PART 247—COMMODITY SUPPLEMENTAL FOOD PROGRAM Authority: Sec. 5, Pub. L. 93-86, 87 Stat. 249, as added by Sec. 1304(b)(2), Pub. L. 95-113, 91 Stat. 980 (7 U.S.C. 612c note); sec. 1335, Pub. L. 97-98, 95 Stat. 1293 (7 U.S.C. 612c note); sec. 209, Pub. L. 98-8, 97 Stat. 35 (7 U.S.C. 612c note); sec. 2(8), Pub. L. 98-92, 97 Stat. 611 (7 U.S.C. 612c note); sec. 1562, Pub. L. 99-198, 99 Stat. 1590 (7 U.S.C. 612c note); sec. 101(k), Pub. L. 100-202; sec. 1771(a), Pub. L. 101-624, 101 Stat. 3806 (7 U.S.C. 612c note); sec 402(a), Pub. L. 104-127, 110 Stat. 1028 (7 U.S.C. 612c note); sec. 4201, Pub. L. 107-171, 116 Stat. 134 (7 U.S.C. 7901 note); sec. 4221, Pub. L. 110-246, 122 Stat. 1886 (7 U.S.C. 612c note); sec. 4221, Pub. L. 113-79, 7 U.S.C. 612c note). Source: 70 FR 47063, Aug. 11, 2005, unless otherwise noted. Editorial Note: Nomenclature changes to part 247 appear at 89 FR 87228, Oct. 31, 2024. § 247.1 Definitions. Following is a list of definitions that apply to the Commodity Supplemental Food Program (CSFP). 2 CFR part 200, Applicant Caseload Caseload cycle Certification Certification period CSFP Department Disqualification Dual participation Fiscal year FNS Local agency Nonprofit agency Proxy 7 CFR part 250 State State agency State Plan Subdistributing agency USDA Foods USDA implementing regulations [70 FR 47063, Aug. 11, 2005, as amended at 81 FR 66495, Sept. 28, 2016; 85 FR 68721, Oct. 30, 2020, 89 FR 87244, Oct. 31, 2024] § 247.2 The purpose and scope of CSFP. (a) How does CSFP help participants? (b) How many persons may be served in CSFP? [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87244, Oct. 31, 2024] § 247.3 Administering agencies. (a) What agencies are responsible for administering CSFP? (b) Are there specific functions that the State agency cannot delegate to another agency? (1) Establishing eligibility requirements, in accordance with the options provided to the State agency under § 247.9; or (2) Establishing a management review system and conducting reviews of local agencies, in accordance with § 247.34. (c) What Federal requirements must State, subdistributing, and local agencies follow in administering CSFP? [70 FR 47063, Aug. 11, 2005, as amended at 89 FR 87244, Oct. 31, 2024] § 247.4 Agreements. (a) What agreements are necessary for agencies to administer CSFP? (1) Agreements between FNS and State agencies. (2) Agreements between State agencies and local or subdistributing agencies. (3) Agreements between local and subdistributing agencies and other agencies. (b) What are the required contents of agreements? (1) An assurance that each agency will administer the program in accordance with the provisions of this part and with the provisions of part 250 of this chapter, unless they are inconsistent with the provisions of this part; (2) An assurance that each agency will maintain accurate and complete records for a period of three years from the close of the fiscal year to which they pertain, or longer if the records are related to unresolved claims actions, audits, or investigations; (3) A statement that each agency receiving USDA Foods for distribution is responsible for any loss resulting from improper distribution, or improper storage, care, or handling of USDA Foods; (4) A statement that each agency receiving program funds is responsible for any misuse of program funds; (5) A description of the specific functions that the State, subdistributing, or local agency is delegating to another agency; and (6) A statement specifying: (i) That either party may terminate the agreement by written notice to the other; and (ii) The minimum number of days of advance notice that must be given. (The advance notification period must be at least 30 days.) (c) What other assurances or information must be included in agreements between State and local agencies? (1) An assurance that the local agency will provide, or cause to be provided, nutrition education to participants, as required in § 247.18; (2) An assurance that the local agency will provide information to participants on other health, nutrition, and public assistance programs, and make referrals as appropriate, as required in § 247.14; (3) An assurance that the local agency will distribute USDA Foods in accordance with the approved food package guide rate; (4) An assurance that the local agency will take steps to prevent and detect dual participation, as required in § 247.19; (5) The names and addresses of all certification, distribution, and storage sites under the jurisdiction of the local agency; and (6) An assurance that the local agency will not subject any person to discrimination under the program on the grounds of race, color, national origin, age, sex, or disability. (d) What is the duration of required agreements? (Approved by the Office of Management and Budget under control numbers 0584-0067, 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 85 FR 68721, Oct. 30, 2020; 89 FR 87244, Oct. 31, 2024] § 247.5 State and local agency responsibilities. State and local agencies are responsible for administering the program in accordance with the provisions of this part, and with the provisions of part 250 of this chapter, as applicable. Although the State agency may delegate some responsibilities to another agency, the State agency is ultimately responsible for all aspects of program administration. The following is an outline of the major responsibilities of State and local agencies; it is not intended to be all-inclusive. (a) What are the major responsibilities shared