10 Colo. Code Regs. § 2506-1-4.708
The issuance supervisor is responsible for taking a physical count of EBT cards on hand after the last issuance day of the month. There must be an actual count of all EBT cards in bulk storage facilities and in each cashier's working card stock in order to validate EBT card inventories reported on Form FS-13 and Form FNS-250.
Local offices shall be liable to USDA/FNS for the face value of EBT card loss that occurs because of thefts, embezzlements, and cashier error, unless the investigation was reported directly to USDA/FNS prior to the loss and unexplained causes. The local offices shall not be liable for the value of EBT cards issued for those duplicate issuances in the correct amount that are the result of authorized replacement issuances.
Form FNS-250 (EBT Card Accountability Report), as incorporated by reference in section 4.707.6, C, above, shall be executed monthly by EBT card issuers and bulk storage points. The FNS-250 shall be signed by the EBT card issuer or appropriate official, certifying that the information is true and correct to the best of that person's knowledge and belief.
FNS-250 is an automated report available through an automated system and needs to be data entered by the 15th of the month. Supporting documentation to Form FNS-250 shall be submitted to the state department which will verify the monthly report. Documentation shall consist of documents supporting EBT card shipments (FNS-261, as incorporated by reference in section 4.707.4, C, above), EBT card transfers (FNS-300, as incorporated by reference in section 4.707.4, D, above), and destruction of EBT cards (FNS-135 and FNS-471, as incorporated by reference in section 4.707.5, A, above).
The state department shall establish an accounting system to review Form FNS-250, as incorporated by reference in section 4.707.66, C, above, completed by all local offices and determine the propriety and reasonableness of EBT card inventories, issuance activities, and reconciliation records. All records of EBT card requisition, EBT card receipt, returned mail EBT card issuances, replacements of EBT cards lost in the mail or improperly manufactured, or mutilated as well as the supporting remarks and documentation for monthly over-issuance and under-issuance shall be used to assure the accuracy of monthly reports.
Form FNS-46 (Issuance Reconciliation Report) shall be submitted by each local office operating an issuance system. The report shall be prepared at the level where the actual reconciliation of the record for issuance and master file occurs.
Local offices shall identify and report the number and value of all issuances that do not reconcile with the record-for-issuance and master issuance file.
In addition to the above requirement, local offices will continue to reconcile inventory levels against issuances each month on Form FNS-250 (SNAP Accountability Report, as incorporated by reference in section 4.707.6, C, above) and attach Form FNS259 (SNAP Mail Issuance Report, as incorporated by reference in section 4.707.91, E, above) for reconciliation.
Unusable EBT cards shall be destroyed by the local office provided that the destruction is accomplished by burning, shredding, or tearing and two (2) persons witness the EBT card destruction.
Form FNS-471 (EBT Card and Destruction Report, as incorporated by reference in section 4.707.5, A, above) shall be completed and signed by the required witnesses and mailed to the state department.
Form FNS-135 (Affidavit for Return or Exchange of EBT Cards, as incorporated by reference in section 4.708.2, above) completed for the return of unusable EBT cards by clients or for claims payments and Form FNS-471 completed on destruction of unusable EBT cards improperly manufactured or mutilated in shipments are supporting documents for necessary EBT card destruction.
Local offices must report the destruction of improperly manufactured or mutilated EBT cards on Form FNS-471 and submit it with Form FNS-250, as incorporated by reference in section 4.707.6, C, above, for the appropriate month. For EBT cards received from recipients, the original copy of Form FNS-135 must be attached to a copy of Form FNS-471 and retained in the office for future review and audit purposes. The destruction of EBT cards received from claims collections that are the result of payment of household claims must be reported on Form FNS-471.
Form FNS-135 will act as a receipt on exchange of unusable EBT cards returned by clients or returned for claim payments.
Local offices shall exercise the following security and controls for EBT cards that are undeliverable or returned during the valid issuance period. Forms FNS-471, as incorporated by reference in section 4.707.5, A, above, and FNS-135, as incorporated by reference in section 4.708.2, above, shall be completed by the local office as appropriate.
EBT cards shall be returned to inventory and noted as such on the issuance log and Form FNS-250, as incorporated by reference in section 4.707.6, C, above.
EBT Cards will be accounted for on Form FNS-135 (Affidavit for Return or Exchange of Food Coupons) and destroyed under procedures pertaining to Form FNS-471 (EBT Card and Destruction Report). A copy of Form FNS-135 will be retained in the household's case file for audit purposes.
The state department shall make estimations with data from the automated system on Benefit Issuance and Participation Estimates.
10 CCR 2506-1-4.708