Repayment of Overpaid Cash-in-Lieu-of-Commodities Funds to Louisiana Youth Talent Promotion, Inc.

Pursuant to a congressional request, GAO examined the circumstances, status, and the equity of a repayment plan to recover overpayments made to an agency sponsoring the Child Food Program in Louisiana. During fiscal years 1977 through 1979, the agency had received excess cash-in-lieu-of-commodity payments which are now being collected by the Louisiana Department of Education as monthly deductions.

Following a GAO report concerning overpayments in the Child Care Food Program, the Food and Nutrition Service determined that the Louisiana Department of Education had overpaid program sponsors in the form of cash-in-lieu-of-commodity payments. Early in 1981, after overpayment collections began, the agency requested to have its monthly deductions set at a lower amount. The State Department of Education lowered the deduction to an amount that it believes is equitable, considering the total amount overpaid and the monthly reimbursement amounts. Food and Nutrition Service officials stated that the State Department of Education is being very reasonable in this case in that it is making monthly deductions to help ease the repayment burden of the agency. GAO could see no basis upon which to question the actions being taken.