Duplicate Participation May Cost Millions in Overpayments

In the four states we examined, about $3.9 million in food stamp benefits were provided during calendar year 1996 to households in different states that may have simultaneously included the same individuals as members. The possibility of duplicate participation in multiple benefit programs is consistent with a September 1997 analysis by the Department of Health and Human Services (HHS). Lack of Comprehensive Information Allows Duplicate Participation

Individuals included in food stamp households in more than one state escape detection because there is no comprehensive national system to identify food stamp participation in more than one state. The Congress, recognizing that the 1996 welfare reform legislation, which contains work requirements for the Food Stamp Program and time limits for TANF, would necessitate tracking participation across states, asked HHS to study how these requirements would be implemented. In the absence of such a system, states must rely primarily on applicants to truthfully report the individuals who are members of their households, not include individuals physically residing in another state or household, and notify them of any subsequent changes. Although certain provisions of the welfare reform legislation of 1996 cannot be fully enforced without interstate tracking of participation in public assistance programs, most states have not begun planning how to track and thus prevent duplicate participation, and no federal agency has overall responsibility for creating a national database or information system to facilitate such tracking. While HHS’ report identified five potential systems that could be developed for interstate tracking, the report did not recommend developing any specific system. In addition, they recertify the household at least annually. Until a national system to track all participation in public assistance programs is established to assist states in enforcing welfare reform provisions, a national database of food stamp participation information could be used to detect and prevent duplicate participation at the time of application, thereby obviating the process of recouping overpayments. Given our findings of potential duplicate participation in four widely separated states, as well as similar findings by HHS, we believe that creating a national system to collect, analyze, and disseminate information on participation in the Food Stamp Program would be an effective way to provide the states with the information they need to help prevent duplicate participation. Recommendation to the Secretary of Agriculture

In the absence of a comprehensive national information system on participants in all public assistance programs, we recommend that the Secretary of Agriculture direct the Administrator of FNS to consider establishing a central system to help ensure that individuals participating in the Food Stamp Program are not being improperly included as household members in more than one state concurrently. Objectives, Scope, and Methodology

To determine how many individuals were included as members of more than one household that received food stamp benefits during the same time period and the estimated value of the benefits that were issued to those households, we matched the food stamp records of each of the four states with the largest benefit issuance in the Food Stamp Program against each other. To identify the options for detecting or preventing future food stamp overpayments caused by duplicate participation, we discussed with agency officials in each of the states we visited their opinions regarding the value of computer matching. GAO Comments

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Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on ineligible individuals who are improperly participating in the Department of Agriculture's (USDA) Food Stamp Program, focusing on: (1) determining how many individuals were included as members of food stamp households in more than one state during 1996 and the estimated value of the benefits that were improperly issued to those households; (2) determining how these individuals could be improperly included without being detected; and (3) identifying an option for detecting or preventing future food stamp overpayments caused by such duplicate participation.

What GAO Found

GAO noted that: (1) among the four widely separated states GAO reviewed, GAO identified over 20,000 individuals who were potentially improperly included in food stamp households in at least two of those four states at the same time during calendar year 1996; (2) while GAO cannot estimate the potential amount of overpayments nationwide due to this duplicate participation, the households in those four states improperly collected an estimated $3.9 million in food stamp benefits; (3) additional evidence of the scope of this problem is indicated by a September 1997 Department of Health and Human Services computer match of 15 states and the District of Columbia, which found 18,000 potential cases of duplicate participation in the public assistance programs, including food stamps; (4) interstate duplicate participation goes undetected because there is no national system to identify food stamp participation in more than one state; (5) welfare reform legislation of 1996 contains work requirements for the Food Stamp Program and time limits for Temporary Assistance for Needy Families that can be fully enforced only by interstate tracking of participation in public assistance programs; (6) however, the law does not require a national tracking system to be established, and no federal agency is responsible for creating a national system to facilitate such tracking; (7) although the states have been working individually to modify their systems to meet welfare reform requirements, few states have made progress in developing automated systems to track participation outside their borders; (8) while states may currently learn of some duplicate participation from the Social Security Administration or through their own matching efforts with neighboring states, they rely primarily on applicants and clients to truthfully identify who resides in their households; (9) in the absence of a comprehensive national database or information system to track participants receiving public assistance, creating a USDA-managed system to collect and disseminate information on national participation in the Food Stamp Program could provide an efficient and effective means to identify duplicate participation and help prevent food stamp overpayments; (10) rather than relying on states to individually develop programs to identify and prevent duplicate participation, it would be more efficient for USDA to develop a single nationwide system; and (11) once established, such a system could be expanded to track additional information that would help states enforce welfare reform provisions relating to food stamps.