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SNAP2012report

SNAP2012report

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Retailer Policy Management Division 2012 Annual Report 

The United States Department Agriculture (USDA) Food and Nutrition Service (FNS) directly responsible for the authorization, management and oversight retailers who participate the Supplemental Nutrition Assistance Program (SNAP). fiscal year 2012, this was accomplished the SNAP Benefit Redemption Division (BRD) and seven Regional Operations and Support Field organizations. 
SNAP BRD oversaw national policy, managed national systems and contracts, managed Agency undercover investigations, and handled critical due process activities associated 
Field Operations staff performed frontend authorization, reauthorization (reassessment the eligibility participating stores and businesses), maintenance and administration related retailer participation, administrative sanction activities, and coordinated with compliance partners [i.e. USDA Office the Inspector General (OIG), State Law Enforcement Bureaus (SLEBs), Women Infants and Children Program (WIC)]. 
Fiscal year 2012 was transition year for the FNS retailer management organization. January 2013, SNAP, BRD became the SNAP Retailer Policy and Management Division (RPMD). fiscal year 2013, RPMD will standing quality assurance Branch and function, and longer responsible for Agency undercover investigations,. The seven Regional Field Organizations have become single, national operations team under the auspices the Retailer Operations Division (ROD). ROD responsibilities include all the operational functions associated with managing applicant and participating retailers, including Agency undercover investigations. This the final annual report that will reflect Regional retailer activity focus national goals and continue streamline and enhance our management SNAP retailers. 
The Year Review fiscal year 2012, over $74 billion client benefits were redeemed the over 246,000 participating stores, farmers markets, direct marketing farmers, homeless meal providers, treatment centers, group homes, and others authorized accept SNAP. 
Over the past five fiscal years, the number authorized firms has increased over 40%; information regarding trends overall retailer participation can found page 
Supermarkets and superstores made just 15% the over 246,000 firms authorized fiscal year 2012 but continue redeem the majority benefits. The percentage benefits redeemed each the firm types can found page StatebyState breakdown the amount benefits and percentage authorized firms found pages 67. 

Administrative Actions: 
Over 86,000 administrative actions, from authorization withdrawal, took place fiscal year 2012. These are detailed page 

Farmers Markets: one many initiatives focused improving access healthy foods, USDA has its strategic plan goal increasing farmers market participation SNAP least 200 markets each year. Page reflects the continual steady growth the number participating farmers markets and direct marketing farmers. 

Maintaining Program Integrity: 
The retailer management team continues actively working behalf American taxpayers protect the Federal investment SNAP. Combating abuse and misuse SNAP benefits priority. The sale/purchase SNAP benefits for cash called trafficking. This illegal activity punishable administrative action, civil and/or criminal prosecution. 
Over the last years, FNS aggressively implemented number measures reduce the prevalence trafficking SNAP. result, the trafficking rate has moved from percent down its current level percent. The latest FNS trafficking study details the trafficking rate for the period 2006 through 2008, and available online http://www.fns.usda.gov/ ora/MENU/Published/snap/ProgramIntegrity.htm. The next study, covering the period 20092011, will published 2013. 
FNS uses fraud detection system monitor electronic transaction activity the store level and identify suspicious retail grocers for further analysis and investigation. FNS has updated the system capitalize new, more advanced technology, and make use innovative analytical tools strengthen our fraud detection capabilities. This system instrumental our success identifying violators and decreasing trafficking, allows FNS detect and prosecute bad actors who defraud the Program. fiscal year 2012, compliance analysts across the country reviewed the transactions over 15,000 stores identified the system. SNAP investigators worked undercover over 4,000 stores. the fiscal year tally, 1,392 stores were sanctioned for trafficking, and another 687 retailers were sanctioned for lesser violations, such the sale ineligible products. 
Retailers who are sanctioned for SNAP violations and also participate the WIC Program are reciprocally disqualified from the WIC Program, and retailers who are sanctioned for WIC violations are subject disqualification from SNAP. 
FNS relies its investigative partners, including the USDA OIG and SLEBs, complement FNS investigative resources. OIG the primary investigative arm for FNS Programs; pursues criminal prosecution violating retailers. SLEBs can also bring criminal cases against violators based State and local statutes. 
Fiscal year 2012 compliance activities, from investigation, adjudication, and final sanction, can found detailed pages through 16. 

