Overview
DTA failed to reconcile the BEACON system to the EPPIC system. The BEACON system determines and tracks eligibility requirements, then interfaces with the EPPIC system to distribute benefits to eligible individuals with Electronic Benefits Transfer (EBT) cards. In order to have accurate EBT card inventory, it is essential that DTA consistently reconcile these two systems. We examined data from all 20 Transitional Assistance Offices (TAOs) and DTA’s central EBT processing center.
TAOs
During our audit, we analyzed information from the BEACON system for two randomly selected dates. Out of the 20 total TAOs, we found that 9 TAOs were not able to reconcile their Card Issuance System (CIS) Daily Reconciliation Logs to EPPIC system card issuance data. On January 25, 2022 and July 14, 2022, we found 32 EBT cards did not reconcile.
DTA’s Central EBT Processing Center
During our review of seven selected dates, we found that 30 EBT cards were not reconciled between the CIS Daily Reconciliation Logs from the BEACON system and the EPPIC system card issuance data. In response to our audit work, DTA stated that it conducted a thorough reconciliation and that it could not find a record of 19 EBT cards in the BEACON system.
Regular and Emergency EBT Cards
We performed a reconciliation of EBT cards issued during the audit period between the CIS Daily Reconciliation Log from the BEACON system and the EBT card issuance data from the EPPIC system. We encountered a discrepancy in the EPPIC system related to regular EBT cards issued from August 15, 2022 through June 30, 2023, and emergency EBT cards issued from October 29, 2021 through June 30, 2023. We attempted to reconcile this data with DTA using three different data sets; however, we were unable to reconcile two of these sets. There were 139 EBT cards that were not reconciled, which poses concerns regarding several aspects of the EBT issuance process, including inventory management practices for blank cards and the overall tracking and oversight of EBT card inventory.
DTA’s failure to reconcile the BEACON and EPPIC systems prevents DTA from ensuring that families with low incomes are receiving the Supplemental Nutrition Assistance Program (SNAP) and cash benefits that they are entitled to and increases the risk of unauthorized changes in one system going undetected, which may lead to DTA’s funding being distributed in incorrect amounts.
EBT Cards Variances
The results of our reconciliation showed that a total of 139 EBT cards were not reconciled from the CIS Inventory Logs from the BEACON system to the EPPIC system card issuance data. The results of reconciliation of regular EBT cards and emergency EBT cards showed a variance of 4,329 and 4,190, respectively.
The following table provides details regarding this variance of regular EBT cards from August 15, 2022 through June 30, 2023.27
| Location | EBT Cards Issued According to the EPPIC System | EBT Cards Issued According to the CIS Inventory Log from the BEACON System | Variance on EBT Cards from August 15, 2022 Through June 30, 2023 |
|---|---|---|---|
| Central EBT Processing Center (Boston) | 148,420 | 179,647 | (31,227) |
| Brockton | 1,455 | 510 | 945 |
| Chelsea | 640 | 648 | (8) |
| Fall River | 804 | 231 | 573 |
| Fitchburg | 926 | 533 | 393 |
| Framingham | 778 | 548 | 230 |
| Greenfield | 337 | 170 | 167 |
| Holyoke | 1,512 | 1,422 | 90 |
| Hyannis | 555 | 374 | 181 |
| Lawrence | 1,712 | 622 | 1,090 |
| Lowell | 1,948 | 1,131 | 817 |
| Malden | 582 | 1,009 | (427) |
| New Bedford | 1,805 | 1,159 | 646 |
| Nubian Square (Boston) | 10,162 | 334 | 9,828 |
| North Shore (Salem) | 1,661 | 1,032 | 629 |
| Pittsfield | 897 | 410 | 487 |
| Quincy | 2,549 | 789 | 1,760 |
| Southbridge | 350 | 209 | 141 |
| Springfield | 5,398 | 713 | 4,685 |
| Taunton | 1,290 | 468 | 822 |
| Worcester | 4,045 | 196 | 3,849 |
| Total | 187,826 | 192,155 | (4,329) |
Note: The data in this table relates to the system inventories of blank EBT cards, which were not loaded with benefits.
