Finding Text
Finding 2025-004: Temporary Assistance for Needy Families, Assistance Listing No. 93.558, U.S. Department of Health and Human Services Passed through Colorado Department of Human Services Compliance Requirement: Activities Allowed and Unallowed, Allowable Costs/Cost Principles, Eligibility Grant No.: Not applicable Type of Finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: Temporary Assistance for Needy Families (TANF) funds must be used for activities consistent with the purposes and requirements of the TANF program (45 CFR 263.11). The County is responsible for maintaining sufficient documentation to demonstrate that TANF-funded services are provided to eligible participants or otherwise qualify as allowable TANF activities under applicable federal and state requirements and the terms and conditions of the award. Condition: The County was unable to provide sufficient supporting documentation to verify that services provided under the contract were delivered to TANF-eligible children and families or otherwise met TANF program eligibility and allowability requirements. Cause: The County did not have adequate procedures to obtain, review, and retain documentation supporting the allowability of TANF-funded contract costs. In addition, contract monitoring did not ensure the contractor maintained and submitted documentation demonstrating that services charged to TANF were provided to TANF-eligible children and families. Questioned Costs: Questioned costs of $88,100 were identified for TANF funds paid to a contractor under the contract. Effect: The County could not demonstrate that TANF-funded contract services met TANF eligibility and allowability requirements due to insufficient documentation. Recommendation: The County should strengthen internal controls over TANF-funded contracts to ensure costs charged to TANF are allowable and adequately supported. The County should establish and enforce contractor documentation requirements and contract terms sufficient to demonstrate TANF eligibility and allowable services, implement monitoring procedures to verify support before payment or reimbursement, and retain required records in accordance with applicable retention requirements.