(a) Recordkeeping requirements. Each State agency shall maintain full and complete records concerning FMNP operations. Such records shall comply with 2 CFR part 200, subpart D and USDA implementing regulations 2 CFR part 400 and part 415 and the following requirements:
(1) Records shall include, but not be limited to, information pertaining to financial operations, FMNP coupon issuance and redemption, equipment purchases and inventory, nutrition education, and civil rights procedures.
(2) All records shall be retained for a minimum of 3 years following the date of submission of the final expenditure report for the period to which the report pertains. If any litigation, claim, negotiation, audit or other action involving the records has been started before the end of the 3-year period, the records shall be kept until all issues are resolved, or until the end of the regular 3-year period, whichever is later. If FNS deems any of the FMNP records to be of historical interest, it may require the State agency to forward such records to FNS whenever the State agency is disposing of them.
(3) Records for nonexpendable property acquired in whole or in part with FMNP funds shall be retained for three years after its final disposition.
(4) All records shall be available during normal business hours for representatives of the Department of the Comptroller General of the United States to inspect, audit, and copy. Any reports resulting from such examinations shall not divulge names of individuals.
(b) Financial and recipient reports. State agencies shall submit financial and FMNP performance data on a yearly basis as specified by FNS and required by section 17(m)(8) of the CNA. Such information shall include, but shall not be limited to:
(1) Number and type of recipients (Federal and non-Federal).
(2) Value of coupons issued.
(3) Value of coupons redeemed.
(c) Source documentation. To be acceptable for audit purposes, all financial and FMNP performance reports shall be traceable to source documentation.
(d) Certification of reports. Financial and FMNP reports shall be certified as to their completeness and accuracy by the person given that responsibility by the State agency.
(e) Use of reports. FNS will use State agency reports to measure progress in achieving objectives set forth in the State Plan, and this part, or other State agency performance plans. If it is determined, through review of State agency reports, FMNP or financial analysis, or an audit, that a State agency is not meeting the objectives set forth in its State Plan, FNS may request additional information including, but not limited to, reasons for failure to achieve these objectives.
[59 FR 11517, Mar. 11, 1994, as amended at 81 FR 66496, Sept. 28, 2016]