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HomeMy WebLinkAboutMINUTES - 12052005 - C.88 TO: BOARD OF SUPERVISORS _ Contra FROM: INTERNAL OPERATIONS COMMITTEE . Costa DATE: DECEMBER 5,2005 °as;__ County SUBJECT: FOOD STAMP ERROR RATE UPDATE i SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ACCEPT report prepared by the Employment and Human Services Director on the status of efforts to reduce the County's food stamp error rate and DIRECT that a status report be made to the Internal Operations Committee in May 2006. BACKGROUND: On February 5,2002,the Board of Supervisors referred to the Internal Operations Committee(IOC) a letter from the State Department of Health and Human Services appealing to the Board to make a strong commitment to improving California's overall performance in administering the Food Stamp Program, and the task of overseeing the development of a Corrective Action Plan to reduce the County's error rate. The IOC has been monitoring this problem on an annual basis and, as a result of corrective strategies implemented by the Department, the food stamp error rate has been steadily decreasing since 2001. In federal fiscal year 2004, the Employment and Human Services Department attained the second lowest error rate in the State of California and was publicly commended by the Board of Supervisors. CONTINUED ON ATTACHMENT: YES SIGNATURE:9�;� A�e� _RECOMMENDATION OF COUNTY ADMINISTRATOR ./ COMMENDA O OF BOARD COMMITTEE _yGAPPROVE OTHER SIGNATURE(S C*YLE B.U EMA,CHAIR MARK DeMuUiWX ACTION OF BOARD ON APPROVE AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE �w1' AND CORRECT COPY OF AN ACTION TAKEN UNANIMOUS(ABSENT / _ } AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED: JANUARY 10,2006 CONTACT: JULIE ENEA(925)335-1077 JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR CC: INTERNAL OPERATIONS COMMITTEE STAFF COUNTY ADMINISTRATOR EMPLOYMENT AND HUMAN SERVICES DIRECTOR BY 6811"I'Y Food Stamp Error Rate Update December 5,2005 Internal Operations Committee Page 2 The Employment and Human Services Department reported to the Board of Supervisors on this matter in May 2005 and made follow-up reports to the IOC on October 17 and December 5. The Department Director was pleased to advise the IOC that the County's error rate continues to be maintained at a level well below the state and national averages for the first nine months of the federal fiscal year 2005. The Department Director cautioned the Committee that the Department's implementation of the California Works Information Network(CalWIN) system will require diligence in re-evaluating and revising business processes, and training staff on new processes and controls. 4 l „ i EMPLOYMENT AND HUMAN SERVICES CONTRA COSTA COUNTY I DATE November 23, 2005 TO Supervisor M. DeSaulnier Supervisor G. B. Uilkema Internal Operations Committee FROM John B. Cullen, Directo SUBJECT Food Stamp Error Rate i Recommendations ACCEPT the report presented by the ESHD Director on the status of efforts to impact the Food Stamp error rate; REPORT OUT to the Board of Supervisors regarding success in achieving the goal of lowering Contra Costa's rate below the Federal Tolerance Level. BACKGROUND The Food Stamp Program was designed to provide assistance to hungry people, regardless of their age, gender, marital or family status. It is one of the few federal programs that have maintained its position las a federal entitlement program for people who need assistance making ends meet. Contra Costa County provides Food Stamp assistance to approximately 29,180 residents resulting in 12,252 cases. Our Food Stamp issuances through the Electronic Benefits Transfer (EBT) system for Federal Fiscal Year (FFY) 2004 were $26,666,851. EBT issuances for FFY 2005 were $33,508,646. The federal government requires and funds states to administer the Food Stamp Program. Accuracy measurements are determined by Quality Control reviews of Food Stamp cases. Each state is required to maintain an error rate at or below 105% of the federal tolerance level. The Federal Tolerance Level is an average of all the states' error rates. California counties administerJthe Food Stamp Program and are, therefore, held liable for performance. The consequence of not meeting this standard is that fiscal sanctions may be applied to the State and County. In past years, California has not operated within the Federal Tolerance and has had sanctions in excess of $150 million levied by the U.S. Department of Agriculture. Following negotiations between the Federal and State governments, we have been allowed to `reinvest' County funds into lowering our error rates instead of actually paying the sanctions. Internal Operations Committee Food Stamp Error Rate November 23, 2005 Page 2 of 4 Federal Fiscal Year(FFY) 2001 California's problems began in+FFY 2001 when the State's error rate was 17.37% with the Federal Tolerance being 8.66%. Contra Costa's rate was 13.99% that year. Federal Fiscal Year 2002 J In FFY 2002, California improved to 14.84%, as did Contra Costa to 10.56%; still above the Federal Tolerance of 8.26%I Federal Fiscal Year 2003 For FFY 2003, the California rate was 7.96%, the Federal Tolerance Level was 6.64% and Contra Costa's rate was 4.62%. Federal Fiscal Year 2004 J Completed Quality Control sampling reviews for FFY 2004 have determined a dollar error rate of 6.32% in California, 1.73% in Contra Costa while the Federal Tolerance Level was 5.88%. FFY 2004 was the second consecutive evaluation