Recently, several states have outsourced some of the services traditionally performed by government employees. In Alabama, the Department of Health and Human Services plans to outsource its electronic benefit services to eFunds, Inc, a private company. Under the contract with eFunds, eFunds will take over the electronic distribution of food stamp programs, including transaction processing, reporting, operations support, and help desk services. For cost savings, eFunds plans to send the work to five offshore service centers it owns in India. You are an internal auditor for the state of Alabama. Your manager has asked you to review this arrangement. In particular, please address the following questions: What are the objectives of the Department of Health and Human Services with respect to the administration of the electronic benefits program (food stamps)? If the program were outsourced to eFunds, what risks may arise that may cause the objectives not to be achieved? What controls might you suggest so that the risks will not impede the accomplishment of the objectives if the outsourcing strategy is pursued?