Applicants must provide a Social Security number for each household member. Inclusion of Deceased Individuals in Food Stamp Households Costs Millions in Overpayments

During calendar years 1995 and 1996, about $8.5 million in food stamp benefits were improperly collected by households that included deceased individuals—nearly 26,000 in total—in the four states we examined. States’ Matching Efforts Have Had Mixed Results

Although some state agencies have employed their own computer matches as a means of identifying deceased individuals who are included in food stamp households, the practice does not appear to be widespread. However, because the agency’s Social Security numbers are not verified, and the information is limited to California, mismatches may occur, and some deceased individuals may not be identified. Because SSA already has a system in place for providing death information to the states, it would be even more cost-effective for SSA to routinely provide death information on food stamp participants to the states rather than having the states conduct computer matches of the food stamp rolls and their death records. The availability of such information would provide ancillary benefits, such as helping state agencies identify deceased individuals in other assistance programs. SSA’s information on deceased individuals could also be used to identify agency errors. Specifically, we determined (1) how many deceased individuals were included as members of households that received food stamp benefits and the estimated value of improper benefits that were issued to the households, (2) how these individuals could be included without being detected, and (3) whether computer matching or other methods could effectively identify such individuals. To determine if deceased individuals were included as members of households that received food stamp benefits and the estimated value of benefits that were issued to the households, we matched the food stamp records of the four states with the largest benefits in the Food Stamp Program and the Social Security Administration’s (SSA) Death Master File. The state agencies had verified the Social Security numbers for the data on food stamp beneficiaries through SSA’s Enumeration Verification System. 2. 3. 4. However, SSA states that it does not have the authority to disclose such information to USDA or the states. 2.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Food Stamp Program, focusing on: (1) how many deceased individuals were included as members of households that received food stamp benefits and the estimated value of improper benefits that were issued to the households; (2) how these individuals could be included without being detected; and (3) whether computer matching or other methods could effectively identify such individuals.

What GAO Found

GAO noted that: (1) GAO identified nearly 26,000 deceased individuals in the four states GAO reviewed who were included in households receiving food stamps for the 2-year period 1995 through 1996; (2) these households improperly collected an estimated $8.5 million in food stamps benefits; (3) the inclusion of deceased individuals in food stamp households goes undetected because agencies rely primarily on unverified information on household membership provided by food stamp applicants and participants; (4) states are not required to match applicant-provided social security numbers with the social security numbers of deceased individuals; (5) however, several state agencies match information on the applicant's household members with information on deceased individuals from their state's vital statistics agency; (6) these states' efforts have had mixed success because the states have not always had verified, comprehensive death information; (7) while the Social Security Administration (SSA) makes information on its deceased beneficiaries available to state agencies through its State Verification and Exchange System, this information is limited to the recipients of specific SSA benefits; (8) states' computer matching of individuals in food stamp households with data in SSA's more comprehensive Death Master File would provide a cost-effective mechanism to accurately and independently identify deceased individuals included in food stamp households; (9) it would be even more cost-effective, however, for SSA to notify the states when a food stamp participant dies, rather than having the states conduct computer matches, because SSA already has a system in place to identify deceased individuals who received food stamp benefits but not social security benefits; and (10) furthermore, some states place restrictions on the use of the death data they provide to SSA; the agency currently does not have the authority to disclose restricted death information to other states administering federal benefit programs.