Finding Text
Condition:
During our audit of the Temporary Assistance for Needy Families (TANF) program, it was noted that the
organization did not maintain adequate supporting documentation for determining client eligibility. In several
client case files reviewed, critical documents relating to legal residency in the United States of America were
missing or incomplete.
Criteria:
In accordance with TANF program requirements and 2 CFR § 200.303 (internal controls), recipients must
maintain sufficient records to support eligibility determinations. Adequate supporting documentation is
essential to ensure compliance with federal guidelines and to prevent improper payments.
Cause:
The organization’s internal controls over eligibility documentation and file retention were not consistently
followed or were inadequately designed.
Effect:
Failure to maintain adequate eligibility documentation increases the risk of providing benefits to ineligible
individuals, leading to noncompliance and potential questioned costs. It also hinders the ability to
demonstrate compliance during audits or monitoring reviews.
Questioned Costs
None specifically identified during testing; however, the lack of documentation presents a risk for potential
future questioned costs.
Recommendation
We recommend the organization update their intake forms to incorporate all required eligibility criteria for
the TANF program.
Management’s Response
See corrective action plan.