Office of Temporary and Disability Assistance

Food Stamp Program: Administrative Costs (Follow-Up Review)

New York's food stamp program is overseen by OTDA and directly administered by 58 local districts. Food stamp benefits are federally funded, while the administrative costs relating to the benefits are shared by federal, State and local governments. In our prior audit report 95-S-133, we found that excessive administrative costs were claimed by some local districts. We also identified significant variances in administrative costs among similar districts. We recommended that the reimbursement guidelines for administrative costs be clarified, reimbursement claims from local districts be reviewed more closely, the reasons for the cost variances be identified, and benchmarks be established for monitoring the reasonableness of local administrative costs. In our follow-up review, we found that the guidelines were clarified and the claims are subject to closer review. However, the reasons for the cost variances have not been identified and monitoring benchmarks have not been established.

For a complete copy of Report 98-F-28 click here.