Audit 411286

Criteria—Management is responsible for establishing and maintaining internal control procedures to ensure that only eligible individuals receive Temporary Assistance for Needy Families (“TANF”) benefits in accordance with applicable federal and State requirements. Condition—During our testing of twenty-five TANF eligibility determinations, we identified two instances in which recipients did not meet applicable eligibility requirements, resulting in benefits being provided to ineligible recipients. Cause—Established review procedures did not consistently detect eligibility determination errors prior to the authorization of benefits. Effect—Individuals who do not meet program eligibility requirements may receive benefits to which they are not entitled. Although the errors identified were isolated and did not result in a material effect on the financial statements or federal expenditures, they indicate that existing review procedures should be strengthened to reduce the risk of future noncompliance. Recommendation—We recommend that management strengthen supervisory review procedures over eligibility determinations by ensuring that all required documentation is obtained, verified, and reviewed prior to benefit approval. Management should also provide periodic training to eligibility staff and perform periodic quality control reviews to verify continued compliance with program requirements. Management's Response—Management agrees with the finding and plans to reinforce eligibility review procedures, provide additional staff training, and perform periodic supervisory reviews to ensure eligibility determinations are properly supported before benefits are authorized.