Audit 16498

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: (WIC) Special Supplemental Nutrition Program for Women, Infants, and Children AL # 10.557 Grant Number: 403 13A2 5403 Finding: 2022-002 MATERIAL WEAKNESS Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to properly review and assess the eligibility of individuals to ensure the accuracy of the benefits being provided is within program requirements. Verification of accuracy of information used in determining eligibility should be performed by management. Evidence of the review should be documented and include authorized signatures. Condition: The County Health Department did not have adequate review controls in place to ensure the proper eligibility determinations were being made and documented. The County did not have evidence of reviews performed over the program tested for the entire period under audit. Context: The County did not have evidence of reviews performed over the program for the entire period under audit. Effect: Casefiles could be missing the required eligibility determination documentation which would allow benefits to be provided to individuals who are not eligible. Cause: Weakness in implementation of controls over second party review procedures performed by management. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Identification of a Repeat Finding: This is a repeated finding from the immediate previous audit, 2021-001. Recommendation: Evidence of documentation of reviews should be retained and include electronic signatures of reviewer. Any deficiencies noted during the review should be corrected within a timely manner and documented as such. Name of Contact Person: Nicole Alston Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: (WIC) Special Supplemental Nutrition Program for Women, Infants, and Children AL # 10.557 Grant Number: 403 13A2 5403 Finding: 2022-003 NON-MATERIAL NON-COMPLIANCE MATERIAL WEAKNESS Criteria: In accordance with 7 CFR 246, benefits should be terminated timely to prevent payment errors. In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that benefits are paid only through the proper certification period. Condition: One casefile certification was not set for the proper period. As a result, benefits continued for six months after they should have terminated. Context: Of the 89,500 benefit payments valued at $4,833,494, we examined 60 payment records ($2,436 value) and determined that one (2% valued at $369) of the participants received benefits after the proper certification period. Effect: Certification periods not being through the proper period could cause the County to expend funds over the eligible amount. Cause: The caseworker did not review to ensure that the certification period was proper. Questioned Costs: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Even though the sample results only identified $369 (federal share $369 and state share $0) in questioned costs, if tests were extended to the entire population, questioned costs could exceed $25,000. Recommendation: Caseworkers should review cases to ensure that certification periods are through the proper period. Name of Contact Person: Nicole Alston Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: (WIC) Special Supplemental Nutrition Program for Women, Infants, and Children AL # 10.557 Grant Number: 403 13A2 5403 Finding: 2022-002 MATERIAL WEAKNESS Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to properly review and assess the eligibility of individuals to ensure the accuracy of the benefits being provided is within program requirements. Verification of accuracy of information used in determining eligibility should be performed by management. Evidence of the review should be documented and include authorized signatures. Condition: The County Health Department did not have adequate review controls in place to ensure the proper eligibility determinations were being made and documented. The County did not have evidence of reviews performed over the program tested for the entire period under audit. Context: The County did not have evidence of reviews performed over the program for the entire period under audit. Effect: Casefiles could be missing the required eligibility determination documentation which would allow benefits to be provided to individuals who are not eligible. Cause: Weakness in implementation of controls over second party review procedures performed by management. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Identification of a Repeat Finding: This is a repeated finding from the immediate previous audit, 2021-001. Recommendation: Evidence of documentation of reviews should be retained and include electronic signatures of reviewer. Any deficiencies noted during the review should be corrected within a timely manner and documented as such. Name of Contact Person: Nicole Alston Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: (WIC) Special Supplemental Nutrition Program for Women, Infants, and Children AL # 10.557 Grant Number: 403 13A2 5403 Finding: 2022-003 NON-MATERIAL NON-COMPLIANCE MATERIAL WEAKNESS Criteria: In accordance with 7 CFR 246, benefits should be terminated timely to prevent payment errors. In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that benefits are paid only through the proper certification period. Condition: One casefile certification was not set for the proper period. As a result, benefits continued for six months after they should have terminated. Context: Of the 89,500 benefit payments valued at $4,833,494, we examined 60 payment records ($2,436 value) and determined that one (2% valued at $369) of the participants received benefits after the proper certification period. Effect: Certification periods not being through the proper period could cause the County to expend funds over the eligible amount. Cause: The caseworker did not review to ensure that the certification period was proper. Questioned Costs: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Even though the sample results only identified $369 (federal share $369 and state share $0) in questioned costs, if tests were extended to the entire population, questioned costs could exceed $25,000. Recommendation: Caseworkers should review cases to ensure that certification periods are through the proper period. Name of Contact Person: Nicole Alston Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.