[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: 7CFR249.17]

[Page 511-513]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 249_SENIOR FARMERS' MARKET NUTRITION PROGRAM (SFMNP)--Table of Contents
 
            Subpart F_Monitoring and Review of State Agencies
 
Sec. 249.17  Management evaluations and reviews.


    (a) General. FNS and each State agency shall establish a management 
evaluation system in order to assess the accomplishment of SFMNP 
objectives as provided under these regulations, the State Plan, and the 
written agreement with FNS. FNS will:

[[Page 512]]

    (1) Provide assistance to State agencies in discharging this 
responsibility;
    (2) Establish standards and procedures to determine how well the 
objectives of this Part are being accomplished; and
    (3) Implement sanction procedures as warranted by State SFMNP 
performance.
    (b) Responsibilities of FNS. FNS will establish evaluation 
procedures to determine whether State agencies carry out the purposes 
and provisions of this part, the State Plan, and the written agreement 
with FNS. As a part of the evaluation procedure, FNS will review audits 
to ensure that the SFMNP has been included in audit examinations at a 
reasonable frequency. These evaluations shall also include reviews of 
selected local agencies, and on-site reviews of selected farmers, 
farmers' markets, roadside stands, and community supported agriculture 
programs. These evaluations will measure the State agency's progress 
toward meeting the objectives outlined in its State Plan and the State 
agency's compliance with these regulations.
    (1) FNS may withhold up to 10 percent of the State agency's total 
SFMNP grant if FNS determines that the State agency has:
    (i) Failed, without good cause, to demonstrate efficient and 
effective administration of its SFMNP; or
    (ii) Failed to comply with the requirements contained in this 
section or the State Plan.
    (2) Sanctions imposed upon a State agency by FNS in accordance with 
this section (but not claims for repayment assessed against a State 
agency) may be appealed in accordance with the procedures established in 
Sec. 249.20(a). Before carrying out any sanction against a State 
agency, the following procedures will be followed:
    (i) FNS will notify the chief departmental officer of the 
administering agency in writing of the deficiencies found and of FNS' 
intention to withhold administrative funds unless an acceptable 
corrective action plan is submitted by the State agency to FNS within 45 
days after mailing of notification.
    (ii) The State agency shall develop a corrective action plan, 
including timeframes for implementation to address the deficiencies and 
prevent their future recurrence.
    (iii) If the corrective action plan is acceptable, FNS will notify 
the chief departmental officer of the administering agency in writing 
within 30 days of receipt of the plan. The letter will advise the State 
agency of the sanctions to be imposed if the corrective action plan is 
not implemented according to the schedule set forth in the approved 
plan.
    (iv) Upon notification from the State agency that corrective action 
has been taken, FNS will assess such action and, if necessary, perform a 
follow-up review to determine if the noted deficiencies have been 
corrected. FNS will then advise the State agency of whether the actions 
taken are in compliance with the corrective action plan, and whether the 
deficiency is resolved or further corrective action is needed. 
Compliance buys can be required if, during FNS management evaluations by 
regional offices, a State agency is found to be out of compliance with 
its responsibility to monitor and review farmers, farmers' markets, 
roadside stands, and community supported agriculture programs.
    (v) If an acceptable corrective action plan is not submitted within 
45 days, or if corrective action is not completed according to the 
schedule established in the corrective action plan, FNS may withhold the 
award of SFMNP administrative funds. If the 45-day warning period ends 
in the fourth quarter of a fiscal year, FNS may elect not to withhold 
funds until the next fiscal year. In such an event, FNS will notify the 
chief departmental officer of the administering State agency.
    (vi) If compliance is achieved before the end of the fiscal year in 
which the SFMNP administrative funds are withheld, the funds withheld 
may be restored to the State agency. FNS is not required to restore 
funds withheld beyond the end of the fiscal year for which the funds 
were initially awarded.
    (c) Responsibilities of State agencies. The State agency is 
responsible for meeting the following requirements:
    (1) The State agency must establish evaluation and review procedures 
and

[[Page 513]]

document the results of such procedures. The procedures must include, 
but are not limited to:
    (i) Conducting annual monitoring reviews of participating farmers' 
markets, roadside stands, and community supported agriculture programs. 
This includes on-site reviews of a minimum of 10 percent of farmers and 
10 percent of each type of authorized outlet (farmers' markets, roadside 
stands, and community supported agriculture programs), and includes 
those farmers and authorized outlets identified as being at the highest 
risk. The first year of operation in the SFMNP shall be considered a 
high-risk indicator. More frequent reviews may be performed, as the 
State agency deems necessary. In States where both the SFMNP and the WIC 
Farmers' Market Nutrition Program are in operation, these reviews may be 
coordinated to avoid duplication. A review by one program may be counted 
by the other program toward the monitoring requirement, provided that 
appropriate sanction action is taken for all violations found.
    (ii) Conducting monitoring reviews of all local agencies within the 
State agency's jurisdiction at least once every 2 years. Monitoring of 
local agencies shall encompass, but not be limited to, evaluation of 
management, accountability, certification, nutrition education, 
financial management systems, and coupon and/or CSA program management 
systems. When the State agency conducts a local agency review outside of 
the SFMNP season, a review of documents and procedural plans of the 
SFMNP, rather than actual SFMNP activities, is acceptable.
    (iii) Instituting the necessary follow-up procedures to correct 
identified problem areas.
    (2) On its own initiative or when required by FNS, the State agency 
must provide special reports on SFMNP activities, and take positive 
action to correct deficiencies in SFMNP operations.