Skip to main content

Better Wage-Matching Systems and Procedures Would Enhance Food Stamp Program Integrity

RCED-84-112 Published: Sep 11, 1984. Publicly Released: Sep 11, 1984.
Jump To:
Skip to Highlights

Highlights

GAO reviewed states' wage-matching activities in the Food Stamp Program to determine whether the Department of Agriculture's (USDA) and states' wage-matching efforts have effectively addressed the benefit overissuance problem. GAO also analyzed the effectiveness of Aid to Families with Dependent Children (AFDC) Program matching operations on a smaller scale.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture The Secretary of Agriculture should direct the Administrator of the Food and Nutrition Service (FNS) to issue policy guidance to improve the efficiency of states' wage-matching systems for identifying and referring for follow-up specific cases involving potential overpayments. This initiative should: (1) describe the most efficient automated methods for identifying participants who have not reported their total income; (2) require states to obtain and compare earned income information of households for which external wage data is obtained; and (3) establish dollar criteria on the amounts of potential income errors which require local office follow-up.
Closed – Implemented
This recommendation should be closed.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FNS, to modify FNS regulations concerning increased federal participation in states' cost to develop, install new, or upgrade existing computer systems to require that states' systems retain historical data on participant-reported earnings.
Closed – Implemented
USDA installed a computer system, the Income Eligibility Verification System (IEVS), to comply with the Budget Deficit Reduction Act of 1985 requirement for a system capable of matching AFDC, Medicaid, and Food Stamp Program benefits with participant-reported earnings. IEVS will provide the historical earnings data, as recommended by GAO. An accomplishment report is being prepared.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FNS, to work with states which already have computer capability to establish and implement systems to conduct automated comparisons of external and participant-reported wage information for the same calendar period.
Closed – Not Implemented
USDA intends to continue allowing states' latitude and flexibility in the development of computer technology based on states' capabilities and resources. Consequently, no specific actions will be taken to directly implement this recommendation.
Department of Agriculture The Secretary of Agriculture should direct the Administrator, FNS, to modify its regulations and establish policy guidance to set forth specific FNS expectations regarding state follow-up actions. The regulations should also require that states and local offices provide appropriate instructions and training to staff performing follow-up activities and that states establish controls for monitoring accuracy, timeliness, and completion of local office follow-up work. FNS should evaluate the adequacy of state follow-up efforts as part of its state-level operations reviews and its validations of states' management evaluation reviews.
Closed – Implemented
This recommendation should be closed.

Full Report

Office of Public Affairs

Topics

Cost analysisEligibility determinationsFinancial disclosureFood relief programsIncome statisticsOverpaymentsProgram managementState-administered programsData errorsNutrition