A Question about 3rd Party Expenditures & MOE

A representative from South Dakota’s Department of Social Services is seeking information from states that have experience applying third-party expenditures within employment services contracts toward their TANF MOE requirement. The representative would like to learn more about that process, including whether states have successfully counted third-party expenditures from contracted employment service providers toward MOE, how these arrangements were structured and documented, and any challenges encountered during implementation or federal review. They are also interested in whether partnering with external providers has contributed to improved employment outcomes for TANF participants. States are welcome to share any examples, guidance, best practices, or lessons learned to inform program planning and strengthen approaches to supporting participant employment.