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.
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