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B-200555 1 (1981-01-26)

handle is hein.gao/gaobabjdj0001 and id is 1 raw text is: 74 >:' COMPTROLLER GENERAL OF THE UNITED STATES • : . . 1 . * WASHINGTON D.C. 20548 January 26, 1981 B-200555 A. . The Honorable Jesse Helms Chairman Committee on Agriculture, ...: Nutrition, and Forestry United States Senate Dear Mr. Chairman: On October 30, 1980, your staff verbally requested that we provide information to supplement our October 9, 1980, letter to you. That letter responded to your request for us to review certain changes in accounting procedures used by the Department of Agriculture's -Food and Nutrition Service for the Child Nutrition Programs. The specific questions raised and our responses follow. Question 1. Will the shortfall in the Child Nutrition Programs for fiscal year 1980 be greater than the $243 million that was transferred to the Food Stamp Program, as permitted by the Supplemental Appropriations and Rescission Act, 1980? At the time of our October 9, 1980, letter the Food and Nutrition Service advised that, if all meals served in fiscal year 1980 are to be paid from fiscal year 1980 funds, about $243 million in additional funds would be needed. This potential shortfall was anticipated because of the $243 million transfer of funds from the Child Nutrition Programs to the Food Stamp Program which was permitted by the Supplemental Appropriations and Rescission Act, 1980. On the basis of current data provided to us by the Food and Nutrition Service, the shortfall in the Child Nutrition Programs for fiscal year 1980 is now estimated to be $204 million. The actual amount of the shortfall will not be known until March 1981 because the Food and Nutrition Service regula- tions allow claims to be reported by schools to State agencies until December 31 and States to submit final reports to the Food and Nutrition Service by March 1. Because of the delay in claims submission, we have no reasonable basis upon which to dispute the accuracy of the pro- jected $204 million shortfall. Likewise, there is no current basis for us to independently determine the amount of the eventual shortfall. c2~p3

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