by State and local agencies? (1) Entering into required agreements; (2) Ordering USDA Foods for distribution; (3) Storing and distributing USDA Foods; (4) Establishing procedures for resolving complaints about USDA Foods; (5) Complying with civil rights requirements; (6) Maintaining accurate and complete records; and (7) Conducting program outreach. (b) What are the major State agency responsibilities? (1) Completing and submitting the State Plan; (2) Selecting local agencies to administer the program in local areas of the State; (3) Determining caseload needs, and submitting caseload requests to FNS; (4) Assigning caseload, and allocating administrative funds, to local agencies; (5) Establishing eligibility requirements, in accordance with the options provided to the State agency under § 247.9. (This function may not be delegated to another agency.); (6) Establishing nutritional risk criteria and a residency requirement for participants, if such criteria are to be used; (7) Establishing a financial management system that effectively accounts for funds received for program administration; (8) Developing a plan for the detection and prevention of dual participation, in coordination with CSFP local agencies; (9) Developing a plan for providing nutrition education to participants; (10) Establishing appeals and fair hearing procedures for local agencies and program participants; (11) Developing a management review system and conducting reviews of local agencies. (This function may not be delegated to another agency.); (12) Determining and pursuing claims, and establishing standards for pursuit of claims against participants; (13) Ensuring compliance with Federal audit requirements; (14) Providing guidance to local agencies, as needed; (15) Ensuring that program participation does not exceed the State agency's caseload allocation on an average monthly basis; (16) Making publicly available a list of all CSFP local agencies on a publicly available internet web page. The State agency must post the name, address, and telephone number for each local agency. The list must be updated, at a minimum, on an annual basis; and (17) Posting the State Plan that is currently in use on a publicly available internet web page. (c) What are the major local agency responsibilities? (1) Determining eligibility of applicants in accordance with eligibility criteria established by the State agency; (2) Complying with fiscal and operational requirements established by the State agency; (3) Ensuring that participation does not exceed the caseload assigned by the State agency; (4) Issuing foods to participants in accordance with the established food package guide rates; (5) Providing nutrition education and information on the availability of other nutrition and health assistance programs to participants; (6) Informing applicants of their rights and responsibilities in the program; (7) Meeting the special needs of homebound participants, to the extent possible; and (8) Pursuing claims against participants. [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87244, Oct. 31, 2024; 89 FR 104393, Dec. 23, 2024] § 247.6 State Plan. (a) What is the State Plan? (b) When must the State Plan be submitted? (c) What must be included in the State Plan? (1) The names and addresses of all local agencies and subdistributing agencies with which the State agency has entered into agreement; (2) The income eligibility standards and the options to be used relating to income or other eligibility requirements, as provided under § 247.9; (3) The nutritional risk criteria to be used, if the State chooses to establish such criteria; (4) A description of plans for serving participants and the caseload needed to serve them; (5) A description of plans for conducting outreach to participants; (6) A description of the system for storing and distributing USDA Foods; (7) A description of plans for providing nutrition education to participants; (8) A description of the means by which the State agency will detect and prevent dual participation; (9) A description of the standards the State agency will use in determining if the pursuit of a claim against a participant is cost-effective; (10) A description of the means by which the State will meet the needs of homebound participants; (11) Copies of all agreements entered into by the State agency; (12) The length of the State agency's certification period; and (13) A description of the process in place to verify the identity of participants before receipt of USDA Foods. (d) When must the State agency submit amendments to the State Plan? (Approved by the Office of Management and Budget under control number 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87245, Oct. 31, 2024] § 247.7 Selection of local agencies. (a) How does a local agency apply to participate in CSFP? (b) On what basis does the State agency make a decision on the local agency's application? (1) The ability of the local agency to operate the program in accordance with Federal and State requirements; (2) The need for the program in the projected service area of the local agency; (3) The resources available (caseload and funds) for initiating a program in the local area; and (4) For nonprofit agencies, the tax-exempt status, with appropriate documentation. (c) What must the State agency do if a nonprofit agency approved for CSFP is subsequently denied tax-exempt status by the IRS, or does not obtain this status within a certain period of time? (d) How much time does the State agency have