Finding Text
Criteria
Any family that includes an adult or minor child head of household or a spouse of the head of
household who has received assistance under any state program funded by federal TANF funds for
60 months (whether or not consecutive) is ineligible for additionally federally funded TANF
assistance. However, the state may extend assistance to a family on the basis of hardship, as defined
by the state, or if a family member has been battered or subjected to extreme cruelty. (42 USC
608(a)(7); 45 CFR sections 264.1(a), (b), and (c))
The TANF State Plan Section V Special Provisions, Point 2 states: Puerto Rico's eligibility and
payment standards will be utilized for families who arrive from another state or territory, rather than
using the latter's standards. Periods of cash assistance received under the TANF Program in another
state or territory will count towards TANF participant's lifetime limit of consecutive or nonconsecutive
60 months of assistance.
Condition
We noted the Department concluded a participant was eligible to be a beneficiary of the federal
award when it did not comply with the requirement established for eligibility. The participant
received benefits during a period that exceeded 60 months.
Perspective We selected a sample of fifteen (15) participant files as part of compliance testing
regarding the eligibility requirement. Auditors observed one (1) instance in which a participant
continued to receive program benefits after exceeding the 60-month period established for Category
C (head of household) participants without approval or justification. The Participant exceeded the
maximum participation period by a total of six (6) months.
Effect:
As a result, the Department has disbursed federal program benefits to ineligible participants. 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 over 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. Emphasis and efforts should be directed towards minimizing the time elapsed
between the evaluation of eligibility technicians and corresponding supervisors to properly detect
any potential errors before disbursement of funds occurs. 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.
Questioned Costs:
Could not be determined.
Management's Response:
Refer to Grantee's Corrective Action Plan