period that EHSD has maintained an error rate below the Federal Tolerance Level. Federal Fiscal Year 2005 Currently our error rate for the 2005 federal year through June 2005 is 1.67%, with California at 5.62%, and the Federal Tolerance at 5.55%. Many of the corrective action activities that we started during FFY 2002 have been institutionalized throughout the department and have had a positive impact on our error trend. These include: • Food Stamp OversightCommittee, chaired by ESHD Director • Quality Control Error Citation Workgroup • Supervisory case reviews • Secondary supervisory case reviews • Targeted reviews • Contract with the Rushmore Group • Consultation with CDSS Corrective Action staff • Improved Food Stamp Handbook and ongoing updates • Training • Hot Tips • Monthly bulletin In addition to the established practices mentioned above, ongoing payment accuracy strategies include: Internal Operations Committee Food Stamp Error Rate November 23, 2005 Page 3 of 4 • Program Integrity Unit (PIU) is responsible for developing, implementing and monitoring all department corrective action activities. The primary function of the PIU is to complete targeted reviews of case accuracy as well as complete secon- dary reviews of the supervisory case reviews. • Ongoing ad hoc reports identify specific error prone cases and are distributed to staff for case correction. The Program Integrity Coordinator monitors these cases to make sure necessary actions have been taken. • Comprehensive Corrective Action Plan (CAP) provides the annual blueprint for error reduction strategiesland builds upon efforts identified the prior year. • Ongoing training that addresses not only program policies but also systemic issues such as caseload management. Another factor in lowering and+Sustaining an error rate below the Federal Tolerance level has been the Food Stamp Policy Manager's supervision of Quality Control and Program Integrity activities. This has strengthened interdepartmental communication and coopera- tion, ensuring a more cohesive aJnd collaborative approach to corrective action activities. The most common errors continue to be in the area of earned income, followed by shelter deduction, household composition and unearned income. The majority of the errors are agency caused, largely due to our failure to take correct action on information provided, or applying policy incorrectly. Lack of staff caseload management skills have contributed to agency errors. Eligibility staff have attended mandatory caseload management training in our efforts to minimize these types of errors. Additionally, training in the area of treatment of income has been ongoing, especially with the implementation of Quarterly Reporting/Prospective Budget- ing (QRPB). There have been a combined total of 1216 classroom hours of training for both CaIWORKs and Non-Assistance Food Stamp staff addressing documentation requirements, quarterly reporting households, quarterly reporting processing, income averaging and adding/deleting household members. Unit supervisors have also conducted "on the job training" via case action exercises with their staff during monthly unit meetings. EHSD is experiencing and managing a great deal of change as new systems and business model changes have been implemented. There will be a requirement in the coming year to continually re-evaluate and reuse business processes, communicate systems changes and requirements, monitor the application of Food Stamp policy and provide sufficient training for the administration of Food Stamps. These challenges will include: Internal Operations Committee Food Stamp Error Rate November 23, 2005 Page 4 of 4 • Using a new large-scale and complex welfare payment and tracking system, Cal- WIN, that automates the administration of Food Stamps to a significantly greater degree than in the past. • The continual need for managing, communicating and tracking the impact of major CaIWIN system changes.) • Staff learning to coordinate the use of CalWIN and CaseSTARS, the scanning and indexing system that contains on-line case records. • Completing the review and resolution of the discrepant cases that resulted from converting from the Case Data System (CDS) to CalWIN. • Making sure that staff is trained as assignments change and new staff is hired. • Managing Food Stamp cases in a new business model, the banked caseload mode at the Medi-Cal Service Center. • Obtaining and retaining sufficient Staff Development staff to provide training in Food Stamp policy and automated systems. • Retaining a sufficient level of Quality Control (QC) and Program Integrity staff • Addressing increased and new monitoring requirements resulting from new and changing system reports.) The department has been able to effectively reduce and maintain an error rate below the Federal tolerance level through the active and informed commitment of top-level management, the successful implementation of many corrective action activities, and the concerted effort of staff. Although our efforts to achieve and sustain an error rate that is below the Federal tolerance level have been successful, there have been changes within the last six months that could possibly increase the Food Stamp error rate in the future. We are continuing to work closely with the California Department of Social Services (CDSS) and other counties to identify and address error prone new systems procedures as quickly as possible. 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