Report 2009-101 All Recommendation Responses

Report 2009-101: Department of Social Services: For the CalWORKs and Food Stamp Programs, It Lacks Assessments of Cost-Effectiveness and Misses Opportunities to Improve Counties' Antifraud Efforts (Release Date: November 2009)

Recommendation #1 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #4.

To ensure that all counties consistently gauge the cost-effectiveness of their early fraud activities and ongoing investigation efforts for the CalWORKs and food stamp programs, Social Services should work with the counties to develop a formula to regularly perform a cost-effectiveness analysis using information that the counties currently submit.

Annual Follow-Up Agency Response From October 2014

Fully Implemented November 2009. CDSS has reviewed the original recommendation and determined that the recommendation was completed in 2009. See All County Information Notice (ACIN) I-81-09 (Attachment A).

  • Completion Date: November 2012

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #4 for the most current assessment


Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: December 31, 2013. The Fraud Cost Analysis Report (Report) will be finalized by December 2013.

  • Estimated Completion Date: December 31, 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

The CDSS has developed a Statewide Fraud Savings Cost Calculations report based on the methodology outlined in the All County Information Notice (ACIN) No. I-81-09 (see Attachment A). This report will show the fraud cost savings based on early and ongoing fraud activities for CalWORKs and CalFresh that will be derived from the revised Department of Public Assistance (DPA) 266 report. The data will be tracked for each individual county and also combined into a statewide report. This report will provide data to perform the cost effective analysis. CDSS is currently sharing a draft report with a sampling of counties to solicit their feedback on the usefulness of the report.

  • Estimated Completion Date: July 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #2 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #5.

To make certain that counties receive the greatest benefit from the resources they spend on antifraud efforts related to CalWORKs and food stamp cases, Social Services should, using the results from the recommended cost-effectiveness analysis, determine why some counties' efforts to combat welfare fraud are more cost-effective than others.

Annual Follow-Up Agency Response From August 2015

CDSS has selected sample counties whose available data will be reviewed to initiate our assessment.

  • Estimated Completion Date: June 30, 2016

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #5 for the most current assessment


Annual Follow-Up Agency Response From October 2014

Since 2012, CDSS has generated county specific cost analysis reports using the formula developed in 2009. These reports are shared and discussed with the counties as part of the Income and Eligibility Verification System (IEVS) compliance reviews. Any best practices identified during that discussion is then shared at regional roundtables with county concurrence and for similarly situated counties. CDSS has determined this recommendation to be fully implemented.

  • Completion Date: January 2012

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Social Services failed to provide any documentation to support the actions it describes in its response.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: October 31, 2013. CDSS will analyze the data from the Report to identify those counties who are generating high program savings or reducing improper payments thru effective fraud prevention efforts. This data is yet another tool that assists CDSS to identify and share county best practices which contribute to cost-effective anti-fraud efforts. Please also see the responses to Recommendations #8 and #9.

  • Estimated Completion Date: October 31, 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

The state received federal approval and funding for its system approach to implement federal health care reform under the Affordability Care Act (ACA). Because the federal ACA rules require the establishment of an automated system for eligibility with access to federal and state verification source data, the Administration is exploring whether it will be able to leverage verification processes that will be built for California Healthcare Eligibility, Enrollment and Retention System (CalHEERS).

  • Estimated Completion Date: Fall 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #3 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #6.

To make certain that counties receive the greatest benefit from the resources they spend on antifraud efforts related to CalWORKs and food stamp cases, Social Services should seek to replicate the most cost-effective practices among all counties.

Annual Follow-Up Agency Response From August 2015

CDSS has selected sample counties whose available data will be reviewed to initiate our assessment.

  • Estimated Completion Date: June 30, 2016

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #6 for the most current assessment


Annual Follow-Up Agency Response From October 2014

Partially Corrected. CDSS will be adding program integrity resource materials to the CDSS website by December 2014 for statewide use. These materials include program integrity policy and operational guidelines, training tools, and contact information. The website may include anti-fraud cost effective practices. However, because CDSS recognizes that a strategy that works well in one county may not be as effective in another county, the Department will share the best practices but not require that counties replicate specific practices.

