DHS OIG, OIG-12-125, U.S. Citizenship and Immigration Services Systematic Alien Verification for Entitlements Program Issues (2012)

Department of Homeland Security U.S. Citizenship and Immigration Services Systematic Alien Verification for Entitlements Program Issues OIG-12-125 September 2012 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Washington, DC 20528 / www.oig.dhs.gov September 19, 2012 MEMORANDUM FOR: Tammy Meckley Deputy Associate Director, Enterprise Services Directorate United States Citizenship and Immigration Services FROM: SUBJECT: Frank Deffer Assistant Inspector General Information Technology Audits U.S. Citizenship and Immigration Services Systematic Alien Verification for Entitlements Program Issues Attached for your information is our final letter report, U.S. Citizenship and Immigration Services Systematic Alien Verification for Entitlements Program Issues. We incorporated the formal comments from the United States Citizenship and Immigration Services in the final report. The report contains two recommendations aimed at improving the Systematic Alien Verification for Entitlements Program. Your office concurred with Recommendation 1 and did not concur with Recommendation 2.

As prescribed by the Department of Homeland Security Directive 077-1, Follow-Up and Resolutions for the Office of Inspector General Report Recommendations, within 90 days of the date of this memorandum, please provide our office with a written response that includes your 1) agreement or disagreement, 2) corrective action plan, and 3) target completion date for each recommendation. Also, please include responsible parties and any other supporting documentation necessary to inform us about the current status of the recommendation. Until your response is received and evaluated, the recommendations will be considered open and unresolved. Consistent with our responsibility under the Inspector General Act, we are providing copies of our report to appropriate congressional committees with oversight and appropriation responsibility over the Department of Homeland Security.

We will post the report on our website for public dissemination. Major contributors to this report are Sharon Huiswoud, Director; Kevin Burke, Supervisory Auditor; Matthew Worner, Senior Auditor; Charles Twitty, Senior Auditor; and Pamela Chambliss-Williams, Senior Program Analyst.

OFFICE OF INSPECTOR GENERAL

Department of Homeland Security Please call me with any questions, or your staff may contact Sharon Huiswoud, Director, at (202) 254-5451. Attachment www.oig.dhs.gov 2 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Background In response to U.S. House of Representatives Committee on Appropriations Report 112-91, Department of Homeland Security Appropriations Bill, 2012, we conducted an audit of the business processes of the Systematic Alien Verification for Entitlements (SAVE) program. The objectives of our review were to determine whether USCIS had established processes to (1) monitor user compliance with the rules of the SAVE program, (2) enforce actions when users were noncompliant with SAVE program rules, and (3) enable benefit applicants to request record corrections.1 Additionally, our objectives included a review to determine the average length of time USCIS took to adjudicate requests by applicants who received a possibly erroneous SAVE determination.2 SAVE is an electronic system to provide immigration status to Federal, State, and local agencies that award various public benefits such as drivers’ licenses, public housing subsidies, and Federal education grants. However, SAVE does not make determinations on any applicant’s eligibility for a specific benefit or license.

In April 2012, approximately 1,000 agencies were registered to use SAVE. The legacy Immigration and Naturalization Service created the SAVE program in 1987 in response to the Immigration Reform and Control Act of 1986, P.L. 99-603. This law required the creation and implementation of a verification system that confirms the immigration status of individuals applying for certain federally funded benefits. With the creation of the Department of Homeland Security (DHS) in 2003, jurisdiction for the SAVE program is now under the USCIS Verification Division.

Additional Federal legislation expanded the need for benefit-granting agencies to verify immigration status. For example, • The Illegal Immigration Reform and Immigrant Responsibility Act of 1996, P.L. 104-208, requires USCIS to respond to inquiries by Federal, State, and local benefit-granting agencies seeking to verify immigration status or naturalized or derived citizenship of an individual for any lawful purpose. 1 According to USCIS officials, SAVE and the SAVE Monitoring and Compliance Section do not engage in enforcement actions; rather they identify non-compliance and work with agencies to gain compliance. 2 According to USCIS officials, the SAVE program does not “adjudicate” SAVE cases.