to make a decision on the local agency's application? (Approved by the Office of Management and Budget under control number 0584-0293) § 247.8 Individuals applying to participate in CSFP. (a) What information must individuals applying to participate in CSFP provide? (1) Name and address, including some form of identification for each applicant; (2) Household income; (3) Household size; and (4) Other information related to eligibility, such as age (b) What else is required on the application form? “This application is being completed in connection with the receipt of Federal assistance. Program officials may verify information on this form. I am aware that deliberate misrepresentation may subject me to prosecution under applicable State and Federal statutes. I am also aware that I may not receive CSFP benefits at more than one CSFP site at the same time. Furthermore, I am aware that the information provided may be shared with other organizations to detect and prevent dual participation. I have been advised of my rights and obligations under the program. I certify that the information I have provided for my eligibility determination is correct to the best of my knowledge. I authorize the release of information provided on this application form to other organizations administering assistance programs for use in determining my eligibility for participation in other public assistance programs and for program outreach purposes. (Please indicate decision by placing a checkmark in the appropriate box.) YES [ ] NO [ ]” (Approved by the Office of Management and Budget under control number 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38750, July 9, 2014; 85 FR 68721, Oct. 30, 2020] § 247.9 Eligibility requirements. (a) Who is eligible for CSFP? (b) What are the income eligibility requirements for CSFP applicants? i.e., (1) The State agency may accept as income-eligible for CSFP benefits any applicant that documents that they are certified as fully eligible for the following Federal programs: the Supplemental Nutrition Assistance Program, the Food Distribution Program on Indian Reservations, Supplemental Security Income (SSI), the Low Income Subsidy Program, or the Medicare Savings Programs. (2) The State agency may accept, as evidence of income within the State agency's CSFP guidelines, documentation of the applicant's participation in State-administered programs not specified in this paragraph that routinely require documentation of income, provided that those programs have income eligibility guidelines at or below the State agency's CSFP threshold. (3) Applicants who are adjunctively income eligible, as set forth in paragraphs (b)(1) and (2) of this section, shall not be subject to the income limits established under paragraph (b) of this section. (c) When must the State agency revise the CSFP income guidelines to reflect the annual adjustments of the U.S. Federal Poverty Guidelines? (d) How is income defined and considered as it relates to CSFP eligibility? (2) The State agency may exclude from consideration the following sources of income: (i) Any basic allowance for housing received by military services personnel residing off military installations; and (ii) The value of inkind housing and other inkind benefits. (3) The State agency must exclude from consideration all income sources excluded by legislation. FNS will notify State agencies of forms of income excluded by statute through program policy memoranda. The income sources which must be excluded from consideration as income include, but are not limited to: (i) Reimbursements from the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (Pub. L. 91-646, sec. 216, 42 U.S.C. 4636); (ii) Any payment to volunteers under Title I (VISTA and others) and Title II (RSVP, foster grandparents, and others) of the Domestic Volunteer Service Act of 1973 (Pub. L. 93-113, sec. 404(g), 42 U.S.C. 5044(g)) to the extent excluded by that Act; (iii) Payment to volunteers under section 8(b)(1)(B) of the Small Business Act (SCORE and ACE) (Pub. L. 95-510, sec. 101, 15 U.S.C. 637(b)(1)(D)); (iv) Income derived from certain submarginal land of the United States which is held in trust for certain Indian Tribes (Pub. L. 94-114, sec. 6, 25 U.S.C. 459e); (v) Payments received under the Job Training Partnership Act (Pub. L. 97-300, sec. 142(b), 29 U.S.C. 1552(b)); (vi) Income derived from the disposition of funds to the Grand River Band of Ottawa Indians (Pub. L. 94-540, sec. 6); (vii) Payments received under the Alaska Native Claims Settlement Act (Pub. L. 100-241, sec. 15, 43 U.S.C. 1626(c)); (viii) The value of assistance to children or their families under the National School Lunch Act, as amended (Pub. L. 94-105, sec. 9(d), 42 U.S.C. 1760(e)), the Child Nutrition Act of 1966 (Pub. L. 89-642, sec. 11(b), 42 U.S.C. 1780(b)), and the Food and Nutrition Act of 2008 (Pub. L. 95-113, sec. 1301, 7 U.S.C. 2017(b)); (ix) Payments by the Indian Claims Commission to the Confederated Tribes and Bands of the Yakima Indian Nation or the Apache Tribe of the Mescalero Reservation (Pub. L. 95-433, sec. 2, 25 U.S.C. 609c-1); (x) Payments to the Passamaquoddy Tribe and the Penobscot Nation or any of their members received pursuant to the Maine Indian Claims Settlement Act of 1980 (Pub. L. 96-420, sec. 6, 9(c), 25 U.S.C. 1725(i), 1728(c)); (xi) Payments under the Low-income Home Energy Assistance Act, as amended (Pub. L. 99-125, sec. 504(c), 42 U.S.C. 8624(f)); (xii) Student financial assistance received from any program funded