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RCED-84-58 1 (1984-03-14)

handle is hein.gao/gaobabele0001 and id is 1 raw text is: 





REPORT BY THE


Comptroller General


OF THE UNITED STATES




Improved Administration Of

Special Surplus Dairy Product

Distribution Program Needed


To help reduce inventories of surplus dairy products,
the Department of Agriculture began providing states
with products for distribution to the needy in Decem-
ber 1981; through September 1983, 510 million
pounds of cheese and 174 million pounds of butter
were distributed nationwide.

Because national guidelines were not provided, some
states lacked adequate procedures to ensure that only
the needy participated in the program. As a result,
program administration varied widely, abuses occur-
red, and displacement of commercial sales was
greater than necessary. Displaced sales add to the
surpluses the Department must buy and store. Lacking
empirical data, GAO estimated the amount of cheese
sales that would have been displaced in eight states
under stipulated conditions. If the assumed condi-
tions had existed, GAO estimated that about 30
percent of the cheese distributed displaced sales.

The Department issued interim regulations imple-
menting program changes required by recent legisla-
tion. GAO recommends that the final regulations be
more specific to deal with the major issues discussed
in its report.





                                                                   123706



                                                                GAO/RCED-84-58
                                                                MARCH 14, 1984

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