Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.332(d) requires that all pass-through entities monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Additionally, 7 CFR ? 226.6(m)(6) outlines the frequency and number of required institution reviews. Condition: The Department did not perform its subrecipient monitoring reviews in accordance with its policies and procedures and federal regulations. Questioned Costs: None Context: For fourteen of the sixty subrecipients tested, subrecipient monitoring reviews were not conducted within the three-year timeframe as set out in federal regulations. Cause: Due to staffing turnover, the Department did not comply with federal subrecipient monitoring requirements. Effect: The Department is not in compliance with federal requirements related to subrecipient monitoring requirements. Recommendation: We recommend that the Department follow its established policies and procedures for the program to ensure compliance with federal subrecipient monitoring requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 114.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 7 CFR ? 226.6(b)(3) requires that any new or renewing institution applying for participation in the Program be notified in writing of approval or disapproval by the State agency within 30 calendar days of the State agency's receipt of a completed application. Whenever possible, State agencies should provide assistance to institutions that have submitted an incomplete application. Any disapproved applicant institution or family day care home must be notified of the reasons for its disapproval and its right to appeal under paragraph (k) or (l), respectively, of this section. Condition: Documentation was not adequate to verify that applicants were notified in writing of approval or disapproval by the Department within 30 days of receiving a completed application. Questioned Costs: None Context: For eleven of sixty institutions tested, we could not verify if the Department sent an approval or disapproval notification within 30 days of receiving the completed applications. Cause: The Department?s internal controls failed to ensure timely notifications to applicants according to federal regulations. Effect: We could not confirm compliance with federal regulations requiring written notifications of application approval or disapproval within 30 days of receiving a completed application. Recommendation: We recommend that the Department review its internal controls to ensure timely notifications of application approvals and disapprovals. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 180.300 requires that when a non-federal entity enters into a covered transaction (contracts for goods and services that are expected to equal or exceed $25,000, as well as all subawards to subrecipients, irrespective of award amount) with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. The regulation lists several permitted methods for verification, including the collection of a certification from subrecipients. Condition: Compliance with suspension and debarment regulations could not be confirmed for one subrecipient. Questioned Costs: None Context: The Department verifies suspension and debarment through a certification clause embedded in the subrecipient contract. For one of sixty subrecipients tested, the Department was unable to locate the subrecipient's signed contract agreement. Cause: The Department could not locate the subrecipient's signed contract agreement containing the suspension and debarment certification clause. Effect: The Department's compliance with federal suspension and debarment requirements could not be confirmed. Recommendation: We recommend that the Department review and update its internal controls to ensure a signed contract agreement containing suspension and debarment terms and conditions is on file for all subrecipients. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.332(d) requires that all pass-through entities monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Additionally, 7 CFR ? 226.6(m)(6) outlines the frequency and number of required institution reviews. Condition: The Department did not perform its subrecipient monitoring reviews in accordance with its policies and procedures and federal regulations. Questioned Costs: None Context: For fourteen of the sixty subrecipients tested, subrecipient monitoring reviews were not conducted within the three-year timeframe as set out in federal regulations. Cause: Due to staffing turnover, the Department did not comply with federal subrecipient monitoring requirements. Effect: The Department is not in compliance with federal requirements related to subrecipient monitoring requirements. Recommendation: We recommend that the Department follow its established policies and procedures for the program to ensure compliance with federal subrecipient monitoring requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 114.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 7 CFR ? 226.6(b)(3) requires that any new or renewing institution applying for participation in the Program be notified in writing of approval or disapproval by the State agency within 30 calendar days of the State agency's receipt of a completed application. Whenever possible, State agencies should provide assistance to institutions that have submitted an incomplete application. Any disapproved applicant institution or family day care home must be notified of the reasons for its disapproval and its right to appeal under paragraph (k) or (l), respectively, of this section. Condition: Documentation was not adequate to verify that applicants were notified in writing of approval or disapproval by the Department within 30 days of receiving a completed application. Questioned Costs: None Context: For eleven of sixty institutions tested, we could not verify if the Department sent an approval or disapproval notification within 30 days of receiving the completed applications. Cause: The Department?s internal controls failed to ensure timely notifications to applicants according to federal regulations. Effect: We could not confirm compliance with federal regulations requiring written notifications of application approval or disapproval within 30 days of receiving a completed application. Recommendation: We recommend that the Department review its internal controls to ensure timely notifications of application approvals and disapprovals. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 180.300 requires that when a non-federal entity enters into a covered transaction (contracts for goods and services that are expected to equal or exceed $25,000, as well as all subawards to subrecipients, irrespective of award amount) with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. The regulation lists several permitted methods for verification, including the collection of a certification from subrecipients. Condition: Compliance with suspension and debarment regulations could not be confirmed for one subrecipient. Questioned Costs: None Context: The Department verifies suspension and debarment through a certification clause embedded in the subrecipient contract. For one of sixty subrecipients tested, the Department was unable to locate the subrecipient's signed contract agreement. Cause: The Department could not locate the subrecipient's signed contract agreement containing the suspension and debarment certification clause. Effect: The Department's compliance with federal suspension and debarment requirements could not be confirmed. Recommendation: We recommend that the Department review and update its internal controls to ensure a signed contract agreement containing suspension and debarment terms and conditions is on file for all subrecipients. