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1 1 (September 24, 2018)

handle is hein.crs/govchvx0001 and id is 1 raw text is: 01;0 Updated September 24, 2018 Supplemental Nutrition Assistance Program: Errors and Fraud The Supplemental Nutrition Assistance Program (SNAP) is the nation's largest domestic food assistance program, serving over 42.1 million individuals in an average month at a federal cost over $68 billion in FY2017. SNAP benefits may be used to buy eligible food at over 263,000 authorized stores. SNAP is jointly administered by state agencies, which handle recipient functions, and the U.S. Department of Agriculture Food and Nutrition Service (USDA-FNS), which supports and oversees the states and handles retailer functions. Policymakers discuss and debate errors and fraud in SNAP; these can be complex concepts. This In Focus summarizes the more-detailed CRS Report R45147, Errors and Fraud in the Supplemental Nutrition Assistance Program (SNAP). Error and fraud can be organized into four main types: 1. Trafficking SNAP benefits-the illicit sale of SNAP benefits, which can involve both retailers and recipients (a type of fraud). 2. SNAP retailer application fraud-an ineligible store or owner's illicit attempt to participate in SNAP. 3. Errors and fraud by households applying for SNAP-unintentional or intentional recipient actions resulting in incorrect SNAP amounts. 4. Errors and fraud by SNAP state agencies- unintentional or intentional state agency actions resulting in incorrect SNAP amounts. Errors are not the same as fraud. Fraud is intentional activity that breaks federal and/or state laws, while errors are mistakes. Certain acts, such as trafficking, are always considered fraud, but other acts, such as duplicate enrollment, may be either errors or fraud depending on the circumstances of the case. SNAP fraud is rare, according to all available data and reports, but there is no single data point that reflects all the forms of fraud in SNAP. Criminal prosecution of fraud, when pursued, is typically initiated by USDA Office of the Inspector General (USDA-OIG) or state law enforcement authorities. Measu, esof E , ,,' a Fra, d in SNAP There are two main measures of error and fraud in SNAP. The.z Na, tkinad P. E,,:'r,-ow Rak'e (MPER) Based on annual SNAP Quality Control reviews, the NPER measures states' improper issuance of SNAP benefits, including from recipient fraud, recipient errors, and state agency errors. This rate reflects all overpayments and underpayments that exceed the error tolerance threshold ($38 as of FY2017; per month in the sample month counted; threshold is inflation-adjusted annually per statute). This rate is not a measure of fraud. See Table 1 for recent rates and amounts. USDA-FNS developed new controls for FY2017 data collection that were not in place in FY2014. The substantial increase to error rates in FY2017 may be misleading since FY2014 rates were estimated under different procedures. Table I. Estimated SNAP Payment Error Rates and Dollar Amounts, FY2012-FY2014, FY2017 Estimated overpayment and underpayment amounts in billions FY2012 FY2013 FY2014 FY2017 Overpay Rate 2.77% 2.61% 2.96% 5.19% Overpay $2.07 $2.00 $2.07 $3.30 Amount Underpay Rate 0.65% 0.60% 0.69% 1.1 1% Underpay $0.49 $0.46 $0.48 $0.71 Amount NPER 3.42% 3.20% 3.66% 6.30% Source: USDA-FNS Quality Control resources. Rates compare overpayment/underpayment amounts to total SNAP benefits issued. National rates were not issued for FY2015 or FY201 6. Th ,,, it , Roughly every three years, the retailer trafficking rate estimates the volume of benefits trafficked. The retailer trafficking rate reflects a major form of SNAP fraud, but it does not reflect all forms of fraud. See Table 2 for recent rates and amounts. Table 2. Estimated National Retailer Trafficking Rates and Dollar Amounts, FY2009-FY2014 Estimated trafficked amounts in billions FY2009-FY201 I FY2012-FY2014 Trafficking Rate 1.34% 1.50% Trafficking Amount $0.86 $1.08 Source: USDA-FNS trafficking studies. Rate compares estimated trafficking amounts to all SNAP benefits redeemed. T'raflldkh,n. SNAP B-e..ef-'.ts' USDA-FNS is responsible for identifying stores engaged in retailer trafficking-using transaction data analysis, undercover investigations, and other tools-and punishing store owners. Retailers found to have trafficked may be subject to permanent disqualification from participation in SNAP, fines, and other penalties. Recipient trafficking is considered an intentional program violation, and state agencies are responsible for identifying-using social media monitoring, transaction data analysis, and other tools-and punishing recipients who engage in this kind of p\w -- , gnom goo mppm qq\ M , q 'M I 11LULANJILiM,

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