  • Estimated Completion Date: December 2014

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: October 31, 2013. The implementation of the extranet site will provide counties training and instructional materials that can be used as additional tools to support and improve cost-effectiveness. It is anticipated the extranet site will be available for use by October 31, 2013.

  • Estimated Completion Date: October 31, 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

The CDSS' extranet site is in the final design and testing phase. The CDSS is concurrently preparing a letter to the Special Investigative Units (SIUs) that will communicate the purpose of the extranet and usage instructions. Deployment of the extranet is anticipated for January 2013. The extranet site will be a repository for counties to post their best practices and training on fraud investigations, Income Eligibility and Verification System (IVES) process, etc.

  • Estimated Completion Date: January 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #4 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #9.

To make certain that counties receive the greatest benefit from the resources they spend on antifraud efforts related to CalWORKs and food stamp cases, Social Services should continue to address the recommendations of the steering committee and promptly act on the remaining recommendations

Annual Follow-Up Agency Response From August 2015

Four Remaining Recommendations - Outstanding Steering Committee items:

CDSS/Fraud Bureau should:

1. Revise its county reports to include additional data on the number of investigations in the various types of welfare programs.

CDSS has begun to review the remaining Steering Committee's proposed additional data.

2. Review the cost effectiveness of various data match systems along with county feedback on the usefulness of each type of match.

CDSS has solicited county representatives to participate in the workgroup.

3. Provide regular reports for counties to use in monitoring the cost-effectiveness of their program integrity efforts.

CDSS has selected sample counties whose available data will be reviewed to initiate our assessment.

4. Maintain a central repository of fraud training ideas and materials created by counties and accessible to other counties via the Fraud Bureau.

The staff person assigned to this project will return from a leave of absence in October 2015. As a result, CDSS reassessed the workload necessary to complete the central repository and is extending the completion date until June 2016. The extension is needed in order to fully implement the central repository and meet current and new work priorities. However, CDSS will post material in the central repository on a flow basis, as it becomes available.

  • Estimated Completion Date: June 30, 2016

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #9 for the most current assessment


Annual Follow-Up Agency Response From October 2014

CDSS completed the steering committee recommendations (as identified numerically in the steering committee report). Specifically, the outstanding recommendations since the last update were as follows:

2. CDSS Fraud Bureau should establish a standard method of computing county cost-savings. Fully Implemented. November 2009

3. CDSS Fraud Bureau should establish a standard definition of an Early Fraud versus Ongoing Fraud Case. Partially Implemented. July 2015

4. The CDSS Fraud Bureau should provide regular reports for counties to use in monitoring the cost-effectiveness of their program integrity efforts. Fully Implemented. January 2012

5. The CDSS Fraud Bureau should maintain a central repository of fraud training ideas and materials created by counties and accessible to other counties via the Fraud Bureau website. Partially Implemented. December 2014.

6. The CDSS Fraud Bureau and State Hearings Division should provide training and program guidelines on Administrative Disqualification Hearings (ADH) to assist the counties. Fully Implemented. Late 2013

  • Estimated Completion Date: July 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: October 1, 2015. CDSS is continuing to address and act on recommendations from the steering committee. Lists of completed and outstanding steering committee recommendations are attached.

  • Estimated Completion Date: October 1, 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

Since the BSA issued its report in November 2009, the CDSS has created a data warehouse that produces reports that are used to compare county performance in the areas of fraud activities.

In addition, the CDSS anticipates launching an extranet site in January 2013 that will be a repository for counties to post their best practices and training on fraud investigations, IEVS processes, etc. See updated response to Recommendation No. 3 for additional information.

Many of the BSA recommendations cannot be accomplished before the resolution of the analysis identified in our updated response to Recommendation No. 2.

  • Estimated Completion Date: Fall 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #5 To: Social Services, Department of

To ensure the accuracy and consistency of the information on welfare fraud activities that counties report and that Social Services subsequently reports to the federal government, the Legislature, and internal users, Social Services should take the following steps: Remind counties that they are responsible for reviewing the accuracy and consistency of investigation activity reports before submission.