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Defense Federal Program Title: National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing: 12.401 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control Criteria: 2 CFR ? 200.303 states that the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Personnel expenditures for three employees were charged to the federal award without documented approval as required by the Office?s internal control procedure. Questioned Costs: None Context: Three of forty payroll transactions tested did not have a corresponding approved State Personnel Action form that documented each employee?s salary and the percentage of their salary covered by the grant program. Cause: Management did not document approval of payroll changes for grant employees to avoid errors in payroll processing. Effect: The Office could incorrectly charge the federal award for personnel costs. Recommendation: We recommend the Office consistently adhere to its internal controls including maintaining the approved State Personnel Action form to support the personnel charges and allocations to applicable funding sources. Prior Year Single Audit Finding Number: Not applicable. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 106.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: B20DW450001, B21DC450001, B20DC450001, B19DC450001, and B18DC450001 Pass-Through Entity: Not applicable Award Period: July 24, 2018, through September 1, 2028 Type of Finding: Significant deficiency in internal control over compliance Criteria: Per 2 CFR ? 200.303, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States and the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Supervisory personnel did not review certain reports prior to submission. Questioned Costs: None Context: We tested the Department?s Consolidated Annual Performance and Evaluation Report (CAPER), which includes the annual Section 3 report, and five Federal Funding Accountability and Transparency Act (FFATA) reports submitted by the Department. None of the FFATA reports were reviewed by supervisory personnel prior to submission. Cause: Department controls failed to ensure that supervisory personnel reviewed the reports prior to submission. Effect: Without supervisory review, there is an increased risk of inaccurate reporting. Recommendation: We recommend that Department personnel consistently follow policies in place to ensure reports are properly reviewed by supervisory personnel prior to submission. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 108.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Number: B-18-DP-06-0002 Pass-Through Entity: Not applicable Award Period: August 20, 2020, through November 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the federal award is being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We determined expenditure transactions were incorrectly classified in the general ledger. Questioned Costs: None Context: For two of twenty-two transactions tested, the Office classified subrecipient payments as contractual services. Cause: Office controls failed to ensure transactions were recorded properly in the general ledger. Effect: Subrecipient expenditures of $51,853 were omitted from the Office?s Schedule of Federal Awards (SEFA). Recommendation: We recommend that the Office ensure staff preparing and entering transactions into the accounting system have a good working knowledge of account codes as defined by the South Carolina Comptroller General?s Office (CG). In addition, supervisory personnel should closely review transactions to ensure proper classification in the general ledger. Further, the Office should seek guidance from the CG if questions regarding coding of transactions arises. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 109.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: P-19-SC-45-0DD2 and P-18-SC-45-MIT1 Pass-Through Entity: Not applicable Award Period: December 14, 2020, through August 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS). Condition: We identified noncompliance with FFATA reporting requirements. Questioned Costs: None Context: The Office did not submit FFATA reports although it had subawards of $30,000 or more. Cause: Office personnel were unaware of FFATA reporting requirements. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend that the Office implement procedures to ensure reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 111.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: B20DW450001, B21DC450001, B20DC450001, B19DC450001, and B18DC450001 Pass-Through Entity: Not applicable Award Period: July 24, 2018, through September 1, 2028 Type of Finding: Significant deficiency in internal control over compliance Criteria: Per 2 CFR ? 200.303, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States and the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Supervisory personnel did not review certain reports prior to submission. Questioned Costs: None Context: We tested the Department?s Consolidated Annual Performance and Evaluation Report (CAPER), which includes the annual Section 3 report, and five Federal Funding Accountability and Transparency Act (FFATA) reports submitted by the Department. None of the FFATA reports were reviewed by supervisory personnel prior to submission. Cause: Department controls failed to ensure that supervisory personnel reviewed the reports prior to submission. Effect: Without supervisory review, there is an increased risk of inaccurate reporting. Recommendation: We recommend that Department personnel consistently follow policies in place to ensure reports are properly reviewed by supervisory personnel prior to submission. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 108.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Number: B-18-DP-06-0002 Pass-Through Entity: Not applicable Award Period: August 20, 2020, through November 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the federal award is being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We determined expenditure transactions were incorrectly classified in the general ledger. Questioned Costs: None Context: For two of twenty-two transactions tested, the Office classified subrecipient payments as contractual services. Cause: Office controls failed to ensure transactions were recorded properly in the general ledger. Effect: Subrecipient expenditures of $51,853 were omitted from the Office?s Schedule of Federal Awards (SEFA). Recommendation: We recommend that the Office ensure staff preparing and entering transactions into the accounting system have a good working knowledge of account codes as defined by the South Carolina Comptroller General?s Office (CG). In addition, supervisory personnel should closely review transactions to ensure proper classification in the general ledger. Further, the Office should seek guidance from the CG if questions regarding coding of transactions arises. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 109.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: P-19-SC-45-0DD2 and P-18-SC-45-MIT1 Pass-Through Entity: Not applicable Award Period: December 14, 2020, through August 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS). Condition: We identified noncompliance with FFATA reporting requirements. Questioned Costs: None Context: The Office did not submit FFATA reports although it had subawards of $30,000 or more. Cause: Office personnel were unaware of FFATA reporting requirements. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend that the Office implement procedures to ensure reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 111.
