Appendix F - 7 CFR Part 247

Pt. 247

7 CFR Ch. II (1–1–22 Edition)

by the Office of Management and Budget pursuant to the Paperwork Reduction Act of 1980, Pub. L. 96–511.
7 CFR part 246 section where requirements
are described

Current
OMB control
no.

.4(a) (8), (9), (11) ...............................................
.5 ........................................................................
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.20(a) .................................................................
.25(a), (b) ...........................................................

0584–0386
0584–0043
0584–0043
0584–0386
0584–0043
0584–0386
0584–A536
0584–A536
0584–0386
0584–0043
0584–0043
0584–0043
0584–0043
0584–0043
0584–0043
0584–0043
0584–0043,
0584–0347

[50 FR 6121, Feb. 13, 1985, as amended at 53
FR 15653, May 3, 1988; 54 FR 51295, Dec. 14,
1989; 58 FR 11507, Feb. 26, 1993]

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PART 247—COMMODITY
SUPPLEMENTAL FOOD PROGRAM
Sec.
247.1 Definitions.
247.2 The purpose and scope of CSFP.
247.3 Administering agencies.
247.4 Agreements.
247.5 State and local agency responsibilities.
247.6 State Plan.
247.7 Selection of local agencies.
247.8 Individuals applying to participate in
CSFP.
247.9 Eligibility requirements.
247.10 Distribution and use of CSFP commodities.
247.11 Applicants exceed caseload levels.
247.12 Rights and responsibilities.
247.13 Provisions for non-English or limitedEnglish speakers.
247.14 Other public assistance programs.
247.15 Notification of eligibility or ineligibility of applicant.
247.16 Certification period.
247.17 Notification of discontinuance of participant.
247.18 Nutrition education.
247.19 Dual participation.
247.20 Program violations.
247.21 Caseload assignment.
247.22 Allocation and disbursement of administrative funds to State agencies.
247.23 State provision of administrative
funds to local agencies.
247.24 Recovery and redistribution of caseload and administrative funds.

247.25 Allowable uses of administrative
funds and other funds.
247.26 Return of administrative funds.
247.27 Financial management.
247.28 Storage and inventory of commodities.
247.29 Reports and recordkeeping.
247.30 Claims.
247.31 Audits and investigations.
247.32 Termination of agency participation.
247.33 Fair hearings.
247.34 Management reviews.
247.35 Local agency appeals of State agency
actions.
247.36 Confidentiality of applicants or participants.
247.37 Civil rights requirements.
AUTHORITY: Sec. 5, Pub. L. 93–86, 87 Stat.
249, as added by Sec. 1304(b)(2), Pub. L. 95–113,
91 Stat. 980 (7 U.S.C. 612c note); sec. 1335,
Pub. L. 97–98, 95 Stat. 1293 (7 U.S.C. 612c
note); sec. 209, Pub. L. 98–8, 97 Stat. 35 (7
U.S.C. 612c note); sec. 2(8), Pub. L. 98–92, 97
Stat. 611 (7 U.S.C. 612c note); sec. 1562, Pub.
L. 99–198, 99 Stat. 1590 (7 U.S.C. 612c note);
sec. 101(k), Pub. L. 100–202; sec. 1771(a), Pub.
L. 101–624, 101 Stat. 3806 (7 U.S.C. 612c note);
sec 402(a), Pub. L. 104–127, 110 Stat. 1028 (7
U.S.C. 612c note); sec. 4201, Pub. L. 107–171,
116 Stat. 134 (7 U.S.C. 7901 note); sec. 4221,
Pub. L. 110–246, 122 Stat. 1886 (7 U.S.C. 612c
note); sec. 4221, Pub. L. 113–79, 7 U.S.C. 612c
note).
SOURCE: 70 FR 47063, Aug. 11, 2005, unless
otherwise noted.

§ 247.1 Definitions.
Following is a list of definitions that
apply to the Commodity Supplemental
Food Program (CSFP).
2 CFR part 200, means the Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards published by OMB. The
part reference covers applicable: Acronyms and Definitions (subpart A), General Provisions (subpart B), Post Federal Award Requirements (subpart D),
Cost Principles (subpart E), and Audit
Requirements (subpart F). (NOTE: PreFederal Award Requirements and Contents of Federal Awards (subpart C)
does not apply to the National School
Lunch Program).
Applicant means any person who applies to receive program benefits. Applicants include program participants
applying for recertification.
Caseload means the number of persons the State agency may serve on an
average monthly basis over the course
of the caseload cycle.

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Food and Nutrition Service, USDA

§ 247.2

Caseload cycle means the period from
January 1 through the following December 31.
Certification means the use of procedures to determine an applicant’s eligibility for the program.
Certification period means the period
during which a CSFP participant may
continue to receive benefits under
CSFP without a formal review of eligibility.
Commodities means nutritious foods
purchased by USDA to supplement the
diets of CSFP participants.
CSFP means the Commodity Supplemental Food Program.
Department means the U.S. Department of Agriculture.
Disqualification means the act of ending Program participation of a participant as a punitive sanction.
Dual participation means the simultaneous participation by an individual in
CSFP at more than one distribution
site.
Elderly persons means persons at least
60 years of age.
Fiscal year means the period from October 1 through the following September 30.
FNS means the Food and Nutrition
Service.
Local agency means a public or private nonprofit agency, including an Indian tribal organization, which enters
into an agreement with the State agency to administer CSFP at the local
level.
Nonprofit agency means a private
agency or organization with tax-exempt status under the Internal Revenue Code, or that has applied for taxexempt status with the Internal Revenue Service.
Proxy means any person designated
by a participant, or by the participant’s adult parent or caretaker, to obtain supplemental foods on behalf of
the participant.
7 CFR part 250 means the Department’s regulations pertaining to the
donation of foods for use in USDA food
distribution programs.
State means any of the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the
Trust Territory of the Pacific Islands,
and the Northern Mariana Islands.

State agency means the agency designated by the State to administer
CSFP at the State level; an Indian
tribe or tribal organization recognized
by the Department of the Interior that
administers the program for a specified
tribe or tribes; or, the appropriate area
office of the Indian Health Service of
the Department of Health and Human
Services.
State Plan means the document that
describes the manner in which the
State agency intends to administer the
program in the State.
Subdistributing agency means an agency or organization that has entered
into an agreement with the State agency to perform functions normally performed by the State, such as entering
into agreements with eligible recipient
agencies under which commodities are
made available, ordering commodities
and/or making arrangements for the
storage and delivery of such commodities on behalf of eligible recipient
agencies.
USDA implementing regulations include the following: 2 CFR part 400,
Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards; 2 CFR part
415, General Program Administrative
Regulations; 2 CFR part 416, General
Program Administrative Regulations
for Grants and Cooperative Agreements
to State and Local Governments; and 2
CFR part 418, New Restrictions on Lobbying.
[70 FR 47063, Aug. 11, 2005, as amended at 81
FR 66495, Sept. 28, 2016; 85 FR 68721, Oct. 30,
2020]

§ 247.2 The
CSFP.

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(a) How does CSFP help participants?
Through CSFP, the Department provides nutritious commodities to help
State and local agencies meet the nutritional needs of low-income elderly
persons. CSFP also helps State and
local agencies meet the nutritional
needs of women, infants, and children
who were certified and receiving CSFP
benefits as of February 6, 2014. Food
packages include such nutritious foods
as canned fruits and vegetables, canned
meat, poultry and other protein items,
and grain products such as pasta, as

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§ 247.3

7 CFR Ch. II (1–1–22 Edition)

well as other foods. Participants are offered the opportunity to receive nutrition education.
(b) How many persons may be served in
CSFP? State agencies may serve eligible persons up to the caseload limit assigned to them by FNS. Caseload is the
number of persons that may be served
on an average monthly basis over the
course of the caseload cycle, which extends from January 1 through the following December 31.

local agencies, in accordance with
§ 247.34.
(c) What Federal requirements must
State, subdistributing, and local agencies
follow in administering CSFP? State,
subdistributing, and local agencies
must administer the program in accordance with the provisions of this
part, and with the provisions contained
in part 250 of this chapter, unless they
are inconsistent with the provisions of
this part.

[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38750, July 9, 2014; 85 FR 68721, Oct. 30,
2020]

§ 247.4

§ 247.3 Administering agencies.
(a) What agencies are responsible for
administering CSFP? CSFP is administered at the Federal level by the Department’s Food and Nutrition Service
(FNS), which provides commodities, assigns caseload, and allocates administrative funds to State agencies. State
agencies are responsible for administering the program at the State level.
The State agency may select local
agencies to administer the program in
local areas of the State. The State
agency must provide guidance to local
agencies on all aspects of program operations. The State agency may also
select subdistributing agencies (e.g.,
another State agency, a local governmental agency, or a nonprofit organization) to distribute or store commodities, or to perform other program
functions on behalf of the State agency. Local or subdistributing agencies
may also select other agencies to perform specific program functions (e.g.,
food distribution or storage), with the
State agency’s approval. Although the
State agency may select other organizations to perform specific activities,
the State agency is ultimately responsible for all aspects of program administration.
(b) Are there specific functions that the
State agency cannot delegate to another
agency? Yes. The State agency may not
delegate the performance of the following functions to another agency:
(1) Establishing eligibility requirements, in accordance with the options
provided to the State agency under
§ 247.9; or
(2) Establishing a management review system and conducting reviews of

Agreements.

