Clark County OKs $531,085 repayment plan after subgrantee misused TANF funds

The Board of Clark County Commissioners on Aug. 19 approved a repayment agreement with the Ohio Department of Job and Family Services requiring Clark County to pay $531,085.29 over 10 years related to what county legal counsel described as inappropriate use of Temporary Assistance for Needy Families (TANF) funds by a subgrantee identified as Sheltered Inc.

Beau Thompson, Clark County chief legal counsel, told the board "the state has made it clear that they expect the county, who subgranted those funds to Sheltered Inc., to repay them. This is the repayment agreement that the state has proposed." Thompson said he will continue efforts to recover funds from Sheltered Inc., but noted the organization filed Chapter 7 bankruptcy in early July, which may limit available recoveries.

Commissioners voted unanimously to authorize the repayment arrangement, which the resolution states will be paid from the county general fund between Aug. 19, 2026 and June 30, 2035. The measure was moved and seconded during the meeting and passed on a roll-call vote with Commissioners Kaffenbarger, Patterson and Rittenhouse voting "Yes."

The agreement was described in the meeting as a response to the Ohio Department of Job and Family Services' expectation that subgranting entities be responsible for funds they distributed; no additional sources of recovery were specified in the meeting record. The county's counsel said he is participating in creditor meetings with the Chapter 7 trustee but did not provide a firm estimate of potential recoveries from Sheltered Inc.'s assets.