FISCAL YEAR 2012 GLANCE
 

216,738  231,435  
193,753  
175,094  

 September 30, 2012, 
246,565 
250,000 
225,000 
246,565 firms were author
200,000 
ized participate SNAP. 
175,000 
 Over the past five fiscal years, 
150,000 
the number authorized 
125,000 
firms has increased 41%. 
100,000 
 fiscal year 2012, supermar
75,000 
kets and superstores
50,000 
deemed 82% all SNAP 
25,000 
benefits. 2008 2009 2010 2011 2012 

FNS performed the following retailer administration activities fiscal year 2012: 
 Approved reinstated SNAP participation for 31,999 store locations. 
 Confirmed the continued eligibility 37,182 firms through reauthorization. 
 Conducted 37,574 store visits. 
 Withdrew 15,037 firms due voluntary request, nonredemption, failure meet eli
gibility requirements. 

Amount SNAP Benefits Trafficked (Annualized, Dollars Millions) 
900 800 700 600 500 400 300 200 100 

1993 1996-1998 1999-2002 2002-2005 2006-2008 
Source data: March 2011 FNS ReportThe Extent Trafficking theSupplemental Nutrition Assistance Program: 20062008. 
FNS performed the following retailer compliance activities fiscal year 2012: 
  Initiated compliance actions 3,154 authorized firms found violation program  
regulations. This included 2,079 sanction actions, 181 transfer ownership mone 
tary penalties, 151 involuntary withdrawals, and issuance 743 warning letters.  
  Completed 4,396 undercover investigations authorized retail grocers deter 
mine compliance with program regulations. Identified positive violations 1,694  
investigations, 39% the total completed.  
  Completed 1,161 administrative reviews FNS administrative actions appealed  
aggrieved firms. FNS sustained 88% all appeals, reversed modified 3%, and  
found that were moot.*  
  Trafficking, the exchange SNAP benefits for cash, has decreased significantly since  
the FNS Office Research Analysis conducted the first estimate the amount  
benefits trafficked 1993.  
  The most recent estimate, for the period 20062008, determined that trafficking 
verted roughly one cent each benefit dollar.** the 106 cases closed moot, were withdrawn appellants, were withdrawn FNS, were closed aresult appellants failure provide sufficient basis for review, and was withdrawn for unspecified reasons. 
**From March 2011 FNS ReportThe Extent Trafficking the Supplemental Nutrition Assistance Program: 20062008. 

Firms are classified type. There are currently firm types. Classifications are differentiated sales volume, ratio food sales total sales, whether firms specialize one staple food group. They are further grouped based upon those that provide traditional retailer services and those that provide meal services. Combined, supermarkets and super stores redeem over percent all SNAP benefits while making only percent the total number authorized firms. 
Authorized Stores Region  Redemptions:  
Total  Percent  Percent  
Firm Types  NERO  MARO  SERO  MWRO  SWRO  MPRO  WRO  Authorized  Total  Redemption Amount  Total  

