Finding Text
Criteria:
Each state shall participate in the Income Eligibility and Verification System (IEVS) required by
Section 1137 of the Social Security Act as amended. Under the state plan the state is required to
coordinate data exchanges with other federally assisted benefit programs, request and use income
and benefit information when making eligibility determinations and adhere to standardized formats
and procedures in exchanging information with other programs and agencies.
The Department's Local Office Procedure Manual (the "Manual"), establishes the following
procedures for the exchange of information of persons receiving Social Security Benefits
(BENDEX): (a) The BENDEX list is issued monthly to the Director of each Region. (b) The
Regional Director sends it to the corresponding local office. (c) The list is assigned and delivered to
the technicians to crosscheck the information of the list with the participants' file. (d) The technicians
will make a note on the Daily Contact Form (ADSEF-106G) including the finding, date of
crosscheck, and name. In the BENDEX list the technicians must write their initials and the date on
which the evaluation was made.
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 15 participant files as part of compliance testing regarding
eligibility, auditors noted several cases in which the following documentation was not present in
participants' files as follows:
• (4) Period of Participation Form. (Cat. C)
• (3) Verification of eligible age of all minors within familiar unit. (Cat. C)
• (1) Child Support Agreement for non-custodial parents. (Cat. C)
• (2) Verification of Valid ID. (Cat. A & D)
• (2) Medical Cert cation From Specialist Form (TANF-34). (Cat. D)
• (7) Benefit Determination Worksheet for audited period. (All Cat.)
• (1) Participant file was not available for our review.
The Participation Verification Form is a form completed by TSAF when reevaluating a case to
ascertain that a participant has not exceeded the 60-month period established by the program for
category C participants.
The Child Support Cooperation Agreement for non-custodial parents is an eligibility requirement
for all Category C participants as evidence of custodial parent's cooperation with the ASUME
administration in identifying the minor's father and establishing an alimony.
The Valid Identification is an eligibility control established in the program's state plan to prove the
existence of participants.
The Medical Certification From Specialist Form (TANF-34) is an eligibility requirement that must
be provided by applicants under category D to certify that they are incapable of compliance with
work, study, or training requirements due to their mental or physical health.
The Benefit Determination Worksheet is a form completed on an annual basis for the determination
and communication of the amount of benefits a participant is eligible to receive during an established
period.
Effect:
The Department may be qualifying participants that 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 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. 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 from the federal awarding agency, and formal
communication should be included in the participant's fi le.
Questioned Costs:
Could not be determined.
Management's Response:
Refer to Grantee's Corrective Action Plan