(a) What agreements are necessary for
agencies to administer CSFP? The following agreements are necessary for
agencies to administer CSFP:
(1) Agreements between FNS and State
agencies. Each State agency must enter
into an agreement with FNS (Form
FNS–74, the Federal-State Agreement)
prior to receiving commodities or administrative funds;
(2) Agreements between State agencies
and local or subdistributing agencies. The
State agency must enter into written
agreements with local or subdistributing agencies prior to making commodities or administrative funds available to them. The agreements must
contain the information specified in
paragraph (b) of this section. Agreements between State and local agencies must also contain the information
specified in paragraph (c) of this section. Copies of all agreements must be
kept on file by the parties to the agreements; and
(3) Agreements between local and subdistributing agencies and other agencies.
The State agency must ensure that
local and subdistributing agencies
enter into written agreements with
other agencies prior to making commodities or administrative funds available to these other agencies. The agreements must contain the information
specified in paragraph (b) of this section. Copies of all agreements must be
kept on file by the parties to the agreements.
(b) What are the required contents of
agreements? All agreements described
under paragraphs (a)(2) and (a)(3) of
this section must contain the following:

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Food and Nutrition Service, USDA

§ 247.5

(1) An assurance that each agency
will administer the program in accordance with the provisions of this part
and with the provisions of part 250 of
this chapter, unless they are inconsistent with the provisions of this part;
(2) An assurance that each agency
will maintain accurate and complete
records for a period of three years from
the close of the fiscal year to which
they pertain, or longer if the records
are related to unresolved claims actions, audits, or investigations;
(3) A statement that each agency receiving commodities for distribution is
responsible for any loss resulting from
improper distribution, or improper
storage, care, or handling of commodities;
(4) A statement that each agency receiving program funds is responsible
for any misuse of program funds;
(5) A description of the specific functions that the State, subdistributing,
or local agency is delegating to another agency; and
(6) A statement specifying:
(i) That either party may terminate
the agreement by written notice to the
other; and
(ii) The minimum number of days of
advance notice that must be given.
(The advance notification period must
be at least 30 days.)
(c) What other assurances or information must be included in agreements between State and local agencies? In addition to the requirements under paragraph (b) of this section, agreements
between State and local agencies must
contain the following:
(1) An assurance that the local agency will provide, or cause to be provided,
nutrition education to participants, as
required in § 247.18;
(2) An assurance that the local agency will provide information to participants on other health, nutrition, and
public assistance programs, and make
referrals as appropriate, as required in
§ 247.14;
(3) An assurance that the local agency will distribute commodities in accordance with the approved food package guide rate;
(4) An assurance that the local agency will take steps to prevent and detect
dual participation, as required in
§ 247.19;

(5) The names and addresses of all
certification, distribution, and storage
sites under the jurisdiction of the local
agency; and
(6) An assurance that the local agency will not subject any person to discrimination under the program on the
grounds of race, color, national origin,
age, sex, or disability.
(d) What is the duration of required
agreements? Agreements between FNS
and State agencies are considered permanent, but may be amended at the
initiation of State agencies or at the
request of FNS. All amendments must
be approved by FNS. The State agency
establishes the duration of agreements
it signs with local agencies or subdistributing agencies. The State agency may establish, or permit the local
or subdistributing agency to establish,
the duration of agreements between
local or subdistributing agencies and
other agencies. However, State and
local agencies must comply with the
requirements in § 250.4 of this chapter
when entering into agreements with
other entities.
(Approved by the Office of Management and
Budget under control numbers 0584–0067,
0584–0293)
[70 FR 47063, Aug. 11, 2005, as amended at 85
FR 68721, Oct. 30, 2020]

§ 247.5 State and local agency responsibilities.
State and local agencies are responsible for administering the program in
accordance with the provisions of this
part, and with the provisions of part
250 of this chapter, as applicable. Although the State agency may delegate
some responsibilities to another agency, the State agency is ultimately responsible for all aspects of program administration. The following is an outline of the major responsibilities of
State and local agencies; it is not intended to be all-inclusive.
(a) What are the major responsibilities
shared by State and local agencies? The
major responsibilities shared by State
and local agencies include:
(1) Entering into required agreements;
(2) Ordering commodities for distribution;
(3) Storing and distributing commodities;

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§ 247.6

7 CFR Ch. II (1–1–22 Edition)

(4) Establishing procedures for resolving complaints about commodities;
(5) Complying with civil rights requirements;
(6) Maintaining accurate and complete records; and
(7) Conducting program outreach.
(b) What are the major State agency responsibilities? The major responsibilities of State agencies include:
(1) Completing and submitting the
State Plan;
(2) Selecting local agencies to administer the program in local areas of the
State;
(3) Determining caseload needs, and
submitting caseload requests to FNS;
(4) Assigning caseload, and allocating
administrative funds, to local agencies;
(5) Establishing eligibility requirements, in accordance with the options
provided to the State agency under
§ 247.9. (This function may not be delegated to another agency.);
(6) Establishing nutritional risk criteria and a residency requirement for
participants, if such criteria are to be
used;
(7) Establishing a financial management system that effectively accounts
for funds received for program administration;
(8) Developing a plan for the detection and prevention of dual participation, in coordination with CSFP local
agencies;
(9) Developing a plan for providing
nutrition education to participants;
(10) Establishing appeals and fair
hearing procedures for local agencies
and program participants;
(11) Developing a management review
system and conducting reviews of local
agencies. (This function may not be
delegated to another agency.);
(12)
Determining
and
pursuing
claims, and establishing standards for
pursuit of claims against participants;
(13) Ensuring compliance with Federal audit requirements;
(14) Providing guidance to local agencies, as needed; and
(15) Ensuring that program participation does not exceed the State agency’s
caseload allocation on an average
monthly basis.
(c) What are the major local agency responsibilities? The major local agency
responsibilities include:

(1) Determining eligibility of applicants in accordance with eligibility
criteria established by the State agency;
(2) Complying with fiscal and operational requirements established by
the State agency;
(3) Ensuring that participation does
not exceed the caseload assigned by the
State agency;
(4) Issuing foods to participants in
accordance with the established food
package guide rates;
(5) Providing nutrition education and
information on the availability of
other nutrition and health assistance
programs to participants;
(6) Informing applicants of their
rights and responsibilities in the program;
(7) Meeting the special needs of the
homebound elderly, to the extent possible; and
(8) Pursuing claims against participants.
[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38750, July 9, 2014; 85 FR 68721, Oct. 30,
2020]

§ 247.6 State Plan.
(a) What is the State Plan? The State
Plan is a document that describes how
the State agency will operate CSFP
and the caseload needed to serve eligible applicants. The State agency must
submit the State Plan to FNS for approval. Once submitted and approved,
the State Plan is considered permanent, with amendments submitted at
the State agency’s initiative, or at
FNS request. All amendments are subject to FNS approval. The State Plan
may be submitted in the format provided in FNS guidance, in an alternate
format, or in combination with other
documents required by Federal regulations. The State Plan must be signed
by the State agency official responsible
for program administration. A copy of
the State Plan must be kept on file at
the State agency for public inspection.
(b) When must the State Plan be submitted? The State Plan must be submitted by August 15 to take effect for
the fiscal year beginning in the following October. FNS will provide notification of the approval or disapproval
of the State Plan within 30 days of receipt, and will notify the State agency

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Food and Nutrition Service, USDA

§ 247.7

within 15 days of receipt if additional
information is needed. Disapproval of
the Plan will include a reason for the
disapproval. Approval of the Plan is a
prerequisite to the assignment of caseload and allocation of administrative
funds, but does not ensure that caseload and funds will be provided.
(c) What must be included in the State
Plan? The State Plan must include:
(1) The names and addresses of all
local agencies and subdistributing
agencies with which the State agency
has entered into agreement;
(2) The income eligibility standards
and the options to be used relating to
income or other eligibility requirements, as provided under § 247.9;
(3) The nutritional risk criteria to be
used, if the State chooses to establish
such criteria;
(4) A description of plans for serving
participants and the caseload needed to
serve them;
(5) A description of plans for conducting outreach to the elderly;
(6) A description of the system for
storing and distributing commodities;
(7) A description of plans for providing nutrition education to participants;
(8) A description of the means by
which the State agency will detect and
prevent dual participation;
(9) A description of the standards the
State agency will use in determining if
the pursuit of a claim against a participant is cost-effective;
(10) A description of the means by
which the State will meet the needs of
the homebound elderly; and
(11) Copies of all agreements entered
into by the State agency.
(12) The length of the State agency’s
certification period.
(d) When must the State agency submit
amendments to the State Plan? The State
agency must submit amendments to
FNS to reflect any changes in program
operations or administration described
in the State Plan, and to request additional caseload for the following caseload cycle. FNS may also require that
the State Plan be amended to reflect
changes in Federal law or policy. The
State agency may submit amendments
to the State Plan at any time during
the fiscal year, for FNS approval. The
amendments will take effect imme-

diately upon approval, unless otherwise
specified by FNS. If a State agency
would like to receive additional caseload for the caseload cycle beginning
the following January 1, it must submit an amendment to the Plan which
conveys the request for additional
caseload by November 5. The State
agency must also describe in this submission any plans for serving participants at new sites. FNS action on the
State agency’s request for additional
caseload is part of the caseload assignment process, as described under
§ 247.21.
(Approved by the Office of Management and
Budget under control number 0584–0293)
[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38750, July 9, 2014; 85 FR 68721, Oct. 30,
2020]

§ 247.7

Selection of local agencies.

