Finding Text
2023-002 Child Support Non-Cooperation
Prior Year Finding Number: 2022-004
Year of Finding Origination: 2022
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.558 Temporary Assistance for Needy Families
Award Number and Year: 2301MNTANF; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Title 45 U.S. Code of Federal Regulations § 264.30 states:
“What procedures exist to ensure cooperation with the child support enforcement requirements?
(a) (1) The State agency must refer all appropriate individuals in the family of a child, for whom paternity has not been established or for whom a child support order needs to be established, modified or enforced, to the child support enforcement agency (i.e., the IV-D agency).
(2) Referred individuals must cooperate in establishing paternity and in establishing, modifying, or enforcing a support order with respect to the child.
(b) If the IV-D agency determines that an individual is not cooperating, and the individual does not qualify for a good cause or other exception established by the State agency responsible for making good cause determinations in accordance with section 454(29) of the Act or for a good cause domestic violence waiver granted in accordance with § 260.52 of this chapter, then the IV-D agency must notify the IV-A agency promptly.
(c) The IV-A agency must then take appropriate action by:
(1) Deducting from the assistance that would otherwise be provided to the family of the individual an amount equal to not less than 25 percent of the amount of such assistance; or
(2) Denying the family any assistance under the program."
Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by MNPrairie to support the eligibility determination process. Part of the eligibility determination process is cooperating with child support requirements. MNPrairie must reduce benefits when a case is in child support non-cooperation status. In a sample of 15 case files reviewed, two case files had identified errors related to improper timing of reduced benefits for case files in non-cooperation status. The sanctions that are imposed on casefiles are not reviewed by someone after they are entered into the system.
Questioned Costs: None.
Context: Child support non-cooperation is determined by MNPrairie, and the Providing Resources to Improve Support in Minnesota (PRISM) system maintains the information and recipient status. When a Child Support Officer at MNPrairie updates PRISM to show non-cooperation, it interfaces with MAXIS. From this interface, MAXIS receives a Worker’s Daily Report (DAIL) message which notifies the entity of child support non-cooperation. MNPrairie is responsible for updating the recipient’s record in MAXIS, including entering child support sanctions, or closing a case on the seventh occurrence of noncompliance.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Noncompliance with Title 45 U.S. Code of Federal Regulations § 264.30. Benefit overpayments could be paid when child support non-cooperation is not properly processed for a benefit month.
Cause: Program personnel entering case data into MAXIS reported the participant was homeless, which does not prevent sanctions of benefits.
Recommendation: We recommend MNPrairie implement procedures to ensure child support non-cooperation casefiles benefits are being reduced as necessary in MAXIS.
View of Responsible Official: Acknowledge.