in whole or part under Title IV of the Higher Education Act of 1965, including the Pell Grant, Supplemental Educational Opportunity Grant, State Student Incentive Grants, National Direct Student Loan, PLUS, College Work Study, and Byrd Honor Scholarship programs, which is used for costs described in section 472(1) and (2) of that Act (Pub. L. 99-498, section 479B, 20 U.S.C. 1087uu). The specified costs set forth in section 472(1) and (2) of the Higher Education Act are tuition and fees normally assessed a student carrying the same academic workload as determined by the institution, and including the costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study; and an allowance for books, supplies, transportation, and miscellaneous personal expenses for a student attending the institution on at least a half-time basis, as determined by the institution. The specified costs set forth in section 472(1) and (2) of the Act are those costs which are related to the costs of attendance at the educational institution and do not include room and board and dependent care expenses; (xiii) Payments under the Disaster Relief Act of 1974, as amended by the Disaster Relief and Emergency Assistance Amendments of 1989 (Pub. L. 100-707, sec. 105(i), 42 U.S.C. 5155(d)); (xiv) Effective July 1, 1991, payments received under the Carl D. Perkins Vocational Education Act, as amended by the Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990 (Pub. L. 101-392, sec. 501, 20 U.S.C. 2466d); (xv) Payments pursuant to the Agent Orange Compensation Exclusion Act (Pub. L. 101-201, sec. 1); (xvi) Payments received for Wartime Relocation of Civilians under the Civil Liberties Act of 1988 (Pub. L. 100-383, sec. 105(f)(2), 50 App. U.S.C. 1989b-4(f)(2)); (xvii) Value of any child care payments made under section 402(g)(1)(E) of the Social Security Act, as amended by the Family Support Act (Pub. L. 100-485, sec. 301, 42 U.S.C. 602 (g)(1)(E)); (xviii) Value of any “at-risk” block grant child care payments made under section 5081 of Pub. L. 101-508, which amended section 402(i) of the Social Security Act; (xix) Value of any child care provided or paid for under the Child Care and Development Block Grant Act, as amended (Pub. L. 102-586, Sec. 8(b)), 42 U.S.C. 9858q); (xx) Mandatory salary reduction amount for military service personnel which is used to fund the Veteran's Educational Assistance Act of 1984 (GI Bill), as amended (Pub. L. 99-576, sec. 303(a)(1), 38 U.S.C. 1411 (b)); (xxi) Payments received under the Old Age Assistance Claims Settlement Act, except for per capita shares in excess of $2,000 (Pub. L. 98-500, sec. 8, 25 U.S.C. 2307); (xxii) Payments received under the Cranston-Gonzales National Affordable Housing Act, unless the income of the family equals or exceeds 80 percent of the median income of the area (Pub. L. 101-625, sec. 522(i)(4), 42 U.S.C. 1437f nt); (xxiii) Payments received under the Housing and Community Development Act of 1987, unless the income of the family increases at any time to not less than 50 percent of the median income of the area (Pub. L. 100-242, sec. 126(c)(5)(A), 25 U.S.C. 2307); (xxiv) Payments received under the Sac and Fox Indian claims agreement (Pub. L. 94-189, sec. 6); (xxv) Payments received under the Judgment Award Authorization Act, as amended (Pub. L. 97-458, sec. 4, 25 U.S.C. 1407 and Pub. L. 98-64, sec. 2(b), 25 U.S.C. 117b(b)); (xxvi) Payments for the relocation assistance of members of Navajo and Hopi Tribes (Pub. L. 93-531, sec. 22, 22 U.S.C. 640d-21); (xxvii) Payments to the Turtle Mountain Band of Chippewas, Arizona (Pub. L. 97-403, sec. 9); (xxviii) Payments to the Blackfeet, Grosventre, and Assiniboine Tribes (Montana) and the Papago (Arizona) (Pub. L. 97-408, sec. 8(d)); (xxiv) Payments to the Assiniboine Tribe of the Fort Belknap Indian community and the Assiniboine Tribe of the Fort Peck Indian Reservation (Montana) (Pub. L. 98-124, sec. 5); (xxx) Payments to the Red Lake Band of Chippewas (Pub. L. 98-123, sec. 3); (xxxi) Payments received under the Saginaw Chippewa Indian Tribe of Michigan Distribution of Judgment Funds Act (Pub. L. 99-346, sec. 6(b)(2)); (xxxii) Payments to the Chippewas of Mississippi (Pub. L. 99-377, sec. 4(b)); (xxxiii) Payments received by members of the Armed Forces and their families under the Family Supplemental Subsistence Allowance from the Department of Defense (Pub. L. 109-163, sec. 608); and (xxxiv) Payments received by property owners under the National Flood Insurance Program (Pub. L. 109-64). (xxxv) Combat pay received by the household member under Chapter 5 of Title 37 or as otherwise designated by the Secretary. (4) The State agency may authorize local agencies to consider the household's average income during the previous 12 months and current household income to determine which more accurately reflects the household's status. In instances in which the State makes the decision to authorize local agencies to determine a household's income in this manner, all local agencies must comply with the State's decision and apply this method of income determination in situations in which it is warranted. (e) What other options does the State agency have in establishing eligibility requirements for CSFP? (2) The State agency may require that an individual reside within the service area of the local agency at the time of application for CSFP benefits. However, the State agency may not require that an individual reside within the area for any fixed period of time. [85 FR 68721, Oct. 30, 