In order to use the block grants efficiently and to design their own human service programs, Iowa emphasized accuracy of eligibility determination, benefit distribution, service delivery, and client support. Accurate and timely information is a critical resource for many complex decisions required in administering this mixture of benefits and requirements. Information infrastructure and resources are necessary to make accurate decisions and produce higher quality programs.

In addition to the desire to enhance program efficiency, the PRWORA included financial sanctions for states that fail to comply with regulations or to achieve program goals. Improved information resources and technologies were seen as ways to enhance programs, achieve efficiencies, and reduce the risk of sanctions.

The sanctions can be considerable. If the state did not meet the Federal requirements, future funding for related programs could be threatened. For example, failure to comply with current Health Insurance Portability and Accountability Act (HIPAA) requirements can result in loss of Federal Financial Participation (FFP) of 90 percent, and penalties up to $25,000 per person, annually, in addition to civil penalties. The possible sanctions linked to TANF could amount to as much as $14.8M per fiscal year.