In accordance with the Paperwork Reduction Act of 1995, collection of this information has been approved by the Office of Management and Budget (OMB) under OMB Control Number 0970-0290, expiration date 10-31-2008.  Submission of this information, however, is voluntary.  The public reporting burden for this collection of information is estimated to average 24 hours per response, including the time for reviewing instructions, gathering and maintaining the data needed, and reviewing the collection of information.  An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.

 Please enter the following information for the individual(s) completing this questionnaire and attachments, so we may contact them to clarify information, if necessary.

Date :                           March 9, 2006                                                                                      

Name:              Linda Mount (compiled from multiple sources)                                                   

Title:                 Executive Officer - TANF                                                                                            

State Agency:   Iowa Department of Human Services                                                                

(Area Code) Phone Number:     515-281-8259                                                                           

E-mail Address: lmount@dhs.state.ia.us                                                                                            

Please return the completed questionnaire and attachments in the enclosed business reply envelope.  Alternatively, you may fax your completed questionnaire and brief attachments to the attention of Dennis Poe at 202-205-5887, or preferably email an electronic copy of the questionnaire and any attachments to him at dspoe@acf.hhs.gov.

If you have any questions or comments regarding your submissions, please contact Dennis Poe at 202-401-4053, or at dspoe@acf.hhs.gov. 

Please return the questionnaire and attachments by December 30, 2005.

  1.       How does the TANF Lead Agency define improper payments?

Improper payments are underpayments and overpayments.  An underpayment occurs when a participant receives a payment that is less than the participant was entitled to receive.  An overpayment occurs when the payment the participant receives is more than the amount for which the participant is eligible.

 

  2.       Provide a description (electronic copy, if available) of the organizational structure of the agency in your State that handles improper payments in the TANF program.  If available, please submit an organizational chart, or provide the web site address where it can be found.

 

  3.       Please check all of the topics or activities listed below for which your State has policies or regulations in place for the program. (Please check all that apply.) 

þ   Steps involved in identifying a potential improper payment

þ   Steps involved in verifying an improper payment

þ   Establishing claims for improper payments

þ   Collecting improper payments, including, for example, the authority to reduce payments to recover overpayments

þ   Distribution of recovered improper payments

þ   Sources of funding for addressing improper payments

q   Other (please specify : )                                                                                              

 

4.       Has your State performed an assessment or analysis to determine whether the program is at risk of improper payments?

q   Yes. 

For which of the following uses of program funds did your state perform an assessment or analysis to determine whether the program is at risk of improper payments? (Please check all that apply.)

q a.  Monthly cash assistance payments

q b.  “Nonassistance” benefits or services, for example, one-time cash payments designed to
divert a family from welfare or payments for car repairs or rental assistance

q c.  Other types of benefits and services for families not receiving cash assistance

q d.  Payments to service providers

q e.  Other (Please specify:) ________________________________________________________
___________________________________________________________________________ 

þ.  No. I am not aware of any.

 

5.       Please describe your process for identifying and handling improper payments.

Local agencies become aware of improper payments through a variety of means.  A non-inclusive list includes:  supervisory case readings, self-discovery by workers (e.g. when checking notices), computer data sources (such as Iowa Workforce Development’s wage screens and Child Support’s beginning employment screens), complaints from the public about false or fraudulent client acts, etc.  When identified, staff take action to remedy the situation.  For under-issuances, they recalculate benefits and issue corrective payments.  For overpayments, they recalculate benefits and complete recoupment paperwork.  This paperwork is sent to the Department of Inspections and Appeals, who are responsible for the collection of the overpayment. 

6.       Which methods, if any, did your state use to identify a total amount of improper payments for the program? (Please check all that apply.)

Calculation based on:

q Findings from the state's Single Audit

q Other audit findings from state auditors

þ Findings from other state or local auditors, including legislative review entities (Please specify :) _

__state fraud unit_______________________________________________________

q Findings from state or local fraud units (Please specify :) ______________________________________________________________________________

q Reviews of service providers and/or contractors

þ Reviews of sampled cases, although not statistically representative of all program payments

þ Statistically representative sample of payments

þ Other (Please specify :)

     

7.       Does your State calculate an improper payments (including fraudulent payments) rate, that is, a measure of the percentage of total payments that are determined to be improper? (Please check one response and provide the appropriate data.)

q Yes.  Please describe the methodology used to arrive at the error rate.

q No 

x   Information not available for all programs.