Annual Follow-Up Agency Response From June 2015

On March 12, 2015, the Bureau Chief of the Welfare Fraud and Emergency Food Assistance Program within the Department of Social Services emailed every county Special Investigation Unit chief in order to remind them all of the requirement to submit accurate and timely submissions of the monthly Fraud Investigation Activity Report (DPA 266).

  • Completion Date: March 2015

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented


Annual Follow-Up Agency Response From October 2014

During the IEVS compliance reviews, CDSS reminds counties to review their reports for accuracy and consistency prior to submitting them to CDSS. CDSS also sends emails to those counties who are late in submitting their reports and, on occasion, a reminder of the upcoming report due date (Attachment B).

  • Completion Date: October 2014

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

The attachment that Social Services references does not demonstrate that it has reminded counties of their responsibility for reviewing the accuracy and consistency of investigation activity reports before submission. We are dismayed that Social Services has not implemented this recommendation during the five years since we issued our report.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: December 31, 2013. The county reports, including but not limited to the DPA 266, include the number of investigations for CalWORKs and CalFresh. CDSS staff has worked with the counties to improve the reporting of this data, including the use of data validation as part of the county review process.

Additionally, CDSS has finalized the revisions to the DPA 266 report and instructions. An internal review is underway and the Department anticipates issuing the report and instructions through an All County Letter by December 31, 2013. This will also improve the reporting of investigations and disposition.

  • Estimated Completion Date: December 31, 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

As a result of the 2009 BSA Audit, all IEVS reviews conducted by the CDSS now include an evaluation of the counties' Department of Public Assistance (DPA) 266 Fraud Investigation Activity Reports. If the evaluation reveals that a county is not submitting accurate or timely data, the county is required to submit revised DPA 266 reports.

The CDSS is also in the process of finalizing significant revisions to the DPA 266 report and the instructions for its completion. The CDSS anticipates release of the revised DPA 266 and instructions to the counties in the spring of 2013. Following this release, the CDSS will provide technical assistance and training to counties throughout the state. This will ensure counties are thoroughly trained on how to complete the report accurately.

  • Estimated Completion Date: July 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #6 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #15.

To ensure the accuracy and consistency of the information on welfare fraud activities that counties report and that Social Services subsequently reports to the federal government, the Legislature, and internal users, Social Services should provide counties with feedback on how to correct and prevent errors that it detects during this review.

Annual Follow-Up Agency Response From October 2012

The CDSS continues to work with counties to provide feedback on how to correct and prevent errors that it detects during an Income Eligibility and Verification System (IEVS) review. If county reporting errors are found during the state's IEVS review, the CDSS provides immediate feedback to the county, and the county is required to submit corrected Department of Public Assistance (DPA) 266 reports.

  • Completion Date: October 2012

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #15 for the most current assessment


Recommendation #7 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #16.

To ensure the accuracy and consistency of the information on welfare fraud activities that counties report and that Social Services subsequently reports to the federal government, the Legislature, and internal users, Social Services should continue with regular meetings of its workgroup to further its efforts to clarify its instructions for completing the counties' investigation activity reports.

Annual Follow-Up Agency Response From August 2015

CDSS is beginning to identify common errors and will disseminate, via county notification, instruction on how to prevent and correct those errors.

  • Estimated Completion Date: December 31, 2015

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #16 for the most current assessment


Annual Follow-Up Agency Response From October 2014

The revisions to the Department of Public Assistance (DPA) 266 report and instructions have been delayed due to other program priorities and proposed federal reporting changes that will affect the DPA 266. CDSS does not have a specific date when the federal changes will take effect. Currently there is no need for regular workgroup meetings. Once the DPA 266 is ready for review, CDSS will consult with all appropriate program integrity stakeholders.

  • Estimated Completion Date: July 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2013

Fully Implemented/Date Implemented: September 2013. The workgroup created to revise the counties' investigation activity reports has provided their final review and comments to the revised DPA 66. No further meetings are necessary.

  • Completion Date: September 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Despite our requests, Social Services did not provide any documentation to substantiate its claim of full implementation.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2012

A workgroup comprised of county Special Investigative Units (SIUs) and CDSS staff worked to clarify the instructions for the revised Department of Public Assistance (DPA) 266 report. The final draft version of the report is currently under review by counties. Please refer to the updated response for Recommendation No. 5.

