[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: 7CFR247.27]

[Page 422]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec.  247.27  Financial management.

    (a) What are the Federal requirements for State and local agencies 
with regard to financial management? State and local public agencies 
must maintain a financial management system that complies with the 
Federal regulations contained in part 3016 of this title, while 
nonprofit organizations must comply with the Federal regulations 
contained in part 3019 of this title. The State agency's financial 
management system must provide accurate, current, and complete 
disclosure of the financial status of the program, including an 
accounting of all program funds received and expended each fiscal year. 
The State agency must ensure that local agencies develop and implement a 
financial management system that allows them to meet Federal 
requirements.
    (b) What are some of the major components of the State agency's 
financial management system? In addition to other requirements, the 
State agency's financial management system must provide for:
    (1) Prompt and accurate payment of allowable costs;
    (2) Timely disbursement of funds to local agencies;
    (3) Timely and appropriate resolution of claims and audit findings; 
and
    (4) Maintenance of records identifying the receipt and use of 
administrative funds, funds recovered as a result of claims actions, 
program income (as defined under Sec.  247.25(e)), and property and 
other assets procured with program funds.