Finding Text
FINDING REFERENCE NUMBER 2024-049 FEDERAL PROGRAMS (ALN – 93.558) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES AWARD NUMBERS 2022G996117 (Federal Award Year: 10/1/2021 – 9/30/2022) 2023G996117 (Federal Award Year: 10/1/20212 – 9/30/2023) 2401PRTANF1 (Federal Award Years: 10/1/2023 through 9/30/2026) ADMINISTRATION ADMINISTRATION FOR SOCIOECONOMIC DEVELOPMENT OF THE FAMILY (ADSEF, BY ITS SPANISH ACRONYM) COMPLIANCE REQUIREMENT SPECIAL TESTS & PROVISIONS – INCOME ELIGIBILITY AND VERIFICATION SYSTEM TYPE OF FINDING INTERNAL CONTROL AND COMPLIANCE – MATERIAL WEAKNESS AND MATERIAL NONCOMPLIANCE CRITERIA Each state shall participate in the Income Eligibility and Verification System (IEVS) required by Section 1137 of the Social Security Act as amended. Under the State Plan the state is required to coordinate data exchanges with other federally assisted benefit programs, request and use income and benefit information when making eligibility determinations and adhere to standardized formats and procedures in exchanging information with other programs and agencies. Specifically, the state is required to request and obtain information as follows (42 USC 1320b-7; 45 CFR section 205.55): a. Wage information from the state Wage Information Collection Agency (SWICA) should be obtained for all applicants at the first opportunity following receipt of the application, and for all recipients on a quarterly basis. b. Unemployment Compensation (UC) information should be obtained for all applicants at the first opportunity, and in each of the first three months in which the individual receives aid. This information should also be obtained in each of the first three months following any recipient-reported loss of employment. If an individual is found to be receiving UC, the information should be requested until benefits are exhausted. c. All available information from the Social Security Administration (SSA) for all applicants at the first opportunity. In addition, in accordance with the State Plan, other internal controls applied by TANF staff to identify employment status and earnings of individuals are the: State Wage Information Collection Agency (SWICA) and the Beneficiary and Earnings Data Exchange (BENDEX). Through our Office of Information System, TANF caseload is cross checked with their database to identify participants that may be working. These systems create a list of participants which is reviewed by the eligibility determination technician. STATEMENT OF CONDITION During our process of understanding internal controls regarding compliance with this requirement, in the interviews conducted with the regions they indicated that they received the SWICA and BENDEX lists monthly. However, ADSEF headquarters indicated that they did not have a memorandum of understanding with the relevant state agencies for the 2023-2024 fiscal year. In all regions, we were told that the income reported by participants was validated only with a sworn statement. QUESTIONED COSTS None. PERSPECTIVE INFORMATION This is a systematic deficiency. According to interviews conducted with technicians in different regions, we identified a lack of uniformity in the income validation processes and a lack of awareness of what the current regulations establish. STATEMENT OF CAUSE ADSEF does not have a memorandum of understanding that allows access to participants' income validation. Additionally, they do not have agreements with the relevant agencies to verify this requirement. POSSIBLE ASSERTED EFFECT ADSEF does not have sufficient mechanisms to validate the entry of participants requesting the benefit and does not allow compliance with this requirement. IDENTIFICATION OF REPEAT FINDING This is a repeat of a finding reported in the prior audit as Finding Numbers is 2023-027/2023-058. RECOMMENDATIONS We recommend that management coordinate the signing of the memorandum of understanding with the relevant agencies. Additionally, establish processes and training aligned with the procedures and documentation currently in use.