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Food Stamp Automation: Some Benefits Achieved; Federal Incentive Funding No Longer Needed

RCED-90-9 Published: Jan 24, 1990. Publicly Released: Feb 07, 1990.
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Highlights

Pursuant to a congressional request, GAO reviewed Food Stamp Program automation costs and benefits in selected state-wide and locally administered programs, focusing on: (1) whether automation helped state agencies to improve program administration and reduce errors; (2) automation costs; and (3) the continued need for federal automation incentives.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Since all of the state agencies have automated to some extent, thereby accomplishing the objective set forth by the originating committee, the legislation for 75-percent funding, Congress should amend the 1980 Amendments to the Food Stamp Act of 1977 to discontinue the 75-percent level of federal funding to plan, design, develop, and install ADP and information retrieval systems to administer the Food Stamp Program.
Closed – Implemented
Congress reduced funding for food stamp automation to 63 percent in the 1990 farm bill.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Agriculture To help ensure good internal controls over the Food Stamp Program's automated systems development, operations costs, and equipment inventories, the Secretary of Agriculture should direct the Administrator, FNS, to amend Service Handbook 103 to require post-installation reviews to be performed as soon as the state agency's automated system becomes operational and require that the reviews include: (1) reconciliation of state agency expenditures with each approved ADP request for funding; and (2) reconciliation of state agency equipment purchased, pursuant to the approved ADP request for funding, with state agency property records.
Closed – Implemented
FNS Handbook 901, issued May 15, 1992, incorporated the recommended changes.
Department of Agriculture To help ensure good internal controls over the Food Stamp Program's automated systems development, operations costs, and equipment inventories, the Secretary of Agriculture should direct the Administrator, FNS, to amend the Service Food Stamp Program budgeting process to require state agencies to: (1) account for total expenditures for each FNS-approved request for ADP development funding; and (2) account annually for all ADP-related equipment purchased pursuant to each FNS-approved request for ADP development funding.
Closed – Not Implemented
USDA has implemented the recommended change to account for total expenditures for each FNS-approved request. However, USDA has not taken action on accounting annually for all ADP equipment purchased pursuant to each request funded. No further action on this recommendation is planned by FNS.
Department of Agriculture To help ensure good internal controls over the Food Stamp Program's automated systems development, operations costs, and equipment inventories, the Secretary of Agriculture should direct the Administrator, FNS, to amend the FNS regional operating procedures to require FNS officials to monitor agency quarterly claims for federal reimbursement to ensure that state agencies do not exceed the approved ADP funding level.
Closed – Implemented
USDA issued revised regulations in February 1990 and has provided additional guidance to its regional offices to monitor quarterly claims for federal reimbursements.

Full Report

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Topics

IT acquisitionsComputer equipment managementCost sharing (finance)Erroneous paymentsstate relationsMedicaidProgram managementState-administered programsStatistical methodsData automation