706.620 Vendor Payments for Mismanagement of Funds

Vendor payments are required when a grantee has demonstrated an inability to manage funds such that the grant has not been used in the best interests of the child or the assistance unit. This means that the grantee has mismanaged funds to such an extent that allowing him or her to manage the grant would constitute a threat to the health or safety of the assistance unit. Mismanagement must last for a period of at least one month before a finding of financial mismanagement can be made.

When it appears that a grantee has demonstrated mismanagement of funds, the worker shall proceed to establish mandatory vendor payments on the basis of mismanagement.

When vendor payments are established on the presumption of financial mismanagement, the worker must refer the grantee to a social service agency specified by the Department for counseling. A statement of the specific reasons that demonstrate the need for vendor payments must be in the case record.

(A) Presumption of Mismanagement

The Department reserves the right to presume mismanagement when one of the following situations exists: shelter costs, including, but not limited to, rent, heat, fuel, and utilities have not been met.

Although other relevant considerations may be taken into account, the Department shall consider the following situations as exceptions to presumption of mismanagement.

(1) The assistance unit has experienced some emergency or extraordinary event so that it was appropriate for available funds not to be spent on shelter costs; or

(2) The assistance unit has withheld the payment for shelter costs as a reasonable exercise of consumer rights when there is a legitimate dispute as to whether terms of an agreement have been met.

(B) Number of Vendor Payments

The number of vendor payments authorized in cases of mismanagement depends on the circumstances of the case. If the grantee has had difficulty with the management of all budgetary items, the worker shall provide for assistance for all items, except personal care, in the form of vendor payments.

If the grantee has had difficulty with only certain items, such as rent, the worker shall make vendor payments for such items only.

Transitional Cash Assistance Program

Auxiliary Activities | Chapter | 706

Rev. 3/2018 | Page Page | 706.630

(C) Review of Cases Involving Mismanagement

Cases in which vendor payments are based on financial mismanagement must be reviewed, for the purpose of determining whether the need for vendor payments continues. Vendor payments are terminated when there is evidence that the grantee is now able to manage direct money payments.