United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2002-06-11 monographic deposited born digital GA 1.13:GAO-02-661 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-661 P0b002ee180384237 f:d02661 DGPO 2010-08-12 2011-03-23 GAOREPORTS-GAO-02-661 machine generated eng fdlp REPORT GAOREPORTS-GAO-02-661 GAO-02-661 Federal aid programs Welfare benefits Welfare recipients Workfare Disadvantaged persons Block grants Contracts Intergovernmental relations Income maintenance programs Aid to Families with Dependent Children Program Other Written Product A03532 The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) changed the nation's cash assistance program for needy families with children. The former program, Aid to Families with Dependent Children (AFDC), was replaced with the Temporary Assistance for Needy Families (TANF) block grant, which provides states with $16.5 billion each year through 2002 to serve this population. TANF's goals include ending the dependence of needy families on government benefits by promoting job preparation, work, and marriage; preventing and reducing the incidence of nonmarital pregnancies; and encouraging two-parent families. PRWORA expanded the scope of services that could potentially be contracted out, such as determining eligibility for TANF, which had traditionally been done by government employees. Moreover, with the large drop in TANF caseloads nationally, a greater share of federal TANF block grant funds and state funds is now devoted to various support services that are typically contracted out. Although PRWORA expanded the flexibility of states to design and administer TANF programs, its also limited the ability of the Department of Health and Human Services (HHS) to regulate states' TANF programs. Contracting with nongovernmental entities to provide TANF-funded services occurs in almost every state and exceeds $1.5 billion in federal TANF and state maintenance-of-effort funds for 2001. HHS relies primarily on state single audit reports to oversee TANF contracting by states and localities. Their regional offices follow up on the TANF deficiencies identified by these reports, and HHS focuses on reported deficiencies that involve unallowable or questionable costs. However, HHS does not know the extent and nature of problems pertaining to the oversight of nongovernmental TANF contractors that have been cited by state single audits because they do not analyze the reports in a comprehensive manner. State and local governments rely on third parties to help ensure compliance with bid solicitation and contract award procedures, including bid protests, judicial processes, and external audits. State and local government agencies use various approaches to oversee TANF contractors, and problems have been identified with both contract oversight and contractor performance. State and local governments have primarily responsibility for overseeing TANF contractors, and they rely on various approaches, including reviewing contractor-provided information and performing on-site reviews. However, auditors in four of the six states identified deficiencies in state or local oversight of TANF contractors, such as uneven oversight by local contracting agencies. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-661/html/GAOREPORTS-GAO-02-661.htm GAO-02-661 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-661 Other Written Product GAO-02-661; Welfare Reform: Federal Oversight of State and Local Contracting Can be Strengthened; Federal aid programs Welfare benefits Welfare recipients Workfare Disadvantaged persons Block grants Contracts Intergovernmental relations Income maintenance programs Aid to Families with Dependent Children Program Public Law 98-502 Public Law 105-220