Bakery Specialty  294  224  579  787  556  501  1,281  4,222  1.71%  $231,321,113  0.31%  
Combination Grocery/Other  5,849  6,854  16,788  10,673  8,387  3,793  7,269  59,613  24.18%  $4,065,946,900  5.45%  
Convenience Store  10,032  10,709  24,582  14,890  13,250  5,765  17,541  96,769  39.25%  $3,688,089,967  4.94%  
Delivery Route  127  233  235  139  131  119  1,070  0.43%  $145,888,768  0.20%  
Direct Marketing Farmer  208  178  270  200  325  133  1,330  0.54%  $4,272,354  0.01%  
Farmers' Market  367  164  317  335  120  143  438  1,884  0.76%  $12,325,901  0.02%  
Fruits/Veg Specialty  231  278  645  203  120  338  1,835  0.74%  $120,822,629  0.16%  
Large Grocery Store  450  437  560  740  364  387  628  3,566  1.45%  $1,175,279,833  1.58%  
Meat/Poultry Specialty  479  519  733  770  424  358  675  3,958  1.61%  $570,854,187  0.77%  
Medium Grocery Store  2,587  1,469  1,516  1,869  1,002  737  2,214  11,394  4.62%  $1,579,886,405  2.12%  
Military Commissary  189  0.08%  $98,791,158  0.13%  
Nonprofit Food Buying Coop  102  151  404  0.16%  $32,492,495  0.04%  
Seafood Specialty  363  405  763  105  339  181  2,169  0.88%  $233,393,611  0.31%  
Small Grocery Store  5,406  3,546  2,274  1,801  1,045  681  1,976  16,729  6.78%  $1,263,985,072  1.69%  
Super Store  2,065  2,474  2,488  3,852  2,327  2,161  3,019  18,386  7.46%  $36,194,946,950  48.53%  
Supermarket  1,893  2,047  5,848  2,740  1,433  720  4,111  18,792  7.62%  $24,955,985,193  33.46%  
Wholesaler  0.01%  $7,944,223  0.01%  
Store Subtotal  30,425  29,505  57,691  39,361  29,567  15,764  40,012  242,325  98.28%  $74,382,226,758  99.73%  
Communal Dining Facility  122  410  0.17%  $4,206,635  0.01%  
Drug and/or Alcohol Treatment Program  231  161  292  1,014  0.41%  $56,774,760  0.08%  
Group Living Arrangement  336  617  0.25%  $80,209,563  0.11%  
Homeless Meal Provider  209  0.08%  $7,282,676  0.01%  
Meal Delivery Service  285  0.12%  $700,033  0.00%  
Private Restaurant/Meal Delivery  159  1,362  1,537  0.62%  $44,325,872  0.06%  
Senior Citizens Center/Residential Building  111  128  0.05%  $8,259,814  0.01%  
Shelter for Battered Women and Children  0.02%  $925,546  0.00%  
Meal Service Subtotal  721  245  352  669  157  298  1,798  4,240  1.72%  $202,684,899  0.27%  
Total  31,146  29,750  58,043  40,030  29,724  16,062  41,810  246,565  100.00%  $74,584,911,657  100.00%  
Source: STARS Management Activity Report 11/04/12  

Retailer Redemption Data  Authorized  Redemption  Percent  Percent Total  
The following pages show the number  Region  State  Firms  Amount  Total Firms  Redemptions  
authorized firms and redemption amounts  
broken out State. California, New York,  NERO  Connecticut  2,470  $704,427,889  1.00%  0.94%  
Florida, and Texas continue have the  Massachusetts  5,117  $1,361,198,320  2.08%  1.83%  
highest number firms and redemptions.  Maine  1,597  $368,402,161  0.65%  0.49%  
New Hampshire  1,044  $211,263,490  0.42%  0.28%  
New York  19,196  $5,388,502,914  7.79%  7.22%  
Rhode Island  1,008  $270,156,883  0.41%  0.36%  
Vermont  714  $102,696,094  0.29%  0.14%  
Region Totals  31,146  $8,406,647,752  12.63%  11.27%  
MARO  District Columbia  471  $125,023,224  0.19%  0.17%  
Delaware  790  $233,410,959  0.32%  0.31%  
Maryland  3,755  $1,201,168,634  1.52%  1.61%  
New Jersey  6,216  $1,379,055,008  2.52%  1.85%  
Pennsylvania  10,077  $2,832,943,373  4.09%  3.80%  
Virginia  6,102  $1,437,996,505  2.47%  1.93%  
Virgin Islands  106  $52,759,828  0.04%  0.07%  
West Virginia  2,233  $475,884,510  0.91%  0.64%  
Region Totals  29,750  $7,738,242,041  12.07%  10.38%  
SERO  Alabama Florida  4,866 15,490  $1,383,847,687 $5,587,811,315  1.97% 6.28%  1.86% 7.49%  
Georgia  9,727  $3,107,251,892  3.95%  4.17%  
Kentucky  4,486  $1,315,875,050  1.82%  1.76%  
Mississippi North Carolina South Carolina Tennessee  3,443 8,547 4,976 6,508  $1,008,545,271 $2,430,868,678 $1,383,371,742 $2,044,821,245  1.40% 3.47% 2.02% 2.64%  1.35% 3.26% 1.85% 2.74%  
Region Totals  58,043  $18,262,392,880  23.54%  24.49% 