Federal Agency: Department of Health and Human Services Federal Program Title: Immunization Cooperative Agreements Assistance Listing: 93.268 Federal Grant ID Numbers: 5 NH23IP922601-03-00, 1 N23IP922601-01-00, and 6 NH23IP922601-02-00 Pass-Through Entity: Not applicable Award Period: October 01, 2019, through September 30, 2024 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: The Office of Management and Budget?s (OMB) 2022 Compliance Supplement states that effective control and accountability must be maintained for all vaccines under the Vaccines for Children (VFC) program. Vaccines must be adequately safeguarded and used solely for authorized purposes in accordance with guidance set forth in 42 USC 1396s. To comply with this requirement, the Department?s Vaccines for Children Operation Guide requires that all completed VFC compliance site visits be reviewed by the VFC coordinator, immunization program manager, or a designee. Condition: The Department did not consistently perform reviews of compliance visits of vaccine providers in accordance with its policy. Questioned Costs: None Context: We tested 37 compliance visits of providers to ensure the Department complied with applicable Special Tests and Provisions requirements. We determined the Department had not reviewed four of the compliance visits as of the end of our fieldwork. Cause: Due to the prioritization of annual VFC and other vaccine program enrollments, the Department was unable to review the site visits for these providers. Effect: In the absence of a compliance visit review, providers could have unresolved issues that could affect the quality and quantity of vaccines provided to VFC recipients. Recommendation: We recommend the Department ensure compliance visits are reviewed in accordance with Department policy. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 112.
Federal Agency: Department of Health and Human Services Federal Program Title: Immunization Cooperative Agreements Assistance Listing: 93.268 Federal Grant ID Numbers: 5 NH23IP922601-03-00, 1 N23IP922601-01-00, and 6 NH23IP922601-02-00 Pass-Through Entity: Not applicable Award Period: October 01, 2019, through September 30, 2024 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: The Office of Management and Budget?s (OMB) 2022 Compliance Supplement states that effective control and accountability must be maintained for all vaccines under the Vaccines for Children (VFC) program. Vaccines must be adequately safeguarded and used solely for authorized purposes in accordance with guidance set forth in 42 USC 1396s. To comply with this requirement, the Department?s Vaccines for Children Operation Guide requires that all completed VFC compliance site visits be reviewed by the VFC coordinator, immunization program manager, or a designee. Condition: The Department did not consistently perform reviews of compliance visits of vaccine providers in accordance with its policy. Questioned Costs: None Context: We tested 37 compliance visits of providers to ensure the Department complied with applicable Special Tests and Provisions requirements. We determined the Department had not reviewed four of the compliance visits as of the end of our fieldwork. Cause: Due to the prioritization of annual VFC and other vaccine program enrollments, the Department was unable to review the site visits for these providers. Effect: In the absence of a compliance visit review, providers could have unresolved issues that could affect the quality and quantity of vaccines provided to VFC recipients. Recommendation: We recommend the Department ensure compliance visits are reviewed in accordance with Department policy. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 112.
Federal Agency: Department of Health and Human Services Federal Program Title: Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.575 and 93.596 Federal Grant ID Number: 2001SCCCDD Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 98.60(d)(1) requires that discretionary funds (Assistance Listing 93.575) be obligated by the end of the succeeding fiscal year after the award and expended by the end of the third fiscal year after the award. Condition: Expenditures were incurred after the end of the grant?s period of performance. Questioned Costs: $246,284 Context: For seven of forty expenditure transactions tested, program expenditures were not obligated and expended in accordance with program requirements. Cause: The Department?s internal controls failed to identify and prevent charging costs incurred outside the applicable period of performance. Effect: Costs charged outside the period of performance may not be allowable. Recommendation: We recommend that the Department review and update internal controls to ensure all expenditures charged to federal awards are incurred within the grant's period of performance. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Title: Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.575 and 93.596 Federal Grant ID Number: 2001SCCCDD Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 98.60(d)(1) requires that discretionary funds (Assistance Listing 93.575) be obligated by the end of the succeeding fiscal year after the award and expended by the end of the third fiscal year after the award. Condition: Expenditures were incurred after the end of the grant?s period of performance. Questioned Costs: $246,284 Context: For seven of forty expenditure transactions tested, program expenditures were not obligated and expended in accordance with program requirements. Cause: The Department?s internal controls failed to identify and prevent charging costs incurred outside the applicable period of performance. Effect: Costs charged outside the period of performance may not be allowable. Recommendation: We recommend that the Department review and update internal controls to ensure all expenditures charged to federal awards are incurred within the grant's period of performance. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Title: Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.575 and 93.596 Federal Grant ID Number: 2001SCCCDD Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 98.60(d)(1) requires that discretionary funds (Assistance Listing 93.575) be obligated by the end of the succeeding fiscal year after the award and expended by the end of the third fiscal year after the award. Condition: Expenditures were incurred after the end of the grant?s period of performance. Questioned Costs: $246,284 Context: For seven of forty expenditure transactions tested, program expenditures were not obligated and expended in accordance with program requirements. Cause: The Department?s internal controls failed to identify and prevent charging costs incurred outside the applicable period of performance. Effect: Costs charged outside the period of performance may not be allowable. Recommendation: We recommend that the Department review and update internal controls to ensure all expenditures charged to federal awards are incurred within the grant's period of performance. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Health and Human Services Federal Program Title: Adoption Assistance Assistance Listing: 93.659 Federal Grant ID Number: 2001SCADPT and 2101SCADPT Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 75.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the Federal award is being managed in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition: Discrepancies existed between federal financial reports and the Department?s supporting records. Questioned Costs: None Context: For both CB-496 reports selected for testing, discrepancies were noted between supporting documentation and the report. For the quarter ending September 30, 2021, some activity was improperly reported as prior quarter adjustments. Additionally, for the quarter ending June 30, 2022, a prior quarter amount was improperly reported as current quarter claims. Cause: The Department did not fully implement the corrective action associated with this finding from the prior year. Effect: The accuracy of the CB-496 reports could not be fully validated. Recommendation: We recommend that the Department continue to review its internal controls to ensure that federal reports are free from error and clearly supported prior to submission. Prior Year Single Audit Finding Number: 2021-014 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 116.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Health and Human Services Federal Program Title: Adoption Assistance Assistance Listing: 93.659 Federal Grant ID Number: 2001SCADPT and 2101SCADPT Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 75.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the Federal award is being managed in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition: Discrepancies existed between federal financial reports and the Department?s supporting records. Questioned Costs: None Context: For both CB-496 reports selected for testing, discrepancies were noted between supporting documentation and the report. For the quarter ending September 30, 2021, some activity was improperly reported as prior quarter adjustments. Additionally, for the quarter ending June 30, 2022, a prior quarter amount was improperly reported as current quarter claims. Cause: The Department did not fully implement the corrective action associated with this finding from the prior year. Effect: The accuracy of the CB-496 reports could not be fully validated. Recommendation: We recommend that the Department continue to review its internal controls to ensure that federal reports are free from error and clearly supported prior to submission. Prior Year Single Audit Finding Number: 2021-014 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 116.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Homeland Security Federal Program Title: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing: 97.036 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition: FFATA reporting and timing errors were identified. Questioned Costs: None Context: Fourteen subawards were selected for testing and the following compliance errors were identified during the testing: ? The reported subaward obligation/action date did not agree to the subaward agreement date for one of the subawards tested. ? For seven of the subawards tested, the action was not reported in the FSRS by the last day of the month following the month that the subaward was made. ? The FSRS could not be accessed for four of the subawards in order to test reporting compliance for that subaward. Cause: Data entry errors and administrative delays led to the compliance errors identified in the testing. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend the Office update their current internal control to include continuous monitoring and reviewing of project obligations to ensure that reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 105.
