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123992 1 (1984-04-25)

handle is hein.gao/gaobacthl0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 r FOR RELEASE ON DELIVERY Expected at 10:00 a.m. EST Wednesday, April 25, 1984 STATEMENT OF BRIAN P. CROWLEY SENIOR ASSOCIATE DIRECTOR RESOURCES, COMMUNITY, AND ECONOMIC DEVELOPMENT DIVISION BEFORE THE SENATE COMMITTEE ON AGRICULTURE, NUTRITION, AND FORESTRY ON 123992 GENERAL ACCOUNTING OFFICE REVIEWS OF DOMESTIC FOOD ASSISTANCE PROGRAMS Mr. Chairman and Members of the Committee: We are here today at your invitation to discuss work relating to the Department of Agriculture's domestic food assistance pro- grams. You asked that we discuss the Food Stamp, Child Nutrition, and special commodity distribution programs, and that we provide information from completed reports as well as any ongoing related work. My presentation today will focus on the following issues: (1) overissued Food Stamp Program benefits; (2) wage matching, collec- tions, and corrective action plans in the Food Stamp Program; (3) error-rate sanction systems for needs-based programs; (4) benefit targeting and related issues in the Special Supplemental Food Pro- gram for Women, Infants, and Children (WIC); (5) School Lunch Pro- gram participation; (6) the special commodity distribution program; and (7) recently started work involving eligibility redeterminations in the Food Stamp and the Aid to Families with Dependent Children (AFDC) Programs, food stamp benefit delivery systems, and the authorization and monitoring of retail vendors in the Food Stamp and WIC Programs. OVERISSUED FOOD STAMP BENEFITS In a report1 issued in February 1983, we discussed the need to recover Food Stamp Program costs attributed to errors or fraud. We noted that total overissued program benefits (including excess bene- fits to eligible persons and benefits issued to ineligible persons) were about $1 billion a year and, in fiscal year 1981 (the latest period for which we had information at the time of that review), represented about 10 percent of all benefits issued. More recent data shows that error rates have declined but, because of increases in total program outlays, overpayments still approach $1 billion a year. The annual dollar loss is equivalent to what is spent to pro- vide food assistance to almost 2 million needy people. Our report INeed For Greater Efforts To Recover Costs Of Food Stamps Obtained Through Errors Or Fraud, (GAO/RCED-83-40, Feb. 4, 1983). I

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