Retailer Redemption Data 
MWRO	 Illinois Indiana Michigan Minnesota Ohio Wisconsin 

Region Totals 
SWRO	 Arkansas Louisiana New Mexico Oklahoma Texas 

Region Totals 
MPRO	 Colorado Iowa Kansas Missouri Montana 

North Dakota Nebraska South Dakota Utah Wyoming 

Region Totals 
WRO	 Alaska Arizona California Guam Hawaii Idaho Nevada Oregon Washington 
Region Totals 

National Totals 
9,339 4,830 10,060 3,152 8,923 3,726 40,030 
2,536 4,649 1,436 3,364 17,739 29,724 
2,577 2,665 1,838 4,441 752 476 1,004 706 1,298 305 16,062 
535 3,875 25,163 262 1,005 976 1,695 3,390 4,909 41,810 

246,565 
$3,097,596,164 $1,472,841,246 $2,964,732,901 
$711,615,799 $2,978,478,528 $1,156,579,444 
$12,381,844,082 
$744,976,756 
$1,512,650,116 $662,227,637 $927,149,032 
$6,079,388,224 $9,926,391,765 
$814,557,993 $596,779,407 $458,337,022 $1,465,397,418 $191,992,826 $98,099,224 $267,565,128 $158,778,660 $399,709,506 $52,630,447 $4,503,847,631 
$187,371,247 $1,696,721,246 $7,139,698,427 $112,989,926 $450,440,594 $354,582,710 $542,361,396 
$1,204,727,283 $1,676,652,675 $13,365,545,506 

$74,584,911,657 
3.79%  4.15%  
1.96%  1.97%  
4.08%  3.97%  
1.28%  0.95%  
3.62%  3.99%  
1.51%  1.55%  
16.24%  16.60%  
1.03%  1.00%  
1.89%  2.03%  
0.58%  0.89%  
1.36%  1.24%  
7.19%  8.15%  
12.06%  13.31%  
1.05%  1.09%  
1.08%  0.80%  
0.75%  0.61%  
1.80%  1.96%  
0.30%  0.26%  
0.19%  0.13%  
0.41%  0.36%  
0.29%  0.21%  
0.53%  0.54%  
0.12%  0.07%  
6.51%  6.04%  
0.22%  0.25%  
1.57%  2.27%  
10.21%  9.57%  
0.11%  0.15%  
0.41%  0.60%  
0.40%  0.48%  
0.69%  0.73%  
1.37%  1.62%  
1.99%  2.25%  
16.96%  17.92%  
100.00%  100.00%  

Source: STARS Management Activity Report 11/04/12 

Administrative Activity 
Store administration includes activities such authorizing, reinstating, reauthorizing, and withdrawing firms. Fiscal Year 2012, there were total 
31,999 stores authorized reinstated, 37,182 reauthorized, and 15,037 withdrawn.  
Administrative Actions Region  NERO  MARO  SERO  MWRO  SWRO  MPRO  WRO  Total  
Authorizations:  
Initial Authorization  4,297  3,692  8,117  4,644  3,733  1,690  4,551  30,724  
Reinstatement  150  152  329  129  365  1,275  
Total Authorizations  4,447  3,844  8,446  4,740  3,862  1,744  4,916  31,999  
Reauthorizations  4,148  3,369  7,614  5,884  4,006  2,118  10,043  37,182  
TimeLimited Term SNAP Participation Denials:  
Determined Not Retail Food Store  146  378  
Failed Cooperate with Information Request  
Failed Pay Assessed Monetary Penalty  
Did Not Meet SNAP Eligibility Criteria  107  180  670  290  332  243  450  2,272  
Denied for Business Integrity Breach  
Other  
Total Term Denials  138  260  858  317  380  267  537  2,757  
Permanent Denials for Lack Business Integrity  
Firms Withdrawn:  
Permanently Withdrawn for Lack Business Integrity  
Time Limited Withdrawal for Business Integrity Breach  
Failed Cooperate with Information Request  
Failed Pay Assessed Monetary Penalty SNAP Transaction Activity  408  233  561  292  165  221  524  2,404  
Determined Not Retail Food Store  
Determined Not Meet SNAP Eligibility Criteria  266 State ContractApplies State Restaurant Program  
Nonresponse Reauthorization  139  262  
Withdrawal for Other Reasons  100  
Voluntarily Withdrew  1,577  1,602  3,286  1,646  1,461  679  1,660  11,911  
Total Withrawals  2,067  1,955  3,962  2,003  1,662  935  2,453  15,037 

