The federal government praised Michigan Department of Human Services for its management of the Food Assistance Program that provides nutritional assistance to low-income residents.

The U.S. Department of Agriculture's Food and Nutrition Service (FNS), which administers the federal Food Stamp Program, recently congratulated Michigan Department of Human Services for its fiscal year (FY) 2006 performance in claims management - the process of recovering overpayments caused by errors or fraud.

"For the second year in a row, both the number of claims and dollars (recovered) ... in FY 2006 increased over the prior year," the FNS said in a report it issued in February. "This is a very significant positive trend ... after many years of seriously downward spiraling claims performance in the state."

The report said DHS:

• Increased claims, or requests to return overpayments, from 3,840 in 2005 to 4,459 in 2006.
• Increased the amount to be returned from $2.6 million in 2005 to more than $3.5 million in 2006.
• Increased overpayment collections from about $4.9 million in 2005 to more than $6.7 million in 2006.

"This shows we are serving the nutritional needs of Michigan citizens and, at the same time, ensuring proper use of taxpayer dollars," said DHS director Marianne Udow. "This is substantial and important improvement for which Department of Human Services field, policy, inspector general and recoupment staff can take pride."

Factors that contributed to this success include:

• DHS recoupment staff devised strategies to increase claims.
• The department established better relationships with all involved in the recoupment process.
• DHS set goals for improvement for FY 2006 and far surpassed its goal.
• The department developed and uses a statewide tracking and recording system that allows county and state staff to monitor performance of units dedicated to recovering overpayments.

Michigan's Food Assistance Program supplements the food purchasing power of low-income individuals and families. The USDA funds 100 percent of program benefits while the state and federal governments share administrative costs. The Department of Human Services determines eligibility for food assistance. In February 2007 there were 551,981 households receiving benefits representing 1,197,856 individuals. The average benefit per person statewide is about $94 per month.