Finding 374396 (2022-002)

Criteria: The Department as an eligible State has submitted to the Secretary of the t U.S. Treasury a State Plan that outlines the way the State intends to conduct the TANF program as requested by 42 U.S.C. Part 602 Section (a)( I )(A)(i). The State Plan shall set forth objective criteria for the delivery of benefits and the determination of eligibility and for fair and equitable treatment. including an explanation of how the State will provide opportunities for recipients who have been adversely affected to be heard in a State administrative or appeal process as required by 42 U.S.C. Part 602 Section (a) (I) (B) (iii). The Temporary Assistance for Needy Families Program State Plan of Operation for fiscal years 2021 through 2023 of the Government of Puerto Rico (the State Plan). Chapter IV-Application Process. establishes financial and non-financial eligibility requirements for applications and redeterminations; the assistance unit that will be considered for benefits and services; supportive evidence of eligibility requirements; and other eligibility factors and criteria. Condition: We noted several files for participants of the referenced federal award were not complete to evaluate properly and conclude participant/beneficiary was eligible, as required by the Department procedures and federal law. As a result. we could not conclude participants reviewed were eligible to receive benefits as required by the federal award. Perspective - We selected a sample of fifteen (15) participant tiles as part of compliance testing regarding eligibility. Auditors noted several cases in which the following documentation was not present in participants' files as follows: • (1) Participant file was not provided. • (2) Evidence of residence verification • (2) USA Citizenship or Verification of Alien Status form • (2) No copy of Social Security ID or SAIC verification form of participant • (2) Verification of valid ID The above documentation is required as part of the eligibility controls established in the program's state plan to prove the existence of participants. Effect: fhe Department may be qualifying participants who do not meet the eligibility requirements established by federal regulations. This may ultimately result in sanctions. reduced funding. having to return monies to the federal agency. or cancellation of grants. Cause: The Department is not adhering to the established internal control procedures and not adequately documenting its evaluation and conclusion regarding the eligibility of participants. Recommendation: The Department must adhere to its existing internal control procedures to properly document eligibility verification procedures performed and to ensure compliance with federal regulations and the State Plan. All documents established by the Department to evaluate and conclude participants are eligible, need to be obtained and evidenced in the participant's file. The Department should also properly communicate eligibility verification procedures to employees and provide a clear outline as to the tasks. responsibilities, and supervision and approval tasks for each employee within the eligibility verification process. In case. any document established for verification of eligibility is temporarily waived due to specific reasons (natural disasters. pandemic. etc.) the Department should formally communicate the provisions of the temporary waiver, obtain approval of the federal awarding agency. and formal communication should be included in the participant's file. Questioned Costs: Could not be determined. Management's Response: Refer to Grantee's Corrective Action Plan.