The General Accounting Office (GAO) reviewed existing procedures to manage Temporary Assistance for Needy Families (TANF) contracting and also identified problems with regard to management of TANF contracting. The major data collection activities were as follows: (1) a national survey of all 50 states, the District of Columbia, and the 10 counties with the largest TANF funding allocations in the 13 states that administer TANF locally; (2) interviews with selected Health and Human Services (HHS) officials; (3) an examination of audits performed under the Single Audit Act of 1984; and (4) state and local site visits in California, the District of Columbia, Florida, New York, Texas, and Wisconsin. The GAO concluded that federal oversight of state and local TANF contracting can be strengthened, and it recommended that HHS use single state audit reports in a more systematic manner to identify the extent and nature of internal control weaknesses related to state oversight of TANF contractors. The following items are appended: information about the study scope and methodology; the national survey instrument; a discussion of problems cited with TANF subrecipient monitoring by state single audits in 1999 and 2000; comments from the Department of HHS; and a list of GAO contacts and staff acknowledgments. (MN)