At USCIS, only members of the Officer Corps have the authority to adjudicate cases. Record corrections do not inherently involve an adjudication. www.oig.dhs.gov 3 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security • The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, P.L. 104-193, restricts immigration status eligibility criteria for certain programs funded by Federal, State, and local government agencies. • The REAL ID Act of 2005, P.L. 109-13, extends the mandate to verify immigration status to include all departments of motor vehicles issuing drivers’ licenses. SAVE Verification Process Following the completion of a registration process, staff from an authorized SAVE user agency are able to query a benefit applicant’s immigration status against DHS databases containing more than 100 million records. USCIS processed approximately 12 million SAVE queries in fiscal year 2011.

According to USCIS, there was an average of 935,793 SAVE initial verifications per month during June to August 2010. This initial verification step usually requires only 3 to 5 seconds. Further, this initial query about a benefit applicant’s immigration status is document centric; that is, the SAVE system searches specific databases based on the immigration document that was submitted by the SAVE user agency. Throughout fiscal year 2010, more than 94 percent of cases that provided immigration status did so without requiring additional verification.

SAVE user agencies are charged a minimum of $25 to access SAVE each month, plus $0.50 for each initial verification query. However, there is no monthly charge if a SAVE user agency does not submit SAVE queries. If the initial verification query cannot be resolved, SAVE user agencies are to perform additional verification steps. The additional verification is biographic centric.

That is, SAVE searches the various databases based on the benefit applicant’s personal information, such as immigration numeric identifier or name and date of birth. This additional verification may be performed automatically, or following submission of additional data by the SAVE user agency. There is a $0.50 fee for each additional verification query. If the benefit applicant’s immigration status cannot be confirmed following additional verification, the SAVE program instructs the user agency to provide additional documentation for third step verification.

There is no fee for third step verification. However, if the documentation is submitted without performing the first and additional query steps, there is a $2 fee. The different SAVE program fees resulted in $6 million in fiscal year 2010 and provide 25 percent of the funding of the SAVE program. www.oig.dhs.gov 4 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Results of Audit USCIS’ Process To Monitor User Compliance With the Rules of the SAVE Program USCIS has established a process to monitor compliance with the rules of the SAVE program. Per the SAVE program Memorandum of Agreement, the program rules require— • The user agency staff to take the SAVE training before using the system, • The user agency to pay any SAVE-related charges within 30 days or be assessed late fees, • Performance of any additional verification procedures documented in the SAVE program guide and the web-based tutorial, and • The user agency to allow USCIS’ SAVE Monitoring and Compliance Section access to all records related to the use, or improper use, of SAVE.

USCIS established the SAVE Monitoring and Compliance Section to monitor agency compliance with the above program rules. Additionally, USCIS established the Integrated Monitoring Task Force to help identify specific behaviors of the user agencies, such as failure to deactivate SAVE user accounts. The Monitoring and Compliance Section, in conjunction with the Verification Division SAVE Program, has written technical manuals and standard operating procedures for monitoring agency compliance with SAVE program rules. The USCIS Verification Division prepares and provides SAVE-related training to user agencies.

For example, the SAVE tutorial provides information on the cost of queries, documentation needed from the applicant, how to complete various screens, and the roles and responsibilities of SAVE users. Enforcement Actions When Agencies Are Noncompliant With SAVE Program Rules USCIS’ Verification Division has established procedures to take when user agencies are non-compliant with SAVE program rules. For example, when SAVE user accounts have been inactive for a year, USCIS notifies the user agency of the inactive accounts. According to USCIS staff, 158 SAVE user agencies have been contacted about inactive user accounts.

Additionally, if a SAVE user agency has not paid its bills on time, USCIS www.oig.dhs.gov 5 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security charges late fees and penalties. As of May 2012, 71 SAVE user agencies were 60 days overdue, for a total of $622,497 in fees, interest, and penalties. Further, USCIS’ policy requires that if user agencies do not adhere to SAVE program rules, SAVE access may be suspended or terminated. However, according to USCIS staff, restricting or terminating access to the SAVE program would have a negative effect on benefit applicants.

Specifically, if user agencies do not have access to SAVE, they may not be able to verify a benefit applicant’s immigration status. If user agencies cannot verify immigration status, they may not be able to award the benefit.

USCIS

Process To Ensure That Benefit Applicants Can Correct Their Records USCIS has established a process to help benefit applicants correct their records that were used in the SAVE verification process. Additionally, USCIS has distributed a fact sheet to user agencies that specifies how SAVE benefit applicants can contact USCIS when they want to correct their records. Further, USCIS plans to update its public web pages to assist SAVE benefit applicants further. However, USCIS can do more to assist applicants in correcting their records.

