The US Govt. Accountability Office found that agencies administering six (6) federal programs reported using over 30 data sources to verify recipients’ income and assets. They suggest federal agencies share information on useful data sources with state and local agencies to improve the verification process.
GAO identified advantages and challenges in the use of data verification for both agencies and beneficiaries. For agencies, data verification can help reduce improper payments and improve administrative efficiencies, particularly when data are timely and accurate. However, GAO interviewed agency officials who also cited challenges including cost and inconsistent data quality that can create inefficiencies. For beneficiaries, agencies’ use of data to verify income or assets can reduce documentation beneficiaries must submit or help them receive benefits more quickly, according to GAO’s review of studies. However, beneficiaries may experience benefit delays and increased burden if there are data discrepancies to resolve. Federal agencies have made some efforts to address challenges, such as identifying ways to reduce data service costs.
GAO recommended that HHS and HUD assess whether sharing additional information about data sources would enhance state and local verification efforts for their respective programs. HHS and HUD agreed with GAO’s recommendations.