[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR248.15]

[Page 485-486]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 248_WIC FARMERS' MARKET NUTRITION PROGRAM (FMNP)--Table of Contents
 
                    Subpart E_State Agency Provisions
 
Sec. 248.15  Closeout procedures.

    (a) General. State agencies shall submit to FNS a final closeout 
report for the fiscal year on a form prescribed by FNS on a date 
specified by FNS.
    (b) Grant closeout procedures. When grants to State agencies are 
terminated, the following procedures shall be performed in accordance 
with 7 CFR part 3016.
    (1) FNS may disqualify a State agency's participation under the 
FMNP, in whole or in part, or take such remedies as may be appropriate, 
whenever FNS determines that the State agency

[[Page 486]]

failed to comply with the conditions prescribed in this part, in its 
Federal-State Agreement, or in FNS guidelines and instructions. FNS will 
promptly notify the State agency in writing of the disqualification 
together with the effective date.
    (2) FNS may disqualify the State agency or restrict its 
participation in the FMNP when both parties agree that continuation 
under the FMNP would not produce beneficial results commensurate with 
the further expenditure of funds.
    (3) Upon termination of a grant, the affected agency shall not incur 
new obligations after the effective date of the disqualification, and 
shall cancel as many outstanding obligations as possible. FNS will allow 
full credit to the State agency for the Federal share of the 
noncancellable obligations properly incurred by the State agency prior 
to disqualification, and the State agency shall do the same for farmers/
farmers' markets.
    (4) A grant closeout shall not affect the retention period for, or 
Federal rights of access to, FMNP records as specified in Sec. 
248.24(b) and (c). The closeout of a grant does not affect the 
responsibilities of the State agency regarding property or with respect 
to any FMNP income for which the State agency is still accountable.
    (5) A final audit is not a required part of the grant closeout and 
should not be needed unless there are problems with the grant that 
require attention. If FNS considers a final audit to be necessary, it 
shall so inform OIG. OIG will be responsible for ensuring that necessary 
final audits are performed and for any necessary coordination with other 
Federal cognizant audit agencies or State or local auditors. Audits 
performed in accordance with Sec. 248.18 may serve as final audits 
providing such audits meet the needs of requesting agencies. If the 
grant is closed out without an audit, FNS reserves the right to disallow 
and recover an appropriate amount after fully considering any 
recommended disallowances resulting from an audit which may be conducted 
later.