Federal Agency: Department of Homeland Security Federal Program Title: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing: 97.036 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition: FFATA reporting and timing errors were identified. Questioned Costs: None Context: Fourteen subawards were selected for testing and the following compliance errors were identified during the testing: ? The reported subaward obligation/action date did not agree to the subaward agreement date for one of the subawards tested. ? For seven of the subawards tested, the action was not reported in the FSRS by the last day of the month following the month that the subaward was made. ? The FSRS could not be accessed for four of the subawards in order to test reporting compliance for that subaward. Cause: Data entry errors and administrative delays led to the compliance errors identified in the testing. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend the Office update their current internal control to include continuous monitoring and reviewing of project obligations to ensure that reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 105.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.332(d) requires that all pass-through entities monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Additionally, 7 CFR ? 226.6(m)(6) outlines the frequency and number of required institution reviews. Condition: The Department did not perform its subrecipient monitoring reviews in accordance with its policies and procedures and federal regulations. Questioned Costs: None Context: For fourteen of the sixty subrecipients tested, subrecipient monitoring reviews were not conducted within the three-year timeframe as set out in federal regulations. Cause: Due to staffing turnover, the Department did not comply with federal subrecipient monitoring requirements. Effect: The Department is not in compliance with federal requirements related to subrecipient monitoring requirements. Recommendation: We recommend that the Department follow its established policies and procedures for the program to ensure compliance with federal subrecipient monitoring requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 114.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 7 CFR ? 226.6(b)(3) requires that any new or renewing institution applying for participation in the Program be notified in writing of approval or disapproval by the State agency within 30 calendar days of the State agency's receipt of a completed application. Whenever possible, State agencies should provide assistance to institutions that have submitted an incomplete application. Any disapproved applicant institution or family day care home must be notified of the reasons for its disapproval and its right to appeal under paragraph (k) or (l), respectively, of this section. Condition: Documentation was not adequate to verify that applicants were notified in writing of approval or disapproval by the Department within 30 days of receiving a completed application. Questioned Costs: None Context: For eleven of sixty institutions tested, we could not verify if the Department sent an approval or disapproval notification within 30 days of receiving the completed applications. Cause: The Department?s internal controls failed to ensure timely notifications to applicants according to federal regulations. Effect: We could not confirm compliance with federal regulations requiring written notifications of application approval or disapproval within 30 days of receiving a completed application. Recommendation: We recommend that the Department review its internal controls to ensure timely notifications of application approvals and disapprovals. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 180.300 requires that when a non-federal entity enters into a covered transaction (contracts for goods and services that are expected to equal or exceed $25,000, as well as all subawards to subrecipients, irrespective of award amount) with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. The regulation lists several permitted methods for verification, including the collection of a certification from subrecipients. Condition: Compliance with suspension and debarment regulations could not be confirmed for one subrecipient. Questioned Costs: None Context: The Department verifies suspension and debarment through a certification clause embedded in the subrecipient contract. For one of sixty subrecipients tested, the Department was unable to locate the subrecipient's signed contract agreement. Cause: The Department could not locate the subrecipient's signed contract agreement containing the suspension and debarment certification clause. Effect: The Department's compliance with federal suspension and debarment requirements could not be confirmed. Recommendation: We recommend that the Department review and update its internal controls to ensure a signed contract agreement containing suspension and debarment terms and conditions is on file for all subrecipients. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.332(d) requires that all pass-through entities monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the subaward; and that subaward performance goals are achieved. Additionally, 7 CFR ? 226.6(m)(6) outlines the frequency and number of required institution reviews. Condition: The Department did not perform its subrecipient monitoring reviews in accordance with its policies and procedures and federal regulations. Questioned Costs: None Context: For fourteen of the sixty subrecipients tested, subrecipient monitoring reviews were not conducted within the three-year timeframe as set out in federal regulations. Cause: Due to staffing turnover, the Department did not comply with federal subrecipient monitoring requirements. Effect: The Department is not in compliance with federal requirements related to subrecipient monitoring requirements. Recommendation: We recommend that the Department follow its established policies and procedures for the program to ensure compliance with federal subrecipient monitoring requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 114.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 7 CFR ? 226.6(b)(3) requires that any new or renewing institution applying for participation in the Program be notified in writing of approval or disapproval by the State agency within 30 calendar days of the State agency's receipt of a completed application. Whenever possible, State agencies should provide assistance to institutions that have submitted an incomplete application. Any disapproved applicant institution or family day care home must be notified of the reasons for its disapproval and its right to appeal under paragraph (k) or (l), respectively, of this section. Condition: Documentation was not adequate to verify that applicants were notified in writing of approval or disapproval by the Department within 30 days of receiving a completed application. Questioned Costs: None Context: For eleven of sixty institutions tested, we could not verify if the Department sent an approval or disapproval notification within 30 days of receiving the completed applications. Cause: The Department?s internal controls failed to ensure timely notifications to applicants according to federal regulations. Effect: We could not confirm compliance with federal regulations requiring written notifications of application approval or disapproval within 30 days of receiving a completed application. Recommendation: We recommend that the Department review its internal controls to ensure timely notifications of application approvals and disapprovals. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Agriculture Federal Program Title: Child and Adult Care Food Program Assistance Listing: 10.558 Federal Grant ID Numbers: 5SC300329 and 5SC308329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 180.300 requires that when a non-federal entity enters into a covered transaction (contracts for goods and services that are expected to equal or exceed $25,000, as well as all subawards to subrecipients, irrespective of award amount) with an entity at a lower tier, the non-Federal entity must verify that the entity is not suspended or debarred or otherwise excluded from participating in the transaction. The regulation lists several permitted methods for verification, including the collection of a certification from subrecipients. Condition: Compliance with suspension and debarment regulations could not be confirmed for one subrecipient. Questioned Costs: None Context: The Department verifies suspension and debarment through a certification clause embedded in the subrecipient contract. For one of sixty subrecipients tested, the Department was unable to locate the subrecipient's signed contract agreement. Cause: The Department could not locate the subrecipient's signed contract agreement containing the suspension and debarment certification clause. Effect: The Department's compliance with federal suspension and debarment requirements could not be confirmed. Recommendation: We recommend that the Department review and update its internal controls to ensure a signed contract agreement containing suspension and debarment terms and conditions is on file for all subrecipients. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 115.
