The Tennessee Department Of Human Services (TDHS) has reached a settlement with the United States, agreeing to pay $6,854,416 to resolve allegations of violating the False Claims Act. The allegations stem from TDHS’s administration of the U.S. Department of Agriculture’s (USDA) Supplemental Nutrition Assistance Program (SNAP). SNAP, formerly known as the Food Stamp Program until 2008, is a critical federal initiative designed to combat food insecurity among low-income individuals and families.
The Justice Department’s Civil Division, led by Acting Assistant Attorney General Brian M. Boynton, emphasized the importance of SNAP funds, stating, “The money allocated by Congress for the SNAP program funds critical USDA efforts to help families in need. The Justice Department will continue to protect public funds to ensure that they are used for their intended purposes.” This settlement underscores the government’s commitment to safeguarding these essential resources.
Understanding SNAP and the Role of the Tennessee Department of Human Services
The Supplemental Nutrition Assistance Program (SNAP) is a cornerstone of the federal government’s efforts to alleviate hunger and promote nutrition. Administered by the USDA, SNAP provides financial assistance to eligible low-income individuals and families, enabling them to purchase nutritious food. This program plays a vital role in ensuring that millions of Americans have access to adequate food resources. Since 2010, SNAP has served an average of over 45 million people monthly, distributing more than $71 billion annually.
While the federal government provides the funding for SNAP benefits, the responsibility for determining eligibility and administering these benefits rests with state agencies like the Tennessee Department of Human Services. TDHS is tasked with crucial functions, including processing applications, verifying eligibility criteria, distributing benefits, and conducting quality control measures. This decentralized model relies heavily on the integrity and accuracy of state-level administration to ensure the program operates effectively and reaches those who genuinely need assistance.
A critical component of SNAP administration is quality control. The USDA mandates that states implement rigorous quality control processes to ensure that benefit distribution is accurate, unbiased, and in compliance with federal regulations. These processes are designed to minimize errors in eligibility determinations and benefit calculations. States are required to report their error rates to the USDA, and these reports are used to assess program performance and identify areas for improvement. Furthermore, the USDA provides financial incentives to states with low error rates and significant improvements, while states with persistently high error rates may face financial sanctions. This system of incentives and penalties is intended to encourage states to maintain high standards of accuracy and accountability in their SNAP administration.
Allegations of False Claims and Quality Control Manipulation by TDHS
The settlement between the Tennessee Department of Human Services and the U.S. government addresses allegations that TDHS violated the False Claims Act by manipulating its SNAP quality control data. The core of the issue revolves around TDHS’s engagement with a consulting firm, Julie Osnes Consulting LLC (Osnes Consulting), starting in 2012. TDHS contracted with Osnes Consulting to receive advice and recommendations aimed at reducing the state’s SNAP quality control error rate.
However, the United States government alleged that the recommendations provided by Osnes Consulting, and subsequently implemented by TDHS, introduced bias into the quality control process. This alleged bias resulted in TDHS submitting inaccurate quality control data to the USDA. As a consequence of these allegedly falsified reports, TDHS received performance bonuses for fiscal years 2013 and 2014. The government contended that TDHS was not rightfully entitled to these bonuses because they were based on manipulated and misleading data.
Acting U.S. Attorney Joseph H. Harrington for the Eastern District of Washington expressed strong concerns about the alleged misconduct, stating, “It is shocking that Tennessee’s Department of Human Services, and so many other states’ agencies entrusted with feeding and caring for vulnerable and needy residents, would manipulate SNAP quality control data for their financial benefit.” He further commended Tennessee for taking corrective action, cooperating with the investigation, and resolving its liability.
The investigation revealed that Osnes Consulting’s advice led to inconsistent case handling and diminished identified errors, rather than focusing on improving the accuracy of eligibility determinations. This manipulation undermined the integrity of the SNAP quality control process and potentially diverted funds away from intended recipients.
The Settlement, Multi-State Investigation, and Implications
The $6,854,416 settlement with the Tennessee Department of Human Services is part of a larger nationwide investigation into SNAP quality control practices across multiple states. This settlement marks the ninth resolution in this ongoing matter and the eighth settlement specifically involving a state agency accused of manipulating SNAP quality control findings.
Prior settlements have been reached with state agencies in Virginia, Wisconsin, Texas, Louisiana, Alaska, Florida, and Mississippi, as well as with Osnes Consulting and its owner, Julie Osnes. Collectively, these settlements have resulted in the recovery of over $67 million in wrongfully obtained funds. This significant recovery underscores the scale of the alleged misconduct and the government’s determination to hold accountable those who abuse the SNAP program.
Special Agent-in-Charge Bethanne M. Dinkins of the USDA Office of Inspector General (OIG) highlighted the collaborative effort behind this investigation, stating, “We appreciate the commitment and investigative assistance provided by our partners at the Department of Justice’s Civil Division and the U.S. Attorney’s Office throughout this long-term, multi-state investigation.” She also acknowledged the crucial role of whistleblowers, noting that concerned employees and individuals reported inconsistencies in case handling and questionable advice from consultants, which initiated the investigation.
The USDA Office of Inspector General, along with the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Washington, conducted the joint investigation. The USDA-OIG-Audit provided technical assistance, leveraging its nationwide audit of SNAP quality control processes.
Senior Trial Counsel Don Williamson of the Civil Division and Assistant U.S. Attorneys Dan Fruchter and Tyler Tornabene of the Eastern District of Washington were instrumental in handling the case. The collaborative efforts of these agencies and individuals have been crucial in uncovering and addressing the alleged fraud.
Government’s Commitment to Protecting SNAP Integrity
The series of settlements, including the one with the Tennessee Department of Human Services, sends a clear message about the government’s unwavering commitment to protecting the integrity of SNAP and other vital government programs. The Justice Department and its investigative partners are actively working to ensure that public funds are used for their intended purpose – to support vulnerable populations and address food insecurity.
The successful recovery of over $67 million demonstrates the effectiveness of these enforcement efforts. It serves as a deterrent to other state agencies and consultants who might consider manipulating quality control data for financial gain. The government’s message is unequivocal: those who attempt to defraud SNAP or other critical government programs will be held accountable.
While this settlement resolves the specific allegations against the Tennessee Department of Human Services, it is important to remember that “The claims resolved by the settlement are allegations only, and there has been no determination of liability.” Nevertheless, the settlement represents a significant step towards ensuring accountability and safeguarding the integrity of the SNAP program for the millions of Americans who rely on it.
