Temporary Assistance for Needy Families: More States Counting Third Party Maintenance of Effort Spending

Source: U.S. Government Accountability Office, GAO-12-929R, July 23, 2012

From the summary:
The number of states that reported counting third party nongovernmental expenditures toward their state MOE spending increased over the past 5 years–from 3 states in fiscal year 2007 to 13 states in fiscal year 2011. The largest number of states reported its use in fiscal years 2009 and 2010, the years during which states accessed TANF Emergency Contingency Funds provided by the American Recovery and Reinvestment Act of 2009 (Recovery Act). Third party nongovernmental MOE spending as a percentage of total MOE expenditures varied greatly among the 13 states that reported using it in fiscal year 2011 and ranged from less than one percent in several states to nearly half of one state’s overall MOE spending. Food assistance was the most commonly cited service provided by third party nongovernmental organizations that states counted towards MOE requirements. Other services included medical or dental services, employment assistance, and family stabilization services. States often reported that the option to count third party nongovernmental expenditures was an important tool to help them meet TANF MOE spending requirements as well as the TANF work participation requirements. A total of 17 states, most of those that used the option in fiscal year 2011 as well as 5 additional states, reported that they definitely or probably will count third party MOE spending in the near future.

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