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Food Assistance: Reducing Food Stamp Benefit Overpayments and Trafficking

RCED-95-198 Published: Jun 23, 1995. Publicly Released: Jun 23, 1995.
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Highlights

Pursuant to a congressional request, GAO reviewed fraud, waste, and abuse in the Department of Agriculture's (USDA) food stamp program, focusing on: (1) the causes of benefit overpayments; (2) whether USDA controls and procedures are adequate to prevent retailer involvement in the trafficking of food stamp coupons; and (3) what can be done to reduce trafficking by food stamp recipients.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture In view of proposed legislation, the Secretary of Agriculture should direct the Administrator, Food and Consumer Service, to determine the resources needed to incorporate on-site visits into its processes for authorizing and reauthorizing stores to accept food stamp benefits. This analysis should include a determination of the resources needed to effectively monitor stores once they are authorized to accept benefits and to investigate stores suspected of food stamp trafficking. The Secretary should consider the results of this analysis in the setting of departmental priorities and the allocation of resources, and provide this information to Congress for its use in considering program reforms.
Closed – Implemented
The Food and Consumer Service (FCS) has undertaken numerous efforts to increase the number of on-site visits to stores and improve the oversight of retailers. In addition, USDA's fiscal year 1997 appropriation includes $4.2 million to increase visits to high-risk stores. FCS will contract for these visits because of a restriction on increasing agency staff levels. FCS efforts are improving retailer integrity in the Food Stamp Program.

Full Report

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Topics

Administrative errorsElectronic benefits transfersEligibility criteriastate relationsOverpaymentsProgram abusesRetail facilitiesWelfare benefitsWelfare recipientsFood relief programs