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273 Chapter 24 Program Performance Reporting System 2 4 . 1 G E N E R A L S C O P E A N D P U R P O S E Under the Food and Nutrition Act, the Agency is responsible for the administration of SNAP in accordance with the Act, Regulations, and the Agency's plan of operation. To fulfill the requirements of the Act, the Agency will have a system for monitoring and improving its administration of SNAP. The Agency is also responsible for reporting on its administration to FNS. These reports will identify program deficiencies and the specific administrative action proposed to meet the program requirements established by USDA, FNS. If it is determined, however, that the Agency has failed without good cause to meet any of the program requirements established by FNS, or has failed to carry out the approved State plan of operation, the FNS will suspend and/or disallow from the Agency such funds as are determined to be appropriate. The Food and Nutrition Act authorizes FNS to pay the Agency an amount equal to 50 percent of all administrative costs involved in the Agency’s operation of SNAP, The Act further authorizes FNS to increase the percentage share if: (A) The Agency’s payment error rate is less than or equal to 5.90 percent, and (B) The State Agency's negative case error rate is less than the national weighted mean negative case error rate for the prior fiscal year. If the Agency qualifies for an increased percentage share, the amount of increase will be an additional percentage point for each full tenth of a percentage point by which the payment error rate is less than six percent, up to a maximum of 60 percent of administrative costs.

Those State agencies not receiving the increased share of funding will develop and implement corrective action plans to reduce payment errors.

Chapter 24