 

8.       Please rank the following sources of improper payments (1 to 7) for the program in your State over the past two fiscal years, beginning with one (1) indicating the primary source of improper payments.  Error is defined as an inadvertent mistake whereas fraud is defined as a willful misrepresentation. (Please rank each source below.)

 

__1_ Client error 

___ Provider error

__2_ Agency error

__3_ Client fraud (approx. 6.4% of client errors result in criminal judgment)

___ Provider fraud

___ Agency fraud

___ Other (Please specify)_______Not readily Available_________

 

9.       Of all improper payments in your State, what proportion of those payments would you estimate are overpayments, and what proportion would you estimate are underpayments?  An overpayment is defined as a payment larger than what should have been made/received or any payment that is received when none should have been received.  An underpayment is defined as a payment smaller than what should have been made/received or no payment was received when there should have been one.

Not readily available

Overpayments                                 %

Underpayments                               %

 

10.   To what extent, if any, have the following factors contributed to improper payments in your State over the past two fiscal years?  (Please check one answer in each row.)

11.   Please describe your top 3 priorities for preventing and reducing improper payments (e.g., training/meetings for providers on rules and responsibilities; training for agency staff on correct implementation of rules and responsibilities; clear communication with parents on rules and responsibilities; use of information technology.)

·         Working with agency staff to ensure that they are correctly implementing rules and responsibilities and conducting thorough interviews.

·         Ensuring that staff review and act on available data sources so that we’re aware of unreported income.

·         Working with social work staff so they timely report when they remove children from FIP homes.

 

 

13.   Data sharing is a method used to obtain and disclose information about individuals from within your agency, from other agencies and/or from independent, third party sources, including federal and State agencies or private companies.  These activities can be conducted before an initial payment is made to an individual or provider (pre-payment) and also after payment is made (post-payment) to verify eligibility and payment accuracy.   For each source listed below:

Indicate whether or not your agency or State utilizes this data source to better ensure accurate payments under the program.  If your State utilizes the source, indicate when in the process the source is used (before the payment is issued or at some point after the payment is issued), and/or indicate how often that source is used. (Please check all appropriate responses for each row.)

14.   For the most recently completed fiscal years, how much in program improper payments has your agency, or another agency within your State, recovered? (Please indicate your responses in the space provided below.)

Most recently completed fiscal year  SFY 05 (July 04 – June 05)    (Specify ending month/ year) 

$565,371

  ** Data is for all collections, agency and client including, IHE and fraud.  

q      Includes fraudulent improper payments

Next most recently completed fiscal year   SFY 04 (July 03- June 04)  (Specify ending month/ year)        

$640,222

  ** Data is for all collections, agency and client, including IHE and  fraud.  (Randi)

q      Includes fraudulent improper payments

q      Not tracked

 

15.   What penalties does your program mandate for clients, agencies, or providers, who commit an error leading to improper payments?

A.  Agency:  recover from client unless the amount is less than $10

B.     Clients/Parents: recover from client unless the amount is less than $10

C.     Providers: NA

D.     County/Local Agency:  NA

 

16.   How does the TANF Lead Agency define “fraud”?

Overpayments that result from clients giving false or misleading statements (oral or written) about the client’s income, resources, or other circumstances affecting FIP eligibility or benefit amount.

 

17.   Does your agency maintain data on fraudulent payments in the program as a subset of your improper payments data? (Please check one response.)

q      Yes

If yes, please list the methods you use for finding occurrences of fraud and indicate whether you would rate each method as very effective, somewhat effective, somewhat ineffective, or very ineffective.

q      þ  No 

Does any other entity in your State maintain this information, such as a State fraud unit or Inspector General? If yes, please provide us with a contact name and phone number:

 

18.   What steps, if any, beyond improper payments prevention, does your State take to specifically prevent fraud? 

 

19.   Is your agency required to report, or to have information available, on improper payments to the State legislature, the Governor, or any other higher-level agencies? (Please check one response.)

q      Yes ® Please provide a copy of the report(s), and indicate who received them.

q      X  No  Info is available upon request by the Department of Inspections and Appeals (no formal reports provided)

 

20.   Describe any other information that may be relevant to improper payments in the program that you wish to share with us.

 

21.   Please submit copies of pertinent sections of manuals and other State-issued guidance that you would like to make available, or provide the web site address where they can be found.

http://www.dhs.state.ia.us/policyanalysis/PolicyManualPages/Manual_Documents/Master/4-h.pdf

http://www.dhs.state.ia.us/policyanalysis/PolicyManualPages/Manual_Documents/Master/4-c.pdf