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SP03-2009: Questions Relevant to State Accounting and Reporting of Retained Funds from Additional Administrative Reviews

Last Published: 12/06/2013

As you are aware, the Richard B. Russell National School Lunch Act (NSLA), requires that State educational agencies (SAs) conduct additional administrative reviews of selected local educational agencies and outlines conditions under which they may retain a portion of improperly paid funds recovered as a result of their Coordinated Review Effort (CRE) process and the Additional Administrative Review (AAR) requirement. In accordance with this section, SAs may retain up to 25% of funds paid in error to School Food Authorities (SFAs) which are discovered during a CRE or an AAR.