[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR247.22]

[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.  247.22  Allocation and disbursement of administrative funds to State 

agencies.

    (a) What must State agencies do to be eligible to receive 
administrative funds? In order to receive administrative funds, the 
State agency must have signed an agreement with FNS to operate the

[[Page 420]]

program, in accordance with Sec.  247.4(a)(1), and must have an approved 
State Plan.
    (b) How does FNS allocate administrative funds to State agencies? 
(1) As required by law, each fiscal year FNS allocates to each State 
agency an administrative grant per assigned caseload slot, adjusted each 
year for inflation.
    (2) For fiscal year 2003, the amount of the grant per assigned 
caseload slot was equal to the per-caseload slot amount provided in 
fiscal year 2001, adjusted by the percentage change between:
    (i) The value of the State and local government price index, as 
published by the Bureau of Economic Analysis of the Department of 
Commerce, for the 12-month period ending June 30, 2001; and
    (ii) The value of that index for the 12-month period ending June 30, 
2002.
    (3) For subsequent fiscal years, the amount of the grant per 
assigned caseload slot is equal to the amount of the grant per assigned 
caseload slot for the preceding fiscal year, adjusted by the percentage 
change between:
    (i) The value of the State and local government price index, as 
published by the Bureau of Economic Analysis of the Department of 
Commerce, for the 12-month period ending June 30 of the second preceding 
fiscal year; and
    (ii) The value of that index for the 12-month period ending June 30 
of the preceding fiscal year.
    (c) How do State agencies access administrative funds? FNS provides 
administrative funds to State agencies on a quarterly basis. Such funds 
are provided by means of a Letter of Credit, unless other funding 
arrangements have been made with FNS. The State agency obtains the funds 
by electronically accessing its Letter of Credit account.

(Approved by the Office of Management and Budget under control number 
0584-0293)