Purpose

To determine the extent of implementation of the three recommendations included in our initial audit report, Use of Electronic Benefit Cards at Prohibited Locations (2016-S-52).

Background

Our initial report, which was issued on July 10, 2017, found the Office was not performing comprehensive data analysis testing of monthly transactions, focusing on repeated violations at the same potentially prohibited location.  Additionally, the Office was not including out-of-state transactions in its monthly reviews nor notifying other states where potential violations were identified. Also, the Office’s Audit Director was responsible for EBT cash transaction monitoring, limiting supervision and the independence of the internal audit function.   

Key Finding

The Office has made progress with addressing the issues identified in our original audit. Of the three recommendations contained in our initial audit report, two have been implemented and one has been partially implemented.

Key Recommendation

Officials are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.