388.4 Financial responsibility.
(a) Social services districts are financially responsible for 50
percent of the non-federal share of the necessary costs of operating the food assistance
program. This includes the costs of purchasing food stamp coupons and any other payments
to the federal government required for participating in the program. To the extent that
the office makes expenditures to operate the food assistance program on behalf of a social
services district, the participating social services district must reimburse the office
for 50 percent of the non-federal share of such costs.
(b) Social service districts are financially responsible for 100
percent of benefits issued to persons ineligible to receive benefits under this Part. The
office may review social service district procedures and audit payments made under the
food assistance program. The office may impose any sanction reasonably appropriate and
require corrective action as it determines necessary.
(c) In the event the federal government assesses a penalty, sanction,
or fine because of a social services district's incorrect issuance of food stamp benefits
in cases where the household consists of both federally participating food stamp program
recipients and recipients under the food assistance program, social services districts are
responsible for 100 percent of the penalty, sanction, or fine assessed by the federal
government.