Finding 1224883 (2025-003)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-07-29
Audit: 408108
Organization: Athens County (OH)

AI Summary

  • Core Issue: ACDJFS improperly charged over $2.5 million in expenses to TANF, including costs for programs serving both eligible and non-eligible participants.
  • Impacted Requirements: Non-compliance with TANF allowability rules and inadequate procedures for RMS observations led to misallocation of payroll costs.
  • Recommended Follow-Up: ACDJFS should strengthen controls over expense allocation and provide training to staff on accurately reporting RMS observations, especially for mixed-eligibility programs.

Finding Text

ALN 93.558 – Temporary Assistance for Needy Families (TANF) U.S. Department of Health and Human Services Passed through Ohio Department of Job and Family Services (ODJFS) Criteria: Allowability of Activities and Costs - The U.S. Department of Health and Human Services established requirements for allowable activities and costs for local governments as outlined in 42 USC 601 and 45 CFR section 263.11. These requirements established allowable activities and costs for TANF expenditures to comply with 2 CFR 200.400 -200.476. Additionally, ODJFS provides requirements for random moment sample (RMS) time studies in Ohio Administrative Code Section 5101:9-7-20. Eligibility – ODJFS requires each county in Ohio to develop and adopt a Prevention, Retention, and Contingency (PRC) Program Plan. The PRC Plan adopted by each county identifies eligibility requirements for the PRC portion of TANF. ACDJFS has adopted such a plan which governs eligibility for the program. Conditions: ODJFS conducted a monitoring visit at Athens County Department of Job and Family Services for the State Fiscal Year 2025. We incorporated the results of this monitoring with the results of our audit procedures. ACDJFS incurred multiple direct expenses that are not in compliance with TANF allowability rules, including: • Annual debt payment for the County’s Ohio Means Jobs facility • Renovation costs for facilities not fully utilized for TANF purposes • Direct expenses to support programs which served eligible and non-eligible participants • ACDJFS promotional items and advertising ACDJFS employees are responsible for identifying the activity and program they are working on when an e-mail is sent to them by the ODJFS RMS system. These RMS observations are then review and approved by the employees’ supervisors. Once the RMS observations are recorded the ODJFS system uses RMS information to allocate employee payroll costs to federal grants. Employees inaccurately responded to RMS observations and their costs were improperly allocated to TANF while working on programs which served eligible and non-eligible participants. Cause: ACDJFS did not have appropriate procedures and controls in place regarding the charging of direct expenses to TANF or regarding the submission and review of RMS observations. Furthermore, programs, such as Operation Fully Belly, Back to School Bash, and Winterfest, were being operated to serve both eligible and non-eligible participants, but RMS observations were submitted and approved to allocate 100% of payroll costs to TANF rather than allocating a portion to other funding sources for non-eligible participants. Effect: The results of the ODJFS monitoring required the County to enter into a repayment plan with ODJFS to reimburse $2,585,898 in unallowable costs and support to non-eligible participants being charged to TANF. A portion of these costs identified by ODJFS relate to costs charged to TANF prior to January 1, 2025. Questioned Costs: Known questioned costs for the year ended December 31, 2025 are $1,400,735. Recommendation: We recommend ACDJFS enhance its controls over allocation of direct expenses and RMS observations. ACDJFS should pay special attention to programs serving both eligible and non-eligible participants and properly advise and train staff on how to respond to RMS observations when working on these programs.

