7 CFR 277.6 - Standards for financial management systems.

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§ 277.6 Standards for financial management systems.

(a) General. This section prescribes standards for financial management systems in administering program funds by the State agency and its subagencies or contractors.

(b) Responsibilities. Financial management systems for program funds in the State agency shall provide for:

(1) Accurate, current, and complete disclosure of the financial results of program activities in accordance with Federal reporting requirements.

(2) Records which identify the source and application of funds for FNS or State agency activities supporting the administration of the Program. These records shall show authorizations, obligations, unobligated balances, assets, liabilities, outlays and income of the State agency, its sub- agencies and agents.

(3) Records which identify unallowable costs and offsets resulting from FNS or other determinations as specified in § 277.16 and the disposition of these amounts. Accounting procedures must be in effect to prevent a State agency from claiming these costs under ongoing program administrative cost reports.

(4) Effective control and accountability by the State agency for all program funds, property, and other assets acquired with program funds. State agencies shall adequately safeguard all such assets and shall assure that they are used solely for program authorized purposes unless disposition has been made in accordance with § 277.13.

(5) Controls which minimize the time between the receipt of Federal funds from the United States Treasury and their disbursement for program costs. In the Letter of Credit system, the State agency shall make drawdowns from the U.S. Treasury through a U.S. Treasury Regional Disbursing Office as nearly as possible to the time of making the disbursements.

(6) Procedures to determine the reasonableness, allowability, and allocability of costs in accordance with the applicable provisions prescribed in OMB Circular A-87 (available on OMB's Web site at http://www.whitehouse.gov/omb/circulars_default/).

(7) Support and source documents for costs.

(8) An audit trail including identification of time periods, initial and summary accounts, cost determination and allocation procedures, cost centers or other accounting procedures to support any costs claimed for program administration.

(9) Periodic audits by qualified individuals who are independent of those who maintain Federal program funds as prescribed in § 277.17.

(10) Methods to resolve audit findings and recommendations and to follow up on corrective or preventive actions.

(c) The standards in § 277.6(b) apply to subagencies or contractors involved with program funding.

[Amdt. 188, 45 FR 85702, Dec. 30, 1980, as amended at 79 FR 11, Jan. 2, 2014]

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].

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United States Code
U.S. Code: Title 7 - AGRICULTURE

§ 2011 - Congressional declaration of policy

§ 2012 - Definitions

§ 2012a - Publicly operated community health centers

§ 2013 - Establishment of supplemental nutrition assistance program

§ 2014 - Eligible households

§ 2015 - Eligibility disqualifications

§ 2016 - Issuance and use of program benefits

§ 2017 - Value of allotment

§ 2018 - Approval of retail food stores and wholesale food concerns

§ 2019 - Redemption of program benefits

§ 2020 - Administration

§ 2021 - Civil penalties and disqualification of retail food stores and wholesale food concerns

§ 2022 - Disposition of claims

§ 2023 - Administrative and judicial review; restoration of rights

§ 2024 - Violations and enforcement

§ 2025 - Administrative cost-sharing and quality control

§ 2026 - Research, demonstration, and evaluations

§ 2027 - Appropriations and allotments

§ 2028 - Consolidated block grants for Puerto Rico and American Samoa

§ 2029 - Workfare

§ 2030 - Repealed. Pub. L. 110–234, title IV, § 4115(b)(14), May 22, 2008, 122 Stat. 1108, and Pub. L. 110–246, § 4(a), title IV, § 4115(b)(14), June 18, 2008, 122 Stat. 1664, 1870

§ 2031 - Minnesota Family Investment Project

§ 2032 - Automated data processing and information retrieval systems

§ 2033 - Repealed. Pub. L. 107–171, title IV, § 4124(b), May 13, 2002, 116 Stat. 326

§ 2034 - Assistance for community food projects

§ 2035 - Simplified supplemental nutrition assistance program

§ 2036 - Availability of commodities for emergency food assistance program