Specifically, the Verification Division should request that database owners report whether the applicant’s records were corrected. For example, if a Verification Division review of a benefit applicant’s documentation determines that a USCIS database contains erroneous information about that applicant, the Verification Division notifies the USCIS Records Division about the error and provides a positive verification. However, according to USCIS officials, the Verification Division is not required to follow up with the Records Division to determine whether the record was corrected.3 Also, the Verification Division is not required to inform benefit applicants that there was an error in their USCIS records. Additionally, SAVE accesses databases that are owned by U.S. Customs and Border Protection (CBP).

For example, a CBP database accessed by SAVE contains the data from the Arrival-Departure Record, CBP Form I-94. When an error is identified in a CBP database, USCIS instructs the SAVE user agency to notify the benefit applicant to contact CBP. However, according to USCIS officials, the Verification Division is not required to follow up with CBP to determine whether the record was corrected. 3 According to USCIS officials, the Verification Division’s authority to provide immigration status is between USCIS and the SAVE user agency, not the benefit applicant; the Verification Division does not have the authority to require database owners to correct records. www.oig.dhs.gov 6 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Average Length of Time To Adjudicate Applicant Requests To Correct Erroneous Information USCIS staff do not collect information that would enable them to determine the average length of time required to adjudicate applicant requests to correct erroneous information.

For example, USCIS does not track the number of SAVE-related appointments made through its InfoPass scheduling website. USCIS cannot calculate the average time needed to resolve SAVE-related queries without knowing how many SAVE benefit applicants have contacted USCIS. 4 However, we obtained information on 95 SAVE benefit applicant queries that were referred to USCIS. USCIS resolved these queries in an average of 8.9 calendar days.

Officials from the Verification Division said that they plan to track SAVE benefit applicant requests and referrals with a customer relationship management system capability that will be implemented by August 2013. Recommendations We recommend that the Deputy Associate Director, Enterprise Services Directorate: Recommendation #1: Implement a process to compile and track SAVE benefit applicant requests and referrals. Recommendation #2: Implement a process for SAVE database owners to report to the Verification Division whether changes to SAVE benefit applicant records were made. Management Comments and OIG Analysis We obtained written comments on a draft of this report from the Director of USCIS.

We have included a copy of the comments in their entirety at appendix B. The Director of USCIS concurred with the first recommendation and did not concur with the second recommendation. We also obtained informal technical comments from SAVE program officials that we addressed in the report where appropriate. 4 According to USCIS officials, a “query,” in the context of the SAVE program, is a verification request from a User Agency and is not used by the SAVE program to refer to inquiries from benefit applicants. www.oig.dhs.gov 7 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Recommendation #1 USCIS concurs with this recommendation. Additionally, USCIS provided further information on planned improvements.

These improvements include the implementation of the SAVE Case Check initiative and a Customer Relationship Management (CRM) system. The SAVE CASE Check initiative will enable SAVE benefit applicants to check the status of their case online. Additionally, the initial phase of a CRM system will track and monitor SAVE inquiries. OIG Analysis The actions described satisfy the intent of this recommendation.

This recommendation is considered resolved, but will remain open until USCIS provides documentation to support that the planned corrective actions are completed. Recommendation #2 USCIS did not concur with this recommendation. According to USCIS, SAVE is not the owner or custodian of the immigration records it uses to determine immigration status, some of which are outside of USCIS control, and it does not have the legal authority to require database owners to report corrections to applicants’ records to the SAVE program. However, USCIS also listed steps they could take to identify whether record changes have been made.

For example, Quality Assurance audits conducted by the USCIS Verification Division could inform USCIS leadership of common data errors and the need for policy and process changes. Additionally, the SAVE program may be able to leverage the CRM system to track benefit applicant queries as described in the response to Recommendation 1. OIG Analysis USCIS is the owner of some of the databases accessed by SAVE. USCIS should be able to develop internal procedures to report to the SAVE program whether USCIS records have been changed.

