Finding Text
2023-002 – Eligibility Documentation
Federal Program Information:
Funding agency: US Department of Health and Human Services, passed through Michigan Department of Health
and Human Services
Title: Temporary Assistance for Needy Families
AL number: 93.558
Award Numbers: E20234318-00, E20234318-00
Condition – Mid-Michigan Community Action Agency, Inc.'s operates a diaper bank program and utilizes other
entities to distribute diapers to program eligible participants. During our test of eligibility, we noted several
individuals that were not income-eligible for the program. Management of Mid-Michigan Community Action
Agency, Inc. represented that in cases of individuals that are determined ineligible that the entities distributing
the diapers will utilize diapers from other sources. However, Mid-Michigan Community Action Agency, Inc. was
not able to substantiate the use of diapers from other sources.
Criteria – The Temporary Assistance for Needy Families (TANF) program requires individuals receiving assistance
to be eligible for the program.
Cause – Mid-Michigan Community Action Agency, Inc. does not have a process in place to track the purchase and
issuance of diapers purchased with TANF funds.
Effect – A significant deficiency in internal control over eligibility exits due to the lack of documentation over the
distribution of diapers to income eligible participants.
Recommendation – We recommend management and those charged with governance evaluate the controls over
this program to establish a mechanism that tracks the purchase and issuance of diapers to income-eligible
participants.
View of Responsible Officials – Management agrees with the assessment and has committed to a corrective
action plan.