  • Estimated Completion Date: July 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #8 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #11.

To ensure that counties are consistently following up on all match lists, Social Services should remind counties of their responsibility under state regulations to follow up diligently on all match lists. Further, it should work with counties to determine why poor follow-up exists and address those reasons.

Annual Follow-Up Agency Response From August 2015

Draft All County Letter is in progress.

  • Estimated Completion Date: April 29, 2016

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #11 for the most current assessment


Annual Follow-Up Agency Response From October 2014

CDSS has reviewed its previous response and finds this recommendation fully implemented. The Department has established protocols for the completion of all IEVS compliance reviews. The focus of this review is the timely processing of the matches. See attached County Match Documentation spreadsheet (Attachment C). If, through the compliance review, it is discovered that the county is not following up timely on a match report, the finding(s) is/are documented and the county must submit a Corrective Action Plan (CAP). CDSS staff monitor the completion of the CAP.

  • Completion Date: January 2012

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

The attachment that Social Services references is a blank template that it claims it uses. Social Services did not provide further documentation to support its claim.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: Fall 2018. Due to the complexity of this issue, CDSS has created a workgroup consisting of state and county fraud and eligibility staff to discuss the challenges to meeting the IEVS processing requirements. CDSS is also consulting with Food and Nutrition Service (FNS) to ensure the correct interpretation of the rules. Once CDSS receives clarification from FNS and has a better understanding of the county issues, the Department will issue written instructions to the counties. Due to limited resources and other workload priorities, the resolution to this recommendation has been delayed.

  • Estimated Completion Date: Fall 2018

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

Assembly Bill 6 (Chapter 501, Statutes 2011) changed the rules for CalWORKs and CalFresh clients from quarterly to semi-annual reporting as of 2013. This new rule has required the CDSS to assess the impact of these reporting changes on the requirements and timeframes associated with counties' review of IEVS matches. Once that analysis is completed, the CDSS anticipates releasing applicable instructions, subject to the analysis described in the response to Recommendation No. 2.

  • Estimated Completion Date: July 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #9 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #12.

To ensure that counties are consistently following up on all match lists, Social Services should revive its efforts to work with counties and federal agencies to address the counties' concerns about match list formats and criteria.

Annual Follow-Up Agency Response From August 2015

CDSS has solicited county representatives to participate in the workgroup.

  • Estimated Completion Date: October 30, 2015

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #12 for the most current assessment


Annual Follow-Up Agency Response From October 2014

CDSS has reviewed its previous responses and finds this recommendation fully implemented. The Department continually works with its data source entities to improve the data formats. As this is an appropriate ongoing process, CDSS concludes that this recommendation is fully implemented.

  • Completion Date: January 2012

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Social Services did not provide any documentation to support the actions it outlines in its response.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: Fall 2018. CDSS is working on pursuing enhancements to IEVS to address the county concerns identified in the audit report, in addition to the feedback received from various workgroups. The enhancements will, most importantly, fully automate all the matches and reduce county staff time spent on reviewing reports. To comply with the audit report recommendation, CDSS will reiterate its request to the Social Security Administration to include the prisoner release date information in the Nationwide Prisoner Match.

  • Estimated Completion Date: Fall 2018

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

Please see the response to Recommendation No. 2.

  • Estimated Completion Date: Fall 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #10 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #7.

Social Services should track how counties determine prosecution thresholds for welfare fraud cases and determine the effects of these thresholds on counties' decisions to investigate potential fraud, with a focus on determining best practices and cost-effective methods. It should then work with counties to implement the consistent use of these cost-effective methods.

Annual Follow-Up Agency Response From August 2015

See initial response.

  • Estimated Completion Date:

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #7 for the most current assessment

Social Services reasserts that there is no direct relationship between prosecution thresholds and counties' decisions to investigate welfare fraud. However, and as we explained in our comments on the initial response that Social Services provided in the follow-up audit report, Social Services has not taken any action to track how counties determine prosecution thresholds and the effects those thresholds on counties' decisions to investigate potential welfare fraud. We continue to expect Social Services to demonstrate the presence or absence of this effect through an analysis of actual county practices, rather than through supposition.


