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Improved Collections Can Reduce Federal and District Government Food Stamp Program Costs

GGD-81-31 Published: Apr 03, 1981. Publicly Released: Apr 03, 1981.
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Highlights

GAO studied collection procedures for amounts owed to the District of Columbia by food stamp vendors for cash and food stamp shortages and by recipients who were overissued stamps.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
District of Columbia The Mayor should require the Director of the Department of Human Services (DHS) to establish controls over unused cards in the hands of the computer operators.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should require the Director of DHS to remind issuers that they are liable and will not be paid fees for improper issuances.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should instruct the Director of DHS to adopt a policy to consistently offset shortages against transaction fees earned by the vendors.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should instruct the Director of DHS to investigate all shortages and institute recovery actions when District employees are determined responsible.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should instruct the Director of DHS to establish maximum time frames within which certain claim processing steps must be accomplished.
Closed – Not Implemented
Work was completed over 3 years ago. Much that was recommended has been implemented and verified. Since completion of this work, major reorganizations and personnel changes have occurred directly affecting the administration of the program. Only a full-scale review would allow GAO to ascertain if the current status and staffing is not available, nor will be, to do the job.
District of Columbia The Mayor should instruct the Director of DHS to terminate the vendor's participation in the program after taking steps to minimize impact on food stamp recipients served by the vendor if he is unable to reach such agreements with a private vendor within a reasonable period of time.
Closed – Not Implemented
Work was completed over 3 years ago. Much that was recommended has been implemented and verified. Since completion of the work, major reorganizations and personnel changes have occurred, directly affecting the administration of the program. Only a full-scale review would allow GAO to ascertain if the current status and staffing is not available, nor will be, to do the job.
District of Columbia The Mayor should instruct the Director of DHS to establish a policy and procedures for initiating and settling claims for food stamp shortages incurred at District agency issuing outlets.
Closed – Not Implemented
Work was completed over 3 years ago. Much that was recommended has been implemented and verified. Since completion of this work, major reorgaizations and personnel changes have occurred, directly affecting the administration of the program. Only a full-scale review would allow GAO to ascertain if the current status and staffing is not available, nor will be, to do the job.
District of Columbia The Mayor should instruct the Director of DHS to include offsetting agency food stamp shortages against moneys due that agency by DHS for operating such outlets.
Closed – Not Implemented
DHS believes that the agencies will not participate if the recommendation is implemented.
District of Columbia The Mayor should instruct the Director of DHS to establish a procedure to submit claims for unpaid shortages to vendor insurance companies where appropriate.
Closed – Not Implemented
DHS feels that only the vendor should submit claims.
District of Columbia The Mayor should require the Director of DHS to establish a system to record and control serial numbers of participation cards received, distributed, and used.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should instruct the Directors of DHS and the Department of Housing and Community Services (DHCD) to finalize the agreement under which DHCD issues food stamps at its locations to enable DHS to recover reimbursable administrative costs from the Department of Agriculture.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should require the Director of DHS to devise a system that will ensure that all voided cards are rendered unusable, are appropriately recorded, and are destroyed within established timeframes.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should require the Director of DHS to reemphasize to issuers and personnel working in the Food Stamp Program the importance of ensuring that participation cards presented for redemption have not expired, have not been altered, and have been signed by eligible recipients.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should require the Director of DHS to establish a system to sample redeemed participation cards to evaluate the extent of compliance with program requirements concerning expired, altered, and unsigned cards. As appropriate, redemption of expired, altered, and unsigned cards should be considered as unauthorized issuances for which issuers are liable for the value of the stamps and any fees paid.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should require the Director of DHS to ensure that the Office of Fair Hearings expedites food stamp fraud hearings and reports on the status of all food stamp fraud cases until the backlog has been eliminated.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
District of Columbia The Mayor should instruct the Director of DHS to expand collection efforts for large outstanding amounts to include personal contacts with recipients who do not respond to inquiries concerning food stamp overissuances or do not execute or comply with repayment agreements.
Closed – Not Implemented
DHS does not consider personal visits appropriate.
District of Columbia The Mayor should instruct the Director of DHS to require that the proposed computerized report on claims be modified to show the status of each claim, the length of time the claim was in each status, and whether the claim was progressing in accordance with established timeframes.
Closed – Not Implemented
Work was completed over 3 years ago. Much that was recommended has been implemented and verified. Since completion of the work, major reorganizations and personnel changes have occurred, directly affecting the administration of the program. Only a full-scale review would allow GAO to ascertain if the current status and staffing is not available, nor will be, to do the job.
District of Columbia The Mayor should require the Director of DHS to revise the filing system for transacted cards so that they are accessible by serial or case number and provide secured storage to prevent their reintroduction into the system.
Closed – Not Implemented
Work was completed over 3 years ago. Much that was recommended has been implemented and verified. Since completion of the work, major reorganizations and personnel changes have occurred, directly affecting the administration of the program. Only a full-scale review would allow GAO to ascertain if the current status and staffing is not available, nor will be, to do the job.
District of Columbia The Mayor should instruct the Director of DHS to execute food stamp contracts with all vendors and obtain documentation that vendors have secured insurance and bonding coverage required by their contracts.
Closed – Not Implemented
Work was completed over 3 years ago. Much that was recommended has been implemented and verified. Since completion of the work, major reorganizations and personnel changes have occurred, directly affecting the administration of the program. Only a full-scale review would allow GAO to ascertain if the current status and staffing is not available, nor will be, to do the job.

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Topics

Collection proceduresCost controlFederal aid programsFraudProgram abusesProgram managementPublic assistance programsFood relief programsHearingsAdministrative costs