HARRISBURG – Responding to an audit of the Low-Income Home Energy Assistance Program, or LIHEAP, Department of Public Welfare Secretary Estelle B. Richman today said the department has eliminated more than half of the cases that auditors identified as potential fraud.
Secretary Richman also emphasized that the department continues to take aggressive steps to ensure heating assistance is provided only to those who are eligible, just as is done with all public assistance programs.
“The audit looked at more than 253,000 applications and found that roughly 2,400 – or about one percent — were potentially fraudulent. While our review is still ongoing, we were able to rule out fraud in about half of the 2,400 cases,” said Richman. “While even one case of fraud is unacceptable to me, I am concerned that the auditor general’s publicity materials overstate the true extent of the problem.”
In response to the audit, the department’s review found that:
-Applications noted in the audit report associated with deceased individuals are often the result of simple data entry errors, such as transposing the two digits of an applicant’s Social Security number.
-In other cases, the applicant was actually the surviving spouse and the deceased individual’s name was used to verify the survivor’s income as required by regulation.
-Applications claimed to be associated with questionable sewer and water bills were actually allowable payments for individuals who require water to operate their heating systems.
While the department continues to improve its fraud and abuse systems, several of the recommendations offered through the audit have already been initiated, while others will be considered and further developed for implementation. The department is planning several other enhancements to the current process including:
Beginning in January 2006, DPW began enhancing information technology systems used to process LIHEAP applications. The new system, which will be operational by September, will include electronic verification of Social Security numbers, as well as the department’s “client information system,” which can verify identity and income against a dozen other client databases.
An enhanced training program will be completed in July, with training beginning in September.
The department is consolidating its three separate LIHEAP employee manuals into one comprehensive resource guide, available through DPW intranet in August.
The federally funded LIHEAP program helps low-income households pay for a variety of home heating fuel sources and furnace repairs during the winter months. During the 2006-07 heating season, the program has provided more than 385,000 families with cash grants and it has helped approximately 154,000 families in crisis.
Cash grants are designed to help families pay their home heating bills and are based on household income, family size, fuel type and heating region while crisis grants are approved for families with heating emergencies, such as mechanical breakdowns or unexpected fuel shortages. In addition to verification of income and household size, applicants must provide a recent energy bill or a statement from their fuel provider stating the type of fuel they use and their customer status.
To learn more about the LIHEAP program click here.