptable to FNS, FNS shall provide reasonable notice to the State 

agency, and shall require appropriate accounting adjustment to cash 

balances for which the State agency is accountable to the Federal 

government to liquidate the indebtedness.