Federal Agency: Department of Defense Federal Program Title: National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing: 12.401 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control Criteria: 2 CFR ? 200.303 states that the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Personnel expenditures for three employees were charged to the federal award without documented approval as required by the Office?s internal control procedure. Questioned Costs: None Context: Three of forty payroll transactions tested did not have a corresponding approved State Personnel Action form that documented each employee?s salary and the percentage of their salary covered by the grant program. Cause: Management did not document approval of payroll changes for grant employees to avoid errors in payroll processing. Effect: The Office could incorrectly charge the federal award for personnel costs. Recommendation: We recommend the Office consistently adhere to its internal controls including maintaining the approved State Personnel Action form to support the personnel charges and allocations to applicable funding sources. Prior Year Single Audit Finding Number: Not applicable. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 106.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: B20DW450001, B21DC450001, B20DC450001, B19DC450001, and B18DC450001 Pass-Through Entity: Not applicable Award Period: July 24, 2018, through September 1, 2028 Type of Finding: Significant deficiency in internal control over compliance Criteria: Per 2 CFR ? 200.303, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States and the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Supervisory personnel did not review certain reports prior to submission. Questioned Costs: None Context: We tested the Department?s Consolidated Annual Performance and Evaluation Report (CAPER), which includes the annual Section 3 report, and five Federal Funding Accountability and Transparency Act (FFATA) reports submitted by the Department. None of the FFATA reports were reviewed by supervisory personnel prior to submission. Cause: Department controls failed to ensure that supervisory personnel reviewed the reports prior to submission. Effect: Without supervisory review, there is an increased risk of inaccurate reporting. Recommendation: We recommend that Department personnel consistently follow policies in place to ensure reports are properly reviewed by supervisory personnel prior to submission. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 108.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Number: B-18-DP-06-0002 Pass-Through Entity: Not applicable Award Period: August 20, 2020, through November 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the federal award is being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We determined expenditure transactions were incorrectly classified in the general ledger. Questioned Costs: None Context: For two of twenty-two transactions tested, the Office classified subrecipient payments as contractual services. Cause: Office controls failed to ensure transactions were recorded properly in the general ledger. Effect: Subrecipient expenditures of $51,853 were omitted from the Office?s Schedule of Federal Awards (SEFA). Recommendation: We recommend that the Office ensure staff preparing and entering transactions into the accounting system have a good working knowledge of account codes as defined by the South Carolina Comptroller General?s Office (CG). In addition, supervisory personnel should closely review transactions to ensure proper classification in the general ledger. Further, the Office should seek guidance from the CG if questions regarding coding of transactions arises. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 109.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: P-19-SC-45-0DD2 and P-18-SC-45-MIT1 Pass-Through Entity: Not applicable Award Period: December 14, 2020, through August 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS). Condition: We identified noncompliance with FFATA reporting requirements. Questioned Costs: None Context: The Office did not submit FFATA reports although it had subawards of $30,000 or more. Cause: Office personnel were unaware of FFATA reporting requirements. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend that the Office implement procedures to ensure reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 111.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: B20DW450001, B21DC450001, B20DC450001, B19DC450001, and B18DC450001 Pass-Through Entity: Not applicable Award Period: July 24, 2018, through September 1, 2028 Type of Finding: Significant deficiency in internal control over compliance Criteria: Per 2 CFR ? 200.303, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States and the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Supervisory personnel did not review certain reports prior to submission. Questioned Costs: None Context: We tested the Department?s Consolidated Annual Performance and Evaluation Report (CAPER), which includes the annual Section 3 report, and five Federal Funding Accountability and Transparency Act (FFATA) reports submitted by the Department. None of the FFATA reports were reviewed by supervisory personnel prior to submission. Cause: Department controls failed to ensure that supervisory personnel reviewed the reports prior to submission. Effect: Without supervisory review, there is an increased risk of inaccurate reporting. Recommendation: We recommend that Department personnel consistently follow policies in place to ensure reports are properly reviewed by supervisory personnel prior to submission. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 108.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Number: B-18-DP-06-0002 Pass-Through Entity: Not applicable Award Period: August 20, 2020, through November 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the federal award is being managed in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: We determined expenditure transactions were incorrectly classified in the general ledger. Questioned Costs: None Context: For two of twenty-two transactions tested, the Office classified subrecipient payments as contractual services. Cause: Office controls failed to ensure transactions were recorded properly in the general ledger. Effect: Subrecipient expenditures of $51,853 were omitted from the Office?s Schedule of Federal Awards (SEFA). Recommendation: We recommend that the Office ensure staff preparing and entering transactions into the accounting system have a good working knowledge of account codes as defined by the South Carolina Comptroller General?s Office (CG). In addition, supervisory personnel should closely review transactions to ensure proper classification in the general ledger. Further, the Office should seek guidance from the CG if questions regarding coding of transactions arises. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 109.
