[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2009]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR249.15]

[Page 509-510]
 
                          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. 249.15  Closeout procedures.

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

[[Page 510]]

the disqualification together with the effective date.
    (2) FNS may terminate a grant when both parties agree that 
continuation under the SFMNP would not produce beneficial results 
commensurate with the further expenditure of funds.
    (3) Upon termination of a grant, the affected agency may not incur 
new obligations after the effective date of the disqualification, and 
must 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, roadside stands, and/or CSA programs.
    (4) A grant closeout shall not affect the retention period for, or 
Federal rights of access to, SFMNP records as specified in Sec. 
249.23(a). The closeout of a grant does not affect the responsibilities 
of the State agency regarding property or with respect to any SFMNP 
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. 249.18 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.