FNS-798 & FNS-648 reg citation

§ 246.24

7 CFR Ch. II (1–1–10 Edition)

§ 246.24 Procurement
management.

and

property

(a) Requirements. State and local
agencies shall ensure that subgrantees
comply with the requirements of 7 CFR
part 3016, the nonprocurement debarment/suspension requirements of 7 CFR
part 3017, and if applicable, the lobbying restrictions as required in 7 CFR
part 3018 concerning the procurement
and allowability of food in bulk lots,
supplies, equipment and other services
with Program funds. These requirements are adopted to ensure that such
materials and services are obtained for
the Program in an effective manner
and in compliance with the provisions
of applicable law and executive orders.
(b) Contractual responsibilities. The
standards contained in A–130 and 7 CFR
part 3016 do not relieve the State or
local agency of the responsibilities
arising under its contracts. The State
agency is the responsible authority,
without recourse to FNS, regarding the
settlement and satisfaction of all contractual and administrative issues arising out of procurements entered into in
connection with the Program. This includes, but is not limited to, disputes,
claims, protests of award, source evaluation, or other matters of a contractual nature. Matters concerning violation of law are to be referred to such
local, State or Federal authority as
may have proper jurisdiction.
(c) State regulations. The State or
local agency may use its own procurement regulations which reflect applicable State and local regulations, provided that procurements made with
Program funds adhere to the standards
set forth in A–130 and 7 CFR part 3016.
(d) Property acquired with Program
funds. State and local agencies shall
observe the standards prescribed in 7
CFR part 3016 in their utilization and
disposition of real property and equipment, including automated data processing equipment, acquired in whole or
in part with Program funds.
[50 FR 6121, Feb. 13, 1985, as amended at 59
FR 11508, Mar. 11, 1994]

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§ 246.25

Records and reports.

(a) Recordkeeping requirements. Each
State and local agency shall maintain
full and complete records concerning

Program operations. Such records shall
comply with 7 CFR part 3016 and the
following requirements:
(1) Records shall include, but not be
limited to, information pertaining to
financial operations, food delivery systems, food instrument issuance and redemption, equipment purchases and inventory, certification, nutrition education, civil rights and fair hearing
procedures.
(2) All records shall be retained for a
minimum of three years following the
date of submission of the final expenditure report for the period to which the
report pertains. If any litigation,
claim, negotiation, audit or other action involving the records has been
started before the end of the three-year
period, the records shall be kept until
all issues are resolved, or until the end
of the regular three-year period, whichever is later. If FNS deems any of the
Program records to be of historical interest, it may require the State or
local agency to forward such records to
FNS whenever either agency is disposing of them.
(3) Records for nonexpendable property acquired in whole or in part with
Program funds shall be retained for
three years after its final disposition.
(4) All records shall be available during normal business hours for representatives of the Department and the
Comptroller General of the United
States to inspect, audit, and copy. Any
reports or other documents resulting
from the examination of such records
that are publicly released may not include confidential applicant or participant information.
(b) Financial and participation reports—(1) Monthly reports. (i) State
agencies must submit financial and
program performance data on a monthly basis, as specified by FNS, to support program management and funding
decisions. Such information must include, but may not be limited to:
(A) Actual and projected participation;
(B) Actual and projected food funds
expenditures;
(C) A listing by source year of food
and NSA funds available for expenditure; and,
(D) NSA expenditures and unliquidated obligations.

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Food and Nutrition Service, USDA

§ 246.26

(ii) State agencies must require local
agencies to report such financial and
participation information as is necessary for the efficient management of
food and NSA funds expenditures.
(2) Annual reports. (i) Every year,
State agencies must report to FNS the
average number of migrant farmworker
household members participating in
the Program during a 12-month period
of time specified by FNS.
(ii) State agencies must submit
itemized NSA expenditure reports annually as an addendum to their WIC
Program closeout reports, as required
by § 246.17(b)(2).
(3) Biennial reports. (i) Participant
characteristics report. State and local
agencies must provide such information as may be required by FNS to provide a biennial participant characteristics report. This includes, at a minimum, information on income and nutritional risk characteristics of participants, information on breastfeeding incidence and duration, and participation
in the Program by category (i.e., pregnant, breastfeeding and postpartum
women, infants and children) within
each priority level (as established in
§ 246.7(e)(4)) and by migrant farmworker households.
(ii) Civil rights report. Racial and ethnic participation data contained in the
biennial participant characteristics report will also be used to fulfill civil
rights reporting requirements.
(c) Other reports. State agencies must
submit reports to reflect additions and
deletions of local agencies administering the WIC Program and local
agency address changes as these events
occur.
(d) Source documentation. To be acceptable for audit purposes, all financial and Program performance reports
shall be traceable to source documentation.
(e) Certification of reports. Financial
and Program reports shall be certified
as to their completeness and accuracy
by the person given that responsibility
by the State agency.
(f) Use of reports. FNS will use State
agency reports to measure progress in
achieving objectives set forth in the
State Plan, and this part, or other
State agency performance plans. If it is
determined, through review of State

agency reports, Program or financial
analysis, or an audit, that a State
agency is not meeting the objectives
set forth in its State Plan, FNS may
request additional information including, but not limited to, reasons for failure to achieve its objectives.
(g) Extension of reporting deadline.
FNS may extend the due date for any
Financial and Participation Report
upon receiving a justified request from
the State agency. The State agency
should not wait until the due date if an
extension is to be requested, but should
submit the request as soon as the need
is known. Failure by a State agency to
submit a report by its due date may result in appropriate enforcement actions by FNS in accordance with
§ 246.19(a)(2), including withholding of
further grant payments, suspension or
termination of the grant.
[50 FR 6121, Feb. 13, 1985, as amended at 52
FR 21238, June 4, 1987; 53 FR 15653, May 3,
1988; 59 FR 11508, Mar. 11, 1994; 65 FR 53528,
Sept. 5, 2000; 71 FR 56731, Sept. 27, 2006; 72 FR
24183, May 2, 2007]

§ 246.26

Other provisions.

(a) No aid reduction. The value of benefits or assistance available under the
Program shall not be considered as income or resources of participants or
their families for any purpose under
Federal, State, or local laws, including,
but not limited to, laws relating to
taxation, welfare and public assistance
programs.
(b) Statistical information. FNS reserves the right to use information obtained under the Program in a summary, statistical or other form which
does not identify particular individuals.
(c) Medical information. FNS may require the State or local agencies to
supply medical data and other information collected under the Program in a
form that does not identify particular
individuals, to enable the Secretary or
the State agencies to evaluate the effect of food intervention upon low-income individuals determined to be at
nutritional risk.
(d) Confidentiality of applicant and
participant information—(1) WIC purposes. (i) Confidential applicant and

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