social assistance pilots program sa pilots seminar new procedures: proposals and implementation...

Social Assistance Pilots Program

SA Pilots Seminar

New procedures: proposals and implementation

Dmytro BoyarchukCASE Ukraine

March, 2010

1.1. Project implementationProject implementation

2.2. New mechanism for processing applications and for surveillance of New mechanism for processing applications and for surveillance of recipientsrecipients

3.3. Current mechanismsCurrent mechanisms

4.4. Proposed mechanismsProposed mechanisms

5.5. General application proceduresGeneral application procedures

6.6. Procedures for “green list” applicantsProcedures for “green list” applicants

7.7. Fraud detection proceduresFraud detection procedures

8.8. PilotingPiloting

ContentContent

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Project implementationProject implementation

Indirect income testingIndirect income testing

- - Data collectionData collection

- - Consultations with pilot officesConsultations with pilot offices

- - Development/improvement of HMT modelDevelopment/improvement of HMT model

Strengthening role of public social inspector Strengthening role of public social inspector

- - Analysis of legislative framework for institution of public social inspectors in Analysis of legislative framework for institution of public social inspectors in UkraineUkraine

- - Institutional role of commissions in domestic fraud prevention policyInstitutional role of commissions in domestic fraud prevention policy

- - Best practices on fraud prevention policyBest practices on fraud prevention policy 3

New mechanism for processing applications and New mechanism for processing applications and for surveillance of recipientsfor surveillance of recipients ((11))

• Till now the experiment was organized in the format of double-blind experiment Till now the experiment was organized in the format of double-blind experiment when neither welfare office specialists, nor social assistance applicants knew in when neither welfare office specialists, nor social assistance applicants knew in what way the collected data are usedwhat way the collected data are used

• The next step of experimenting envisages involving of welfare specialists to The next step of experimenting envisages involving of welfare specialists to application of the proposed mechanisms; application of the proposed mechanisms;

• For piloting we consider several approaches for application of HMT model for SA For piloting we consider several approaches for application of HMT model for SA applicants’ income estimateapplicants’ income estimate;;

• On the issue of strengthening public social inspector the main attention at the next On the issue of strengthening public social inspector the main attention at the next step of experimenting is paid to testing formal verification procedures for public step of experimenting is paid to testing formal verification procedures for public social inspectorsocial inspector;;

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New mechanism for processing applications and New mechanism for processing applications and for surveillance of recipientsfor surveillance of recipients (2) (2)

• Within the project there was defined necessity not only for experimenting with Within the project there was defined necessity not only for experimenting with new/improved instruments, but also necessity for identification of pre-conditions for new/improved instruments, but also necessity for identification of pre-conditions for the most efficient performance of the instruments;the most efficient performance of the instruments;

• The proposed mechanism for processing applications and for surveillance of The proposed mechanism for processing applications and for surveillance of recipients outlines a framework (one of possible approaches) which will make the recipients outlines a framework (one of possible approaches) which will make the piloted mechanisms to be efficient for strengthening social assistance system;piloted mechanisms to be efficient for strengthening social assistance system;

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Current mechanismsCurrent mechanisms (1) (1)

• Public social inspector has many functions, however, mainly deals with Public social inspector has many functions, however, mainly deals with collection of information about financial stance of applicants which go through collection of information about financial stance of applicants which go through commissionscommissions;;

• Commissions allow for local communities to play important role in decision-Commissions allow for local communities to play important role in decision-making on granting of social benefits;making on granting of social benefits;

• The cases and procedures for formal verification of applicants by public social The cases and procedures for formal verification of applicants by public social inspectors, to large extent, are defined at the local levelinspectors, to large extent, are defined at the local level;;

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First screening of documents

Potential eligibility Exit

Declined Granted

Ineligible

Submission of documents

Does not pass standard eligibility criteria

Application through commission

Home visits for suspicious cases

Exit

Home visits for all cases

Applicant

Provisional consultations Exit

Home visits by public social

inspector Home visits by public social

inspector

Commission

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Verification of documents

Screening on status change

Fraud

Fraud

Stay within the program

Penalty

Penalty

Error Correction


Error Correction

Exit

Exit

DeclinedGranted Exit

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Proposed changesProposed changes

• Simplification of general application procedures. Creation of Simplification of general application procedures. Creation of clear and transparent mechanismclear and transparent mechanism;;

• Introduction of “green list” procedures for return applicants who Introduction of “green list” procedures for return applicants who proved to be honest and diligent recipients; proved to be honest and diligent recipients;

• Formalization of procedures of formal verification by public Formalization of procedures of formal verification by public social inspector;social inspector;

• Separation of fraud prevention procedures from general Separation of fraud prevention procedures from general application processapplication process;;

• Consolidation of procedures of formal verification of applicants Consolidation of procedures of formal verification of applicants into a separate set of measuresinto a separate set of measures;;

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General application proceduresGeneral application procedures (1) (1)

• Interview with social worker/inspectorInterview with social worker/inspector during applicationduring application;;

• Based on the results of interview suspicious applicants (for instance, Based on the results of interview suspicious applicants (for instance, those who declared incredibly low or zero incomes) and special those who declared incredibly low or zero incomes) and special applicants (for instance, single pensioners inhabiting in large applicants (for instance, single pensioners inhabiting in large apartments)apartments);;

• Application of all set of formal verification measures for suspicious Application of all set of formal verification measures for suspicious and special applicantsand special applicants;;

