On Monday, August 26, 2002 representatives from all OIG components
convened in Columbia, Maryland to begin the process of updating OIG’s
Strategic Plan. The team, led by a facilitator from Results, Inc.
will conduct three planning sessions over the next several weeks
to develop the 2003-2004 OIG Strategic Plan.
The first OIG Strategic Plan was developed several years ago with
input from the executive staff. Now, field and headquarters managers
are taking a fresh look at the plan to update the goals for our organization.
The team will define self-measuring strategies that will enable us
to assess progress in meeting the goals.
Inspector General James G. Huse, Jr. kicked off the planning
session by welcoming the team and expressing his appreciation for
the work they were about to undertake. He explained the importance
of the plan and described how it will be used to gauge our performance
in the coming years.
National
Public Affairs Training Conference Held in Baltimore
The annual National Public Affairs Training Conference was held in
Baltimore, MD, the week of August 26-30, 2002. OIG's Office of Executive
Operation’s External Affairs Division (EAD) staff was on-hand not only
as conference participants, but also manning the OIG exhibit, providing
general information, brochures and handouts, and career-opportunities
materials to the attendees. This year's conference theme was “Great Communication
for a Great Program.”
Office
of Audit Activities
CONGRESSIONAL RESPONSE REPORT - Integrity of the Supplemental Security Income
Program (A-01-02-22095) (Issued August 9, 2002)
On July 29, 2002, the Office of Audit received a request from Congressman
Wally Herger, Chairman of the Subcommittee on Human Resources, Committee
on Ways and Means in the House of Representatives regarding Supplemental
Security Income (SSI) program issues. Specifically, he requested
information on (1) a proposal to create an "integrity fund" of
program savings; (2) efforts to ensure individuals who are not residing
in the U.S. do not claim SSI payments; and (3) the $6 billion in
monetary accomplishments cited in our report, Significant Accomplishments
of the Social Security Administration's Office of the Inspector General
- April 1, 1995 through September 30, 2000.
On August 9, 2002, we issued a Congressional Response Report to
answer the Congressman’s questions.
1. We fully support the proposal for legislation to authorize a
percentage of actual collections of erroneous payments be used
to fund activities to strengthen efforts to reduce fraud, waste
and abuse. The legislation being proposed would establish permanent
indefinite appropriations and would be based on a percentage
of actual collections. For example, each agency could be authorized
to expend up to 22.5 percent, and each OIG up to 2.5 percent,
respectively,
of actual collections.
2. Since early in our existence as an OIG, we have conducted numerous
special investigative projects and audits to review U.S. residency
issues for SSI recipients. For example, in 1997, we conducted
the Southwest Tactical Operations Plan, which identified 153 SSI
recipients
who were ineligible because they were not U.S. residents. Also,
in May 1997, we issued a report recommending procedural improvements
for SSA-including expanded use of private contractors to conduct
home visits of suspected nonresidents. Further, in May 2001,
we reviewed the effectiveness of SSA's New York Project of nonusage
of Medicaid. Most recently, in FY 2002, we conducted an audit
and
found that SSA has controls in place to prevent SSI payments
to beneficiaries who have addresses outside the United States-including
addresses in Puerto Rico. However, improvements could be made
to
enhance SSA’s efforts in this area.
3. Since OIG's establishment in 1995, our work has resulted in significant
monetary findings -- almost $6 billion in savings, potential
cost avoidance and inaccurate payments. We provided a brief description
of the audits that contributed significantly to our monetary
findings.
On August 9, 2002, in Rockford, Illinois, a man and woman were each sentenced
to 4 years and 9 months imprisonment and ordered to make restitution of $641,807,
as a result of their conviction by jury of charges that they defrauded SSA
and numerous insurance companies.
This case was initiated as a result of a request by the Federal
Bureau of Investigations. The husband claimed he became disabled
after falling at a McDonalds Restaurant in 1995. Both he and his
wife made numerous statements to SSA during the process of application
for title II Disability and to insurance companies that the fall
resulted in a disabling condition which limited his abilities. He
reported to SSA:
1. he was easily fatigued and had no strength to
endure long term activities;
2. he had stopped or lessened all
activities because of inability to cope; and
3. he did nothing during
his typical
day except watch television and smoke cigarettes. Investigation
disclosed that during the period he claimed to be disabled, he took
several
vacations, including an elk hunting trip to Colorado, a white water
rafting trip in the Grand Canyon, a motorcycle trip across Mexico,
and numerous other trips to Arizona, Las Vegas and Costa Rica.
It was also revealed he was actively involved in the evolvement of
a
housing development of which he was a partner, operated heavy equipment,
and sold housing plots.
The 3-week trial on Federal charges of conspiracy, mail
fraud, and concealing facts from SSA, concluded with guilty
verdicts
on all counts. The Judge determined,
for sentencing purposes, that the fraud loss included all moneys the
couple would have received had the fraud been allowed to
continue. This "intended
loss" was calculated to be $3,184,732. Of the $641,807 they were
ordered to repay, $118,236 represented the amount falsely obtained from
SSA. The defendants
are required to liquidate all assets, including vehicles, time shares,
IRA's and stocks and bonds, in order to begin payment of the restitution.
Woman Convicted on Forgery Ordered to Repay Over $150,000
This investigation was initiated by the SSA OIG OI after receiving
a Medicare Non-Usage Project referral from the Dallas, TX, Fair Park
SSA Office. Investigation revealed a woman had been forging the title
II RSI checks of her deceased mother since 1982 and SSA had identified
an overpayment of $152,732. Pursuant to a plea bargain agreement
with the government, the woman pleaded guilty to a one count Bill
of Information charging her with violation of Title 18, USC 513,
Uttering a Forged Security. On August 8, 2002, the Dallas woman was
sentenced in Federal District Court to 5 years probation and ordered
to pay full restitution. Of the ordered restitution, $142,536 is
to be paid to SSA and $10,196 paid to Bank One.
Hotline
Statistics From August 19 - 23, 2002 , the Hotline reported the following:
Allegation numbers issued - 2,786
Total allegations received this fiscal year - 113,717
Our website provides guidelines for reporting fraud and a way to
submit an allegation to our Fraud Hotline. For more information,
visit www.socialsecurity.gov/oig
Eye on OIG is published
on a biweekly basis Valerie Wood, Editor
For past issues of an Eye on OIG, please visit the Media
Room.
www.socialsecurity.gov