(a) How does a local agency apply to
participate in CSFP? Local agencies
wishing to participate in CSFP must
submit a written application to the
State agency. The application must describe how the local agency will operate the program and, for nonprofit
agencies, must include the agency’s
tax-exempt status. To be eligible to
participate in CSFP, a nonprofit agency must have tax-exempt status under
the Internal Revenue Code (IRC), or
have applied for tax-exempt status
with the Internal Revenue Service
(IRS), and be moving towards such status. Nonprofit agencies organized or
operated exclusively for religious purposes are automatically tax-exempt
under the IRC. Nonprofit agencies required to obtain tax-exempt status
must provide documentation from the
IRS that they have obtained such status, or have applied for it.
(b) On what basis does the State agency
make a decision on the local agency’s application? The State agency must approve or disapprove the local agency’s
application based on, at minimum, the
following criteria:
(1) The ability of the local agency to
operate the program in accordance
with Federal and State requirements;
(2) The need for the program in the
projected service area of the local
agency;

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§ 247.8

7 CFR Ch. II (1–1–22 Edition)

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(3) The resources available (caseload
and funds) for initiating a program in
the local area; and
(4) For nonprofit agencies, the taxexempt status, with appropriate documentation.
(c) What must the State agency do if a
nonprofit agency approved for CSFP is
subsequently denied tax-exempt status by
the IRS, or does not obtain this status
within a certain period of time? In accordance with paragraph (a) of this section, the State agency may approve a
nonprofit agency that has applied to
the IRS for tax-exempt status, and is
moving toward compliance with the requirements for recognition of tax-exempt status. However, if the IRS subsequently denies a participating agency’s
application for recognition of tax-exempt status, the agency must immediately notify the State agency of the
denial. The State agency must terminate the agency’s agreement and participation immediately upon notification. If documentation of recognition
of tax-exempt status is not received
within 180 days of the effective date of
the agency’s approval to participate in
CSFP, the State agency must terminate the agency’s participation until
such time as recognition of tax-exempt
status is obtained. However, the State
agency may grant an extension of 90
days if the agency demonstrates that
its inability to obtain tax-exempt status in the 180-day period is due to circumstances beyond its control.
(d) How much time does the State agency have to make a decision on the local
agency’s application? The State agency
must inform the local agency of approval or denial of the application
within 60 days of its receipt. If the application is denied, the State agency
must provide a written explanation for
the denial, along with notification of
the local agency’s right to appeal the
decision, in accordance with § 247.35. If
the application is approved, the State
and local agency must enter into an
agreement in accordance with the requirements of § 247.4.
(Approved by the Office of Management and
Budget under control number 0584–0293)

§ 247.8 Individuals applying to participate in CSFP.
(a) What information must individuals
applying to participate in CSFP provide?
To apply for or to be recertified for
CSFP benefits, the applicant or caretaker of the applicant must provide the
following information on the application:
(1) Name and address, including some
form of identification for each applicant;
(2) Household income;
(3) Household size; and
(4) Other information related to eligibility, such as age
(b) What else is required on the application form? The application form must
include a nondiscrimination statement
that informs the applicant that program standards are applied without
discrimination by race, color, national
origin, age, sex, or disability. After informing the applicant or caretaker of
the applicant of his or her rights and
responsibilities, in accordance with
§ 247.12, the local agency must ensure
that the applicant or caretaker signs
the application form beneath the following pre-printed statement. The
statement must be read by, or to, the
applicant or caretaker before signing.
‘‘This application is being completed
in connection with the receipt of Federal assistance. Program officials may
verify information on this form. I am
aware that deliberate misrepresentation may subject me to prosecution
under applicable State and Federal
statutes. I am also aware that I may
not receive CSFP benefits at more than
one CSFP site at the same time. Furthermore, I am aware that the information provided may be shared with
other organizations to detect and prevent dual participation. I have been advised of my rights and obligations
under the program. I certify that the
information I have provided for my eligibility determination is correct to the
best of my knowledge.
I authorize the release of information provided on this application form to other organizations administering assistance programs
for use in determining my eligibility for participation in other public assistance programs and for program outreach purposes.
(Please indicate decision by placing a checkmark in the appropriate box.)
YES [ ]

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Food and Nutrition Service, USDA
NO [

§ 247.10

]’’

(Approved by the Office of Management and
Budget under control number 0584–0293)
[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38750, July 9, 2014; 85 FR 68721, Oct. 30,
2020]

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§ 247.9

Eligibility requirements.

(a) Who is eligible for CSFP? To be eligible for CSFP, individuals must be at
least 60 years of age and meet the income eligibility requirements outlined
in paragraph (b) of this section.
(b) What are the income eligibility requirements for CSFP applicants? The
State agency must use a household income limit at or below 130 percent of
the Federal Poverty Income Guidelines. Elderly persons in households
with income at or below this level
must be considered eligible for CSFP
benefits (assuming they meet other requirements contained in this part).
However, elderly persons certified before September 17, 1986 (i.e., under the
three elderly pilot projects) must remain subject to the eligibility criteria
in effect at the time of their certification.
(c) When must the State agency revise
the CSFP income guidelines to reflect the
annual adjustments of the Federal Poverty Income Guidelines? Each year, FNS
will notify State agencies, by memorandum, of adjusted income guidelines
by household size at 130 percent and 100
percent of the Federal Poverty Income
Guidelines. The memorandum will reflect the annual adjustments to the
Federal Poverty Income Guidelines
issued by the Department of Health
and Human Services. The State agency
must implement the adjusted guidelines immediately upon receipt of the
memorandum.
(d) How is income defined and considered as it relates to CSFP eligibility? (1)
Income means gross income before deductions for such items as income
taxes, employees’ social security taxes,
insurance premiums, and bonds.
(2) The State agency may exclude
from
consideration
the
following
sources of income listed under the regulations for the Special Supplemental
Nutrition Program for Women, Infants,
and Children at § 246.7(d)(2)(iv) of this
chapter:

(i) Any basic allowance for housing
received by military services personnel
residing off military installations; and
(ii) The value of inkind housing and
other inkind benefits.
(3) The State agency must exclude
from consideration all income sources
excluded by legislation, which are listed in § 246.7(d)(2)(iv)(D) of this chapter.
FNS will notify State agencies of any
new forms of income excluded by statute through program policy memoranda.
(4) The State agency may authorize
local agencies to consider the household’s average income during the previous 12 months and current household
income to determine which more accurately reflects the household’s status.
In instances in which the State makes
the decision to authorize local agencies
to determine a household’s income in
this manner, all local agencies must
comply with the State’s decision and
apply this method of income determination in situations in which it is
warranted.
(e) What other options does the State
agency have in establishing eligibility requirements for CSFP? (1) The State
agency may require that an individual
be at nutritional risk, as determined
by a physician or by local agency staff.
(2) The State agency may require
that an individual reside within the
service area of the local agency at the
time of application for CSFP benefits.
However, the State agency may not require that an individual reside within
the area for any fixed period of time.
[85 FR 68721, Oct. 30, 2020]

§ 247.10 Distribution and use of CSFP
commodities.
(a) What are the requirements for distributing CSFP commodities to participants? The local agency must distribute a package of commodities to
participants each month, or a twomonth supply of commodities to participants every other month, in accordance with the food package guide rates
established by FNS.
(b) What must the local agency do to
ensure that commodities are distributed
only to CSFP participants? The local
agency must require each participant,
or participant’s proxy, to present some

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§ 247.11

7 CFR Ch. II (1–1–22 Edition)

form of identification before distributing commodities to that person.
(c) What restrictions apply to State and
local agencies in the distribution of CSFP
commodities? State and local agencies
must not require, or request, that participants make any payments, or provide any materials or services, in connection with the receipt of CSFP commodities. State and local agencies
must not use the distribution of CSFP
commodities as a means of furthering
the political interests of any person or
party.
(d) What are the restrictions for the use
of CSFP commodities? CSFP commodities may not be used for outreach, refreshments, or for any purposes other
than distribution to, and nutrition education for, CSFP participants.
§ 247.11 Applicants
levels.

exceed

caseload

(a) What must the local agency do if the
number of applicants exceeds the local
agency’s caseload level? If all caseload
has been filled, the local agency must
maintain a waiting list of individuals
who apply for the program. In establishing the waiting list, the local agency must include the date of application
and information necessary to allow the
local agency to contact the applicant
when caseload space becomes available.
Unless they have been determined ineligible, applicants must be notified of
their placement on a waiting list within 10 days of their request for benefits
in accordance with § 247.15.
(b) What are the requirements for serving individuals on the waiting list once
caseload slots become available? The local
agency must certify eligible individuals from the waiting list consistent
with civil rights requirements at
§ 247.37. For example, a local agency
may certify eligible individuals from
the waiting list based on the date the
application was received on a firstcome, first-served basis.
[70 FR 47063, Aug. 11, 2005, as amended at 75
FR 5879, Feb. 5, 2010]

kpayne on VMOFRWIN702 with $$_JOB

§ 247.12

Rights and responsibilities.