• Proceeding of cases and decision-making (on suspicious and special Proceeding of cases and decision-making (on suspicious and special cases) by public social inspector (commission should be become a cases) by public social inspector (commission should be become a body for consideration of appeals);body for consideration of appeals);

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General application procedures General application procedures (2)(2)

Interview with social worker/inspector

Eligible

Public social inspector

Exit

Declined

Granted

1) Verification of documents2) In-depth interview under caution3) Homes visits by public social inspector

Ineligible

Submission of documents

Exit

Applicant

Provisional consultations

Suspicious case Special case

Investigation

Granted

Potentially eligible

Exit

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Procedures for “green list” applicantsProcedures for “green list” applicants (1) (1)

• We propose for “green list” applicants to pass through simplified application We propose for “green list” applicants to pass through simplified application procedures; procedures;

• We propose to include to “green list” those applicants (a) who in the past were We propose to include to “green list” those applicants (a) who in the past were granted benefit through either standard procedures or comprehensive formal granted benefit through either standard procedures or comprehensive formal verification, (b) for whom no fraud was detectedverification, (b) for whom no fraud was detected;;

• It is proposed for “green list” applicants to inform welfare offices about changes in It is proposed for “green list” applicants to inform welfare offices about changes in income or status by themselvesincome or status by themselves;;

• ““Green list” applicants are recommended to pass through general application Green list” applicants are recommended to pass through general application procedures once per year (or once per two years);procedures once per year (or once per two years);

• For “green list” applicants who failed to inform about changes in income or status For “green list” applicants who failed to inform about changes in income or status we propose application of penaltieswe propose application of penalties;;

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Procedures for “green list” applicants Procedures for “green list” applicants (2)(2)

Screening of documents

Eligible

ExitGranted

Ineligible

Update of the documents

“Green list” applicant

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Fraud detection proceduresFraud detection procedures (1) (1)

• For fraud detection there should be created a list of recipients who should go For fraud detection there should be created a list of recipients who should go under formal verifications; under formal verifications;

• The list for formal verifications is proposed to include three components:The list for formal verifications is proposed to include three components: (а) (а) cases cases which are considered risky based on indirect income estimateswhich are considered risky based on indirect income estimates, (б) , (б) cases which cases which are considered risky based on “client profiling”are considered risky based on “client profiling”, (в) , (в) cases randomly pre-selectedcases randomly pre-selected;;

• Also there should be envisaged a possibility for welfare offices to add to the list Also there should be envisaged a possibility for welfare offices to add to the list cases they consider should be pre-selected for formal verificationcases they consider should be pre-selected for formal verification;;

• For the pre-selected cases the following formal verification procedures are applied:For the pre-selected cases the following formal verification procedures are applied: (1) (1) verification of documentsverification of documents, (2) , (2) in-depth interview under cautionin-depth interview under caution , (3) , (3) home visits home visits by public social inspectorby public social inspector ;;

• In case of fraud detection collected evidences on fraud should be used by public In case of fraud detection collected evidences on fraud should be used by public social inspectors for decision-makingsocial inspectors for decision-making;;

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Fraud


Public social inspector

Error

Correction

5% of cases 5% of cases 1% of cases

Investigation

Penalty

List of random cases

1) Verification of documents2) In-depth interview under caution3) Home visits by public social inspector

List of the most risky cases according to “client profiling”

List of the most risky cases according to HMT

Fraud detection procedures Fraud detection procedures (2)(2)

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PilotingPiloting (1) (1)

One of possible approaches for application of indirect income testingOne of possible approaches for application of indirect income testing

Creation of list of recipients (based on their characteristics) from the most Creation of list of recipients (based on their characteristics) from the most risky to the least riskyrisky to the least risky;;

The most risky recipients (the largest difference between declared and The most risky recipients (the largest difference between declared and estimated income) should be pre-selected for formal verifications (5% of estimated income) should be pre-selected for formal verifications (5% of recipients)recipients);;

We anticipate that formal verification of cases pre-selected based on the We anticipate that formal verification of cases pre-selected based on the new mechanisms, will increase number of detected fraud (per one new mechanisms, will increase number of detected fraud (per one verification); verification);

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Proposals for formal verification procedures by public social inspectorsProposals for formal verification procedures by public social inspectors

Formal verification should serve as an instrument for collecting evidences Formal verification should serve as an instrument for collecting evidences on fraud for decision-making by public social inspector; on fraud for decision-making by public social inspector;

Alternative home visit act should be a pilot instrument for collecting Alternative home visit act should be a pilot instrument for collecting information. Public social inspector during home visitinformation. Public social inspector during home visit will assign point will assign point representing wellbeing of benefit/subsidy recipient;representing wellbeing of benefit/subsidy recipient;

On the top of that we propose to apply in-depth interviews under caution On the top of that we propose to apply in-depth interviews under caution for collecting evidencesfor collecting evidences; ;

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Improvement of mechanism of housing subsidies provisionImprovement of mechanism of housing subsidies provision

Improvement of mechanism of privileges provisionImprovement of mechanism of privileges provision

Introducing uniform households means testing criteria for granting all Introducing uniform households means testing criteria for granting all types of social assistance, and improving the Techniques of types of social assistance, and improving the Techniques of Calculation of Family’s Aggregate Income for All Types of Social Calculation of Family’s Aggregate Income for All Types of Social AssistanceAssistance

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social assistance pilots program sa pilots seminar new procedures: proposals and implementation...

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