Corrective Action Plan

ACDJFS will strengthen its internal controls and documentation practices related to the allocation of direct expenses and the completion of Random Moment Sampling (RMS) observations, particularly for programs serving both eligible and non eligible participants. 1. Strengthening Cost Allocation Controls ACDJFS will revise and reinforce its cost allocation procedures to ensure all direct expenses are properly assigned, consistently treated, and supported by clear documentation. Updated procedures will include supervisory review checkpoints and periodic reconciliation to ensure costs are charged in proportion to the benefit received by each program. 2. RMS Compliance and Documentation Standards ACDJFS provides a dedicated RMS Coordinator to maintain clear RMS compliance and documentation standards to ensure activities are coded accurately, consistently, and in accordance with state and federal requirements. Staff are expected to provide complete and accurate RMS responses that clearly describe the activity performed, its purpose, and the population served. Attention will be given to activities that support both eligible and non-eligible populations to ensure proper classification and allocation of costs. Allocation errors will be corrected promptly and documented. Incorrect RMS responses will be corrected and retrained immediately. All RMS responses are currently being reviewed. Supporting documentation must be maintained and readily available to substantiate RMS activities and demonstrate compliance during monitoring, audit, or review processes. Supervisors and management will routinely review RMS documentation and coding practices to ensure consistency, identify areas requiring clarification, and maintain the integrity of the agency's cost allocation methodology. The coding of direct expenses are reviewed prior to the processing month end to ensure that they are coded correctly. These standards help ensure RMS results accurately reflect agency operations and support the appropriate claiming of administrative costs. 3. Staff Training and Capacity Building ACDJFS will conduct targeted training for program and fiscal staff to ensure a consistent understanding of cost allocation principles, RMS documentation requirements, and compliance standards for programs serving mixed-eligibility populations. Annual refresher training will be incorporated into ongoing professional development efforts to reinforce expectations, maintain compliance, and support accurate coding practices. The RMS Coordinator will work closely with agency leadership and the Ohio Department of Job and Family Services (ODJFS) to monitor policy updates, guidance, and best practices related to Random Moment Sampling. The coordinator will obtain and disseminate updated information as quickly as possible to ensure staff receive timely communication, training, and technical assistance when changes occur. In addition, the RMS Coordinator will provide weekly reviews and updates to agency management, creating multiple levels of oversight and accountability. This ongoing review process allows leadership to identify trends, address potential concerns early, verify compliance, and ensure consistent application of RMS requirements across all programs. Through training, communication, and regular management review, ACDJFS strengthens internal controls and promotes the accuracy and integrity of its RMS activities. 4. Monitoring and Continuous Improvement ACDJFS leadership will conduct quarterly monitoring of allocation patterns, RMS samples, and documentation quality. Findings will be used to make timely corrections and guide additional staff training. Monitoring results will be retained and used to support continuous improvement. 5. Implementation Timeline All corrective actions, including updated procedures, training, and monitoring mechanisms—will be implemented within 90 days and maintained on an ongoing basis. Annual RMS training was completed in July 2025. ODJFS provided RMS training to all staff in December of 2025. ODJFS will provide annual RMS training scheduled for September 2, 2026. ODJFS will provide RMS Coordinator training on August 6, 2026. RMS training for Management/Fiscal is scheduled for July 7, 2026. Written documentation of fiscal procedures and policies is being reviewed and will be implemented by September 1, 2026.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1224882 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $1.81M
93.563 CHILD SUPPORT SERVICES $1.63M
10.760 WATER AND WASTE DISPOSAL SYSTEMS FOR RURAL COMMUNITIES $930,546
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $633,931
93.778 GRANTS TO STATES FOR MEDICAID $281,375
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $236,655
93.658 FOSTER CARE TITLE IV-E $231,856
20.224 FEDERAL LANDS ACCESS PROGRAM $218,608
17.259 WIOA YOUTH ACTIVITIES $176,052
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $172,844
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $115,212
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $110,331
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $108,146
20.287 SURFACE TRANSPORTATION BLOCK GRANT PROGRAM $77,425
16.575 CRIME VICTIM ASSISTANCE $71,548
93.659 ADOPTION ASSISTANCE $69,387
97.067 HOMELAND SECURITY GRANT PROGRAM $67,875
93.472 TITLE IV-E PREVENTION PROGRAM $66,111
17.225 UNEMPLOYMENT INSURANCE $63,799
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $58,230
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $56,259
15.226 PAYMENTS IN LIEU OF TAXES $46,788
93.667 SOCIAL SERVICES BLOCK GRANT $34,787
17.258 WIOA ADULT PROGRAM $33,409
20.205 HIGHWAY PLANNING AND CONSTRUCTION $28,720
84.027 SPECIAL EDUCATION GRANTS TO STATES $26,525
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $25,725
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $20,648
20.608 MINIMUM PENALTIES FOR REPEAT OFFENDERS FOR DRIVING WHILE INTOXICATED $19,989
10.555 NATIONAL SCHOOL LUNCH PROGRAM $17,249
97.047 BRIC: BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES $14,967
10.553 SCHOOL BREAKFAST PROGRAM $11,507
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $10,256
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $9,997
93.090 GUARDIANSHIP ASSISTANCE $8,846
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $8,380
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $8,120
15.438 NATIONAL FOREST ACQUIRED LANDS $6,403
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $4,040
10.665 SCHOOLS AND ROADS - GRANTS TO STATES $3,706
93.747 ELDER ABUSE PREVENTION INTERVENTIONS PROGRAM $3,309
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $2,209