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RCED-84-155 1 (1984-04-25)

handle is hein.gao/gaobabemz0001 and id is 1 raw text is: BY THE U.S. GENERAL ACCOUNTING OFFICE Report To The Chairman, Committee On Agriculture, Nutrition, And Forestry United States Senate Federal And $tate Liability-F0r Inaccurate Payments f Food Stamp, AFDC,/nd SSI Program Benefits To reduce benefit errors, systems have been established to hold state and federal organizations financially liable (sanctions) for excessive errors in the day-to-day administration of the Food Stamp, Aid to Families with Dependent Children (AFDC), and the Supplemental Security Income (SSI) Programs. GAO found that: --Error rate limits above which sanctions can be imposed have varied by year, by program, and fROM1 state to state for the same program. These variations will continue but not to the extent that previously existed. For fiscal year 1986 and thereafter, the target rates for the AFDC, SSI, and Food Stamp Programs will be 3, 4, and 5 percent, respectively. --The Food Stamp system results in proportionately smaller sanc- tions because of (1) its higher target error rate and (2) its specific procedures for calculating sanction amounts based on a percent- age of federally reimbursed administrative costs instead of the amount of benefits issued as in the AFDC and SSI Programs. --States had not reimbursed the federal government for any sanc- tiod amounts. A major reason was that the Departments of Agriculture and Health and Human Services had waived states' liability based on their promises to take corrective action. In contrast, the federal government has paid or acknowledged owing about *161 million for excessive overpayments of feder- ally administered, state-financed SSI benefits. 124028 140 GAO/RCED-84-1 55 glicouk D- ,APRIL 25. 1184

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