Finding 1174986 (2025-002)

Criteria: Per OMB Compliance Supplement 93.558, Compliance Requirement E, 1b(1): Counties must ensure TANF benefits are not provided beyond the 60-month lifetime limit unless an exemption applies (e.g., hardship or extreme cruelty documented under aid code 33). Controls should exist to track cumulative months and terminate benefits when the limit is reached unless proper documentation supports an exemption. Condition: During testing of 40 sampled cases, 1 case was identified where aid code 30 was charged after the 60-month lifetime limit. The noncompliant payments occurred in December 2024, January 2025, and February 2025, totaling $2,652. Questioned costs: $2,652 Context: The TANF program provides temporary financial assistance to eligible families and imposes a 60-month lifetime limit on aid unless an exemption applies, such as hardship or extreme cruelty documented under aid code 33. Counties must monitor cumulative months of aid and terminate benefits when the limit is reached unless proper documentation supports an exemption. In our review of 40 cases, controls generally existed to track the limit and apply exemptions; however, one case continued under aid code 30 beyond the 60-month limit, resulting in noncompliant payments totaling $2,652 for December 2024 through February 2025. Cause: Although controls exist to track the 60-month limit, they were not properly implemented in this instance, allowing benefits to continue beyond the allowable period. Effect: Improper payment of $2,652, which is not material to the program but represents a significant deficiency in internal control. Repeat Finding: This is not a repeat finding. Recommendation: CLA recommends the County strengthen monitoring controls to ensure benefits are terminated promptly upon reaching the 60-month limit unless valid exemptions are documented, implement periodic system audits to detect and prevent similar errors, provide staff training on proper coding and documentation for exemptions such as aid code 33 for hardship or extreme cruelty, and recover improper payments where feasible while reporting corrective actions to the State Department of Social Services. Views of responsible officials: There is no disagreement with the audit finding.