Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, Counties must
acquire adequate case documentation to substantiate the claim entry into the NC Fast Enterprise Program
Integrity (“EPI”) system. This information includes, but is not limited to, the dates of the overpayment
period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or
verification from an employer, other income verification and household composition verification, and the
budgets used to compute the amount of the overpayment.
Condition: We noted one instance of a Food and Nutrition Services claim entered in EPI where adequate
case documentation to substantiate the claim entry was not maintained. The budget calculated during the
initial investigation in the claims file does not agree to the amount entered in EPI to be collected on by the
County.
Context: We sampled 4 claims that were current in the EPI system and noted the above condition in 1
(25%) of the claims tested. To date, the County has reviewed the budget and corrected the amount in EPI
system, as well as the casefile.
Effect: The County may not have accurate supporting documentation for claims entered in EPI system.
There is a risk that claims may not be valid as a result.
Cause: Documentation to support a claim entered into EPI was not accurate.
Questioned Costs: None. The finding represents an internal control issue.
Recommendation: County DSS staff should implement controls to ensure that all documentation is
maintained and agrees to what was entered into EPI.
Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted
with this report.
Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control
procedures in place to ensure that casefile evidence is appropriately updated. In accordance with 45 CFR
435, documentation must be maintained to support eligibility determinations.
Condition: The County Department of Social Services failed to update bank account ownership
information correctly for one applicant. Upon further review, the applicant was ultimately eligible.
Context: Of the 240,540 benefit payments valued at $92,375,680, we examined 60 payment records
($13,116 value) and determined that one casefile (2%) did not have properly calculated resources. Upon
further review and recalculation, the applicant was deemed eligible.
Effect: Casefile did not have properly updated bank account ownership, which could allow benefits to be
provided to individuals who are not eligible.
Cause: The caseworker did not correctly update the bank account ownership from 50% to 100%.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable. The County was able to substantiate that the applicant was eligible to receive benefits.
Recommendation: Caseworkers should review their eligibility determinations and ensure all information
is entered correctly. Calculations should be reviewed for accuracy before approving benefits.
Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted
with this report.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, Counties must
acquire adequate case documentation to substantiate the claim entry into the NC Fast Enterprise Program
Integrity (“EPI”) system. This information includes, but is not limited to, the dates of the overpayment
period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or
verification from an employer, other income verification and household composition verification, and the
budgets used to compute the amount of the overpayment.
Condition: We noted one instance of a Food and Nutrition Services claim entered in EPI where adequate
case documentation to substantiate the claim entry was not maintained. The budget calculated during the
initial investigation in the claims file does not agree to the amount entered in EPI to be collected on by the
County.
Context: We sampled 4 claims that were current in the EPI system and noted the above condition in 1
(25%) of the claims tested. To date, the County has reviewed the budget and corrected the amount in EPI
system, as well as the casefile.
Effect: The County may not have accurate supporting documentation for claims entered in EPI system.
There is a risk that claims may not be valid as a result.
Cause: Documentation to support a claim entered into EPI was not accurate.
Questioned Costs: None. The finding represents an internal control issue.
Recommendation: County DSS staff should implement controls to ensure that all documentation is
maintained and agrees to what was entered into EPI.
Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted
with this report.
Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control
procedures in place to ensure that casefile evidence is appropriately updated. In accordance with 45 CFR
435, documentation must be maintained to support eligibility determinations.
Condition: The County Department of Social Services failed to update bank account ownership
information correctly for one applicant. Upon further review, the applicant was ultimately eligible.
Context: Of the 240,540 benefit payments valued at $92,375,680, we examined 60 payment records
($13,116 value) and determined that one casefile (2%) did not have properly calculated resources. Upon
further review and recalculation, the applicant was deemed eligible.
Effect: Casefile did not have properly updated bank account ownership, which could allow benefits to be
provided to individuals who are not eligible.
Cause: The caseworker did not correctly update the bank account ownership from 50% to 100%.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable. The County was able to substantiate that the applicant was eligible to receive benefits.
Recommendation: Caseworkers should review their eligibility determinations and ensure all information
is entered correctly. Calculations should be reviewed for accuracy before approving benefits.
Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted
with this report.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.
Criteria: In accordance with 2 CFR 200, management should have a system of internal control
procedures in place to reduce the likelihood of errors in reporting program income.
Condition: The program income report for the first quarter was submitted late.
Effect: Lack of proper implementation of internal controls greatly increases the risk of fraudulent
activity and can result in improper financial reporting.
Cause: Lack of controls over reporting program income.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs
are applicable.
Recommendation: Management should assess the controls over program income and implement
policies and procedures to address those concerns noted above.
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding. Please refer to the Corrective Action Plan.