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Food Stamp Program: Progress and Problems in Using 75-Percent Funding for Automation

RCED-88-58 Published: Apr 28, 1988. Publicly Released: Jun 02, 1988.
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Highlights

In response to a congressional request, GAO reviewed the Department of Agriculture's (USDA) Food and Nutrition Service's (FNS) Food Stamp Program to determine: (1) what state information retrieval systems FNS had approved for 75-percent funding from fiscal year (FY) 1981 through FY 1986; and (2) whether the approved systems or projects complied with legislative mandates and met general functional requirements.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Since 1980, USDA has used 75-percent federal matching funds to automate the Food Stamp Program in a manner allowed by the act but which departed significantly from what was envisioned in the legislative history. Congress may wish to consider expressing its current position on the manner in which 75-percent funding is being used.
Closed – Not Implemented
In the 1990 farm bill, Congress required USDA to review the regulations and standards for the approval of an automated system. However, Congress did not clarify its own current position on how the 75-percent funding is to be used. Congress has considered the recommendation, but has chosen a different course of action.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FNS, to monitor and enforce regulations requiring that automated systems approved for 75-percent funding be for total Food Stamp Program certification or issuance, reconciliation, and reporting systems only.
Closed – Implemented
Proposed rules were published August 8, 1988. USDA provided funding approved guidance on October 13, 1988. A final rule was published on February 7, 1990.
Department of Agriculture To help ensure that the Food Stamp Program's automated systems development approved for 75-percent federal funding meets the requirements set forth in USDA regulations, the Secretary of Agriculture should direct the Administrator, FNS, to: (1) amend Service Handbook 151, Automatic Data Processing (ADP) Advance Planning Document Handbook for state agencies, to direct that state agency requests for 75-percent funding fully describe in their planning documents how the required program functional standards will be incorporated into the proposed automated Food Stamp Program system; (2) amend Service Handbook 103 to direct regional Food Stamp Program personnel to document their determination that each of the required program functional standards are met prior to approving requests for 75-percent funding; and (3) direct regional office personnel to implement the state agency request file records control system described in Service Handbook 103 to maintain a planning document control log and numbering system for related amendments and correspondence pertaining to each state agency's request for federal funding.
Closed – Implemented
FNS Handbook 901, issued on May 15, 1992, incorporates requirements for states to fully document how the functional standards will be included in the automated system.

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Topics

Cost analysisFederal fundsstate relationsInformation systemsInformation storage and retrievalFood relief programsData automationNutritionFederal fundingAudit reports