Bill Summary – FastDemocracy

The Commonwealth of Massachusetts
                                     AUDITOR OF THE COMMONWEALTH
                                             STATE HOUSE, BOSTON 02133
     DIANA DIZOGLIO                                                                            TEL (617) 727-2075
        AUDITOR                                                                                FAX (617) 727-3014
September 20, 2024
Aaron Michlewitz, House Chair
House Committee on Ways and Means
24 Beacon Street
Room 243
Boston, MA 02133
Michael Rodrigues, Senate Chair
Senate Committee on Ways and Means
24 Beacon Street
Room 212
Boston, MA 02133
                Re:    Bureau of Special Investigations (BSI) FY2024 fourth quarter report
Dear Chair Michlewitz, Chair Rodrigues, and members of the Committees on Ways and Means:
Pursuant to its obligations relative to fiscal year 2024 budget language (0710-0200), the Bureau of Special
Investigations (BSI) submits the enclosed quarterly report detailing and summarizing its activities during the
fourth quarter of fiscal year 2024.
Please contact my office if you have any questions or wish to discuss the Bureau’s work in greater detail.
Best regards,
Diana DiZoglio
Auditor of the Commonwealth
                      Bureau of Special Investigations 4th Quarter Report
                      Fiscal Year 2024
                      April 1, 2024 – June 30, 2024
                                                  About the Bureau of Special Investigations
        Operating as a division within the Office of the State Auditor, the Bureau of Special Investigations (BSI)
is charged with investigating allegations of public assistance fraud throughout the Commonwealth. The work of
BSI fraud examiners ensures taxpayer dollars used to fund Massachusetts’ public benefits programs are
managed effectively so that programs are available to residents who truly need them.
        Pursuant to M.G.L. c.11, §17, BSI’s investigative authority extends to any assistance program
administered by the Department of Transitional Assistance (DTA), the Department of Children and Families
(DCF), and the Division of Medical Assistance, which administers MassHealth (the state’s Medicaid program).
Although the Department of Early Education and Care (EEC) is not included in BSI’s enabling statute, BSI also
works with EEC through a Memorandum of Understanding. As a result of BSI’s investigations, public
assistance fraud cases are referred to agencies for administrative action, fraudulent overpayments are recovered
through civil agreements, individuals are disqualified from programs for specified periods of time, and cases are
prosecuted in state and federal courts.
        BSI fraud examiners operate from five offices across the Commonwealth. BSI consists of three separate
investigative units: the Central Processing Unit; the Fraud Investigations Unit1; and the Data Analytics Unit.
While each unit has its own specific concentration, there is extensive cross-unit collaboration, and
investigations often involve overlap. BSI also participates in joint investigations and task forces with other state
and federal agencies that focus on combating fraudulent activities throughout the Commonwealth. BSI cases are
enforced by other agencies and may be settled through civil recoupment or criminal prosecution. BSI is not
enabled under our governing statute to collect settlement payments of any kind; the individual benefit programs
are responsible for collection activities related to BSI cases.
    During Quarter 4 of fiscal year 2024, BSI investigated a total of 1,235 cases. Of these, 176 were
completed with fraud identified. Further details regarding these 176 cases may be found below.
                                       Summary of Investigations Completed with Fraud Identified2
    Assistance type                                                           Amount                                                   % of total
    Supplemental Nutrition Assistance                                      $1,901,925.00                                                80.40%
    Program (SNAP)
    Medicaid                                                                $245,858.79                                                 10.39%
    Transitional Aid to Families with                                       $138,081.90                                                  5.84%
    Dependent Children (TAFDC)
    Emergency Aid to the Elderly, Disabled,                                  $60,472.00                                                  2.56%
    and Children (EAEDC)
    Department of Early Education & Care                                     $19,263.57                                                  0.81%
    (EEC)
    Grand Total                                                            $2,365,601.26                                                  100%
    Restitution Settlements (Civil                                          $103,142.94
    Recoveries)3
1
  Formerly the MassHealth, Department of Transitional Assistance, and Early Education and Care Unit.
2
  The FY24 Q3 report incorrectly noted the number of cases completed with fraud identified as 241. There were 186 cases completed with fraud identified in Q3. A
corrected version of the report is available on BSI’s website [Link].
3
  BSI is unable to report on monthly collections or circumstances that produce shortfalls in collections. Restitution settlements are ongoing and continue beyond the
issuance of this report. While this report informs the public of what we have found to date, benefit programs require time to implement and manage collections.