1. Summary Abbreviations Orange County’s Social Services Agency (ssa) CalWIN California shared computer program

There is no reference to fraud prevention in the number of fraud investigators has reduced the the Mission statement or the vision of the essential support for fraud detection. Social workers Social Services Agency. This lack of emphasis often are pressured by supervisors to act on an appli- on fraud detection by management results in cation before the investigation is complete. In most welfare funds going to ineligible individuals. instances, the case is approved and sent to ongoing

The Social Services Agency has not per- case technicians to deal with future problems. formed any meaningful analyses to deter- The state audit points out that “early fraud mine the cost effectiveness of its efforts to detection programs generally are more cost effective detect and deter fraud in the CalWORKS than ongoing investigations.”12 Intake social work- and food stamp programs. The only statistics ers are hampered because they are not authorized to that are used by the Social Services Agency, do field investigations. State law requires that sworn other than the number of applications, are officers conduct all field investigations.13 those recorded and kept by the District 4.10 Disbursement of Funds Attorney’s office as required by the state.

There is no structured cross-training or shar- The disbursement of funds is the main prior- ing between social workers and investiga- ity of the CalWORKS program. SSA managers see tors with regard to the role each plays in the fraud detection and prevention as a distraction to investigative process. this process. The emphasis is on completing cases

There is no evidence of fraud detection and not the integrity of the application. Some intake training in an organized, periodic fashion supervisors stated that the reduction in fraud refer- that meets the State requirement, beyond the rals enables intake workers to process cases more initial orientation training each new em- quickly. Intake workers do not have to wait for the ployee receives as required by California DSS fraud investigation to be completed before they ap- MANUAL CFC 98 01 20 005 24. prove the application. In such situations the poten- tial for fraudulent payments is increased.14 F.5: The fiduciary responsibility to protect tax funds from abuse should not be mitigated 5. FINDINGS by budget cuts. It is the responsibility of the In accordance with California Penal Code Sec- Social Services Agency to ensure the integ- tions 933 and 933.05, the 2009-2010 Grand Jury rity of the fraud detection and prevention requires (or, as noted, requests) responses from each program. agency affected by the findings presented in this F.6: Social Services Agency does not effectively section. The responses are to be submitted to the utilize statistical records that would assist in Presiding Judge of the Superior Court. management of the program and evaluating Based on its investigation of Fraud Prevention employee performance. in Orange County, the 2009-2010 Orange County F.7: In the last half of 2009, Social Services Agen- Grand Jury has arrived at seven principal findings, as cy cut the fraud detection and prevention follows: function by $900,000 in staffing, resulting 12California State Audit Report 2009- 101 page21 13DSS MANUAL 98-01 , Fraud and suspected law violations recipient fraud 10-007. 115 14Interviews Page  2009-2010 Orange County Grand Jury in an estimated $9.6 million paid out in R.7: Social Services Agency needs to restore fraud fraudulent claims during the last six months detection staffing to the 2008 level. of 2009. Responses to Recommendation R1 through Responses to Findings F1 through F7 are R7 are requested from the Orange County Social requested from the Orange County Social Services Services Agency. Agency. 7. REQUIRED RESPONSES 6. RECOMMENDATIONS The California Penal Code specifies the required In accordance with California Penal Code Sec- permissible responses to the findings and recom- tions 933 and 933.05, the 2009-2010 Grand Jury mendations contained in this report. The specific requires (or, as noted, requests) responses from each sections are quoted below: agency affected by the recommendations presented §933.05 in this section. The responses are to be submitted to (a) For purposes of Subdivision (b) of Section the Presiding Judge of the Superior Court. 933, as to each grand jury finding, the responding Based on its investigation of the Social Services person or entity shall indicate one of the following: Agency in Orange County, the 2009-2010 Orange (1) The respondent agrees with the finding. County Grand Jury makes the following seven (7) (2) The respondent disagrees wholly or recommendations: partially with the finding, in which case