Audit 31229

FY End
2022-06-30
Total Expended
$10.57M
Findings
10
Programs
34
Organization: Wilkes County, North Carolina (NC)
Year: 2022 Accepted: 2023-03-08

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
34585 2022-001 Significant Deficiency - P
34586 2022-001 Significant Deficiency - P
34587 2022-001 Significant Deficiency - P
34588 2022-001 Significant Deficiency - P
34589 2022-002 Significant Deficiency - E
611027 2022-001 Significant Deficiency - P
611028 2022-001 Significant Deficiency - P
611029 2022-001 Significant Deficiency - P
611030 2022-001 Significant Deficiency - P
611031 2022-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $1.61M Yes 2
93.658 Foster Care_title IV-E $1.20M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $827,249 Yes 0
93.568 Low-Income Home Energy Assistance - Arpa $490,991 - 0
93.563 Child Support Enforcement $458,742 Yes 1
20.106 Airport Improvement Program $432,953 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $428,598 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $357,325 - 0
93.268 Immunization Cooperative Agreements $292,390 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $283,178 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $204,862 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $118,168 Yes 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $80,036 - 0
93.556 Promoting Safe and Stable Families $77,413 - 0
20.106 Airport Improvement Program - Arpa $60,172 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $58,006 - 0
93.217 Family Planning_services $41,970 - 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $41,752 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $41,742 - 0
93.659 Adoption Assistance $39,985 Yes 1
93.069 Public Health Emergency Preparedness $36,556 - 0
93.991 Preventive Health and Health Services Block Grant $30,608 - 0
93.767 Children's Health Insurance Program $28,018 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $22,228 - 0
93.994 Maternal and Child Health Services Block Grant to the States $20,087 - 0
93.667 Social Services Block Grant $15,677 - 0
93.568 Low-Income Home Energy Assistance - Arpa Adm $15,454 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $12,675 - 0
97.042 Emergency Management Performance Grants $11,068 - 0
93.558 Temporary Assistance for Needy Families $6,841 - 0
93.568 Low-Income Home Energy Assistance $3,956 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $759 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $100 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50 - 0

Contacts

Name Title Type
M14KKHY2NNR3 Chris Huffman Auditee
3366517378 Paula Hodges Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Wilkes County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and state grant activity of Wilkes County under the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in this SEFSA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of Wilkes County, it is not intended to and does not present the financial position, changes in net position or cash flows of Wilkes County.
Title: Note 4: Cluster of Programs Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Wilkes County has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following are clustered by the NC Department of Health and Human Services and are treated separately for state audit requirement purposes: Foster Care, Adoption, and Guardianship Assistance Program, Special Children Adoption Fund, Subsidized Childcare Program Cluster, and Refugee and Entrant Assistance Cluster.

Finding Details

Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Internal Control, Significant Deficiency Criteria: In accordance with 42 CFR 435, documentation must be obtained as needed to determine if a recipient meets specific eligibility standards, and documentation must be maintained to support those determinations. In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure the accuracy of benefits being provided is within program requirements. Management must monitor activities under federal awards to assure compliance with federal requirements. Condition: One casefile had resources documented in NC FAST that did not match supporting source document (AVS). After review of the cases, the participant was found to still be eligible for Medicaid benefits. Context: Of the 615,695 benefit payments valued at $198,332,895, we examined 60 payment records ($70,630 value) and determined that the above condition to one payment (.09% valued at $63). We determined that the one was still eligible after redetermination with the correct documentation. Effect: Participants could receive benefits for which they are not eligible. Cause: Caseworkers did not take proper steps in making sure what was used for eligibility determination was complete and accurate per program guidelines. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Upon further review, the applicant was still eligible to receive Medicaid benefits. Recommendation: Caseworkers should review their eligibility determinations and ensure all documentation is included and accurate. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Significant Deficiency Criteria: In accordance with 2 CFR 200, management must have an adequate system of internal control procedures in place to adequately safeguard confidential information from unauthorized use in compliance with applicable laws and regulations. In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstations of DSS employees were unlocked, and the workstation was logged onto the state network without anyone attending to the work station. Context: During a surprise walkthrough, we examined 41 workstations and determined that 1 (2%) workstations were not properly secured. The workstations were unattended and/or logged onto the state system. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lapse of internal controls over data security. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Actions: Management accepts this finding. Please refer to the Corrective Action Plan.
Internal Control, Significant Deficiency Criteria: In accordance with 42 CFR 435, documentation must be obtained as needed to determine if a recipient meets specific eligibility standards, and documentation must be maintained to support those determinations. In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure the accuracy of benefits being provided is within program requirements. Management must monitor activities under federal awards to assure compliance with federal requirements. Condition: One casefile had resources documented in NC FAST that did not match supporting source document (AVS). After review of the cases, the participant was found to still be eligible for Medicaid benefits. Context: Of the 615,695 benefit payments valued at $198,332,895, we examined 60 payment records ($70,630 value) and determined that the above condition to one payment (.09% valued at $63). We determined that the one was still eligible after redetermination with the correct documentation. Effect: Participants could receive benefits for which they are not eligible. Cause: Caseworkers did not take proper steps in making sure what was used for eligibility determination was complete and accurate per program guidelines. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Upon further review, the applicant was still eligible to receive Medicaid benefits. Recommendation: Caseworkers should review their eligibility determinations and ensure all documentation is included and accurate. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.