Annual Follow-Up Agency Response From October 2014

During the IEVS compliance review, CDSS obtains county established thresholds for prosecution. This threshold determines which fully investigated cases will be referred for prosecution. However, since there is no direct relationship between the prosecution threshold criteria and the county's determination to investigate potential fraud, CDSS concludes that there is no further action needed.

  • Completion Date: January 2012

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Social Services did not provide any documentation to substantiate that prosecution thresholds for welfare fraud cases do not have any effect on counties' decisions to investigate potential fraud.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2013

Partially Implemented/Estimated Completion Date: November 30, 2015. The CDSS Fraud Bureau is working on surveying the counties and collecting data on prosecution thresholds for welfare fraud cases. The data will be analyzed to determine county cost-effectiveness and best practice methods. The CDSS Fraud Bureau will share the cost-effective methods as part of the county review process.

  • Estimated Completion Date: November 30, 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Annual Follow-Up Agency Response From October 2012

Please see response to Recommendation No. 2.

  • Estimated Completion Date: Fall 2015

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #11 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #8.

Social Services should either ensure that counties follow state regulations regarding the use of administrative disqualification hearings or pursue changing the regulations.

Annual Follow-Up Agency Response From August 2015

Draft of the All County Letter is in progress.

  • Estimated Completion Date: December 30, 2015

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #8 for the most current assessment


Annual Follow-Up Agency Response From October 2014

CDSS has concluded that, at this time, there is no need for regulation changes. However, CDSS has determined that a more effective approach to improve the use of ADHs is through statewide training. In addition to training that was conducted in late 2013, CDSS has considered this an ongoing effort and provided additional trainings in 2014.

  • Completion Date: December 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Social Services did not provide any evidence that it has provided the training it references in its response.

  • Auditee did not substantiate its claim of full implementation

Annual Follow-Up Agency Response From October 2013

Fully Implemented: October 2013. The CDSS conducted statewide training on ADH's on October 9-10, 2013, and will train Northern California Appeals supervisors on November 15, 2013. Following these sessions, the training materials will be made available to all counties. In addition, CDSS will assist by identifying key contacts in each county who are available to share best practices for ADH hearings. These best practices will also be shared at Northern and Southern Appeals Committees. CDSS will work to develop training materials and establish regional training for county staff on the ADH process. Counties identified as having low ADH and Intentional Program Violation disqualifications will be contacted and training and support will be provided for their staff.

  • Completion Date: October 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Despite our requests, Social Services did not provide any documentation to substantiate its claim of full implementation. Social Services' response also indicates that it needs to take additional actions to implement our recommendation.

  • Auditee did not substantiate its claim of full implementation
  • Auditee did not address all aspects of the recommendation

Annual Follow-Up Agency Response From October 2012

The internal workgroup to develop improvements to the administrative disqualification hearing (ADH) process has not been convened due to limited staff resources and other workload priorities. Development of the All County Information Notice (ACIN) to remind counties of the state mandate to use the ADH process has been put on hold pending the establishment of the workgroup. In order to complete other recommendations identified in this report, CDSS anticipates convening the workgroup no earlier than Fall, 2013.

  • Estimated Completion Date: Fall 2013

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented


Recommendation #12 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #14.

To ensure the accuracy and consistency of the information on welfare fraud activities that counties report and that Social Services subsequently reports to the federal government, the Legislature, and internal users, Social Services should perform more diligent reviews of the counties' investigation activity reports to verify the accuracy of the information submitted.

Annual Follow-Up Agency Response From January 2012

Upon submission of the DPA 266 by the county, CDSS Data Systems and Survey Design Bureau reviews the form for accuracy and provides technical assistance as necessary. In addition, during all CDSS Income Eligibility Verification System (IEVS) reviews, the DPA 266 is reviewed for accuracy and timely submission. This review includes analysis of changes from previously submitted reports to identify potential problem areas, trends, etc. This is an on-going activity. Counties have and will continue to submit revised DPA 266 reports when inaccuracies are found during the IEVS review process. (2011-041, p. 82)

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #14 for the most current assessment


Recommendation #13 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #10.

