1. Office of Inspector General Budget Presentation – February 20, 2013
Michigan Department of Human Services
Office of Inspector General Budget Presentation – February 20, 2013

2. Office of Inspector General (OIG)
Criminal Justice Agency within Department of Human Services (DHS), created in 1972
Governed by State law
130 Staff On-Board, 118 Field Positions.
Agents strategically located throughout Michigan to provide investigative coverage for every county of Michigan

3. OIG Mission
The mission of the Office of Inspector General (OIG) is to assist the Michigan Department of Human Services in maintaining integrity and accountability in the administration of its programs. The OIG provides investigation and advisory services to ensure appropriate and efficient use of available public resources.

4. OIG RESPONSIBILITIES Investigate: Recipient fraud
Vendor - Contractor fraud
Provider fraud
Employee fraud (Internal Affairs)

5. Specialized Units Investigative Analytics Unit (IAU):
Data mining/analytical support of the office
Special Investigations Unit (SIU):
Specializing in major investigations and internal affairs investigations
Trafficking Unit:
Specializing in FAP trafficking investigations

6. Recipient Integrity Activities
Front End Eligibility (FEE) Investigations:
Fraud Prevention - Referrals based on questionable information in public assistance applications prior to case opening and payment of benefits
Internal referrals based on OIG data analytics
Recipient Fraud Investigations:
Unreported income
Unreported assets
Misrepresentation of household circumstances
Trafficking
Hotline - Internet complaints

7. High Risk Areas Bridge Card Trafficking Internet “IP Address” Tracking
Assists in identifying the physical location of persons applying for benefits online (MiBr
PARIS: Interstate Match
Indicator of individuals receiving duplicate assistance

8. High Risk Areas II Social Media Monitoring
Identifies individuals selling FAP benefits
Out-of-State EBT Transaction Monitoring
Indicator of household living out of MI while on public assistance in MI
Bridge Card Transaction Trend Analysis
Identifies evolving FAP Trafficking trends
Multiple Bridge Card Replacement
Indicator of FAP trafficking (selling EBT card)

9. Bridge Card Trafficking
The buying and selling of Bridge Card benefits for cash and/or other prohibited items

10. Bridge Card Trafficking
2” Bullet Proof Glass; Lack of Counter
Transactions of $80-$200 were common at this location within minutes of each other

11. Raid Photo Meat expired in April of 2001
Store was raided 10 years later!

12. Raid Photo Eggs expired in September of 2009
(Raid occurred approximately 18 months later)

13. Raid Photo
Nearly Empty Cooler

14. FAP Trafficking Efforts
OIG has made FAP trafficking investigations a priority.
Prioritization of investigative resources (Trafficking Agents)
Identification of retailers and recipients
Partnered investigations with federal, state and local law enforcement agencies
Public and media outreach

15. OIG Trafficking Unit Statistics
$5.8 Million in Trafficked Benefits Identified
$4.1 Million in Fraud Receivables Established
1,652 Trafficking Cases Completed
184 IPV Hearings Conducted

16. i-Sight Case Management System (in development)
Integration of three disparate databases
Front End Eligibility (FEE)
Recipient Fraud
Provider/Employee Fraud
Automated Functionality Upgrades
Development of an automated fraud tool from data warehouse – Improve Analytics, Increase Efficiency, Improve Investigative Outcomes.
Improved communication to Field Agents and Prosecutors

17. Recipient FAP Fraud FY 2012 9,907 FAP Recipient Fraud Investigations
7,702 Fraud (IPV) Dispositions
$14.2 Million in FAP Recipient Fraud
975 Criminal Warrants
1,124 IPV Hearings – IPV Established
4,400+ FAP IPV Disqualifications
IPV DQ = $13M in Cost Avoidance
$11.3 Million in FAP Fraud Receivables

18. OVERALL STATISTICS FY2012 30,296 FEE and Fraud Complaints
11,497 Recipient Fraud complaints
16,900 FEE investigations completed
6,065 recipient fraud investigative dispositions.
Recipient Fraud found: $22.6 Million
Revenue generated: $19.7 Million in fraud receivables

19. FY2012 Cost Savings Recipient Fraud /IPV $22,690,534
Front End Eligibility $69,584,900
Recipient Fraud /IPV $22,690,534
IPV Disqualifications $14,419,620
Special Investigations $5,723,544
_______________________________ TOTAL SAVINGS $112,418,599

20. Front End Eligibility (FEE)
Return on Investment
FEE deters fraud; prevents improper payments and reduces errors. Provides eligibility workers with a resource for accurate case openings.
Every dollar spent on FEE investigation efforts resulted in program cost savings of $26.00

21. Fraud Dollars Established by Program

22. Receivables Established

23. Alan Kimichik, Inspector General
QUESTIONS
Alan Kimichik, Inspector General
(517)