Federal Agency: Department of Housing and Urban Development Federal Program Title: Community Development Block Grant Assistance Listing: 14.228 Federal Grant ID Numbers: P-19-SC-45-0DD2 and P-18-SC-45-MIT1 Pass-Through Entity: Not applicable Award Period: December 14, 2020, through August 19, 2032 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS). Condition: We identified noncompliance with FFATA reporting requirements. Questioned Costs: None Context: The Office did not submit FFATA reports although it had subawards of $30,000 or more. Cause: Office personnel were unaware of FFATA reporting requirements. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend that the Office implement procedures to ensure reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 111.
Federal Agency: Department of Health and Human Services Federal Program Title: Immunization Cooperative Agreements Assistance Listing: 93.268 Federal Grant ID Numbers: 5 NH23IP922601-03-00, 1 N23IP922601-01-00, and 6 NH23IP922601-02-00 Pass-Through Entity: Not applicable Award Period: October 01, 2019, through September 30, 2024 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: The Office of Management and Budget?s (OMB) 2022 Compliance Supplement states that effective control and accountability must be maintained for all vaccines under the Vaccines for Children (VFC) program. Vaccines must be adequately safeguarded and used solely for authorized purposes in accordance with guidance set forth in 42 USC 1396s. To comply with this requirement, the Department?s Vaccines for Children Operation Guide requires that all completed VFC compliance site visits be reviewed by the VFC coordinator, immunization program manager, or a designee. Condition: The Department did not consistently perform reviews of compliance visits of vaccine providers in accordance with its policy. Questioned Costs: None Context: We tested 37 compliance visits of providers to ensure the Department complied with applicable Special Tests and Provisions requirements. We determined the Department had not reviewed four of the compliance visits as of the end of our fieldwork. Cause: Due to the prioritization of annual VFC and other vaccine program enrollments, the Department was unable to review the site visits for these providers. Effect: In the absence of a compliance visit review, providers could have unresolved issues that could affect the quality and quantity of vaccines provided to VFC recipients. Recommendation: We recommend the Department ensure compliance visits are reviewed in accordance with Department policy. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 112.
Federal Agency: Department of Health and Human Services Federal Program Title: Immunization Cooperative Agreements Assistance Listing: 93.268 Federal Grant ID Numbers: 5 NH23IP922601-03-00, 1 N23IP922601-01-00, and 6 NH23IP922601-02-00 Pass-Through Entity: Not applicable Award Period: October 01, 2019, through September 30, 2024 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: The Office of Management and Budget?s (OMB) 2022 Compliance Supplement states that effective control and accountability must be maintained for all vaccines under the Vaccines for Children (VFC) program. Vaccines must be adequately safeguarded and used solely for authorized purposes in accordance with guidance set forth in 42 USC 1396s. To comply with this requirement, the Department?s Vaccines for Children Operation Guide requires that all completed VFC compliance site visits be reviewed by the VFC coordinator, immunization program manager, or a designee. Condition: The Department did not consistently perform reviews of compliance visits of vaccine providers in accordance with its policy. Questioned Costs: None Context: We tested 37 compliance visits of providers to ensure the Department complied with applicable Special Tests and Provisions requirements. We determined the Department had not reviewed four of the compliance visits as of the end of our fieldwork. Cause: Due to the prioritization of annual VFC and other vaccine program enrollments, the Department was unable to review the site visits for these providers. Effect: In the absence of a compliance visit review, providers could have unresolved issues that could affect the quality and quantity of vaccines provided to VFC recipients. Recommendation: We recommend the Department ensure compliance visits are reviewed in accordance with Department policy. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 112.
