Audit Report on the Human Resources Administration’s Efforts to Recover Funds From Certain Recipients of Public Assistance

AUDIT REPORT IN BRIEF

This report determined whether the Human Resources Administration (HRA) effectively complied with its policies and procedures to recover those assets of public assistance (PA) recipients that can be applied towards program expenditures and to recoup overpayments made to PA recipients. HRA’s Investigation, Revenue and Enforcement Administration (IREA) is responsible for such recovery and recoupment efforts. IREA’s Division of Liens and Recovery seeks recovery of assistance payments by filing liens and asserting claims on personal injury lawsuit settlements obtained by recipients. IREA’s Real Property and Assets unit places liens on real property and cooperative apartments owned by recipients. IREA’s Division of Claims and Collections endeavors to recoup money from former public assistance recipients who were overpaid while receiving assistance or who received “one-shot payments” from HRA to help them pay rental or utility bills.

Audit Findings and Conclusion

IREA effectively followed its policies and procedures in recovering funds from recipients who obtained personal injury lawsuit settlements and from recipients who sold their real property. In addition, IREA’s Division of Claims and Collections generally followed its procedures for recouping overpayments and one-shot payments made to former public assistance recipients. However, IREA occasionally negotiated recovery amounts from lawsuit settlements that were below its established minimums. In addition, IREA did not consistently collect the full amount of the public assistance provided to recipients in real property lien cases. Furthermore, IREA’s case tracking systems did not record all payments collected from recipients in recovery cases, and IREA was unable to determine the total amount of payments it collected from recipients in recoupment cases.

Audit Recommendations

The audit recommended, among other things, that HRA:

• Require explanations in the case files when the minimum amount is not collected on a lawsuit lien case.
• Require that a supervising attorney review any lawsuit lien case in which the recipient is allowed to pay less than the minimum amount.
• Seek guidance from the State on the correct interpretation of Social Services Law § 104-b (13) and govern itself accordingly.
• Provide clear and consistent explanations in the property lien case files for those clients from whom it accepts less than the full recovery of the public assistance provided.
• Ensure that its Division of Claims and Collections properly maintain its case files.

Agency Response

HRA officials disagreed with some of the audit’s findings but generally agreed with the audit’s recommendations.