Finding 1230058 (2025-002)

Finding 2025-002: Eligibility – Temporary Assistance for Needy Families Federal Program: Temporary Assistance for Needy Families Assistance Listing No.: 93.558 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Maine State Department of Health and Human Services Federal Award Identification Number: OFI-23-201/OFI-25-201 Repeat Finding: This is not a repeat finding Criteria – The Temporary Assistance for Needy Families (TANF) program requires that assistance payments be made only to eligible participants. Eligibility requirements include the presence of a dependent child meeting the program’s age requirements, generally a child under age 18 residing in the household. Federal awards must be administered in accordance with applicable federal and state eligibility requirements. Condition – One of the sampled beneficiaries for program eligibility did not meet program eligibility requirements at the time assistance was approved and paid. Specifically, the participant household did not contain a child under age 18, which is a required eligibility criterion for participation in the program. Questioned costs – Known and likely questioned costs did not exceed the reportable threshold under 2 CFR 200.516. Cause – Management indicated that the eligibility determination error resulted from inadequate review of information contained in the participant’s application compared to the online database used to track eligibility during the intake and approval process, causing an ineligible household to be approved for benefits. Effect or potential effect – Failure to properly determine participant eligibility increases the risk that TANF funds will be provided to ineligible recipients, resulting in noncompliance with program requirements and the potential misuse of federal funds. Context – One sampled beneficiary was determined to be ineligible under applicable program requirements. Our sample of beneficiaries was a statistically valid sample. Recommendation – We recommend management strengthen its review procedures over eligibility determinations to ensure all required eligibility criteria are verified and documented before benefits are approved. Management should also consider performing periodic supervisory reviews of approved applications and determine whether recovery of the improperly disbursed funds is appropriate under program requirements. Views of responsible officials – Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the Summary Schedule of Prior Audit Findings.