(a) What information regarding an individual’s rights in CSFP must the local
agency provide to the applicant? The
local agency is responsible for inform-

ing the applicant, orally or in writing,
of the following:
(1) The local agency will provide notification of a decision to deny or terminate CSFP benefits, and of an individual’s right to appeal this decision by
requesting a fair hearing, in accordance with § 247.33(a);
(2) The local agency will make nutrition education available to all participants and will encourage them to participate; and
(3) The local agency will provide information on other nutrition, health,
or assistance programs, and make referrals as appropriate.
(b) What information regarding an individual’s responsibilities in CSFP must the
local agency provide to the applicant? In
addition to the written statement required by § 247.8(b), the local agency is
responsible for informing the applicant, orally or in writing, of the following:
(1) Improper use or receipt of CSFP
benefits as a result of dual participation or other program violations may
lead to a claim against the individual
to recover the value of the benefits,
and may lead to disqualification from
CSFP; and
(2) Participants must report changes
in household income or composition
within 10 days after the change becomes known to the household.
[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014; 85 FR 68721, Oct. 30,
2020]

§ 247.13 Provisions for non-English or
limited-English speakers.
(a) What must State and local agencies
do to ensure that non-English or limitedEnglish speaking persons are aware of
their rights and responsibilities in the program? If a significant proportion of the
population in an area is comprised of
non-English or limited-English speaking persons with a common language,
the State agency must ensure that
local agencies inform such persons of
their rights and responsibilities in the
program, as listed under § 247.12, in an
appropriate language. State and local
agencies must ensure that bilingual
staff members or interpreters are
available to serve these persons.
(b) What must State and local agencies
do to ensure that non-English or limited-

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Food and Nutrition Service, USDA

§ 247.16

English speaking persons are aware of
other program information? If a significant proportion of the population in an
area is comprised of non-English or
limited-English speaking persons with
a common language, the State agency
must ensure that local agencies provide other program information, except
application forms, to such persons in
their appropriate language.

length of the certification period. Notification of ineligibility must be in
writing, and must include the reason
the applicant is not eligible, a statement of the individual’s right to a fair
hearing to appeal the decision, and a
statement that informs the applicant
that program standards are applied
without discrimination by race, color,
national origin, age, sex, or disability.

§ 247.14 Other public assistance programs.
(a) What information on other public
assistance programs must the local agency
provide to applicants? The local agency
must provide applicants with written
information on the following programs,
and make referrals, as appropriate:
(1) Supplemental security income
benefits provided under Title XVI of
the Social Security Act (42 U.S.C. 1381
et seq.);
(2) Medical assistance provided under
Title XIX of the Social Security Act (42
U.S.C. 1396 et seq.), including medical
assistance provided to a qualified Medicare beneficiary (42 U.S.C. 1395(p) and
1396d(5)); and
(3) The Supplemental Nutrition Assistance Program (7 U.S.C. 2011 et seq.).
(b) Is the value of CSFP benefits counted as income or resources for any other
public assistance programs? No. The
value of benefits received in CSFP may
not be considered as income or resources of participants or their families for any purpose under Federal,
State, or local laws, including laws relating to taxation and public assistance programs.

§ 247.16

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[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014; 85 FR 68721, Oct. 30,
2020]

§ 247.15 Notification of eligibility or ineligibility of applicant.
(a) What is the timeframe for notifying
an applicant of eligibility or ineligibility
for CSFP benefits? Local agencies must
notify applicants of their eligibility or
ineligibility for CSFP benefits, or their
placement on a waiting list, within 10
days from the date of application.
(b) What must be included in the notification of eligibility or ineligibility? The
notification of eligibility must include
information on the time, location, and
means of food distribution, and the

Certification period.

(a) How long is the certification period—(1) Minimum certification period.
The State agency must establish certification periods that are not less than
one year but not more than three years
in duration. If the State agency chooses to establish a certification period
that exceeds one year, the State must
first receive approval from FNS by submitting a State Plan amendment. FNS
shall approve State requests for a certification period exceeding one year on
the condition that, on an annual basis,
local agencies do the following:
(i) Verify the address and continued
interest of the participant; and
(ii) Have sufficient reason to determine that the participant still meets
the income eligibility standards, which
may include a determination that the
participant has a fixed income.
(2) Temporary certification. An eligible
CSFP applicant, including individuals
on waiting lists, may be provided with
a temporary monthly certification to
fill any caseload slot resulting from
nonparticipation by certified participants.
(3) Recertification. Participants must
be recertified following the application
procedures outlined at § 247.8 in order
to continue receiving program benefits
beyond the expiration of their certification period.
(b) On what day of the final month
does the certification period end? The certification period extends to the final
day of the month in which eligibility
expires.
(c) Does the certification period end
when a participant moves from the local
area in which he or she was receiving
benefits? No. The State agency must ensure that local agencies serve a CSFP
participant who moves from another
area to an area served by CSFP and

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§ 247.17

7 CFR Ch. II (1–1–22 Edition)

whose certification period has not expired. The participant must be given
the opportunity to continue to receive
CSFP benefits for the duration of the
certification period. If the local agency
has a waiting list, the participant must
be placed on its waiting list ahead of
all other waiting applicants. The local
agency that determined the participant’s
eligibility
must
provide
verification of the expiration date of
the certification period to the participant upon request.
(d) What must the local agency do to
ensure that participants are aware of the
expiration of the certification period? The
local agency must notify program participants in writing at least 15 days before the expiration date that eligibility
for the program is about to expire. The
local agency must include a statement
in the written notification that informs the applicant that program
standards are applied without discrimination by race, color, national origin,
age, sex, or disability.
(Approved by the Office of Management and
Budget under control number 0584–0293)
[70 FR 47063, Aug. 11, 2005, as amended at 75
FR 5879, Feb. 5, 2010; 79 FR 38751, July 9, 2014;
85 FR 68722, Oct. 30, 2020]

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§ 247.17 Notification of discontinuance
of participant.
(a) What must a local agency do if it
has evidence that a participant is no
longer eligible for CSFP benefits during
the certification period? If a local agency
has evidence that a participant is no
longer eligible for CSFP benefits during the certification period, it must
provide the participant with a written
notification of discontinuance at least
15 days before the effective date of discontinuance.
(b) What must a local agency do if it
has to discontinue a participant from participation in the program prior to the end
of the certification period due to the lack
of resources necessary to continue providing benefits to the participant? If a
local agency does not have sufficient
resources, such as a sufficient number
of caseload slots, to continue providing
benefits to the participant(s) for the
entire certification period, it must provide the participant(s) with a written
notification of discontinuance at least

15 days before the effective date of discontinuance.
(c) What must be included in the notification of discontinuance? The notification of discontinuance must include
the effective date of discontinuance,
the reason for the participant’s discontinuance, a statement of the individual’s right to appeal the discontinuance through the fair hearing process,
in accordance with § 247.33(a), and a
statement that informs the applicant
that program standards are applied
without discrimination by race, color,
national origin, age, sex, or disability.
§ 247.18

Nutrition education.

(a) What are the State agency’s responsibilities in ensuring that nutrition education is provided? The State agency
must establish an overall nutrition
education plan and must ensure that
local agencies provide nutrition education to participants in accordance
with the plan. The State agency may
allow local agencies to share personnel
and educational resources with other
programs in order to provide the best
nutrition education possible to participants. The State agency must establish
an evaluation procedure to ensure that
the nutrition education provided is effective. The evaluation procedure must
include participant input and must be
directed by a nutritionist or other
qualified professional. The evaluation
may be conducted by the State or local
agency, or by another agency under
agreement with the State or local
agency.
(b) What type of nutrition education
must the local agency provide? The local
agency must provide nutrition education that can be easily understood by
participants and is related to their nutritional needs and household situations. The local agency must provide
nutrition education that includes the
following information, which should
account for specific ethnic and cultural
characteristics whenever possible:
(1) The nutritional value of CSFP
foods, and their relationship to the
overall dietary needs of the population
groups served;
(2) Nutritious ways to use CSFP
foods;

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Food and Nutrition Service, USDA

§ 247.20

(3) Special nutritional needs of participants and how these needs may be
met;
(4) The importance of health care,
and the role nutrition plays in maintaining good health; and
(5) The importance of the use of the
foods by the participant to whom they
are distributed, and not by another
person.
(c) To whom must local agencies provide
nutrition education? The local agency
must make nutrition education available to all participants.
(d) May CSFP foods be used in cooking
demonstrations? Yes. The State or local
agency, or another agency with which
it has signed an agreement, may use
CSFP foods to conduct cooking demonstrations as part of the nutrition
education provided to program participants, but not for other purposes.

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[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014; 85 FR 68722, Oct. 30,
2020]

§ 247.19 Dual participation.
(a) What must State and local agencies
do to prevent and detect dual participation? The State agency must work with
local agencies to prevent and detect
dual participation. The State agency
must work with local agencies to prevent and detect dual participation. In
accordance with § 247.8(a)(1), the local
agency must check the identification
of all applicants when they are certified or recertified. In accordance with
§ 247.8(b), the local agency must ensure
that the applicant or caretaker of the
applicant signs an application form
which includes a statement advising
the applicant that he or she may not
receive CSFP benefits at more than
one CSFP site at the same time.
(b) What must the local agency do if a
CSFP participant is found to be committing dual participation? A participant
found to be committing dual participation must be discontinued from participation at more than one CSFP site. In
accordance with § 247.20(b), if the dual
participation resulted from the participant or caretaker of the participant
making false or misleading statements,
or intentionally withholding information, the local agency must disqualify
the participant from CSFP, unless the
local agency determines that disquali-

fication would result in a serious
health risk. The local agency must also
initiate a claim against the participant
to recover the value of CSFP benefits
improperly received, in accordance
with § 247.30(c). Whenever an individual’s participation in CSFP is discontinued, the local agency must notify
the individual of the discontinuance, in
accordance with § 247.17. The individual
may appeal the discontinuance through
the fair hearing process, in accordance
with § 247.33(a).
(Approved by the Office of Management and
Budget under control number 0584–0293)
[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014; 85 FR 68722, Oct. 30,
2020]

§ 247.20

Program violations.

