SUMMARY AND ANALYSIS OF SECRETARY SIMON'S STATEMENT BY THE SELECT COMMITTEE ON NUTRITION AND Our sample evaluation also identified 17 food stamp participation cases for which no case file supporting food stamp certification was available for our analysis. Again using a statistical sampling projection, we can estimate with 95 percent certainty that case files for at least 3,079 recipient households were unavailable in the public aid district offices. Consequently, there was no assurance for these cases that Federal funds involved were being properly utilized. Numerous replacement ATP cards were issued by district public aid offices to replace those cards reported lost, stolen, or destroyed. Subsequently, in some instances, both the original and its replacement card were negotiated. (About 3,800 in a year.) Some ATP cards were used by the recipients illegally, and some were negotiated by second parties not authorized in any way to negotiate the cards. Illegal bonus amounts accruing to the negotiators were $1,307 for 45 cases we analyzed in detail. Interest costs to the Federal Treasury were estimated at about $57,800 for one year because of delays in transmitting funds from the sale of food stamps to the Federal Reserve Bank. Control could be improved over serially numbered emergency ATP cards. At some offices inventory and issuance controls were inadequate and resulted in cards being unaccounted for. Records supporting issuance of ATP cards were not always current because some district office personnel lacked an understanding of the need to prepare and submit updated authorization information. This resulted in bonus overissuances in some cases. FOOD AND NUTRITION SERVICE, FOOD STAMP PROGRAM, NEW JERSEY DIVISION OF PUBLIC WELFARE (MONMOUTH COUNTY), TRENTON AND ASBURY PARK, N.J., AS OF DECEMBER 15, 1972 (Audit Report No. 2713-11-N (Supplement)) The agreed to results of our audit showed that of 386 households selected for review on the basis of statistical sampling techniques, 44 or 11.4 percent were found to be ineligible for FSP participation based on various certification errors attributed to the use of "selfcertification". These ineligible households received $9,881 in bonus stamps during their respective certification periods or through March 31, 1972, whichever was shorter. We projected these audit results on the basis of statistical sampling procedures, (at a 95 percent confidence level on a one-sided basis) and concluded that at least $70,787 in bonus stamps were issued to ineligible households during the above identified periods. This projection was based upon the 3,866 NPA households participating in the FSP in Monmouth County as of October 1971. Our audit further disclosed that there were an additional 74 households which were eligible for participation in the program but were overissued bonus stamps totaling $5,139 and 50 others which were underissued bonus stamps totaling $2,052. Because management did not wish to review those cases found by audit to have been over or underissued $5 or under per month, they would not agree that 64 of these type cases were incorrectly issued food stamps. The remaining 60 cases were concurred in by management as having been over or underissued food stamps. 60-358-767 HAWAII DEPARTMENT OF SOCIAL SERVICES AND HOUSING, PUBLIC WELFARE DIVISION-OAHU BRANCH, HONOLULU, HAWAII-FOOD STAMP PROGRAM, AS OF OCTOBER 22, 1974 (Report No. 2714-280-SF) Forty-nine percent of the files in the statistical sample had received an incorrect issuance of food coupons. The majority of these (36 percent of the files in the sample) had received an excess issue of bonus coupons. Those overissuances in bonus coupons resulted in a program loss of federal funds of at least $51,000 during the test month of May 1974. Errors had occurred throughout the factors affecting eligibility and basis of issuance in such a manner and frequency as to make the quality of certification and recertification work unacceptable. Conditions reported in our prior audit (2714-173-S) continued to exist. Necessary claim determinations were not being prepared and collection efforts to recover overissues of bonus coupons were usually not attempted. There was an absence of control over ATP's returned as undeliverable in the mail. Some recipients received duplicate benefits during the month of May, while income to some PA households had been disregarded. WASHINGTON STATE DEPARTMENT OF SOCIAL AND HEALTH SERVICES, OLYMPIA, WASH., FOOD STAMP PROGRAM, AS OF MAY 10, 1973 (Report No. 2713-15-S) The scope of this audit was limited to a review of the State Agency's use of personnel funded by the Emergency Employment Act (EEA) and the resulting effect on the State Agency's claim for reimbursement of certain costs. Coverage was extended into all local offices. The State Agency had received payment and was preparing claims for reimbursement of costs which the State Agency did not incur. Personnel who were fully funded by the Federal Government through another Federal program had completed a significant portion of the work which the State Agency was claiming against Food and Nutrition Service (FNS) for reimbursement. Some local offices had used unqualified personnel in determining eligibility for nonassistance food stamp households. The audit recommended that $8,990.94 be recovered from the State Agency claim for reimbursement for September 1971; disallow $203,745.66 from the State Agency amended claims for reimbursement for the October 1971 through March 1973 period. SANTA CLARA COUNTY DEPARTMENT OF SOCIAL SERVICES, SAN JOSE, CALIF., AS OF NOVEMBER 27. 1974 (Report No. 2714-284-SF) Approximately 50 percent of the redemptions included in our statistical sample were issued for improper amounts, based on supporting data in the related case files. The vast majority of these (about 43 |