2020, as amended at 89 FR 87245, Oct. 31, 2024; 89 FR 104393, Dec. 23, 2024] Editorial Note: At 89 FR 104393, Dec. 23, 2024, § 247.9 was amended by correcting paragraph (d)(3)(xxiv); however, the amendment could not be incorporated due to inaccurate amendatory instruction. § 247.10 Distribution and use of USDA Foods. (a) What are the requirements for distributing USDA Foods to participants? (b) What must the local agency do to ensure that USDA Foods are distributed only to CSFP participants? (c) What restrictions apply to State and local agencies in the distribution of USDA Foods? (d) What are the restrictions for the use of USDA Foods? [89 FR 87246, Oct. 31, 2024] § 247.11 Applicants exceed caseload levels. (a) What must the local agency do if the number of applicants exceeds the local agency's caseload level? (b) What are the requirements for serving individuals on the waiting list once caseload slots become available? [70 FR 47063, Aug. 11, 2005, as amended at 75 FR 5879, Feb. 5, 2010] § 247.12 Rights and responsibilities. (a) What information regarding an individual's rights in CSFP must the local agency provide to the applicant? (1) The local agency will provide notification of a decision to deny or terminate CSFP benefits, and of an individual's right to appeal this decision by requesting a fair hearing, in accordance with § 247.33(a); (2) The local agency will make nutrition education available to all participants and will encourage them to participate; and (3) The local agency will provide information on other nutrition, health, or assistance programs, and make referrals as appropriate. (b) What information regarding an individual's responsibilities in CSFP must the local agency provide to the applicant? (1) Improper use or receipt of CSFP benefits as a result of dual participation or other program violations may lead to a claim against the individual to recover the value of the benefits, and may lead to disqualification from CSFP; and (2) Participants must report changes in household income or composition within 10 days after the change becomes known to the household. [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68721, Oct. 30, 2020] § 247.13 Provisions for non-English or limited-English speakers. (a) What must State and local agencies do to ensure that non-English or limited-English speaking persons are aware of their rights and responsibilities in the program? (b) What must State and local agencies do to ensure that non-English or limited-English speaking persons are aware of other program information? § 247.14 Other public assistance programs. (a) What information on other public assistance programs must the local agency provide to applicants? (1) Supplemental security income benefits provided under Title XVI of the Social Security Act (42 U.S.C. 1381 et seq. (2) Medical assistance provided under Title XIX of the Social Security Act (42 U.S.C. 1396 et seq. (3) The Supplemental Nutrition Assistance Program (7 U.S.C. 2011 et seq. (4) The Senior Farmers' Market Nutrition Program (7 U.S.C. 3007 et seq. (b) Is the value of CSFP benefits counted as income or resources for any other public assistance programs? [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68721, Oct. 30, 2020; 89 FR 87246, Oct. 31, 2024] § 247.15 Notification of eligibility or ineligibility of applicant. (a) What is the timeframe for notifying an applicant of eligibility or ineligibility for CSFP benefits? (b) What must be included in the notification of eligibility or ineligibility? § 247.16 Certification period. (a) How long is the certification period Minimum certification period. (i) Verify the address and continued interest of the participant; and (ii) Have sufficient reason to determine that the participant still meets the income eligibility standards, which may include a determination that the participant has a fixed income. (2) Temporary certification. (3) Recertification. (b) On what day of the final month does the certification period end? (c) Does the certification period end when a participant moves from the local area in which he or she was receiving benefits? (d) What must the local agency do to ensure that participants are aware of the expiration of the certification period? (Approved by the Office of Management and Budget under control number 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 75 FR 5879, Feb. 5, 2010; 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020] § 247.17 Notification of discontinuance of participant. (a) What must a local agency do if it has evidence that a participant is no longer eligible for CSFP benefits during the certification period? (b) What must a local agency do if it has to discontinue a participant from participation in the program prior to the end of the certification period due to the lack of resources necessary to continue providing benefits to the participant? (c) What must be included in the notification of discontinuance? § 247.18 Nutrition education. (a) What are the State agency's responsibilities in ensuring that nutrition education is provided? (b) What type of nutrition education must the local agency provide? (1) The nutritional value of USDA Foods, and their relationship to the overall dietary needs of the population groups served; (2) Nutritious ways to use USDA Foods; (3) Special nutritional needs of participants and how these needs may be met; (4) The importance of health care, and the role nutrition plays in maintaining good health; and (5) The importance of the use of the foods