Additionally, USCIS enters into agreements with other components for SAVE access to their databases. USCIS could use these agreements as a basis for establishing change reporting processes with other DHS components. This recommendation is considered unresolved and will remain open until USCIS provides documentation to support the implementation of corrective actions. www.oig.dhs.gov 8 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Appendix A Objectives, Scope, and Methodology The Department of Homeland Security (DHS) Office of Inspector General (OIG) was established by the Homeland Security Act of 2002 (Public Law 107-296) by amendment to the Inspector General Act of 1978. This is one of a series of audit, inspection, and special reports prepared as part of our oversight responsibilities to promote economy, efficiency, and effectiveness within the Department.

We performed an audit to determine whether USCIS established programs and processes to: (1) monitor user compliance with the rules of the SAVE program, (2) enforce actions when users were noncompliant with SAVE program rules, and (3) enable benefit applicants to request record corrections. Additionally, our objectives included a review to determine the average length of time USCIS took to adjudicate requests by applicants who received a possibly erroneous SAVE determination. Our audit focused on the requirements outlined in U.S. House of Representatives Committee on Appropriations Report 112-91, Department of Homeland Security Appropriations Bill, 2012. We reviewed DHS and USCIS guidance and procedures.

We also interviewed various DHS personnel regarding SAVE. Additionally, we interviewed staff from several SAVE user agencies concerning their use of SAVE. We conducted this performance audit between April and July 2012 pursuant to the Inspector General Act of 1978, as amended, and according to generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based upon our audit objectives.

We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based upon our audit objectives. www.oig.dhs.gov 9 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Appendix B Management Comments to the Draft Letter Report U.S. n t.lll1 r tmfllt ur II /l md:lIld Sf( uril~ U.S. Cit izenship IIncl lmmigml iGn Services Office ()/Ihe Direcfr}r MS-2000 WQsh"glon, DC 20529-2000 u. S. Ci tizenshi p and Immigration Services SEP 13 1011 Memorandum Assistant Inspector Gen~al ' Infonnatj:7 Frank DetTer i Tee TO: ogy Audits FROM: Alejandro N. Mayorkas Director SUBJECT: Office oflnspeelor Genera l (010) Drafl Reporl: US. Citiztmship and Immigrati()n Service's (USCIS) Systematic Alien Verification/or Entitlements (SA VE) Program Issues (job code OIG~12-J34) ~ FOUO USCIS appreciates the opportunity to respo nd and general ly agrees with the O IG summary o f the issues ident ified in the report . USCIS OJncurs that the SAVE prol:,Tfam has established processes to monitor user compliance w ith the policies of the SAVE program and follows up when users are noncompliant with SAV E program requirements. USC IS also agrees that the SAVE program enables benefit applicants to request record corrections, but is concerned about USCIS's scope of authority to cany out some of the recommendatio ns because USCIS io;; not the custodian of all n f the databases accessed by SAVE.

USCIS would like to highlight our demonstrated commitment to transparency fo r SAVE benefit applicants and our efforts to ensure that SAVE user agencies comply w ith program requirements. USCIS IS launching several majo r initiat ives to provide better access to information to support benefit seeking applicants, such as the SAVE Case Check init iative, which a llows applicants seekillg benefils to obtain inf(mnatwm 1m lhl! stl:ltus or their SAVE cases. The SAVE Case Chcck initiative will be available on September 15, 2012, with a phased roll-o ut to customers planned for a several month period during the 1st Quarter of Fiscal Year 2013. SAVE Case Check is a free service to benefit applicants and will save the applicant s time by reducing repeat visits to a benefit-granting agency.

USCIS aL'io recently launched the fi rst phasl! 0 r a Customer Relationship Management (CRM) s)'stem that prov ides a mechanism for tracking and managing all incoming SA VE~re lated calls and inquiries. USC IS recently developed a pilot between USCI S Field Offices and SAVE program staff to faci lita te benefit applicant requests that may require a visit to a USCIS field office. And in FY 20 J 2, the SA VE program released the SA VE Self-Assessment Guide to educate user agencies and help them co mply wit h SAVE program requirements. \\"W"". t1 sri~ .go \. www.oig.dhs.gov 10 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security 010 Draft Report: USCIS', SAVE Program Issue, (job code 010-12-134) - FOUO Although our responses to the recommendations are outlined below in detail, USCIS would also like to clarify that the SAVE prognun does not "adjudicate" SAVE cases.

