Audit Finds Deficiencies in PA LIHEAP Administration

Pennsylvania Auditor General Jack Wagner said on June 27 that a special performance audit found serious deficiencies in the Department of Public Welfare’s (DPW) administration of the state’s LIHEAP.

Inadequate policies and procedures, insufficient supervision, and inadequate oversight resulted in potential applicant and employee fraud and abuse in all six counties (Philadelphia, Allegheny, Lancaster, Lehigh, Perry and York) examined during the audit period of July 1, 2000 through June 30, 2006.

Wagner made 25 recommendations to DPW for improving LIHEAP. They include:

• Improving LIHEAP’s information system immediately to ensure every Social Security number entered into the system is valid.
• Developing appropriate edit checks to detect irregularities or potential fraud and abuse on applications submitted with similar addresses, names, and Social Security numbers.
• Requiring county assistance offices and crisis contractors to independently verify Social Security numbers before application approval.
• Ensuring county personnel who administer the LIHEAP program receive proper training and are adequately supervised.
• Improve monitoring of the LIHEAP application process.

The DPW responded that the audit exaggerated the problem and overlooked  improvements that have been made in program management. It said that several of the audit’s recommendations have already been initiated, including a new information technology system for application processing and enhanced training, while others will be considered and implemented. According to the department, the audit looked at more than 253,000 applications and found that roughly 2,400, or about one percent, were potentially fraudulent, and the department has ruled out fraud in about half of the 2,400.

Source: PA newspapers, Auditor General’s office

Page Last Updated: June 29, 2007