Finding 32165 (2022-005)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 35530
Organization: City of Richmond (VA)

AI Summary

  • Core Issue: Significant deficiencies in internal controls led to inadequate documentation for TANF eligibility, risking improper benefit approvals.
  • Impacted Requirements: Compliance with eligibility criteria for TANF, including verification of relationships and residency of minor children.
  • Recommended Follow-Up: Implement a quality control process to ensure thorough eligibility verifications and proper documentation in case files.

Finding Text

2022-005 Federal Agency: U.S. Department of Social Services Federal Program Name: Temporary Assistance for Needy Families ALN: 93.558 Award Period: July 1, 2021 ? June 30, 2022 Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Prior Year Finding: No Criteria: A financially needed family that consists of a minor child living with a parent/caretaker relative or pregnant woman may receive TANF assistance. The child must be less than 18 years old or less than 19 years old if a full-time student in a secondary school. Recipients must be United States citizens or qualified aliens. Assistance is provided for up to 60 months and can be extended if specific requirements are met. Assistance may not be provided to/for: ? An unmarried individual under 18 years old with a child (minor parent) who has not completed high school/equivalent unless the individual is working toward attaining a high school diploma or participating in an alternative education/training program. ? An unmarried individual under 18 with a child if the minor parent and child are not living with a parent, legal guardian, or an adult relative. ? Minor child that has or is expected to be absent from the home for 45 consecutive days or at the option of a State between 30-180 days. ? An individual fleeing to avoid prosecution or custody for a felony, confinement after a conviction of a felony, or in violation of probation/parole terms. ? An individual convicted of fraudulent representation for assistance within the past ten years. As a condition of receiving assistance, families must assign the rights of any support received from any other person to the State. Condition: A sample of 40 FY2022 TANF cases was tested for compliance with the above criteria and the observations were noted below. ? 24 out of 40 case files tested did not contain adequate documentation to verify eligibility requirements and approval of benefits. Approximately, 55% of the reviewed files lacked evidence that the workers verified the relationship between the minor children and the applicant and that the children were living in the home. ? 1 out of 40 case files tested, the assistance unit captured a child that was not living in the household, which inappropriately increased the monthly benefit amount. ? 1 out of the 40 cases tested did not contain evidence that the eligibility worker inquired about the applicant?s indication on the application that they were not in compliance with probation/sentencing terms prior to approving the application. Questioned Costs: None Cause: The case notes in the system of record referenced various verification methods and documentation that was obtained. However, the documentation could not be located and provided to the auditors. Per DSS management, limited staffing working the volume of cases is an attributing factor for the observations. The verifications were not conducted, and/or the documentation was not placed in the case files. A quality control process is not in place to ensure that eligibility verifications are conducted, and documentation is obtained and retained in the case files. Effect: Applicants that do not meet TANF requirements may be inappropriately screened eligible and receive benefits. Also, incomplete case files hinder RDSS?s ability to support eligibility screening decisions. Recommendation: We recommend that the Economic Support and Independence Deputy Director develop and implement a quality control process to ensure the required eligibility verifications are conducted and properly documented in the case files. Views of Responsible Officials and Planned Corrective Action: The City agrees with this finding. See separate Corrective Action Plan related to this finding.

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 32162 2022-006
    Material Weakness
  • 32163 2022-005
    Significant Deficiency
  • 32164 2022-005
    Significant Deficiency
  • 32166 2022-004
    Significant Deficiency
  • 32167 2022-006
    Material Weakness
  • 608604 2022-006
    Material Weakness
  • 608605 2022-005
    Significant Deficiency
  • 608606 2022-005
    Significant Deficiency
  • 608607 2022-005
    Significant Deficiency
  • 608608 2022-004
    Significant Deficiency
  • 608609 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $13.44M
21.019 Coronavirus Relief Fund $9.44M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $5.84M
93.659 Adoption Assistance $3.44M
93.778 Medical Assistance Program $3.20M
93.558 Temporary Assistance for Needy Families $3.19M
93.667 Social Services Block Grant $2.88M
93.658 Foster Care_title IV-E $2.31M
14.241 Housing Opportunities for Persons with Aids $1.32M
14.231 Emergency Solutions Grant Program $1.18M
14.218 Community Development Block Grants/entitlement Grants $999,231
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $726,350
16.575 Crime Victim Assistance $669,092
93.568 Low-Income Home Energy Assistance $612,187
14.239 Home Investment Partnerships Program $494,509
10.559 Summer Food Service Program for Children $303,358
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $206,877
66.818 Brownfields Assessment and Cleanup Cooperative Agreements $181,850
93.556 Promoting Safe and Stable Families $158,537
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $80,109
94.006 Americorps $76,465
10.558 Child and Adult Care Food Program $52,507
20.600 State and Community Highway Safety $50,848
16.582 Crime Victim Assistance/discretionary Grants $46,332
16.034 Coronavirus Emergency Supplemental Funding Program $44,633
10.935 Urban Agriculture and Innovative Production $41,816
93.472 Title IV-E Prevention and Family Services and Programs (a) $40,241
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $39,609
93.767 Children's Health Insurance Program $37,177
93.599 Chafee Education and Training Vouchers Program (etv) $34,569
16.738 Edward Byrne Memorial Justice Assistance Grant Program $34,523
93.566 Refugee and Entrant Assistance_state Administered Programs $14,667
93.090 Guardianship Assistance $11,916
20.607 Alcohol Open Container Requirements $10,562
93.645 Stephanie Tubbs Jones Child Welfare Services Program $8,047
07.999 High Intensity Drug Trafficking Agency $4,776
97.042 Emergency Management Performance Grants $3,250
20.616 National Priority Safety Programs $1,579
97.044 Assistance to Firefighters Grant $1,500
20.205 Highway Planning and Construction $1,440
97.067 Homeland Security Grant Program $1,090
11.457 Chesapeake Bay Studies $438
93.926 Healthy Start Initiative $211