[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: 7CFR277.5]

[Page 917]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 277_PAYMENTS OF CERTAIN ADMINISTRATIVE COSTS OF STATE AGENCIES--Table of 
 
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 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.