(a) What are program violations in
CSFP? Program violations are actions
taken by CSFP applicants or participants, or caretakers of applicants or
participants, to obtain or use CSFP
benefits improperly. Program violations include the following actions:
(1) Intentionally making false or misleading statements, orally or in writing;
(2) Intentionally withholding information pertaining to eligibility in
CSFP;
(3) Selling commodities obtained in
the program, or exchanging them for
non-food items;
(4) Physical abuse, or threat of physical abuse, of program staff; or
(5) Committing dual participation.
(b) What are the penalties for committing program violations? If applicants or
participants, or caretakers of applicants or participants, commit program
violations, the State agency may require local agencies to disqualify the
applicants or participants for a period
of up to one year. However, if the local
agency determines that disqualification would result in a serious health
risk, the disqualification may be
waived. For program violations that
involve fraud, the State agency must
require local agencies to disqualify the
participant from CSFP for a period of
up to one year, unless the local agency
determines that disqualification would
result in a serious health risk. The

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§ 247.21

7 CFR Ch. II (1–1–22 Edition)

State agency must require local agencies to permanently disqualify a participant who commits three program
violations that involve fraud. For purposes of this program, fraud includes:
(1) Intentionally making false or misleading statements to obtain CSFP
commodities;
(2) Intentionally withholding information to obtain CSFP commodities;
or
(3) Selling CSFP commodities, or exchanging them for non-food items.
(c) What must the local agency do to
notify the individual of disqualification
from CSFP? The local agency must provide the individual with written notification of disqualification from CSFP
at least 15 days before the effective
date of disqualification. The notification must include the effective date
and period of disqualification, the reason for the disqualification, and a
statement that the individual may appeal the disqualification through the
fair hearing process, in accordance
with § 247.33(a).

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[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014]

§ 247.21 Caseload assignment.
(a) How does FNS assign caseload to
State agencies? Each year, FNS assigns
a caseload to each State agency to
allow persons meeting the eligibility
criteria listed under § 247.9 to participate in the program, up to the caseload
limit. To the extent that resources are
available, FNS assigns caseload to
State agencies in the following order:
(1) Base caseload. The State agency
may not receive base caseload in excess
of its total caseload assigned for the
previous caseload cycle. Base caseload
is determined in the following manner:
(i) Each State agency entering its
second year of program participation
receives base caseload equal to the
amount assigned to it in its first year
of participation; and
(ii) A State agency that has participated in two or more caseload cycles
receives base caseload equal to the
highest of:
(A) Average monthly participation
for the previous fiscal year; or
(B) Average monthly participation
for the last quarter of the previous fiscal year; or

(C) Participation during September
of the previous fiscal year, but only if:
(1) The full-year appropriation for
the preceding fiscal year was enacted
on or after February 15; and
(2) The State agency received additional caseload equal to or greater
than 10 percent of its base caseload in
the previous caseload cycle; and
(3) October participation in the current fiscal year was equal to or greater
than 95 percent of September participation in the previous fiscal year.
(2) Additional caseload. Each participating State agency may request additional caseload to increase program
participation. Eligibility for and assignment of additional caseload are determined in the following manner:
(i) A State agency entering its second
year of program participation qualifies
to receive additional caseload if the
State achieved a participation level
which was equal to or greater than 95
percent of assigned caseload for the
previous caseload cycle, based on the
highest of:
(A) Average monthly participation
for the previous fiscal year; or
(B) Average monthly participation
for the last quarter of the previous fiscal year; or
(C) Participation during September
of the previous fiscal year, but only if:
(1) The full-year appropriation for
the preceding fiscal year was enacted
on or after February 15; and
(2) October participation in the current fiscal year was equal to or greater
than 95 percent of September participation in the previous fiscal year.
(ii) A State agency that has participated in two or more caseload cycles
qualifies to receive additional caseload
if the State achieved a participation
level which was equal to or greater
than 95 percent of assigned caseload for
the previous caseload cycle, based on
the highest of:
(A) Average monthly participation
for the previous fiscal year; or
(B) Average monthly participation
for the last quarter of the previous fiscal year; or
(C) Participation during September
of the previous fiscal year, but only if:
(1) The full-year appropriation for
the preceding fiscal year was enacted
on or after February 15; and

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kpayne on VMOFRWIN702 with $$_JOB

Food and Nutrition Service, USDA

§ 247.22

(2) The State agency received additional caseload equal to or greater
than 10 percent of its base caseload in
the previous caseload cycle; and
(3) October participation in the current fiscal year was equal to or greater
than 95 percent of September participation in the previous fiscal year.
(iii) Of each eligible State agency’s
request for additional caseload, FNS
assigns an amount that it determines
the State needs and can efficiently utilize. In making this determination,
FNS considers the factors listed below,
in descending order of importance. If
all reasonable requests for additional
caseload cannot be met, FNS assigns it
to those States that are most likely to
utilize it. The factors are:
(A) The percentage of caseload utilized by the State in the previous fiscal
year;
(B) Program participation trends in
the State in previous fiscal years; and
(C) Other information provided by
the State agency in support of the request.
(3) New caseload. Each State agency
requesting to begin participation in the
program, and with an approved State
Plan, may receive caseload to serve the
elderly, as requested in the State Plan.
Of the State agency’s caseload request,
FNS assigns caseload in an amount
that it determines the State needs and
can efficiently utilize. This determination is made based on information contained in the State Plan and on other
relevant information. However, if all
caseload requests cannot be met, FNS
will assign caseload to those States
that are most likely to utilize it.
(b) When does FNS assign caseload to
State agencies? FNS must assign caseload to State agencies by December 31
of each year, or within 30 days after enactment of appropriations legislation
covering the full fiscal year, whichever
comes later. Caseload assignments for
the previous caseload cycle will remain
in effect, subject to the availability of
sufficient funding, until caseload assignments are made for the current
caseload cycle.
(c) How do State agencies request additional caseload for the next caseload
cycle? In accordance with § 247.6(d), a
State agency that would like additional caseload for the next caseload

cycle (beginning the following January
1) must submit a request for additional
caseload by November 5, as an amendment to the State Plan. The State
agency must also describe plans for
serving participants at new sites in
this submission.
[70 FR 47063, Aug. 11, 2005, as amended at 75
FR 5879, Feb. 5, 2010; 79 FR 38751, July 9, 2014]

§ 247.22 Allocation and disbursement
of administrative funds to State
agencies.
(a) What must State agencies do to be
eligible to receive administrative funds? In
order to receive administrative funds,
the State agency must have signed an
agreement with FNS to operate the
program,
in
accordance
with
§ 247.4(a)(1), and must have an approved
State Plan.
(b) How does FNS allocate administrative funds to State agencies? (1) As required by law, each fiscal year FNS allocates to each State agency an administrative grant per assigned caseload
slot, adjusted each year for inflation.
(2) For fiscal year 2003, the amount of
the grant per assigned caseload slot
was equal to the per-caseload slot
amount provided in fiscal year 2001, adjusted by the percentage change between:
(i) The value of the State and local
government price index, as published
by the Bureau of Economic Analysis of
the Department of Commerce, for the
12-month period ending June 30, 2001;
and
(ii) The value of that index for the 12month period ending June 30, 2002.
(3) For subsequent fiscal years, the
amount of the grant per assigned caseload slot is equal to the amount of the
grant per assigned caseload slot for the
preceding fiscal year, adjusted by the
percentage change between:
(i) The value of the State and local
government price index, as published
by the Bureau of Economic Analysis of
the Department of Commerce, for the
12-month period ending June 30 of the
second preceding fiscal year; and
(ii) The value of that index for the 12month period ending June 30 of the preceding fiscal year.
(c) How do State agencies access administrative funds? FNS provides administrative funds to State agencies on a

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§ 247.23

7 CFR Ch. II (1–1–22 Edition)

quarterly basis. Such funds are provided by means of a Letter of Credit,
unless other funding arrangements
have been made with FNS. The State
agency obtains the funds by electronically accessing its Letter of Credit account.
(Approved by the Office of Management and
Budget under control number 0584–0293)

§ 247.23 State provision of administrative funds to local agencies.
(a) How much of the administrative
funds must State agencies provide to local
agencies for their use? The State agency
must provide to local agencies for their
use all administrative funds it receives, except that the State agency
may retain for its own use the amount
determined by the following formula:
(1) 15 percent of the first $50,000 received;
(2) 10 percent of the next $100,000 received;
(3) 5 percent of the next $250,000 received; and
(4) A maximum of $30,000, if the administrative grant exceeds $400,000.
(b) May a State agency request to retain
more than the amount determined by the
above formula in the event of special
needs? Yes, the State agency may request approval from FNS to retain a
larger amount than is allowed under
the formula prescribed in paragraph (a)
of this section. However, in making its
request, the State agency must provide
justification of the need for the larger
amount at the State level, and must
ensure that local agencies will not suffer undue hardship as a result of a reduction in administrative funds.
(c) How must the State agency distribute funds among local agencies? The
State agency must distribute funds
among local agencies on the basis of
their respective needs, and in a manner
that ensures the funds will be used to
achieve program objectives.

