Finding Text
U.S DEPARTMENT OF HEALTH AND HUMAN SERVICES Significant Deficiency ? Internal controls over compliance ? Eligibility Finding 2022-002 ? ALN 93.558 Temporary Assistance for Needy Families (TANF) Criteria ? The TANF grant sets specific income guidelines for eligibility and requires that all wages before taxes or deductions received in a month, including compensation for items such as back pay, bonuses, holiday, and vacation time, be included in gross wages for eligibility calculations. Condition ? The Organization did not include holiday pay or overtime pay in its calculation for gross wages in determining eligibility for at least 5 clients of the 40 clients tested. In addition, in one instance, an outdated check stub was used in the income determination, and, in one instance, only a two-week pay stub was used in the income determination. Controls over the review of income determinations were not operating sufficiently to detect that these errors had occurred prior to providing client assistance under the TANF program. Effect ? In all but one of the instances noted, it was later determined that the client was, in fact, income eligible for TANF services, and the expenditures related to this assistance were, in fact, allowable costs. However, in one instance, there was not sufficient information to make that determination. Based on the analysis of the error percentage and the total population of client service expenditures, this error did not result in questioned or likely questioned costs exceeding the reporting guidelines. Overall, the review control over the income calculations failed to identify the errors in a timely manner and could have resulted in some questioned costs. Cause ? The review process was not performed in an efficient and effective manner to determine that income calculations were not correct or not documented in the proper manner. Management has noted that these were oversights due to the volume of TANF transactions in 2022. Recommendation ? Procedures should be evaluated to ensure that client files are being reviewed for proper eligibility criteria, and a reperformance of all income calculations should be completed as a detective control ensuring that calculations result in eligible clients being served. View of Responsible Officials ? See Management?s Corrective Action Plan.