Report 2015-503 Recommendation 6 Responses

Report 2015-503: Follow-Up—California Department of Social Services: It Has Not Corrected Previously Recognized Deficiencies in Its Oversight of Counties' Antifraud Efforts for the CalWORKs and CalFresh Programs (Release Date: June 2015)

Recommendation #6 To: Social Services, Department of

To make certain that counties receive the greatest benefit from the resources they spend on antifraud efforts related to CalWORKs and CalFresh cases, Social Services should seek to replicate the most cost-effective practices among all counties. Social Services should work with its legal counsel to determine whether to withhold information about these practices from public disclosure.

Annual Follow-Up Agency Response From November 2020

CDSS has only begun to sample counties in the months of January and February, September and October 2020. This so far has only been achieved during onsite reviews, that we are ourselves have been limited to conduct during COVID-19 restrictions. Since the publication of the provided guidance, CDSS has not been able to mandate that counties submit their cost effectiveness analysis to the State. Also, this has not been the ideal sample period to make assessments or cost savings as most of our counties have been short staffed during the lockdowns since March of 2020 due to COVID-19. We have resumed onsite reviews as of September 2020; however, we do not have a sample size large enough to replicate or draw conclusions that other counties should follow. We also see a disparity in staffing that may pose an issue with flawed interpretations of the data being used to assess cost savings and effectiveness. Moreover, we have similar sized counties with varying staff sizes that makes a single statewide cost effectiveness formula challenging.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From November 2019

CDSS has disseminated a draft Fraud Cost Savings and Effectiveness ACIN to stakeholders. A final letter will be published by March 2020.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From November 2018

As stated in the response to Recommendation 4, CDSS' Program Integrity Bureau is working closely with fiscal staff to examine savings assumptions and county cost data. County cost codes are currently under evaluation to determine if they can be used in a cost-savings methodology or if changes are needed. CDSS is also analyzing the ongoing CalWORKs and CalFresh benefits and county administrative savings part of the cost-savings methodology to determine if and how the methodology should change. Anticipated completion date of the analysis is March 31, 2019. If the analysis determines new savings assumptions should be used, CDSS will revise the methodology and disseminate to all counties via an All County Information Notice by June 2019.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

This recommendation has been outstanding since the release of the original audit in November 2009. We are hopeful that Social Services is serious in its stated intent to address this recommendation by June 2019.

Annual Follow-Up Agency Response From December 2017

The CDSS Fraud Bureau has established an active website where we share best practices from other counties, recently posted All County Letters (ACLs) and other types of communications accessible to the counties. In addition, updated copies of different User Manuals for the different CDSS systems that the Department maintains can also be found in this site, including contact information for our various programs.

http://www.cdss.ca.gov/inforesources/Fraud/Regulations-and-Policy

Furthermore, CDSS regularly attends California Welfare Fraud Investigators Association (CWFIA) regional meetings and provides its members updates on statewide fraud activities. CDSS also attends the annual statewide CWFIA Training Conference and participates in and/or conducts training on fraud issues. CDSS also hosts an annual CDSS/CWFIA Program Integrity Conference covering program integrity topics in CalWORKs and CalFresh.

Any specific investigation-related information would not be appropriate for the CDSS Fraud Bureau website as this information would be confidential. The CWFIA maintains a website where members are able to post information only available to its members. Specific investigative techniques are not subject to release under the Public Records Act.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

The department's response does not indicate an effort to implement our recommendation. Specifically, the webpage it mentions does not include any current best practices, but rather a historical record of the department's guidance dated between August 2008 and January 2016. Further, the department's attendance at the CWFIA regional meetings is an ongoing activity rather than a new activity resulting from our recommendation.

Annual Follow-Up Agency Response From November 2016

See response to Recommendation 4.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

CDSS is completing its assessment of cost data to determine if it is sufficient for inclusion in the cost savings methodology. The assessment includes a recommendation on how to use the cost data to update the cost savings methodology. The proposed revised methodology will be shared with stakeholders for review and comment and formally transmitted in an ACL. This process will take approximately three months.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

CDSS gathered sample counties available cost data and is analyzing the data to determine if it is sufficient for inclusion in the cost savings methodology.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

See response to Recommendation 5.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2015-503

Agency responses received are posted verbatim.