FISCAL YEAR 2012 FARMERS MARKETS AND DIRECT MARKETING FARMERS
 

 	
Over the past five fiscal years, the number farmers markets and direct marketing farmers increased 327%. 

 	
31% are open year round. 

 	
51% all markets/ farmers authorized are found ten states: California (262), New York (243), Iowa (230), Michigan (221), Mississippi (141), Massachusetts (122), Pennsylvania (116), Oregon (111), Ohio (98), and Missouri (96). 

 	
Over the past five fiscal years, farmers market redemptions have increased 506%. 

 fiscal year 2012, program recipients made 693,395 purchases farmers markets and direct marketing farmers nationwide. The average purchase amount was $17.68. 

Source: Data was obtained from the Store Tracking and Redemption System and the Antifraud Locator using EBT Retailer Transactions System. 

 	
More SNAP benefits were redeemed farmers markets and direct marketing farmers Fiscal Year 2012 during September than any other month the year. 

 the 3,232 counties the U.S., 1,137 (35%) have least one SNAP authorized farmers market farmer. 

 	
267,433 SNAP households made least one purchase farmers market Fiscal Year 2012. the households shopping farmers markets, they spent $45.83 average over the course the year. 

 	
The top five busiest counties based the number SNAP households shopping farmers markets direct marketing farmers are shown below: 

 	
54% SNAP households that shopped farmers market direct marketing farmer made one purchase, another 19% made two purchases, and 27% made three more purchases within the year. 

 	
98.3% all SNAP transactions market direct marketing farmer were electronic (occurred either via electronic swipe via key entered transaction), and the remaining 1.7% were paper voucher authorizations. 

State/County  Number SNAP Households Shopping  
New York,  22,258  
St. Louis,  12,253  
Los Angeles,  6,930  
Genesee,  6,605  
Gwinnett,  4,818 

OIG has responsibility for all investigative activity within USDA. However, authority conduct SNAP retailer compliance investigations was delegated FNS. January 1977, the Retailer Investigations Branch (RIB) was established. Its primary mission safeguard the integrity SNAP retailer redemptions. Historically, this accomplished nationwide staff that conduct undercover investigations SNAP approved retailers. 
RIB investigations are conducted throughout the year. positive investigation one which the investigation reveals evidence any program violations. fiscal year 2012, there were total 4,396 investigations completed, which 1,694 resulted positive investigation. Positive investigations are further grouped whether there were trafficking actions involved. Trafficking the exchange SNAP benefits for cash consideration other than eligible food, and the most serious program violation. fiscal year 2012, there were 402 investigations which trafficking occurred. 

RIB Investigations Fiscal Year 2012 
Completed Investigations NERO MARO SERO MWRO SWRO MPRO WRO Total Pct Total 
Positive Results 258 173 321 173 315 367 1,694 38.54% Trafficking 402 NonTrafficking 163 131 279 106 252 286 1,292 
Negative Results 461 250 473 597 275 204 374 2,634 59.92% None/No Result 1.55% Total Completed 732 431 815 774 601 292 751 4,396 100.00% 
Source: STARS Management Activity Report 11/04/12 

The Administrative Review Branch (ARB) performs the final administrative review retailer appeals within USDA. 
 	
The vast majority administrative reviews are for retail and wholesale firms aggrieved action FNS deny, withdraw, disqualify them from SNAP participation. addition, ARB performs administrative reviews for sponsors and vendors aggrieved the Summer Food Service Program and the Child and Adult Care Food Program, well for State agencies aggrieved FNS actions such Quality Control sanctions and other sanctions due noncompliance with SNAP regulations State Plans Operations. 

