[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: 7CFR247.18]

[Page 418-419]
 
                          TITLE 7--AGRICULTURE
 
    CHAPTER II--FOOD AND NUTRITION SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 247_COMMODITY SUPPLEMENTAL FOOD PROGRAM--Table of Contents
 
Sec. 247.18  Closeout procedures.

    (a) Fiscal year closeout reports. State agencies shall submit 
preliminary and final closeout reports for each fiscal year or part 
thereof. All obligations shall be liquidated before final closure of a 
fiscal year grant. Obligations shall be reported for the fiscal year in 
which they occur State agencies shall:
    (1) Submit to FNS, within 30 days after the end of the fiscal year, 
preliminary financial reports which show cumulative actual expenditures 
and obligations for the fiscal year, or part thereof, for which Program 
funds were made available; and

[[Page 419]]

    (2) Submit to FNS, within 90 days after the end of the fiscal year, 
final fiscal year closeout reports.
    (b) Revised closeout reports. Revised closeout reports may be 
submitted at any time. However, FNS shall not be responsible for 
reimbursing unpaid obligations later than one year after the close of 
the fiscal year in which they were incurred.
    (c) Grant closeout procedures. When grants to State agencies are 
terminated, the following closeout procedures for the Program shall be 
performed in accordance with OMB Circular A-102.
    (1) Termination for cause. FNS may terminate a State agency's 
participation under the Program, in whole or in part, whenever FNS 
determines that the State agency has failed to comply with the 
conditions prescribed in this part. FNS shall promptly notify the State 
agency in writing of the termination and the reasons for the 
termination, including the effective date. A State agency shall 
terminate a local agency's participation under the Program by written 
notice whenever it is determined by FNS or the State agency that the 
local agency has failed to comply with the requirements of the Program. 
When a State agency's participation under the Program is terminated for 
cause, any payments made to the State agency, or any recoveries by FNS 
from the State agency, shall be in conformance with the legal rights and 
liabilities of the parties.
    (2) Termination for convenience. FNS or the State agency may 
terminate the State agency's participation under the Program, in whole 
or in part, when both parties agree that continuation under the Program 
would not produce beneficial results commensurate with the further 
expenditure of funds. The State agency or the local agency may terminate 
the local agency's participation, in whole or in part, under the same 
conditions. The two parties shall agree upon the termination conditions, 
including the effective date thereof and, in the case of partial 
termination, the portion to be terminated. The State agency shall not 
incur new obligations for the terminated portion after the effective 
date, and shall cancel as many outstanding obligations as possible. FNS 
shall allow full credit to the State agency for the Federal share of the 
noncancellable obligations, properly incurred by the State agency prior 
to termination.