Financial Statement Audit: Use of Collections by the Food and Nutrition Service

B-235577.2-O.M.: Nov 9, 1989

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Issues were addressed regarding the Food and Nutrition Service's (FNS) authority to retain and use collections of its accounts receivable to finance current FNS operations. It was determined that FNS: (1) could retain, use, and credit its collections from state agencies or households under the Food Stamp Act to the appropriation for the fiscal year in which the collection occurred; (2) had to deposit into Department of the Treasury accounts any civil penalties it collected from retail and wholesale food distributors under the act; and (3) could credit reimbursements it received from grantees receiving improper payments to the appropriation which originally funded the grant.

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