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(Approved by the Office of Management and
Budget under control number 0584–0293)

§ 247.24 Recovery and redistribution
of caseload and administrative
funds.
(a) May FNS recover and redistribute
caseload and administrative funds assigned to a State agency? Yes. FNS may
recover and redistribute caseload and

administrative funds assigned to a
State agency during the fiscal year.
FNS will redistribute these resources
to other State agencies in accordance
with the provisions of §§ 247.21(a) and
247.22(b). In reassigning caseload, FNS
will use the most up-to-date data on
participation and the extent to which
caseload is being utilized, as well as
other information provided by State
agencies.
In
accordance
with
§ 247.21(a)(2), in instances in which FNS
recovers caseload slots, the State agency must use 95 percent of its original
caseload allocation to be eligible for
additional caseload. However, the
State agency must not exceed its reduced caseload allocation on an average monthly basis.
(b) Is there a limit on the amount of
caseload slots or administrative funds that
FNS may recover? Yes. FNS will not unilaterally recover caseload that would
result in the recovery of more than 50
percent of the State’s administrative
funds. However, in instances in which
the State agency requests that FNS recover any portion of its assigned caseload, the 50-percent limitation will not
apply.
§ 247.25 Allowable uses of administrative funds and other funds.
(a) What are allowable uses of administrative funds provided to State and local
agencies? Administrative funds may be
used for costs that are necessary to ensure the efficient and effective administration of the program, in accordance
with 2 CFR part 200, subpart E and
USDA implementing regulations 2 CFR
part 400 and part 415, which set out the
principles for determining whether specific costs are allowable. Some examples of allowable costs in CSFP include:
(1) Storing, transporting, and distributing foods;
(2) Determining the eligibility of program applicants;
(3) Program outreach;
(4) Nutrition education;
(5) Audits and fair hearings;
(6) Monitoring and review of program
operations; and
(7) Transportation of participants to
and from the local agency, if necessary.
(b) What are unallowable uses of administrative funds? In addition to those

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Food and Nutrition Service, USDA

§ 247.27

costs determined to be unallowable by
the principles contained in the OMB
circulars referenced in paragraph (a) of
this section, specific examples of unallowable uses of administrative funds in
CSFP include:
(1) The cost of alteration of facilities
not required specifically for the program; and
(2) Actual losses which could have
been covered by permissible insurance
(through an approved self-insurance
program or by other means).
(c) What costs are allowable only with
prior approval of FNS? Capital expenditures, which include the acquisition of
facilities or equipment, or enhancements to such capital assets, with a
cost per unit of at least $5,000, are allowable only with prior approval of
FNS. Examples of equipment include
automated information systems, automated data processing equipment, and
other computer hardware and software.
(d) What procedures must State and
local agencies use in procuring property,
equipment, or services with program
funds, and disposing of such property or
equipment? The procedures that State
and local agencies must follow in procuring property, equipment, or services
with program funds, or disposing of
such property or equipment, are contained in 2 CFR part 200, subpart E, and
USDA implementing regulations 2 CFR
parts 400 and 415, which set out the
principles for determining whether specific costs are allowable. State, local,
and Indian tribal governments must
comply with 2 CFR part 200, subpart E,
and USDA implementing regulations 2
CFR parts 400 and 415, while nonprofit
subgrantees must comply with 2 CFR
part 200, subpart E, and USDA implementing regulations 2 CFR parts 400
and 415. State and local agencies may
use procurement procedures established by State and local regulations as
long as these procedures do not conflict
with Federal regulations. Federal regulations do not relieve State or local
agencies from responsibilities established in contracts relating to procurement of property, equipment, or services. The State agency is the responsible authority regarding the settlement of all contractual and administrative issues arising out of procurements for the program.

(e) What is program income and how
must State and local agencies use it? Program income is income directly generated from program activities. It includes, for example, income from the
sale of packing containers or pallets,
and the salvage of commodities. Program income does not include interest
earned from administrative funds.
State and local agencies must use program income for allowable program
costs, in accordance with 2 CFR part
200, subpart E, and USDA implementing regulations 2 CFR parts 400
and 415.
(f) How must State and local agencies
use funds recovered as a result of claims
actions? The State agency must use
funds recovered as a result of claims
actions against subdistributing or local
agencies in accordance with the provisions of § 250.17(c) of this chapter. The
State agency must use funds recovered
as a result of claims actions against
participants for allowable program
costs. The State agency may authorize
local agencies to use such funds for allowable program costs incurred at the
local level.
[70 FR 47063, Aug. 11, 2005, as amended at 81
FR 66496, Sept. 28, 2016; 83 FR 14173, Apr. 3,
2018; 85 FR 68722, Oct. 30, 2020]

§ 247.26 Return
of
administrative
funds.
(a) Must State agencies return administrative funds that they do not use at the
end of the fiscal year? Yes. If, by the end
of the fiscal year, a State agency has
not obligated all of its allocated administrative funds, the unobligated
funds must be returned to FNS.
(b) What happens to administrative
funds that are returned by State agencies
at the end of the fiscal year? If, in the
following fiscal year, OMB reapportions the returned administrative
funds, the funds are used to support the
program. Such funds are not returned
to State agencies in the form of administrative funds in addition to the legislatively mandated grant per assigned
caseload slot.
(Approved by the Office of Management and
Budget under control number 0584–0293)

§ 247.27 Financial management.
(a) What are the Federal requirements
for State and local agencies with regard to

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§ 247.28

7 CFR Ch. II (1–1–22 Edition)

financial management? State and local
public agencies, as well as nonprofit organizations, must maintain a financial
management system that complies
with the Federal regulations contained
in 2 CFR part 200, subparts D and E,
and USDA implementing regulations 2
CFR parts 400 and 415. The State agency’s financial management system
must provide accurate, current, and
complete disclosure of the financial
status of the program, including an accounting of all program funds received
and expended each fiscal year. The
State agency must ensure that local
agencies develop and implement a financial management system that allows them to meet Federal requirements.
(b) What are some of the major components of the State agency’s financial management system? In addition to other requirements, the State agency’s financial management system must provide
for:
(1) Prompt and accurate payment of
allowable costs;
(2) Timely disbursement of funds to
local agencies;
(3) Timely and appropriate resolution
of claims and audit findings; and
(4) Maintenance of records identifying the receipt and use of administrative funds, funds recovered as a result
of claims actions, program income (as
defined under § 247.25(e)), and property
and other assets procured with program funds.

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[70 FR 47063, Aug. 11, 2005, as amended at 83
FR 14174, Apr. 3, 2018]

§ 247.28 Storage and inventory of commodities.
(a) What are the requirements for storage of commodities? State and local
agencies must provide for storage of
commodities that protects them from
theft, spoilage, damage or destruction,
or other loss. State and local agencies
may contract with commercial facilities to store and distribute commodities. The required standards for
warehousing and distribution systems,
and for contracts with storage facilities, are included in § 250.12 and § 250.14
of this chapter.
(b) What are the requirements for the
inventory of commodities? A physical inventory of all USDA commodities must

be conducted annually at each storage
and distribution site where these commodities are stored. Results of the
physical inventory must be reconciled
with inventory records and maintained
on file by the State or local agency.
(Approved by the Office of Management and
Budget under control number 0584–0293)
[70 FR 47063, Aug. 11, 2005, as amended at 85
FR 68722, Oct. 30, 2020]

§ 247.29 Reports and recordkeeping.
(a) What recordkeeping requirements
must State and local agencies meet? State
and local agencies must maintain accurate and complete records relating to
the receipt, disposal, and inventory of
commodities, the receipt and disbursement of administrative funds and other
funds, eligibility determinations, fair
hearings, and other program activities.
State and local agencies must also
maintain records pertaining to liability for any improper distribution of,
use of, loss of, or damage to commodities, and the results obtained from the
pursuit of claims arising in favor of the
State or local agency. All records must
be retained for a period of three years
from the end of the fiscal year to which
they pertain, or, if they are related to
unresolved claims actions, audits, or
investigations, until those activities
have been resolved. All records must be
available during normal business hours
for use in management reviews, audits,
investigations, or reports of the General Accounting Office.
(b) What reports must State and local
agencies submit to FNS? State agencies
must submit the following reports to
FNS:
(1) SF–425, Federal Financial Report.
The State agency must submit the SF–
425, Federal Financial Report, to report
the financial status of the program at
the close of the fiscal year. This report
must be submitted within 90 days after
the end of the fiscal year. Obligations
must be reported for the fiscal year in
which they occur. Revised reports may
be submitted at a later date, but FNS
will not be responsible for reimbursing
unpaid obligations later than one year
after the end of the fiscal year in which
they were incurred.
(2) FNS–153, Monthly Report of the
Commodity Supplemental Food Program
and Quarterly Administrative Financial

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Food and Nutrition Service, USDA

§ 247.30

Status Report. The State agency must
submit the FNS–153 on a monthly
basis. FNS may permit the data contained in the report to be submitted
less frequently, or in another format.
The report must be submitted within 30
days after the end of the reporting period. On the FNS–153, the State agency
reports:
(i) The number of program participants;
(ii) The receipt and distribution of
commodities, and beginning and ending
inventories, as well as other commodity data; and
(iii) On a quarterly basis, the cumulative amount of administrative funds
expended and obligated, and the
amount remaining unobligated.
(3) FNS–191, Racial/Ethnic Group Participation. Local agencies must submit
a report of racial/ethnic participation
each year, using the FNS–191.
(c) Is there any other information that
State and local agencies must provide to
FNS? FNS may require State and local
agencies to provide data collected in
the program to aid in the evaluation of
the effect of program benefits on the
low-income populations served. Any
such requests for data will not include
identification of particular individuals.
(Approved by the Office of Management and
Budget under control numbers 0584–0025,
0584–0293)

