Welfare Reform: HHS Should Exercise Oversight To Help Ensure TANF Work Participation Is Measured Consistently Across States

The debate over reauthorization of the Temporary Assistance for Needy Families (TANF) block grant has focused on work requirements and brought attention to the measure of TANF work participation. The measure is used to assess states' performance and determine whether a state is subject to penalty for not meeting TANF work requirements. The 2003 work participation rates ranged from 9 to 88 percent for the 50 states based on data they submit to the U.S. Department of Health and Human Services (HHS). To help Congress understand these rates, GAO looked at (1) how selected states are defining the categories of work activities, (2) whether selected states have implemented internal controls over the work participation data, and (3) what guidance and oversight HHS has provided states.

GAO recommends that HHS enact regulations to provide oversight of states' definitions and more guidance on counting hours of work activities and that HHS identify cost-effective internal control practices and disseminate information on these practices to states. In commenting on our draft report, HHS said it would consider making the recommended revisions in its regulations after TANF reauthorization and is exploring options for implementing the recommendation on internal controls.

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