About $1.1 million in federal food stamp money was spent over the past two years by people who were incarcerated and not eligible for the program, the state Legislative auditor found in a report released Monday. The audit encouraged the Louisiana Department of Children and Family Services to do a better job policing its own databases and other records to...
About $1.1 million in federal food stamp money was spent over the past two years by people who were incarcerated and not eligible for the program, the state Legislative auditor found in a report released Monday. The audit encouraged the Louisiana Department of Children and Family Services to do a better job policing its own databases and other records to root out fraud.
More than 80 convicted drug felons who were not eligible for the program received $107,864 in benefits in 2011 and 2012. People convicted of felony drug offenses must wait a year from their release from prison before they can receive food stamps, according to the report.
DCFS could prevent these problems from recurring by checking people who sign up for the program against data from the Louisiana Department of Corrections, the report suggested.
The auditor also found signs of potential fraud that should be more fully explored. This included more than 3,000 of the state's 866,335 recipients who spent all of their benefits in other states, an indication that they perhaps no longer live in Louisiana and might be double dipping. These participants spent $2 million last year.
Another example of potential fraud were 154 cases identified by the auditor that involved a recipient using a benefit card in Louisiana and within an hour spending the food stamp money in another state.
"DCFS takes seriously our responsibility to be good stewards of the resources provided," Secretary Suzy Sonnier said in a statement released on Monday. "DCFS is reviewing all the cases cited in the report for potential fraud and will work with authorities to prosecute those who have purposely tried to defraud the system."
The Supplemental Nutrition Assistance Program, as the program is now called, is a federal program managed by state agencies. In Louisiana, DCFS determines who is eligible, giving out benefit cards that each month are loaded with a family's allotment of money. Those benefits range from $200 for a single person to $1,202 for a family of eight.
The Louisiana program had $1.4 billion in expenditures in 2012.
In a written response to the report, Sonnier said her agency will get better documentation about prisoners from the corrections department to prevent the kind of fraud detailed in the report. Sonnier also pledged to expand the agency's data analysis.
Auditors found a few problems that could be examined by the U.S. Department of Agriculture, which certifies the stores allowed to accept food stamps and is responsible for monitoring potential fraud at the retail level.
Investigators found two stores where participants travel long distances to shop, a sign of possible problems. "According to DCFS, participants who travel long distances to certain retailers may do so because they know that certain retailers will traffic benefits," the report stated.
They also found a couple smaller stores, including a donut shop in New Orleans, with numerous purchases over $100. One small grocery store in Monroe had 7,787 transactions where participants spent more than $100, receiving $1.64 million.
In her letter, Sonnier said that DCFS will refer the auditor's findings to federal authorities, as well as the Louisiana Inspector General.