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[70 FR 47063, Aug. 11, 2005, as amended at 72
FR 24184, May 2, 2007; 79 FR 38751, July 9,
2014; 85 FR 68722, Oct. 30, 2020]

§ 247.30 Claims.
(a) What happens if a State or local
agency misuses program funds? If FNS
determines that a State or local agency has misused program funds through
negligence, fraud, theft, embezzlement,
or other causes, FNS must initiate and
pursue a claim against the State agency to repay the amount of the misused
funds. The State agency will be given
the opportunity to contest the claim.
The State agency is responsible for initiating and pursuing claims against
subdistributing and local agencies if
they misuse program funds.
(b) What happens if a State or local
agency misuses program commodities? If a
State or local agency misuses program
commodities, FNS must initiate a
claim against the State agency to re-

cover the value of the misused commodities. The procedures for pursuing
claims resulting from misuse of commodities are detailed in § 250.16(a) of
this chapter. Misused commodities include commodities improperly distributed or lost, spoiled, stolen, or damaged as a result of improper storage,
care, or handling. The State agency is
responsible for initiating and pursuing
claims against subdistributing agencies, local agencies, or other agencies
or organizations if they misuse program commodities. The State agency
must use funds recovered as a result of
claims for commodity losses in accordance with § 250.17(c) of this chapter.
(c) What happens if a participant improperly receives or uses CSFP benefits
through fraud? The State agency must
ensure that a local agency initiates a
claim against a participant to recover
the value of CSFP commodities improperly received or used if the local
agency determines that the participant
or caretaker of the participant fraudulently received or used the commodities. For purposes of this program,
fraud includes intentionally making
false or misleading statements, or intentionally withholding information,
to obtain CSFP commodities, or the
selling or exchange of CSFP commodities for non-food items. The local
agency must advise the participant of
the opportunity to appeal the claim
through the fair hearing process, in accordance with § 247.33(a). The local
agency must also disqualify the participant from CSFP for a period of up to
one year, unless the local agency determines that disqualification would result in a serious health risk, in accordance
with
the
requirements
of
§ 247.20(b).
(d) What procedures must be used in
pursuing claims against participants? The
State agency must establish standards,
based on a cost-benefit review, for determining when the pursuit of a claim
is cost-effective, and must ensure that
local agencies use these standards in
determining if a claim is to be pursued.
In pursuing a claim against a participant, the local agency must:
(1) Issue a letter demanding repayment for the value of the commodities
improperly received or used;

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§ 247.31

7 CFR Ch. II (1–1–22 Edition)

(2) If repayment is not made in a
timely manner, take additional collection actions that are cost-effective, in
accordance with the standards established by the State agency; and
(3) Maintain all records regarding
claims actions taken against participants, in accordance with § 247.29.
(Approved by the Office of Management and
Budget under control number 0584–0293)

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[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014; 85 FR 68722, Oct. 30,
2020]

§ 247.31 Audits and investigations.
(a) What is the purpose of an audit?
The purpose of an audit is to ensure
that:
(1) Financial operations are properly
conducted;
(2) Financial reports are fairly presented;
(3) Proper inventory controls are
maintained; and
(4) Applicable laws, regulations, and
administrative requirements are followed.
(b) When may the Department conduct
an audit or investigation of the program?
The Department may conduct an audit
of the program at the State or local
agency level at its discretion, or may
investigate an allegation that the
State or local agency has not complied
with Federal requirements. An investigation may include a review of any
State or local agency policies or practices related to the specific area of concern.
(c) What are the responsibilities of the
State agency in responding to an audit by
the Department? In responding to an
audit by the Department, the State
agency must:
(1) Provide access to any records or
documents compiled by the State or
local agencies, or contractors; and
(2) Submit a response or statement to
FNS describing the actions planned or
taken in response to audit findings or
recommendations. The corrective action plan must include time frames for
implementation and completion of actions. FNS will determine if actions or
planned actions adequately respond to
the program deficiencies identified in
the audit. If additional actions are
needed, FNS will schedule a follow-up
review and allow sufficient time for

further corrective actions. The State
agency may also take exception to particular audit findings or recommendations.
(d) When is a State or local agency
audit required? State and local agency
audits must be conducted in accordance with part 3052 of this title, which
contains the Department’s regulations
pertaining to audits of States, local
governments, and nonprofit organizations. The value of CSFP commodities
distributed by the agency or organization must be considered part of the
Federal award.
(e) What are the requirements for State
or local agency audits? State and local
agency audits must be conducted in accordance with the requirements of part
3052 of this title, which contains the
Department’s regulations pertaining to
audits of States, local governments,
and nonprofit organizations. The State
agency must ensure that local agencies
meet the audit requirements. The
State agency must ensure that all
State or local agency audit reports are
available for FNS review.
(Approved by the Office of Management and
Budget under control number 0584–0293)

§ 247.32 Termination of agency participation.
(a) When may a State agency’s participation in CSFP be terminated? While
paragraphs (a)(1), (a)(2), and (a)(3) of
this section, as applicable, describe the
circumstances and basic procedures for
terminating State agency programs,
specific actions and procedures relating to program termination are more
fully described in 2 CFR part 200, subpart D, and USDA implementing regulations 2 CFR parts 400 and 415.
(1) Termination by FNS. FNS may terminate a State agency’s participation
in CSFP, in whole or in part, if the
State agency does not comply with the
requirements of this part. FNS must
provide written notification to the
State agency of termination, including
the reasons for the action, and the effective date.
(2) Termination by State agency. The
State agency may terminate the program, in whole or in part, upon written
notification to FNS, stating the reasons and effective date of the action. In

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Food and Nutrition Service, USDA

§ 247.33

accordance with § 247.4(b)(6), which relates to the termination of agreements,
either party must provide, at minimum, 30 days’ written notice.
(3) Termination by mutual agreement.
The State agency’s program may also
be terminated, in whole or in part, if
both parties agree the action would be
in the best interest of the program.
The two parties must agree upon the
conditions of the termination, including the effective date.
(b) When may a local agency’s participation in CSFP be terminated? While
paragraphs (b)(1), (b)(2), and (b)(3) of
this section, as applicable, describe the
circumstances and basic procedures in
termination of local agency programs,
specific actions and procedures relating to program termination are more
fully described in 2 CFR part 200, subpart D, and USDA implementing regulations 2 CFR parts 400 and 415.
(1) Termination by State agency. The
State agency may terminate a local
agency’s participation in CSFP, or may
be required to terminate a local agency’s participation, in whole or in part,
if the local agency does not comply
with the requirements of this part. The
State agency must notify the local
agency in writing of the termination,
the reasons for the action, and the effective date, and must provide the
local agency with an opportunity to
appeal, in accordance with § 247.35. (The
local agency may appeal the termination in accordance with § 247.35.)
(2) Termination by local agency. The
local agency may terminate the program, in whole or in part, upon written
notification to the State agency, stating the reasons and effective date of
the
action.
In
accordance
with
§ 247.4(b)(6), which relates to the termination of agreements, either party
must provide, at minimum, 30 days’
written notice.
(3) Termination by mutual agreement.
The local agency’s program may also
be terminated, in whole or in part, if
both the State and local agency agree
that the action would be in the best interest of the program. The two parties
must agree upon the conditions of the
termination, including the effective
date.
[70 FR 47063, Aug. 11, 2005, as amended at 83
FR 14174, Apr. 3, 2018]

§ 247.33 Fair hearings.
(a) What is a fair hearing? A fair hearing is a process that allows a CSFP applicant or participant to appeal an adverse action, which may include the denial or discontinuance of program benefits, disqualification from the program, or a claim to repay the value of
commodities received as a result of
fraud. State and local agencies must
ensure that CSFP applicants and participants understand their right to appeal an adverse action through the fair
hearing process, which includes providing written notification of the individual’s right to a fair hearing along
with notification of the adverse action.
Such notification is not required at the
expiration of a certification period.
(b) What are the basic requirements the
State agency must follow in establishing
procedures to be used in fair hearings?
The State agency must establish simple, clear, uniform rules of procedure
to be used in fair hearings, including,
at a minimum, the procedures outlined
in this section. The State agency may
use alternate procedures if approved by
FNS. The rules of procedure must be
available for public inspection and
copying.
(c) How may an individual request a
fair hearing? An individual or an individual’s caretaker may request a fair
hearing by making a clear expression,
verbal or written, to a State or local
agency official that an appeal of the
adverse action is desired.
(d) How much time does an individual
have to request a fair hearing? The State
or local agency must allow an individual at least 60 days from the date
the agency mails or gives the individual the notification of adverse action to request a fair hearing.
(e) When may a State or local agency
deny a request for a fair hearing? The
State or local agency may deny a request for a fair hearing when:
(1) The request is not received within
the time limit established in paragraph
(d) of this section;
(2) The request is withdrawn in writing by the individual requesting the
hearing or by an authorized representative of the individual; or
(3) The individual fails to appear,
without good cause, for the scheduled
hearing.

