In response to a congressional request, GAO reviewed the Food and Nutrition Service's (FNS) procedures for adjusting states' Food Stamp Program error rates to account for uncompleted state quality control reviews.

GAO found that: (1) adjustments for uncompleted case reviews were relatively small for 1984 and 1985; (2) only one state suffered an increased sanction because of an error-rate adjustment; (3) adjustments may vary for states with similar review completion rates; (4) some states with similar completion rates received different adjustments; (5) the variations occurred because FNS considered regressed error rates and error-rate standard deviations in determining adjustments; and (6) FNS followed its usual rulemaking process in setting the adjustment procedure.

Status Legend:

Review Pending-GAO has not yet assessed implementation status.

Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.

Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.

Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.

• Review Pending
• Open
• Closed - implemented
• Closed - not implemented

Recommendation for Executive Action

Recommendation: The Secretary of Agriculture should direct the Administrator, FNS, to devise a sanction process that separates financial penalties for uncompleted reviews from financial penalties for exceeding the target error rate. An alternative for doing so could entail a graduated sanction based on the extent to which states do not complete the prescribed number of reviews.

Agency Affected: Department of Agriculture

Status: Closed - Not Implemented

Comments: According to USDA, the Hunger Prevention Act eliminated the step function used in the sanction computation, thereby, eliminating the reason for this recommendation.