Program Integrity Assessments 15 March 2011

Verification of Income Most common documentation required by States: Most common documentation required by States: pay stubspay stubs tax returnstax returns employer lettersemployer letters More than 1/3 of States use computerized systems More than 1/3 of States use computerized systems About 10% use State Directory of New Hires About 10% use State Directory of New Hires About 1/5 of States plan to expand databases About 1/5 of States plan to expand databases

Vendor Authenticity Most States require vendor agreements Most States require vendor agreements Fewer than half require vendors to be registered Fewer than half require vendors to be registered More than 1/3 of States require vendors to provide a valid TIN or SSN More than 1/3 of States require vendors to provide a valid TIN or SSN About 1/5 of States conduct periodic monitoring of vendors About 1/5 of States conduct periodic monitoring of vendors

Example Payment Policies Preference for direct payments to vendors Preference for direct payments to vendors Computerized system to track vendor payments Computerized system to track vendor payments Rules for direct payments to households Rules for direct payments to households Vendor proof of services/bills Vendor proof of services/bills Coordination of payments Coordination of payments

Areas for Improvement Verifying data through third-party systems Verifying data through third-party systems Strengthening vendor authenticity Strengthening vendor authenticity Audits of local administering agencies Audits of local administering agencies Expand fraud reporting opportunities Expand fraud reporting opportunities