by the participant to whom they are distributed, and not by another person. (c) To whom must local agencies provide nutrition education? (d) May USDA Foods be used in cooking demonstrations? [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020; 89 FR 87246, Oct. 31, 2024] § 247.19 Dual participation. (a) What must State and local agencies do to prevent and detect dual participation? (b) What must the local agency do if a CSFP participant is found to be committing dual participation? (Approved by the Office of Management and Budget under control number 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020] § 247.20 Program violations. (a) What are program violations in CSFP? (1) Intentionally making false or misleading statements, orally or in writing; (2) Intentionally withholding information pertaining to eligibility in CSFP; (3) Selling USDA Foods obtained in the program, or exchanging them for non-food items; (4) Physical abuse, or threat of physical abuse, of program staff; or (5) Committing dual participation. (b) What are the penalties for committing program violations? (1) Intentionally making false or misleading statements to obtain USDA Foods; (2) Intentionally withholding information to obtain USDA Foods; or (3) Selling USDA Foods, or exchanging them for non-food items. (c) What must the local agency do to notify the individual of disqualification from CSFP? [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 89 FR 87246, Oct. 31, 2024] § 247.21 Caseload assignment. (a) How does FNS assign caseload to State agencies? (1) Base caseload. (i) Each State agency entering its second year of program participation receives base caseload equal to the amount assigned to it in its first year of participation; and (ii) A State agency that has participated in two or more caseload cycles receives base caseload equal to the highest of: (A) Average monthly participation for the previous fiscal year; or (B) Average monthly participation for the last quarter of the previous fiscal year; or (C) Participation during September of the previous fiscal year, but only if: ( 1 ( 2 ( 3 (2) Additional caseload. (i) A State agency entering its second year of program participation qualifies to receive additional caseload if the State achieved a participation level which was equal to or greater than 95 percent of assigned caseload for the previous caseload cycle, based on the highest of: (A) Average monthly participation for the previous fiscal year; or (B) Average monthly participation for the last quarter of the previous fiscal year; or (C) Participation during September of the previous fiscal year, but only if: ( 1 ( 2 (ii) A State agency that has participated in two or more caseload cycles qualifies to receive additional caseload if the State achieved a participation level which was equal to or greater than 95 percent of assigned caseload for the previous caseload cycle, based on the highest of: (A) Average monthly participation for the previous fiscal year; or (B) Average monthly participation for the last quarter of the previous fiscal year; or (C) Participation during September of the previous fiscal year, but only if: ( 1 ( 2 ( 3 (iii) Of each eligible State agency's request for additional caseload, FNS assigns an amount that it determines the State needs and can efficiently utilize. In making this determination, FNS considers the factors listed below, in descending order of importance. If all reasonable requests for additional caseload cannot be met, FNS assigns it to those States that are most likely to utilize it. The factors are: (A) The percentage of caseload utilized by the State in the previous fiscal year; (B) Program participation trends in the State in previous fiscal years; and (C) Other information provided by the State agency in support of the request. (3) New caseload. (b) When does FNS assign caseload to State agencies? (c) How do State agencies request additional caseload for the next caseload cycle? [70 FR 47063, Aug. 11, 2005, as amended at 75 FR 5879, Feb. 5, 2010; 79 FR 38751, July 9, 2014; 89 FR 87247, Oct. 31, 2024] § 247.22 Allocation and disbursement of administrative funds to State agencies. (a) What must State agencies do to be eligible to receive administrative funds? (b) How does FNS allocate administrative funds to State agencies? (2) For fiscal year 2003, the amount of the grant per assigned caseload slot was equal to the per-caseload slot amount provided in fiscal year 2001, adjusted by the percentage change between: (i) The value of the State and local government price index, as published by the Bureau of Economic Analysis of the Department of Commerce, for the 12-month period ending June 30, 2001; and (ii) The value of that index for the 12-month period ending June 30, 2002. (3) For subsequent fiscal years, the amount of the grant per assigned caseload slot is equal to the amount of the grant per assigned caseload slot for the preceding fiscal year, adjusted by the percentage change between: (i) The value of the State and local government price index, as published by the Bureau of Economic Analysis of the Department of Commerce, for the 12-month period ending June 30 of the second preceding fiscal year; and (ii) The value of that index for the 12-month period ending June 30 of the preceding fiscal year. (c) How do State agencies access administrative funds? (Approved by the Office of Management and Budget under control number 0584-0293) § 247.23 State provision of administrative funds to local agencies. (a) How