 	
ARBs mission ensure that firms, institutions, and State Agencies aggrieved FNS adverse actions receive the opportunity have their positions fairly considered impartial reviewing authority prior the adverse action becoming final. 

 	
Administrative Review Officers (AROs) are designated the Secretary Agriculture conduct administrative reviews and issue final agency decisions. They have the authority reverse otherwise alter any adverse decision found error which may inconsistent with FNS policy. AROs decision the final administrative action the USDA, subject only judicial review. 

Source: STARS Management Activity Report 11/04/12 2012 Administrative Review Branch Final Decisions 

Source: STARS Management Activity Report 11/04/12 
 	
ARB saw increase the number administrative review requests from 979 fiscal year 2011 1,385 fiscal year 2012. This increase likely linked the increase the number retail stores the Program well various integrity efforts initiated FNS. 

 	
ARB strives expedite decisions. moving quickly, there positive impact integrity: 

 	
Stores whose actions are held abeyance pending final agency decision not stay the Program for long periods time after the determination made FNS field staff. 

 	
Stores who are removed pending final agency decision have their appeals heard quickly. the decision reversed, the amount time they are off the Program minimized. 

 	
Collections for civil money penalties can begin earlier the process, making more likely that retailers can located. 

 past years, the majority FNS initial determinations were upheld. Eightyeight percent cases were upheld fiscal year 2012. 

Compliance Activity
 
FNS closely monitors retailers ensure they comply with Program rules and regulations. FNS may sanction warn retailers found violating Program rules. Sanctions include permanent timelimited term disqualifications and civil money penalties. Retailers who commit minor violations are issued official warning letters. Retailers who are disqualified permanently and sell their stores are subject transfer ownership civil money penalty. fiscal year 2012, there were 3,154 total compliance actions, including 2,079 sanctions (1,387 them permanent disqualifications), 743 official warnings, 181 transfer ownership civil money penalties, and 151 involuntary withdrawals. 
Compliance Activity Region 
NERO MARO SERO MWRO SWRO MPRO WRO Total Sanctions 344 489 384 311 204 309 2,079 Permanent Disqualifications 237 384 218 240 113 172 1,387 
TimeLimited Term Disqualification 104 117 536 Trafficking Civil Money Penalty (CMP) Hardship CMP 151 
Other Compliance Actions 133 156 208 127 191 184 1,075 Transfer Ownership CMP 181 Official Warning 147 173 122 743 
Involuntary Withdrawal (for other than nonredemption) 142 Permanent Involuntary Withdrawal 
Total 477 645 592 438 395 114 493 3,154 
Source: STARS Management Activity Report 11/04/12 

State  Time-Limited Term Disqualification  Permanent Disqualification  Hardship CMP Lieu Term Disqualification  Trafficking CMP Lieu Permanent Disqualification  Total  106  148  266  107  110  112  126  133  179  177  239  174  193  155  
Total  536  1,387  151  2,079  

Source: STARS Mgmt Activity Report 11/04/12 

TimeLimited Term Disqualification  Permanent Disqualification  Hardship Civil Money Penalty Lieu Time Limited Term Disqualification  Trafficking Civil Money Penalty Lieu Permanent Disqualification  Total  
Stores:  
Bakery Specialty  
Combination Grocery/Other  
Convenience Store  345  823  1,250  
Delivery Route  
Direct Marketing Farmer  
Fruits/Vegetables Specialty  
Large Grocery Store  
Meat/Poultry Specialty  
Medium Grocery Store  167  
Seafood Specialty  
Small Grocery Store  118  405  550  
Super Store  
Supermarket  
Meal Services:  
Private Restaurant/Meal Delivery  
Total  536  1,387  151  2,079  

Source: STARS Mgmt Activity Report 11/04/12 

Retailer Policy and Management 
Division access this report online, 
please visit our website 
www.fns.usda.gov/snap/retailers/merchants.htm 
More information about FNS efforts combat 
fraud and abuse available 
www.fns.usda.gov/snap/fraud.htm. 

For more information about SNAP general, 
please visit our website 
www.fns.usda.gov/snap.



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