State agency responsibilities for financial management.

CFR · 2024-01-01 · US · Title 7

(a) This section prescribes standards of financial management systems in administering Program funds by the State agency and institutions. (b) (1) State agencies must also have a system in place for: (i) Annually reviewing at least 1 month's bank account activity of all sponsoring organizations against documents adequate to support that the financial transactions meet Program requirements. The State agency may expand the review to examine additional months of bank account activity if discrepancies are found. If the State agency identifies and is unable to verify any expenditures that have the appearance of violating Program requirements, or if the discrepancy is significant, the State agency must refer the sponsoring organization's bank account activity to the appropriate State authorities. (ii) Annually reviewing actual expenditures reported of Program funds and the amount of meal reimbursement funds retained from centers, if any, for administrative costs for all sponsoring organizations of unaffiliated centers. State agencies must reconcile reported (iii) Monitoring and reviewing the institutions' documentation of their nonprofit status to ensure that all Program reimbursement funds are used solely for the conduct of the food service operation or to improve food service operations, principally for the benefit of children or adult participants. (2) The financial management system standards for institutional recordkeeping and reporting must: (i) Prohibit claiming reimbursemen

official document · source cfr-2024 · id 7:§ 226.7