[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: 7CFR249.11]

[Page 466-467]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 249_SENIOR FARMERS' MARKET NUTRITION PROGRAM (SFMNP)--Table of Contents
 
                    Subpart E_State Agency Provisions
 
Sec.  249.11  Financial management system.

    (a) Disclosure of expenditures. The State agency must maintain a 
financial management system that provides accurate, current and complete 
disclosure of the financial status of the SFMNP. This must include an 
accounting for all property and other assets and all SFMNP funds 
received and expended each fiscal year.
    (b) Internal controls. The State agency shall maintain effective 
controls over and accountability for all SFMNP funds. The State agency 
must have effective internal controls to ensure that expenditures 
financed with SFMNP funds are authorized and properly chargeable to the 
SFMNP.
    (c) Record of expenditures. The State agency must maintain records 
that adequately identify the source and use

[[Page 467]]

of funds expended for SFMNP activities. These records must contain, but 
are not limited to, information pertaining to authorization, receipt of 
funds, obligations, unobligated balances, assets, liabilities, outlays, 
and income.
    (d) Payment of costs. The State agency must implement procedures 
that ensure prompt and accurate payment of allowable costs, and ensure 
the allowability and allocability of costs in accordance with the cost 
principles and standard provisions of this part, part 3016 of this 
title, and FNS guidelines and Instructions.
    (e) Identification of obligated funds. The State agency must 
implement procedures that accurately identify obligated SFMNP funds at 
the time the obligations are made.
    (f) Resolution of audit findings. The State agency shall implement 
procedures that ensure timely and appropriate resolution of claims and 
other matters resulting from audit findings and recommendations.
    (g) Reconciliation of food instruments. The State agency must 
reconcile SFMNP coupons in accordance with Sec.  249.10(h).
    (h) Transfer of cash. The State agency must establish the timing and 
amounts of its cash draws against its Letter of Credit in accordance 
with 31 CFR Part 205.