Federal Agency: Department of Health and Human Services Federal Program Title: Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.575 and 93.596 Federal Grant ID Number: 2001SCCCDD Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 98.60(d)(1) requires that discretionary funds (Assistance Listing 93.575) be obligated by the end of the succeeding fiscal year after the award and expended by the end of the third fiscal year after the award. Condition: Expenditures were incurred after the end of the grant?s period of performance. Questioned Costs: $246,284 Context: For seven of forty expenditure transactions tested, program expenditures were not obligated and expended in accordance with program requirements. Cause: The Department?s internal controls failed to identify and prevent charging costs incurred outside the applicable period of performance. Effect: Costs charged outside the period of performance may not be allowable. Recommendation: We recommend that the Department review and update internal controls to ensure all expenditures charged to federal awards are incurred within the grant's period of performance. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Title: Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.575 and 93.596 Federal Grant ID Number: 2001SCCCDD Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 98.60(d)(1) requires that discretionary funds (Assistance Listing 93.575) be obligated by the end of the succeeding fiscal year after the award and expended by the end of the third fiscal year after the award. Condition: Expenditures were incurred after the end of the grant?s period of performance. Questioned Costs: $246,284 Context: For seven of forty expenditure transactions tested, program expenditures were not obligated and expended in accordance with program requirements. Cause: The Department?s internal controls failed to identify and prevent charging costs incurred outside the applicable period of performance. Effect: Costs charged outside the period of performance may not be allowable. Recommendation: We recommend that the Department review and update internal controls to ensure all expenditures charged to federal awards are incurred within the grant's period of performance. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Title: Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.575 and 93.596 Federal Grant ID Number: 2001SCCCDD Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2022 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 98.60(d)(1) requires that discretionary funds (Assistance Listing 93.575) be obligated by the end of the succeeding fiscal year after the award and expended by the end of the third fiscal year after the award. Condition: Expenditures were incurred after the end of the grant?s period of performance. Questioned Costs: $246,284 Context: For seven of forty expenditure transactions tested, program expenditures were not obligated and expended in accordance with program requirements. Cause: The Department?s internal controls failed to identify and prevent charging costs incurred outside the applicable period of performance. Effect: Costs charged outside the period of performance may not be allowable. Recommendation: We recommend that the Department review and update internal controls to ensure all expenditures charged to federal awards are incurred within the grant's period of performance. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Health and Human Services Federal Program Title: Adoption Assistance Assistance Listing: 93.659 Federal Grant ID Number: 2001SCADPT and 2101SCADPT Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 75.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the Federal award is being managed in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition: Discrepancies existed between federal financial reports and the Department?s supporting records. Questioned Costs: None Context: For both CB-496 reports selected for testing, discrepancies were noted between supporting documentation and the report. For the quarter ending September 30, 2021, some activity was improperly reported as prior quarter adjustments. Additionally, for the quarter ending June 30, 2022, a prior quarter amount was improperly reported as current quarter claims. Cause: The Department did not fully implement the corrective action associated with this finding from the prior year. Effect: The accuracy of the CB-496 reports could not be fully validated. Recommendation: We recommend that the Department continue to review its internal controls to ensure that federal reports are free from error and clearly supported prior to submission. Prior Year Single Audit Finding Number: 2021-014 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 116.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services and Department of Agriculture Federal Program Titles: Adoption Assistance and Child and Adult Care Food Program Assistance Listings: 93.659 and 10.558 Federal Grant ID Numbers: 2001SCADPT, 2101SCADPT, and 5SC300329 Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR ? 200.303 requires that the non-federal entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Supporting documentation was not adequate to determine if federal reimbursements were properly reviewed and approved by a supervisor prior to requesting a drawdown as required by the Department?s policies and procedures. Questioned Costs: None Context: For two of five Adoption Assistance drawdowns and one of the five Child and Adult Care Food Program drawdowns selected for testing, supporting documentation was not adequate to demonstrate proper review and approval by a supervisor prior to the federal reimbursement request. Cause: The Department failed to retain documentation demonstrating performance of a supervisory review and approval. Effect: The Department may request improper drawdowns due to a lack of proper approval. Recommendation: We recommend that the Department follow their policies and procedures to ensure that proper documentation is maintained to support the review and approval of a drawdown of funds. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 113.
Federal Agency: Department of Health and Human Services Federal Program Title: Adoption Assistance Assistance Listing: 93.659 Federal Grant ID Number: 2001SCADPT and 2101SCADPT Pass-Through Entity: Not applicable Award Period: October 1, 2019, through September 30, 2021 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 75.303 requires effective internal controls be established and maintained in order to provide reasonable assurance that the Federal award is being managed in compliance with Federal statutes, regulations, and the terms and conditions of the federal award. Condition: Discrepancies existed between federal financial reports and the Department?s supporting records. Questioned Costs: None Context: For both CB-496 reports selected for testing, discrepancies were noted between supporting documentation and the report. For the quarter ending September 30, 2021, some activity was improperly reported as prior quarter adjustments. Additionally, for the quarter ending June 30, 2022, a prior quarter amount was improperly reported as current quarter claims. Cause: The Department did not fully implement the corrective action associated with this finding from the prior year. Effect: The accuracy of the CB-496 reports could not be fully validated. Recommendation: We recommend that the Department continue to review its internal controls to ensure that federal reports are free from error and clearly supported prior to submission. Prior Year Single Audit Finding Number: 2021-014 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 116.