At USCIS, only members of the Officer Corps have the authority to adjudicate cases. The SAVE program is only responsible for determining whether the information submitted by the SAVE user agency on behalf of the benefit applicant is consistent with the data found in federal databases. Further, the SAVE program does not engage in enforcement activities but identifies non-compliance and assists agencies as necessary. And finally, another area in the OIG report that users would like to address is the finding that the SAVE program is not required to inform benefit applicants that there was an error in their record.

This is because our current authority to confum immigration status is between USCIS and the SAVE user agency, not between USCIS and the benefit applicant. However, under current practice we do advocate on behalf ofthe benefit applicant ifthere is a record change or update that we can do in coordination with other parts of USC IS and, if contacted by a benefit applicant, we will refer the benefit applicant to the appropriate USCIS or Department of Homeland Security (DHS) component. DBS OIG recommends tbat tbe Deputy Associate Director, Enterprise Services Directorate: Recommendation 1: Develop a process to compUe and track SAVE benefit applicant requests and referrals. USCIS response: USCIS concurs with this recommendation.

Although the process is not yet formalized, the SAVE program does take inquiries from benefit applicants through its customer support hotIine publicized on the SAVE website. Benefit applicants can ask questions relating to the status of their SAVE verification case, or ask general questions about the program Questions regarding the status ofthe benefit that the applicant applied for are referred back to the federa~ state or local agency where the individual applied. The above-mentioned SAVE Case Check initiative will also help to reduce telephone inquiries ofthis nature, as benefit applicants will be able to check the status of their case online. USCIS also just launched the initial phase ofa CRM system that will track and monitor SAVE inquiries and the SAVE program will develop a plan for a dedicated benefit applicant hotIine, to be used in conjunction with the CRM tracking and monitoring effort.

A dedicated benefit applicant hotJine is necessary to allow the SAVE program to leverage CRM to better track benefit applicant inquiries and redirect calls to other parts of USC IS ifrecord follow-up is necessary. However, the implementation of this plan is contingent on the SAVE program obtaining additional resources to develop the capability and implement the boUrne necessary to leverage CRM. Recommendation 2: Develop a process for SAVE database owners to report to the Verification Division whether cbanges to SAVE benefit applicant records were made. USCIS response: USCIS non-concurs with this recommendation.

SAVE is not the owner or custodian of the immigration records it uses to determine immigration status, some of which are www.oig.dhs.gov 11 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security OIG Draft Report: USCIS's SAVE Program Issues (job code 0IG-12-13I/) - FOUO Page 3 outside of USC IS control, and does not have the legal authority to require database owners to report back to the SAVE program. Each database has policies and procedures in place that allow staff to determine how to address data errors or updates and often the SAVE program andlor USCIS will not have any oversight. Whether or not the SAVE program is aware of when a record is updated does not address the root cause of data accuracy. Other efforts, such as looking at the results of Quality Assurance (QA) audits conducted by the USCIS Verification Division, could infollll USCIS leadership of common data errors and the need for policy and process changes.

However, the SAVE program will develop a process to track USCIS record correction responses or updates as part of the plan to leverage the CRM system to track benefit applicant queries as described in the response to Recommendation I . USCIS will detennine how best to track these actions and consolidate any contacts made with the SAVE program by the benefit applicants in question. www.oig.dhs.gov 12 OIG-12-125 OFFICE OF INSPECTOR GENERAL Department of Homeland Security Appendix C Report Distribution Department of Homeland Security Secretary Deputy Secretary Chief of Staff Deputy Chief of Staff General Counsel Executive Secretary Director, GAO/OIG Liaison Office Assistant Secretary for Office of Policy Assistant Secretary for Office of Public Affairs Assistant Secretary for Office of Legislative Affairs Director of USCIS USCIS Audit Liaison Acting Chief Privacy Officer Office of Management and Budget Chief, Homeland Security Branch DHS OIG Budget Examiner Congress Congressional Oversight and Appropriations Committees, as appropriate www.oig.dhs.gov 13 OIG-12-125 ADDITIONAL INFORMATION AND COPIES To obtain additional copies of this document, please call us at (202) 254-4100, fax your request to (202) 254-4305, or e-mail your request to our Office of Inspector General (OIG) Office of Public Affairs at: [email protected]. For additional information, visit our website at: www.oig.dhs.gov, or follow us on Twitter at: @dhsoig.

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