much of the administrative funds must State agencies provide to local agencies for their use? (1) 15 percent of the first $50,000 received; (2) 10 percent of the next $100,000 received; (3) 5 percent of the next $250,000 received; and (4) A maximum of $30,000, if the administrative grant exceeds $400,000. (b) May a State agency request to retain more than the amount determined by the above formula in the event of special needs? (c) How must the State agency distribute funds among local agencies? (Approved by the Office of Management and Budget under control number 0584-0293) § 247.24 Recovery and redistribution of caseload and administrative funds. (a) May FNS recover and redistribute caseload and administrative funds assigned to a State agency? (b) Is there a limit on the amount of caseload slots or administrative funds that FNS may recover? § 247.25 Allowable uses of administrative funds and other funds. (a) What are allowable uses of administrative funds provided to State and local agencies? (1) Storing, transporting, and distributing foods; (2) Determining the eligibility of program applicants; (3) Program outreach; (4) Nutrition education; (5) Audits and fair hearings; (6) Monitoring and review of program operations; and (7) Transportation of participants to and from the local agency, if necessary. (b) What are unallowable uses of administrative funds? (1) The cost of alteration of facilities not required specifically for the program; and (2) Actual losses which could have been covered by permissible insurance (through an approved self-insurance program or by other means). (c) What costs are allowable only with prior approval of FNS? (d) What procedures must State and local agencies use in procuring property, equipment, or services with program funds, and disposing of such property or equipment? (e) What is program income and how must State and local agencies use it? (f) How must State and local agencies use funds recovered as a result of claims actions? [70 FR 47063, Aug. 11, 2005, as amended at 81 FR 66496, Sept. 28, 2016; 83 FR 14173, Apr. 3, 2018; 85 FR 68722, Oct. 30, 2020; 89 FR 87247, Oct. 31, 2024] § 247.26 Return of administrative funds. (a) Must State agencies return administrative funds that they do not use at the end of the fiscal year? (b) What happens to administrative funds that are returned by State agencies at the end of the fiscal year? (Approved by the Office of Management and Budget under control number 0584-0293) § 247.27 Financial management. (a) What are the Federal requirements for State and local agencies with regard to financial management? (b) What are some of the major components of the State agency's financial management system? (1) Prompt and accurate payment of allowable costs; (2) Timely disbursement of funds to local agencies; (3) Timely and appropriate resolution of claims and audit findings; and (4) Maintenance of records identifying the receipt and use of administrative funds, funds recovered as a result of claims actions, program income (as defined under § 247.25(e)), and property and other assets procured with program funds. [70 FR 47063, Aug. 11, 2005, as amended at 83 FR 14174, Apr. 3, 2018] § 247.28 Storage and inventory of USDA Foods. (a) What are the requirements for storage of USDA Foods? (b) What are the requirements for the inventory of USDA Foods? [89 FR 87247, Oct. 31, 2024] § 247.29 Reports and recordkeeping. (a) What recordkeeping requirements must State and local agencies meet? (b) What reports must State and local agencies submit to FNS? (1) SF-425, Federal Financial Report. (2) FNS-153, Monthly Report of the Commodity Supplemental Food Program and Quarterly Administrative Financial Status Report. (i) The number of program participants; (ii) The receipt and distribution of USDA Foods, and beginning and ending inventories, as well as other USDA Foods data; and (iii) On a quarterly basis, the cumulative amount of administrative funds expended and obligated, and the amount remaining unobligated. (3) FNS-191, Racial/Ethnic Group Participation. (c) Is there any other information that State and local agencies must provide to FNS? (Approved by the Office of Management and Budget under control numbers 0584-0025, 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 72 FR 24184, May 2, 2007; 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020; 89 FR 87247, Oct. 31, 2024] § 247.30 Claims. (a) What happens if a State or local agency misuses program funds? (b) What happens if a State or local agency misuses USDA Foods? (c) What happens if a participant improperly receives or uses CSFP benefits through fraud? (d) What procedures must be used in pursuing claims against participants? (1) Issue a letter demanding repayment for the value of the USDA Foods improperly received or used; (2) If repayment is not made in a timely manner, take additional collection actions that are cost-effective, in accordance with the standards established by the State agency; and (3) Maintain all records regarding claims actions taken against participants, in accordance with § 247.29. (Approved by the Office of Management and Budget under control number 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 85 FR 68722, Oct. 30, 2020; 89 FR 87247, Oct. 31, 2024] § 247.31 Audits and investigations. (a) What is the purpose of an audit? (1) Financial operations are properly conducted; (2) Financial reports are fairly presented; (3) Proper inventory controls are maintained; and (4) Applicable laws, regulations, and