Federal Agency: Department of Health and Human Services Federal Program Titles: Adoption Assistance and Child Care and Development Fund (CCDF) Cluster Assistance Listings: 93.659, 93.575, and 93.596 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 45 CFR ? 95.509(a) requires that a state promptly submit an amended public assistance cost allocation plan for approval if the procedures shown in the existing cost allocation plan become outdated. Additionally, 2 CFR ? 200.303 requires that the entity establish and maintain effective internal controls over the federal award that provide reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. Condition: Indirect cost allocations were not appropriately supported. Questioned Costs: Unknown Context: For one quarter tested, a substantial change was noted to one of the six allocation plan bases tested. The change was inconsistent with the public assistance cost allocation plan. Additionally, the journal entry for one quarter tested was incorrect due to a clerical error. Cause: For one of the six bases tested, the Department started using a new method to allocate costs; however, approval was not received before implementing the basis change. Additionally, a clerical error resulted in an incorrect allocation percentage for one of two tested quarterly journal entries. Effect: Indirect costs were not claimed in accordance with the approved cost allocation plan. Recommendation: We recommend that the Department regularly review their public assistance cost allocation plan and submit amendments for approval as necessary. Additionally, we recommend consolidating the support documentation for bases with multiple percentages. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 117.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2105SC5MAP, 05-2205SC5MAP, 05-2105SC5ADM, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Material weakness in internal control over compliance, material noncompliance Criteria: Section 2.1 of the Department?s Title XIX (Medicaid) State Plan (Application, Determination of Eligibility and Furnishing Medicaid) affirms that it meets the requirements outlined in 42 CFR Part 435.916, which states in part, that the agency must promptly determine eligibility between regular renewals of eligibility. In addition, Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual states that the Department must complete an annual review for certain payment categories. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulation and policies apply to both programs. Condition: The Department did not consistently perform timely annual eligibility reviews for Medicaid and CHIP recipients in accordance with Section 101.10 of the South Carolina Medicaid Policies and Procedures Manual. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not comply with the annual review requirement for 42 Medicaid recipients and 58 CHIP recipients. Cause: Department personnel stated they did not comply with the annual review requirement for these recipients due to a backlog in case processing. Effect: In the absence of an annual review, Medicaid and CHIP recipients may continue to receive benefits without meeting eligibility requirements. Recommendation: We recommend eligibility reviews be performed annually in accordance with the South Carolina Medicaid Policies and Procedures Manual. Prior Year Single Audit Finding Number: 2021-004 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 102.
Federal Agency: Department of Health and Human Services Federal Program Title: Medicaid Cluster and Children?s Health Insurance Program (CHIP) Assistance Listings: 93.775, 93.777, 93.778, and 93.767 Federal Grant ID Numbers: 05-2205SC5MAP, 05-2205SC5ADM, 05-2105SC5021, and 05-2205SC5021 Pass-Through Entity: Not applicable Award Period: October 01, 2020, through September 30, 2023 Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: Per 42 CFR 435.914 (a), the agency must include in each applicant?s case record facts to support the agency?s decision on his or her application. In addition, Section 4.7 of the Department?s Title XIX (Medicaid) State Plan (Maintenance of Records) affirms that it meets the requirements outlined in 42 CFR 431.17 (b), that a State plan must provide that the Medicaid agency will maintain or supervise the maintenance of records necessary for the proper and efficient operation of the plan. Furthermore, the Department?s Title XXI (CHIP) State Plan attests that CHIP will operate as a Medicaid expansion program. Therefore, the aforementioned regulations apply to both programs. Condition: Eligibility files did not contain adequate documentation to support the Medicaid and CHIP recipient eligibility status. Questioned Costs: Unknown Context: We tested 120 individual recipients (60 each for Medicaid and CHIP) to ensure the Department complied with applicable eligibility requirements. We determined the Department did not maintain adequate documentation of eligibility for 3 Medicaid recipients and 3 CHIP recipients. Cause: According to Department personnel, some documentation was not scanned into the electronic case files and maintained in accordance with its State plan. Effect: The Department could not support eligibility determinations in accordance with its State plan. Recommendation: We recommend the Department strengthen controls over eligibility determinations to ensure documentation is maintained and reviewed in accordance with its State plan and federal regulations. Prior Year Single Audit Finding Number: 2021-005 Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 103.
Federal Agency: Department of Homeland Security Federal Program Title: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing: 97.036 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition: FFATA reporting and timing errors were identified. Questioned Costs: None Context: Fourteen subawards were selected for testing and the following compliance errors were identified during the testing: ? The reported subaward obligation/action date did not agree to the subaward agreement date for one of the subawards tested. ? For seven of the subawards tested, the action was not reported in the FSRS by the last day of the month following the month that the subaward was made. ? The FSRS could not be accessed for four of the subawards in order to test reporting compliance for that subaward. Cause: Data entry errors and administrative delays led to the compliance errors identified in the testing. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend the Office update their current internal control to include continuous monitoring and reviewing of project obligations to ensure that reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 105.
Federal Agency: Department of Homeland Security Federal Program Title: Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing: 97.036 Federal Grant ID Numbers: Various Pass-Through Entity: Not applicable Award Period: Various Type of Finding: Significant deficiency in internal control over compliance, other matters Criteria: 2 CFR 170 Appendix A requires that recipients of grants or cooperative agreements report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition: FFATA reporting and timing errors were identified. Questioned Costs: None Context: Fourteen subawards were selected for testing and the following compliance errors were identified during the testing: ? The reported subaward obligation/action date did not agree to the subaward agreement date for one of the subawards tested. ? For seven of the subawards tested, the action was not reported in the FSRS by the last day of the month following the month that the subaward was made. ? The FSRS could not be accessed for four of the subawards in order to test reporting compliance for that subaward. Cause: Data entry errors and administrative delays led to the compliance errors identified in the testing. Effect: The Office was not in compliance with FFATA reporting requirements. Recommendation: We recommend the Office update their current internal control to include continuous monitoring and reviewing of project obligations to ensure that reports are submitted in compliance with FFATA reporting requirements. Prior Year Single Audit Finding Number: Not applicable Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding. See Corrective Action Plan at page 105.