249.11—Financial management system.
(a) Disclosure of expenditures.
The State agency must maintain a financial management system that provides accurate, current and complete disclosure of the financial status of the SFMNP. This must include an accounting for all property and other assets and all SFMNP funds received and expended each fiscal year.
(b) Internal controls.
The State agency shall maintain effective controls over and accountability for all SFMNP funds. The State agency must have effective internal controls to ensure that expenditures financed with SFMNP funds are authorized and properly chargeable to the SFMNP.
(c) Record of expenditures.
The State agency must maintain records that adequately identify the source and use of funds expended for SFMNP activities. These records must contain, but are not limited to, information pertaining to authorization, receipt of funds, obligations, unobligated balances, assets, liabilities, outlays, and income.
(d) Payment of costs.
The State agency must implement procedures that ensure prompt and accurate payment of allowable costs, and ensure the allowability and allocability of costs in accordance with the cost principles and standard provisions of this part, part 3016 of this title, and FNS guidelines and Instructions.
(e) Identification of obligated funds.
The State agency must implement procedures that accurately identify obligated SFMNP funds at the time the obligations are made.
(f) Resolution of audit findings.
The State agency shall implement procedures that ensure timely and appropriate resolution of claims and other matters resulting from audit findings and recommendations.
(g) Reconciliation of food instruments.
The State agency must reconcile SFMNP coupons in accordance with § 249.10(h).
(h) Transfer of cash.
The State agency must establish the timing and amounts of its cash draws against its Letter of Credit in accordance with 31 CFR part 205.