The table below provides details regarding the variance on blank emergency EBT cards from October 29, 2021 through June 30, 2023.28
| Location | Emergency EBT Cards Issued According to the EPPIC System | Emergency EBT Cards Issued According to CIS Inventory Log from the BEACON System | Variance on Emergency EBT Cards Issued from October 29, 2021 through June 30, 2023 |
|---|---|---|---|
| Central EBT Processing Center (Boston) | 25,549 | 25,723 | (174) |
| Brockton | 229 | 222 | 7 |
| Chelsea | 1,011 | 142 | 869 |
| Fall River | 270 | 161 | 109 |
| Fitchburg | 498 | 104 | 394 |
| Framingham | 257 | 79 | 178 |
| Greenfield | 141 | 122 | 19 |
| Holyoke | 446 | 133 | 313 |
| Hyannis | (28) | 76 | (104) |
| Lawrence | 17 | 124 | (107) |
| Lowell | 350 | 167 | 183 |
| Malden | 940 | 160 | 780 |
| New Bedford | 812 | 122 | 690 |
| Nubian Square (Boston) | 264 | 276 | (12) |
| North Shore (Salem) | 130 | 129 | 1 |
| Pittsfield | 614 | 181 | 433 |
| Quincy | 620 | 112 | 508 |
| Southbridge | 58 | 117 | (59) |
| Springfield | 494 | 289 | 205 |
| Taunton | 77 | 48 | 29 |
| Worcester | 279 | 351 | (72) |
| Total | 33,028 | 28,838 | 4,190 |
Authoritative Guidance
Section IV of DTA’s “TAO Card Issuance System (CIS) Security & Handling Procedures” states, “A TAO Manager must perform a daily reconciliation of card issuance using the digital CIS Daily Card Reconciliation Log.”
The Tools and Resources published by the Association of Government Accountants, defines reconciliation as “the act of comparing and agreeing account balances using different sources of information.”
DTA’s “TAO Card Issuance System (CIS) Security & Handling Procedures” does not describe how DTA should perform EBT card reconciliations. We believe it to be a best practice that DTA should reconcile EBT card issuance information from the EPPIC system to the benefit eligibility information in the BEACON system because both systems are essential in providing DTA’s SNAP and cash benefits, as well as program integrity.
Reasons for Issue
DTA was unaware of the significant discrepancies associated with the EBT card issuance data. DTA only reconciles information obtained from the CIS Daily Reconciliation Log from the BEACON system to EBT card recipient data, which is also from the BEACON system. Furthermore, DTA does not have policies, procedures, and monitoring controls for reconciling the EPPIC system to the BEACON system.
Recommendations
- To ensure program and data integrity, DTA should establish and implement policies, procedures, and monitoring controls for reconciling the EBT cards issued by the EPPIC system to the BEACON system.
- DTA should reconcile the BEACON and EPPIC systems regularly to ensure that families with low incomes are receiving the SNAP and cash benefits to which they are entitled.
Auditee’s Response
As background, DTA uses BEACON to determine benefit eligibility, and BEACON authorizes benefit amounts based on program-specific policies and procedures. BEACON then communicates with DTA’s EBT vendor’s administrative terminal. Previously, DTA contracted with [a vendor] as its EBT vendor, and [the vendor’s] administrative terminal was EPPIC. However, DTA switched EBT vendors in April of 2025, and now contracts with [a new vendor] for EBT services; [this vendor] uses a new system called ebtEDGE. DTA had been aware of issues with [the former vendor’s] EPPIC reports, but some issues were unable to be corrected largely due to vendor-related issues with the [former vendor’s] contract. However, DTA considered those issues when it negotiated its new contract with [the current vendor], and this audit surfaced matters that allowed DTA to demand and require much improved EBT data and reports within . . . ebtEDGE. Improved reports include one which tracks EBT card printing based on the office assignment of the DTA staff person printing the card.