administrative requirements are followed. (b) When may the Department conduct an audit or investigation of the program? (c) What are the responsibilities of the State agency in responding to an audit by the Department? (1) Provide access to any records or documents compiled by the State or local agencies, or contractors; and (2) Submit a response or statement to FNS describing the actions planned or taken in response to audit findings or recommendations. The corrective action plan must include time frames for implementation and completion of actions. FNS will determine if actions or planned actions adequately respond to the program deficiencies identified in the audit. If additional actions are needed, FNS will schedule a follow-up review and allow sufficient time for further corrective actions. The State agency may also take exception to particular audit findings or recommendations. (d) When is a State or local agency audit required? (e) What are the requirements for State or local agency audits? (Approved by the Office of Management and Budget under control number 0584-0293) [70 FR 47063, Aug. 11, 2005, as amended at 89 FR 87247, Oct. 31, 2024] § 247.32 Termination of agency participation. (a) When may a State agency's participation in CSFP be terminated? (1) Termination by FNS. (2) Termination by State agency. (3) Termination by mutual agreement. (b) When may a local agency's participation in CSFP be terminated? (1) Termination by State agency. (2) Termination by local agency. (3) Termination by mutual agreement. [70 FR 47063, Aug. 11, 2005, as amended at 83 FR 14174, Apr. 3, 2018] § 247.33 Fair hearings. (a) What is a fair hearing? (b) What are the basic requirements the State agency must follow in establishing procedures to be used in fair hearings? (c) How may an individual request a fair hearing? (d) How much time does an individual have to request a fair hearing? (e) When may a State or local agency deny a request for a fair hearing? (1) The request is not received within the time limit established in paragraph (d) of this section; (2) The request is withdrawn in writing by the individual requesting the hearing or by an authorized representative of the individual; or (3) The individual fails to appear, without good cause, for the scheduled hearing. (f) Does the request for a fair hearing have any effect on the receipt of CSFP benefits? (g) What notification must the State or local agency provide an individual in scheduling the hearing? (h) What are the individual's rights in the actual conduct of the hearing? (1) Examine documents supporting the State or local agency's decision before and during the hearing; (2) Be assisted or represented by an attorney or other persons; (3) Bring witnesses; (4) Present arguments; (5) Question or refute testimony or evidence, including an opportunity to confront and cross-examine others at the hearing; and, (6) Submit evidence to help establish facts and circumstances. (i) Who is responsible for conducting the fair hearing, and what are the specific responsibilities of that person? (1) Administering oaths or affirmations, as required by the State; (2) Ensuring that all relevant issues are considered; (3) Ensuring that all evidence necessary for a decision to be made is presented at the hearing, and included in the record of the hearing; (4) Ensuring that the hearing is conducted in an orderly manner, in accordance with due process; and (5) Making a hearing decision. (j) How is a hearing decision made? (k) What is the time limit for making a hearing decision and notifying the individual of the decision? (l) How does the hearing decision affect the individual's receipt of CSFP benefits? (m) What must be included in the hearing record? (n) What further steps may an individual take if a hearing decision is not in his or her favor? [70 FR 47063, Aug. 11, 2005, as amended at 79 FR 38751, July 9, 2014; 89 FR 87247, Oct. 31, 2024] § 247.34 Management reviews. (a) What must the State agency do to ensure that local agencies meet program requirements and objectives? (b) What must the State agency do if it finds that a local agency is deficient in a particular area of program administration? (Approved by the Office of Management and Budget under control number 0584-0293) § 247.35 Local agency appeals of State agency actions. (a) What recourse must the State agency provide local agencies to appeal a decision that adversely affects their participation in CSFP? (b) What must the State agency include in the hearing procedure to ensure that the local agency has a fair chance to present its case? (1) Adequate advance notice of the time and place of the hearing; (2) An opportunity to review the record before the hearing, and to present evidence at the hearing; (3) An opportunity to confront and cross-examine witnesses; and (4) An opportunity to be represented by counsel, if desired. (c) Who conducts the hearing and how is a decision on the appeal made? § 247.36 Confidentiality of applicants or participants. (a) Can the State or local agency disclose information obtained from applicants or participants to other agencies or individuals? (b) Can the State or local agency disclose the identity of persons making a complaint or allegation against another individual participating in or administering the program? § 247.37 Civil rights requirements. (a) What are the civil rights requirements that apply to CSFP? et seq. et seq. et seq. et seq. et seq. (b) How does an applicant or participant file a complaint of discrimination?