[Code of Federal Regulations]
[Title 7, Volume 4]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR235.8]

[Page 280]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 235_STATE ADMINISTRATIVE EXPENSE FUNDS--Table of Contents
 
Sec. 235.8  Management evaluations and audits.

    (a) Each State agency shall provide for audits of State agency 
operations under this part to be made with reasonable frequency, but 
beginning in fiscal year 1978 once every two years. The audits shall 
determine the fiscal integrity of financial transactions and reports, 
and the compliance with applicable laws and regulations and with the 
administrative requirements set forth in 7 CFR part 3015. Audits may be 
made by State Auditors General, by State Controllers, or other 
comparable State audit groups, or by Certified Public Accountants or 
State licensed public accountants.
    (b) Each State agency shall develop a plan for the conduct of such 
audits which shall (1) provide a description of the State agency in 
adequate detail to demonstrate the independence of the audit 
organization, and (2) provide a systematic method to assure timely and 
appropriate resolution of audit findings and recommendations.
    (c) While OA shall rely to the fullest extent feasible upon State 
sponsored audits, it shall, whenever considered necessary, (1) perform 
on-site test audits, and (2) review audit reports and related working 
papers of audits performed by or for State agencies.
    (d) Use of audit guides available from OA is encouraged. When these 
guides are utilized, OA will coordinate its audits with State sponsored 
audits to form a network of intergovernmental audit systems.
    (e) Each State agency shall provide FNS with full opportunity to 
conduct management evaluations of all operations of the State agency 
under this part and shall provide OA with full opportunity to conduct 
audits of all such operations. Each State agency shall make available 
its records, including records of the receipt and expenditure of funds, 
upon a reasonable request by FNS, OA, or the U.S. Comptroller General.

(Sec. 7, Pub. L. 95-627, 92 Stat. 3621 (42 U.S.C. 1776); secs. 804, 805, 
812, 814, 816, 817 and 819, Pub. L. 97-35, 95 Stat. 521-535 (42 U.S.C. 
1753, 1754, 1756, 1759, 1759a, 1771, 1773, 1774, 1776, and 1785))

[41 FR 32405, Aug. 3, 1976, as amended at 44 FR 51186, Aug. 31, 1979; 
Amdt. 7, 47 FR 18567, Apr. 30, 1982; Amdt. 9, 48 FR 195, Jan. 4, 1983; 
54 FR 2991, Jan. 23, 1989]