13.2.2  Error-Prone Profile

13.2.2.1  Review of Error-Prone Profile

13.2.2.1.1  Prohibited Error-Prone Profile Characteristics

13.2.2.1.2  Residence

13.2.2.1.3  Household Composition

13.2.2.1.4  Assets

13.2.2.1.5  Earned Income

13.2.2.1.6  Unearned Income

13.2.2.1.7  General Criteria

 

An error-prone profile is a list of characteristics recognized by the W-2 agency as indicators of error(s) on a case. It allows W-2 agencies to allocate administrative and investigative resources to those cases according to their potential for error. The criteria for an error-prone profile must accommodate situations applicable to the specific agency. For example, there are a high number of jobs in the area that provide opportunities for earning tips. In these situations, the error-prone profile would include not reporting tip income when working a job that routinely receives tips. FEV activities may reveal that some characteristics originally thought to show potential errors are irrelevant and not cost effective to pursue.

 

13.2.2.1 Review of Error-Prone Profile

Because error-prone profile criteria are likely to change over time, the W-2 agency must evaluate its error-prone profile annually to determine if the profile is actually identifying errors. The recommended target is that 30% of cases referred to FEV should result in a referral for fraud investigation. If the W-2 agency does not meet the 30% target, it should remove characteristics that are not error-prone and add other characteristics that may be error-prone.

 

13.2.2.1.1 Prohibited Error-Prone Profile Characteristics

The following characteristics must not be used when developing an error-prone profile:

1.             Race;

2.             Color;

3.             National origin;

4.             Ethnic background;

5.             Sexual orientation;

6.             Religion;

7.             Age;

8.             Political belief;

9.             Disability;

10.         Association with a person with a disability; and

11.         Marital status.

Federal regulations specifically prohibit error-prone profiles from targeting migrant farm workers or Native Americans.

 

13.2.2.1.2 Residence

Error-prone indicators for residence include:

·        Conflicting documentation or verification differing from that reported by the individual;

·        Recent arrival (within the prior three months) in the agency’s county, excluding migrant farm workers, people who are homeless, and residents of shelters;

·        Highly mobile families whom rarely stay in one location for more than two or three months; and  

·        Frequent or prolonged visits outside of the W-2 Geographic Area.

 

13.2.2.1.3 Household Composition

Error-prone indicators for household composition include:

·        Employable household members listed on the application and then later reported to have moved;

·        Collateral contact statement is inconsistent with the individual’s statement of household size;

·        Landlord's address is same as individual’s, but landlord is not included as a household member;

·        Landlord is the absent parent or ex-spouse;

·        An unmarried individual gives birth to a baby who is given the same last name as a male friend, but client claims male friend does not live with her;

·        Client reports someone else pays the rent for several months, but that person is not listed in the home;

·        Household reports large increases or decreases in household size or a frequently fluctuating household size; and

·        Other household member(s) included on a JAL or EA application.

 

13.2.2.1.4 Assets

Error-prone indicators for assets include:

·        Individual reports no assets or resources on the application, but has no unpaid bills;

·        Individual reports no vehicle, but has no reasonable explanation of the transportation method;

·        Individual claims no income for an extended period of time, but offers no satisfactory explanation of how needs were met before applying;

·        Information provided by the individual shows a substantial reduction in assets just prior to application for assistance; and

·        Reported assets are very near or equal to the asset limits.

 

13.2.2.1.5 Earned Income

Error-prone indicators for earned income include:

·        Reported income is different than IRS records or state tax forms;

·        Individual’s expenses are being met, although individual’s reported income is not enough to satisfy the financial obligations;

·        Self-employment income reported to have stopped (potential business assets available);

·        Individual reports zero income but states someone else paying the bills;

·        Household that has an adult wage earner who becomes unemployed and reports no unemployment benefits  or reports unemployment benefits have stopped, but employment has not resumed;

·        Increase in nonparticipation without attempts from the individual to provide good cause; and

·        Application for JAL or EA indicates increase in earned income not previously reported.

 

13.2.2.1.6 Unearned Income

Error-prone indicators for unearned income include:

·        Household member claims disability, but does not report SSI, SSDI, or worker’s compensation;

·        Application for JAL or EA indicates source(s) of unearned income not previously reported; and

·        Individual owns rental propert(ies).

 

13.2.2.1.7 General Criteria

General error-prone indicators include:

·        Individual has provided contradictory information or made statements inconsistent with information provided during a previous contact in the application or review;

·        Case was previously closed for loss of contact or failure to provide essential information;

·        Case in which fraud was previously alleged or committed;

·        Case in which information provided by applicant is incomplete or not clear;

·        Case was previously referred for FEV, which resulted in either denial or reduction of benefits; and

·        Case was flagged for potential error via the automated process for identifying error prone cases in CWW.

 

 

History: Release 16-01.