DTA agrees with [the Office of the State Auditor’s (OSA’s)] first recommendation that it should maintain policies, procedures, and monitoring controls for reconciling its EBT card inventory. As reflected in its TAO Card Issuance System (CIS) Security & Handling Procedures, DTA can and does reconcile regular and emergency blank EBT card inventory to ensure program and data integrity through established processes starting from delivery by its EBT processor to its Benefit Issuance team using the Bulk Inventory Log, to card stock deliveries at local TAOs using the CIS Safe Inventory Log, and then accounting for the cards used and issued using the CIS Daily Reconciliation Log. In addition, DTA no longer utilizes EPPIC data since it has changed EBT vendors. Its new vendor . . . provides improved data, under the contract negotiated with DTA, which DTA uses to reconcile EBT cards issued against the physical inventory logs.
DTA will work with its new EBT services vendor . . . to explore if anything additional beyond what has already been negotiated is needed to align with its new EBT services vendor system (ebtEDGE), reports. DTA has already created a job aid to explain how to reconcile the CIS Daily Reconciliation Log to ebtEDGE.
While DTA agrees with OSA’s first recommendation, as was previously discussed with the OSA, and is documented in DTA’s written comments provided on February 5, 2025, DTA does not believe reconciliation between the EPPIC system and the BEACON system was an accurate or necessary means for performing this critical function of reconciling EBT cards. This data is updated and reconciled on a daily basis through automated data transfer between EPPIC and BEACON, which updates the current [primary account number (PAN)] (the unique number on each EBT card) for each client in both systems. In its February 5, 2025 response to OSA audit methodology, DTA explained that this type of reconciliation would occur through a 2-way reconciliation based on PAN level (not at the card count level) between BEACON data and EPPIC data (prior to implementation of the new system ebtEDGE). While DTA appreciates the OSA flagging potential EBT card variances and takes this issue seriously, after further review it appears that OSA’s reconciliation method in this context relies on card count data and therefore results in inaccurate findings.
As a result, DTA disputes OSA’s variance findings for EBT cards (4,329) from August 15, 2022, through June 30, 2023, and emergency EBT cards (4,190) from October 29, 2021 through June 30, 2023, and respectfully requests that the two tables containing these potential variances be removed from the final OSA audit report. DTA also disagrees with the OSA’s findings that 32 EBT cards did not reconcile from the Department’s TAOs, 30 EBT cards did not reconcile from DTA’s Central EBT Processing Center, and 139 regular and emergency EBT cards did not reconcile. As described above, DTA deploys an alternative reconciliation process that accurately accounts for any potential variances. In addition, DTA disputes the statement under “Reasons for Issue” that DTA “was unaware” of discrepancies within its EBT card issuance data for the aforementioned reasons.
Regarding the second recommendation, DTA agrees with OSA that it is critical that low-income families are receiving the SNAP and cash benefits to which they are entitled. However, as described above, DTA respectfully disagrees that reconciliation between the BEACON and EPPIC systems is the best way to ensure this occurs. As outlined above, DTA has established policies and procedures for reconciling EBT card inventories, and going forward DTA will no longer use EPPIC data because it has changed its EBT vendor. Further, DTA separates card inventory duties from benefit authorization in a manner that ensures that OSA’s recommended reconciliation is not necessary. In short, DTA staff with system permissions to issue cards cannot approve cases and authorize benefits, and DTA staff that can approve cases and issue benefits cannot issue EBT cards. These system permissions are highly controlled, follow Commonwealth information technology] security standards, and are reviewed biannually.
