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CED-82-89 1 (1982-05-21)

handle is hein.gao/gaobabdhg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 May 21, 1982 COMMUNY AND ECNOMIC OMKLOPMENT lvWsiON R~STRF~ T1 , R l0d outside the Geersi B-207528 Qcf,,urt'9 1)ff:cc Ccx:9t on the baMss of specilic approval by th~l Ctfice ot Con6;'ess[onai Reg-ations. The Honorable G. William Whitehurst RELEASED House of Representatives Dear Mr. Whitehurst: Subject: !Use of Scrip Versus Cash in Making Change for Food Stamp Purchases'(GAO/CED-82-89) Pursuant to your letter dated February 24, 1982, and subse- quent discussions with your office, we are presenting information on the use of scrip (credit slips) instead of cash as change in food stamp purchases. The Food Stamp Act of 1977, as amended, provides that eligible households using food stamps to purchase food may receive cash as change provided it does not equal or exceed the value of the lowest coupon denomination issued, cur- rently $1. Your letter mentioned concerns that some food stamp participants abuse this rule by cashing out food coupons through repeated small purchases and then use the accumulated change to buy items for which the use of food stamps is not authorized. As discussed in this report, using scrip instead of cash for change is a way to eliminate such abuse, but it has some drawbacks. OBJECTIVE, SCOPE, AND METHODOLOGY Our objective was to look at the regulations and procedures for making change for food stamps used to buy food and to present information on the use of scrip versus cash change. We made our review at the Department of Agriculture's Food and Nutrition Service headquarters in the Washington, D.C., area. We interviewed Service officials and reviewed laws, past and present program regulations, and House and Senate conference reports concerning the use of scrip or cash as change. We also obtained information from a Service study made in 1979 on the extent of cash change abuse. The Service recognizes that its study results have limitations; however, little other information was available on the subject. We did our work in accordance with our current Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. II IIDIIIWI[111II111 (023223) 118459

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