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Food Stamp Program: Better Use of Electronic Data Could Result in Disqualifying More Recipients Who Traffic Benefits

RCED-00-61 Published: Mar 07, 2000. Publicly Released: Apr 06, 2000.
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Highlights

Pursuant to a congressional request, GAO reviewed the efforts of states and the Food and Nutrition Service (FNS) to reduce Food Stamp trafficking, focusing on the: (1) extent to which the states with statewide electronic benefit transfer (EBT) systems are identifying and disqualifying recipients who engage in trafficking; and (2) actions FNS has taken to encourage the states to identify and disqualify recipients engaged in trafficking.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture To improve the integrity of the Food Stamp Program, the Secretary of Agriculture should direct the Administrator, FNS, to: (1) work with the five states using EBT data to determine the best techniques for using these data to identify suspected recipient traffickers and work with the other states with statewide EBT systems to implement the best techniques, as appropriate; and (2) use EBT data to periodically develop reliable estimates of the extent of trafficking and use these estimates to develop goals and appropriate strategies for reducing trafficking.
Closed – Implemented
In July 2000, USDA's Food and Nutrition Service (FNS) issued in the Federal Register a final rule, "Food Stamp Program: Claim Establishment and Collection Standards," that provided increased financial incentives for states to be more aggressive in pursuing recipients who traffic food stamp benefits. FNS is continuing to with work with states to identify and implement techniques for using EBT data to identify recipient trafficking. FNS has also approved state exchange funds allowing states to interact to discuss and exchange best practice methods during on-site visits. With regard to the second part of the recommendation, in July 2000, FNS issued a new estimate of the extent of trafficking in the Food Stamp Program which included an analysis of electronic benefits transfer payments data. Additionally, FNS in May 2001 asked the Economic Resarch Service (ERS) to develop a Statement of Work to develop a data collection and modeling framework for annually measuring and reporting the extent of trafficking nationally. ERS completed the Statement which included two primary deliverables: (1) discussion document outlining technical issues for using EBT data and (2) convening an expert panel to discuss the options for producing an annual tracking report.

Full Report

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Topics

Computer matchingElectronic benefits transfersstate relationsFood relief programsFraudInternal controlsState-administered programsWelfare benefitsWelfare recipientsDatabases