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

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.