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108614 1 (1979-02-05)

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108614


Mr. Robert W. Sparks
Director, Title I                         C.,
State Department of Education
P.O. Box 6Q
Richmiond, Virginia  23216


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Dear Hr. Sparks:

     We are currently conducting  a survey which includes the Richmond City
Public School System.  Based on  information obtained at the Rich'ond Public
School System and information provided by  you and your staff, we believe
that Richmond was overpaid $4,1D9.82  for food service costs during FY 1978.
This overpaymlent occurred because Richmond claimed unallowable cost.  It
appears this claim was based on an  erroneous interpretation of the regulations.
Based on our work we  feel your office should review the food service claims
for other school systems to determine  the extent of these problems and take
the necessary actions to collect  any excess reimbursement.  (Enclosure I
provides additional information.)

     We will notify you of  any other issues we identify during our audit.
In the meantime, we would appreciate  your informing us in writing of any
actions planned or taken.  Should you  have any questions, please contact
Chris Martin of my staff at  804-441-6621.

     We appreicate the courtesies  and cooperation extended to us by your
staff and look forward to working  with therm during the renainder of our
audit.

                                         Sincerely.



                                         Joe B. Stevens
                                         Assistant Regional Manager


Enclosuro


bc: Mr. Raspen  (FGMSD/AST)
    Chief, Distribution Section


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UNITED STATES GENERAL  ACCOUNTING OFFICE
            REGIONAL  OFFICE
            5705 THURSTON AVENUE
       VIRGINIA BEACH, VIRGINIA 23455

           February 5, 1979


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