Furthermore, DTA disputes the audit team’s assertion that EBT card inventory management has any influence on accurate benefit determinations and distribution. DTA maintains a benefit eligibility system, BEACON, which is the exclusive system staff utilize to determine eligibility and benefit levels. EBT card inventory processes are a separate and controlled process that does not overlap with ensuring that eligible clients receive the proper amount of benefits. The audit team’s recommendation that DTA reconcile EPPIC data to BEACON data is not material to proper EBT card inventory, and is based on a misunderstanding of DTA’s distinct system processes, responsibilities and functions. DTA reconciles its EBT card inventory to ensure that its blank card stock is properly monitored and controlled at every step of the distribution process, among many other controls in place to ensure program integrity and prevent benefit theft from eligible recipients. DTA’s TAO Card Issuance System (CIS) Security & Handling Procedures ensures this occurs.
Auditor’s Reply
We acknowledge DTA’s response and its agreement with the recommendations to maintain policies, procedures, and monitoring controls for EBT card inventory. However, we reiterate our findings regarding the reconciliation deficiencies identified during the audit period.
DTA stated that our reconciliation between the BEACON and EPPIC systems at the card-count level was inaccurate and that it should rely on a two-way reconciliation at the primary account number (PAN) level. In DTA’s written comments submitted on February 5, 2025, it indicated that DTA was unable to reconcile the BEACON and EPPIC system data using its two-way PAN-level method. The tables below are DTA’s reconciliations for the seven dates selected during the audit period.
| Figure 1—BEACON TO EPPIC Reconciliation by PAN | |||
|---|---|---|---|
| BEACON Date | Matched To EPPIC | No-Match to EPPIC | Total Cards Issued |
| 9/15/2021 | 1,808 | 0 | 1,808 |
| 12/21/2021 | 1,907 | 1 | 1,908 |
| 1/25/2022 | 2,064 | 2 | 2,066 |
| 5/12/2022 | 1,489 | 0 | 1,489 |
| 7/14/2022 | 1,656 | 0 | 1,656 |
| 4/3/2023 | 1,241 | 0 | 1,241 |
| 6/29/2023 | 1,235 | 0 | 1,235 |
| Total | 11,400 | 3 | 11,403 |
Source: “Department of Transitional Assistance (DTA) Comments Following [Office of the State Auditor] December 12, 2024 Informal Exit Conference,” received February 5, 2025
| Figure 2—EPPIC TO BEACON Reconciliation by PAN | |||||
|---|---|---|---|---|---|
| EPPIC Date | Matched To BEACON | No-Match To BEACON | Total Cards Issued | ||
| 9/14/2021 | 1,808 | 0 | 1,808 | ||
| 12/20/2021 | 1,907 | 3 | 1,910 | ||
| 1/25/2022 | 2,064 | 1,530 | 3,594 | ||
| 5/11/2022 | 1,489 | 3 | 1,492 | ||
| 7/13/2022 | 1,656 | 12 | 1,668 | ||
| 3/31/2023 | 1,241 | 5 | 1,246 | ||
| 6/28/2023 | 1,235 | 2 | 1,237 | ||
| Total | 11,400 | 1,555 | 12,955 | ||
| Of the 1,530 No-Match above, 1,526 appear on the 1/26/2022 BEACON | |||||
| 1/26/2022 | -1526 | 1526 | |||
| Unaccounted for Cards | 29 | ||||
Source: “Department of Transitional Assistance (DTA) Comments Following [Office of the State Auditor] December 12, 2024 Informal Exit Conference,” received February 5, 2025
According to DTA’s two-way PAN-level reconciliations, 29 EBT cards were unaccounted for, whereas our reconciliation identified 30 EBT cards that remained unverified.
In response to the variance findings for EBT cards—totaling 4,329 from August 15, 2022 through June 30, 2023—and for emergency EBT cards—totaling 4,190 from October 29, 2021 through June 30, 2023—we believe it is worthwhile to break down the variances by location for both regular and emergency EBT cards for better clarity. We maintain that the variance tables included in the audit report accurately reflect the testing results.
Additionally, we acknowledge DTA’s efforts to transition to a new EBT vendor and enhance reporting to address the deficiencies identified in the audit. Based on its response, DTA is taking steps to address our concerns in this area. We will monitor progress on this matter as part of our post-audit review process in approximately six months.
| Date published: | January 30, 2026 |
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