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An Audit Report on the Health and Human Services Commission's Texas Integrated Eligibility Redesign System (TIERS)

October 2007

Report Number 08-009

Overall Conclusion

Audit testing identified no significant errors in eligibility determination and benefit calculation performed by the Texas Integrated Eligibility Redesign System (TIERS) for the three public assistance programs auditors tested.

TIERS requires users to implement other processes to ensure that data is accurate, and improvements are necessary if TIERS is to become the only system used to determine eligibility and calculate benefits for public assistance programs in Texas.

Poor architectural design and chronic problems have made TIERS cumbersome to use and hinder the ability of TIERS to process and maintain the integrity of data. For example:

- TIERS requires that changes be made directly to client data in the database.

- TIERS requires the use of "workarounds" to ensure that client data is correct.

In addition, TIERS currently does not have the capacity and storage to support a statewide rollout and the Commission has not implemented all interfaces between TIERS and other systems.

The TIERS project began in 1999, and TIERS is currently operational in three Texas counties. Documents the Health and Human Services Commission (Commission) submitted to the federal government indicate that these system issues can be corrected within the next three years. The Commission is working to address many of these challenges and reports that TIERS development, maintenance, system changes, conversion, and training will cost $575.1 million for the period from 1999 through 2010. The Commission also reports that, as of June 2007, it had spent at least $351.7 million on TIERS, which is approximately 61 percent of its total projected budget through 2010.

The Commission and its Office of Inspector General have determined that TIERS now supports the investigation of agency error, client error, and intentional program violation claims. (Auditors did not verify this assertion.) They have also specified that TIERS data can and will be used as evidence in fair hearings and administrative disqualification hearings. In addition, the Commission and the Office of Inspector General have stated that a newly created application now generates information that will be adequate to investigate potential fraudulent or criminal cases. The Office of Inspector General has not investigated criminal cases in TIERS since November 2004, and it has not investigated civil cases in TIERS since April 2005.

The Commission reports that it has taken steps to improve its oversight of the development and operation of TIERS. In March 2007, the Commission began to terminate its contract with the Texas Access Alliance (a group of contractors headed by Accenture).

Auditors analyzed fiscal year 2007 TIERS data provided by the Commission and found that 36.40 percent of Food Stamp applications were approved and 14.90 percent were denied; however, 48.71 percent were pending approval or denial for various reasons as of September 14, 2007.

In response to recent legislation, the Commission is considering various options to improve client access to services. In addition, the Commission has placed eligibility staff at hospitals and nursing homes to process benefit applications, and its staff have participated in school fairs, health fairs, and career days to increase awareness of public assistance programs. Chapter 5 of this report offers additional suggestions in this area.

Contact the SAO about this report.

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