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§ 247.33

7 CFR Ch. II (1–1–22 Edition)

(f) Does the request for a fair hearing
have any effect on the receipt of CSFP
benefits? Participants who appeal the
discontinuance of program benefits
within the 15-day advance notification
period required under §§ 247.17 and
247.20 must be permitted to continue to
receive benefits until a decision on the
appeal is made by the hearing official,
or until the end of the participant’s
certification period, whichever occurs
first. However, if the hearing decision
finds that a participant received program benefits fraudulently, the local
agency must include the value of benefits received during the time that the
hearing was pending, as well as for any
previous period, in its initiation and
pursuit of a claim against the participant.
(g) What notification must the State or
local agency provide an individual in
scheduling the hearing? The State or
local agency must provide an individual with at least 10 days’ advance
written notice of the time and place of
the hearing, and must include the rules
of procedure for the hearing.
(h) What are the individual’s rights in
the actual conduct of the hearing? The
individual must have the opportunity
to:
(1) Examine documents supporting
the State or local agency’s decision before and during the hearing;
(2) Be assisted or represented by an
attorney or other persons;
(3) Bring witnesses;
(4) Present arguments;
(5) Question or refute testimony or
evidence, including an opportunity to
confront and cross-examine others at
the hearing; and,
(6) Submit evidence to help establish
facts and circumstances.
(i) Who is responsible for conducting
the fair hearing, and what are the specific
responsibilities of that person? The fair
hearing must be conducted by an impartial official who does not have any
personal stake or involvement in the
decision and who was not directly involved in the initial adverse action
that resulted in the hearing. The hearing official is responsible for:
(1) Administering oaths or affirmations, as required by the State;
(2) Ensuring that all relevant issues
are considered;

(3) Ensuring that all evidence necessary for a decision to be made is presented at the hearing, and included in
the record of the hearing;
(4) Ensuring that the hearing is conducted in an orderly manner, in accordance with due process; and
(5) Making a hearing decision.
(j) How is a hearing decision made? The
hearing official must make a decision
that complies with Federal laws and
regulations, and is based on the facts
in the hearing record. In making the
decision, the hearing official must
summarize the facts of the case, specify the reasons for the decision, and
identify the evidence supporting the
decision and the laws or regulations
that the decision upholds. The decision
made by the hearing official is binding
on the State or local agency.
(k) What is the time limit for making a
hearing decision and notifying the individual of the decision? A hearing decision must be made, and the individual
notified of the decision, in writing,
within 45 days of the request for the
hearing. The notification must include
the reasons for the decision.
(l) How does the hearing decision affect
the individual’s receipt of CSFP benefits?
If a hearing decision is in favor of an
applicant who was denied CSFP benefits, the receipt of benefits must begin
within 45 days from the date that the
hearing was requested, if the applicant
is still eligible for the program. If the
hearing decision is against a participant, the State or local agency must
discontinue benefits as soon as possible, or at a date determined by the
hearing official.
(m) What must be included in the hearing record? In addition to the hearing
decision, the hearing record must include a transcript or recording of testimony, or an official report of all that
transpired at the hearing, along with
all exhibits, papers, and requests made.
The record must be maintained in accordance with § 247.29(a). The record of
the hearing must be available for public inspection and copying, in accordance with the confidentiality requirements under § 247.36(b).
(n) What further steps may an individual take if a hearing decision is not in
his or her favor? If a hearing decision

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Food and Nutrition Service, USDA

§ 247.36

upholds the State or local agency’s action, and a State-level review or rehearing process is available, the State
or local agency must describe to the individual any State-level review or rehearing process. The State or local
agency must also inform the individual
of the right of the individual to pursue
judicial review of the decision.
[70 FR 47063, Aug. 11, 2005, as amended at 79
FR 38751, July 9, 2014]

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§ 247.34

Management reviews.

(a) What must the State agency do to
ensure that local agencies meet program
requirements and objectives? The State
agency must establish a management
review system to ensure that local
agencies, subdistributing agencies, and
other agencies conducting program activities meet program requirements
and objectives. As part of the system,
the State agency must perform an onsite review of all local agencies, and of
all storage facilities utilized by local
agencies, at least once every two years.
As part of the on-site review, the State
agency must evaluate all aspects of
program administration, including certification procedures, nutrition education, civil rights compliance, food
storage practices, inventory controls,
and financial management systems. In
addition to conducting on-site reviews,
the State agency must evaluate program administration on an ongoing
basis by reviewing financial reports,
audit reports, food orders, inventory
reports, and other relevant information.
(b) What must the State agency do if it
finds that a local agency is deficient in a
particular area of program administration? The State agency must record all
deficiencies identified during the review and institute follow-up procedures
to ensure that local agencies and subdistributing agencies correct all deficiencies within a reasonable period of
time. To ensure improved program performance in the future, the State agency may require that local agencies
adopt specific review procedures for
use in reviewing their own operations
and those of subsidiaries or contractors. The State agency must provide

copies of review reports to FNS upon
request.
(Approved by the Office of Management and
Budget under control number 0584–0293)

§ 247.35 Local agency appeals of State
agency actions.
(a) What recourse must the State agency provide local agencies to appeal a decision that adversely affects their participation in CSFP? The State agency must
establish a hearing procedure to allow
local agencies to appeal a decision that
adversely affects their participation in
CSFP—e.g., the termination of a local
agency’s participation in the program.
The adverse action must be postponed
until a decision on the appeal is made.
(b) What must the State agency include
in the hearing procedure to ensure that
the local agency has a fair chance to
present its case? The hearing procedure
must provide the local agency:
(1) Adequate advance notice of the
time and place of the hearing;
(2) An opportunity to review the
record before the hearing, and to
present evidence at the hearing;
(3) An opportunity to confront and
cross-examine witnesses; and
(4) An opportunity to be represented
by counsel, if desired.
(c) Who conducts the hearing and how
is a decision on the appeal made? The
hearing must be conducted by an impartial person who must make a decision on the appeal that is based solely
on the evidence presented at the hearing, and on program legislation and
regulations. A decision must be made
within 60 days from the date of the request for a hearing, and must be provided in writing to the local agency.
§ 247.36 Confidentiality of applicants
or participants.
(a) Can the State or local agency disclose information obtained from applicants or participants to other agencies or
individuals? State and local agencies
must restrict the use or disclosure of
information obtained from CSFP applicants or participants to persons directly connected with the administration or enforcement of the program, including persons investigating or prosecuting program violations. The State
or local agency may exchange participant information with other health or

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§ 247.37

7 CFR Ch. II (1–1–22 Edition)

kpayne on VMOFRWIN702 with $$_JOB

welfare programs for the purpose of
preventing dual participation. In addition, with the consent of the participant, as indicated on the application
form, the State or local agency may
share information obtained with other
health or welfare programs for use in
determining eligibility for those programs, or for program outreach. However, the State agency must sign an
agreement with the administering
agencies for these programs to ensure
that the information will be used only
for the specified purposes, and that
agencies receiving such information
will not further share it.
(b) Can the State or local agency disclose the identity of persons making a
complaint or allegation against another
individual participating in or administering the program? The State or local
agency must protect the confidentiality, and other rights, of any person
making allegations or complaints
against another individual participating in, or administering CSFP, except as necessary to conduct an investigation, hearing, or judicial proceeding.
§ 247.37 Civil rights requirements.
(a) What are the civil rights requirements that apply to CSFP? State and
local agencies must comply with the
requirements of Title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et
seq.), Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.),
section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794 et seq.), the Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.), and titles II and III of the
Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.). State and local
agencies must also comply with the
Department’s regulations on nondiscrimination (parts 15, 15a, and 15b of
this title), and with the provisions of
FNS Instruction 113–2, including the
collection of racial/ethnic participation
data and public notification of nondiscrimination policy. State and local
agencies must ensure that no person
shall, on the grounds of race, color, national origin, age, sex, or disability, be
subjected to discrimination under the
program.
(b) How does an applicant or participant file a complaint of discrimination?

CSFP applicants or participants who
believe they have been discriminated
against should file a discrimination
complaint with the USDA Director, Office of Civil Rights, Room 326W, Whitten Building, 1400 Independence Avenue, SW., Washington, DC 20250–9410, or
telephone (202) 720–5964.

PART 248—WIC FARMERS’ MARKET
NUTRITION PROGRAM (FMNP)
Subpart A—General
Sec.
248.1
248.2
248.3

General purpose and scope.
Definitions.
Administration.

Subpart B—State Agency Eligibility
248.4
248.5

State Plan.
Selection of new State agencies.

Subpart C—Recipient Eligibility
248.6 Recipient eligibility.
248.7 Nondiscrimination.

Subpart D—Recipient Benefits
248.8
248.9

Level of benefits and eligible foods.
Nutrition education.

Subpart E—State Agency Provisions
248.10
248.11
248.12
248.13
248.14
248.15
248.16
cy

Coupon and market management.
Financial management system.
FMNP costs.
FMNP income.
Distribution of funds.
Closeout procedures.
Administrative appeal of State agendecisions.

Subpart F—Monitoring and Review of State
Agencies
248.17
248.18
248.19

Management evaluations and reviews.
Audits.
Investigations.

Subpart G—Miscellaneous Provisions
248.20 Claims and penalties.
248.21 Procurement and property management.
248.22 Nonprocurement debarment/suspension, drug-free workplace, and lobbying
restrictions.
248.23 Records and reports.
248.24 Other provisions.
248.25 FMNP information.
248.26 OMB control number.
AUTHORITY: 42 U.S.C. 1786.

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