63-702 ISSUANCE AGENCY AND BULK STORAGE POINT RESPONSIBILITIES 63-702

(a) Shipments shall be verified and receipted only by those persons so authorized on the FNS-260 or the FNS-33.

(b) Issuing agencies shall authorize at least two employees as receiving agents to receipt for shipment of coupon books. If an armored car delivery of coupons arrives after normal business hours and an authorized person is not present, it shall not be accepted.

.112 Change in Designated Receiving Agents

The CWD shall submit the FNS-33 to CDSS whenever the name of the person authorized to receive shipments is changed or when the location where books are to be sent is changed.

.12 Shipment Verification

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.121 The FNS-261 will be received just prior to, or approximately at the same time as, the shipment of food coupons. This form is a notice that food coupons previously requisitioned can be expected shortly.

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.122 The shipping point or receiving agent shall accept coupon shipments as follows:

(a) Person(s) authorized to accept coupons shall verify that the number and type of each denomination being delivered agrees with those listed on the registered mail receipt and the FNS-261 before accepting them.

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(b) If there is no discrepancy between the number and type of each denomination delivered and the entries on the registered mail receipt, then the FNS-261 shall be signed, dated and attached to the FNS-250.

(c) If there is a discrepancy between the number and type of each denomination being delivered and the entries on the FNS-261 and/or the registered mail receipt, the person(s) so authorized shall make the appropriate pen and ink changes to the document(s) containing the discrepancy so that they agree with the number and type of each denomination of coupons actually received. After these changes have been made, the agent shall sign, date and attach the FNS-261 to the FNS-250.

(d) If the FNS-261 is not received within three days following receipt of the coupons, the receiving agent shall prepare a letter and attach it to the FNS-250.

(1) The letter shall state that it is being submitted in lieu of the FNS-261, which was not received. It shall include the number and type of each denomination of coupons that were received and the date of receipt.

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(2) If the FNS-261 is received after the letter has been mailed, the FNS-261 may be discarded.

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(e) Before use, each carton and box shall be examined according to the instructions on the respective labels.

.2 Reporting of Shortages/Overages Improperly Manufactured or Mutilated Coupons or Coupon Books Found Prior to Issuance

.21 When a shortage or overage of coupons or coupon books is discovered, the agent shall complete the FNS-471 and have it signed by two witnesses.

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.211 The number, type, condition of all the coupons or coupon books and the serial numbers of all the coupons and coupon books involved (including the prefix, suffix and year of the series) should be noted on the FNS-471. Any other relevant facts should be included in the "Remarks" section.

.212 Any shortages or overages should be noted on the FNS-250.

.213 The FNS-471 should be attached to the FNS-250.

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.22 Improperly Manufactured or Mutilated Coupons or Coupon Books

.221 When improperly manufactured or mutilated loose coupon books are found, the agent shall:

(a) Immediately cancel all the coupons and coupon books involved;

(b) Complete the FNS-471;

(c) Enter the number of books that are improperly manufactured or mutilated on the FNS-250;

(d) Destroy the coupon books as soon as possible as specified in Section 63-706.1; and

(e) Issue the remainder of the undamaged books.

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.222 When an entire carton or box contains improperly manufactured or mutilated coupon books, the agent shall:

(a) Store the coupon books in a secure place;

(b) Complete the FNS-471;

(c) Request instructions for disposition of the coupon books from FNS; and

(d) Where possible, issue the undamaged coupon books.

.23 Star Coupons and Books

.231 Star coupons and books are negotiable and shall be issued in the same manner as all other coupons and/or books.

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.232 Occasionally, coupons and/or coupon books are accidentally destroyed during the manufacturing process. When this happens, they are replaced by coupons and/or books which are identified by a star or the exclusion of a prefix letter and the remainder of the serial number will bear no resemblance to those on the other coupons or books in the sequence.

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.3 Beginning and Ending Inventories

.31 The amount of coupons reported on hand at the beginning of the current month shall coincide with the amount reported as ending inventory in the previous month. The amount reported as ending inventory shall be based on the actual physical count of all coupons on hand on the last day of the month.

.32 CWDs shall ensure that coupon inventories are in fact based on actual counts and should witness these counts on a selected basis. Issuance agents shall submit corrected reports when the current month reported beginning inventory does not coincide with the ending inventory reported for the previous month.

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.4 Shipments Received and Transferred

.41 CWDs shall report coupons received and/or transferred in the month such receipts or transfers are actually accomplished. The agent originating a coupon transfer shall identify the receiving agent on the FNS-250 and keep a receipted copy of the FNS-300.

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.42 Sections 63-701.3 and .4, 702.12, and Handbook Section 1102.3 fully describe the process of ordering, verifying and providing receipts for coupon shipments from FNS. To enable CWDs to verify the data reported on the FNS-250, contracted issuance agents are required to send the CWD a copy of the FNS-261 as specified in Section 63-702.6.

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.5 Inventory Accountability

CWDs shall maintain records of accountability for coupon books. Contracted agents may be delegated this responsibility. Such delegation shall not, however, relieve or discharge the CWDs of liability for coupon books.

.51 CWDs' accountability records shall show the serial numbers and number of books received, the serial numbers and number of books distributed to other offices for issuance (or the number issued), and the balance of books on hand.

.52 The person responsible for CWD storage shall provide a receipt for use in making entries on coupon book inventory records.

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.53 The responsible person shall assure that a running inventory of all unissued stamps in the CWD is maintained.

.6 Coupon Accountability to FNS

.61 Each coupon issuer and bulk storage point shall report monthly to the CWD using the FNS-250 and supporting documents. These reports shall be signed by the coupon issuer or appropriate corporate official, certifying that the information is true and correct to the best of that person's knowledge and belief. All copies of the FNS-250 shall have original signatures.

.62 The FNS-250 shall be prepared after the close of each issuance month and submitted to FNS by the CWD.

.621 Each issuing unit shall prepare a FNS-250 which the CWD shall consolidate into a single report if the CWD is self-issuing.

.622 If the CWD contracts for issuance, a separate FNS-250 shall be required for each reporting point.

.623 CWDs are not responsible for submitting a consolidated FNS-250 for all their contracted issuance agents. However, the CWD shall submit all FNS-250s for the CWD and/or its agents. CWDs are responsible for reconciling any differences between their records and those of the issuance agents.

.63 Supporting Documentation

Supporting documentation shall be submitted which will allow for verification of the FNS-250.

.631 Documentation shall include, but is not limited to, documents supporting coupon shipments, transfers and issuances.

.632 In CWDs using an authorization document issuance system, coupon issuers shall submit transacted authorization documents batched according to each day's activity, in accordance with the schedule prescribed by the CWD, but, in any case, not less often than monthly.

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.64 Mail Issuance Activity

All mail issuance activity, including the value of mail issuance replacements, shall be reported on the FNS-250. When the initial allotment (first benefits issued for a particular month to an on-going household) is returned to inventory as specified in Section 63-706.31 and the replacement issuance is also issued during the month in which the initial benefits were issued, the replacement shall not be reported.

NOTE: Authority cited: Sections 10554 and 18904, Welfare and Institutions Code. Reference: 7 CFR 271.2; 7 CFR 274.4; 7 CFR 274.7; 7 CFR 274.8; and Sections 10554 and 18904, Welfare and Institutions Code.