Corporate Compliance

Michigan overpays more than 200,000 families in assistance program

Healthcare Auditing Weekly, September 16, 2008

Michigan’s Temporary Assistance for Needy Families (TANF) program made nearly $24 million in improper payments, according to an OIG audit.
The program, which the Michigan Department of Human Services administers, is a block grant program that provides eligible families with work opportunities as well as assistance with basic needs.
The OIG audit found that from April 1, 2006 to March 31, 2007, the state agency made 211,917 improper TANF payments. Some payments went to ineligible families, while other cases did not contain the required documentation to support eligibility and payment determinations, the report said. The OIG estimates the state agency paid $23,981,963 in improper payments.
The OIG recommends the state:
  • Develop criteria for determining a hardship exception for purposes of extending TANF basic assistance payments beyond the 60-month federal lifetime limit
  • Use the results of the OIG review to ensure compliance with federal and state TANF requirements
  • Determine the current eligibility of all recipients identified in the OIG’s review as improperly enrolled in the TANF program and ensure further assistance is denied for those who remain ineligible
  • Recalculate assistance budgets for all recipients identified in this review as having received improperly calculated payments


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