To ensure that counties are consistently following up on all match lists, Social Services should perform IEVS reviews of all counties regularly and better enforce the counties implementation of its recommendations to correct any findings and verify implementation of the corrective action plans submitted.

Annual Follow-Up Agency Response From January 2012

Implemented: CDSS completed the remaining 13 county Income Eligibility Verification System (IEVS) reviews, which included Los Angeles County, by the end of June 2011. In addition, CDSS has implemented a process to stay current with county IEVS review schedules and is developing a procedure manual for conducting reviews to ensure consistency across counties. All counties are now on a three-year cycle, (i.e., they will be visited every three years which was acceptable to federal agencies). Any findings will require the county to provide a corrective action plan and, as needed, provide quarterly updates to ensure progress is being made. Procedural changes made to the IEVS review process include, but are not limited to, case file review via remote Statewide Automated Welfare System (SAWS) access (state reviewers were granted limited SAWS access for this purpose), onsite inspections, staff interviews, and quarterly check-in with counties by CDSS IEVS reviewers. All reviews are current at this time. (2011-041, p. 85)

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #10 for the most current assessment


Recommendation #14 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #2.

Recognizing that the deterrence effect is difficult to measure, Social Services should develop a method that allows it to gauge the cost effectiveness of SFIS. Social Services should include in its efforts to measure cost effectiveness the administrative cost that counties incur for using SFIS. Based on its results, Social Services should determine whether the continued use of SFIS is justified.

Annual Follow-Up Agency Response From June 2015

Social Services largely concurs that the SFIS has limited utility, and effective 2012, discontinued its use in the CalFresh Program. With the SFIS nearing the end of its contract term and technology life cycle, Social Services is in the process of identifying alternative approaches for identity verification and preventing and detecting duplicate aid. As with any major information technology solution, Social Services will assess the cost-effectiveness of any new approach to fraud prevention and detection. Such cost-effectiveness estimates will be shared with the Legislature during the budget approval process.

  • Estimated Completion Date:

California State Auditor's Assessment of Annual Follow-Up Status: See 2015-503 #2 for the most current assessment


Annual Follow-Up Agency Response From October 2014

Previous Response: Social Services believes that a new independent cost-benefit analysis of Statewide Fingerprint Imaging System (SFIS) would not be beneficial because it believes that the studies it has conducted, including the original evaluation it performed in 1997, justifies the deterrence value of SFIS. (2011-406, p. 212)

California State Auditor's Assessment of Annual Follow-Up Status: Will Not Implement


1-Year Agency Response

Social Services believes that a new independent cost-benefit analysis of SFIS would not be beneficial because it believes that the studies it has conducted, including the original evaluation it performed in 1997, which we concluded was flawed, justifies the deterrence value of SFIS. (2011-406, p. 212)

  • Response Date: November 2010

California State Auditor's Assessment of 1-Year Status: Will Not Implement


Recommendation #15 To: Social Services, Department of

This recommendation has been superseded by a recommendation from a subsequent report. See 2015-503 #13.

To expedite the distribution of the $42.1 million in food stamp overpayment collections to the appropriate entities, Social Services should continue to work with the USDA and make its reconciliation of the backlog of overpayments a priority. Further, it should develop procedures to ensure that it promptly reconciles future overpayments. Additionally, Social Services should continue to monitor the counties collection reports to ensure that counties are reporting accurate information.

1-Year Agency Response

Social Services indicates that as of June 2010 all overpayment collections were recovered. The total overpayment collections changed from $42.1 million to $39.8 million due to adjustments and revisions. As for the interest that counties earned while holding these funds, Social Services indicated it collected and forwarded $465,000 to the federal government and that it is working with counties to collect the remaining interest earnings. Social Services also reports implementing a process to ensure the quarterly reconciliations are done timely and accurately. Finally, during the IEVS reviews, Social Services indicates staff are reviewing the accuracy of counties collection reports. (2011-406, p. 213).

  • Response Date: November 2010

California State Auditor's Assessment of 1-Year Status: See 2015-503 #13 for the most current assessment

Subsequent to the original publication of this response, the state auditor considered this recommendation to be fully implemented.


All Recommendations in 2009-101

Agency responses received after June 2013 are posted verbatim.


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