OIG reviews retailers’ compliance with WIC program rules
The Women, Infants and Children (WIC) Vendor Monitoring Unit (VMU) cited violations in 42 stores after completing compliance buys at 69 Texas retailers during the second quarter of fiscal year 2023. The most common program violations include not prominently displaying product pricing and mislabeling items as WIC-approved, which are ineligible for program funds. Compliance buys are a covert in-store inspection where inspectors use a WIC-funded benefits card to make purchases to verify that vendors are following WIC rules.
Inspectors visit vendors twice within 24 months to determine if the store is continuously upholding program rules. Stores that pass both reviews are notified in writing within 60 days. Stores that violate program rules are notified in writing within 10 business days and continue to undergo compliance buys until the retailer passes two compliance buys or sufficient evidence is collected showing the vendor is non-compliant with program rules.
Investigators also completed 103 inventory reviews comparing vendors' claims for reimbursement against purchase invoices for WIC food items. This review allows inspectors to determine if the retailer's inventory of WIC-eligible items is sufficient to meet the number of sales claimed by the vendor. Every reviewed vendor was found to comply with the rules of the program.
The OIG also conducted overt inspections, working with program vendors in their stores to identify deficiencies in the sale of WIC-eligible products. These reviews resulted in 14 violations among 144 inspected retailers.
Retailers with questions about program inspections can find additional information in the Texas WIC Program Vendor Monitoring Guide.