[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: 7CFR247.34]

[Page 427]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec.  247.34  Management reviews.

    (a) What must the State agency do to ensure that local agencies meet 
program requirements and objectives? The State agency must establish a 
management review system to ensure that local agencies, subdistributing 
agencies, and other agencies conducting program activities meet program 
requirements and objectives. As part of the system, the State agency 
must perform an on-site review of all local agencies, and of all storage 
facilities utilized by local agencies, at least once every two years. As 
part of the on-site review, the State agency must evaluate all aspects 
of program administration, including certification procedures, nutrition 
education, civil rights compliance, food storage practices, inventory 
controls, and financial management systems. In addition to conducting 
on-site reviews, the State agency must evaluate program administration 
on an ongoing basis by reviewing financial reports, audit reports, food 
orders, inventory reports, and other relevant information.
    (b) What must the State agency do if it finds that a local agency is 
deficient in a particular area of program administration? The State 
agency must record all deficiencies identified during the review and 
institute follow-up procedures to ensure that local agencies and 
subdistributing agencies correct all deficiencies within a reasonable 
period of time. To ensure improved program performance in the future, 
the State agency may require that local agencies adopt specific review 
procedures for use in reviewing their own operations and those of 
subsidiaries or contractors. The State agency must provide copies of 
review reports to FNS upon request.

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