Audit 32534

FY End
2022-06-30
Total Expended
$29.53M
Findings
10
Programs
46
Organization: Onslow County, North Carolina (NC)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
34572 2022-007 Significant Deficiency - P
34573 2022-007 Significant Deficiency - P
34574 2022-005 Significant Deficiency - P
34575 2022-005 Significant Deficiency - P
34576 2022-006 Significant Deficiency Yes E
611014 2022-007 Significant Deficiency - P
611015 2022-007 Significant Deficiency - P
611016 2022-005 Significant Deficiency - P
611017 2022-005 Significant Deficiency - P
611018 2022-006 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
20.106 Airport Improvement Program $4.67M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.06M Yes 0
93.778 Medical Assistance Program $3.80M Yes 1
93.568 Low-Income Home Energy Assistance $2.06M - 0
93.558 Temporary Assistance for Needy Families $1.32M Yes 1
93.563 Child Support Enforcement $628,890 Yes 0
93.667 Social Services Block Grant $607,491 - 0
93.658 Foster Care_title IV-E $557,306 Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $361,432 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $345,634 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $285,849 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $282,322 - 0
21.019 Coronavirus Relief Fund $247,379 - 0
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $197,101 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $178,393 - 0
16.001 Law Enforcement Assistance_narcotics and Dangerous Drugs_laboratory Analysis $146,567 - 0
20.616 National Priority Safety Programs $120,342 - 0
97.042 Emergency Management Performance Grants $119,852 - 0
93.268 Immunization Cooperative Agreements $115,757 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $115,046 - 1
93.217 Family Planning_services $90,314 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $84,163 - 0
16.922 Equitable Sharing Program $78,315 - 0
93.659 Adoption Assistance $76,172 Yes 0
93.767 Children's Health Insurance Program $73,056 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $69,186 - 0
93.069 Public Health Emergency Preparedness $61,085 - 0
93.556 Promoting Safe and Stable Families $42,155 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $39,900 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $37,729 - 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $36,493 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $23,125 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $22,981 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $22,350 - 0
45.310 Grants to States $18,641 - 0
93.994 Maternal and Child Health Services Block Grant to the States $16,009 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $12,191 - 0
93.071 Medicare Enrollment Assistance Program $9,978 - 0
93.991 Preventive Health and Health Services Block Grant $9,745 - 0
97.067 Homeland Security Grant Program $9,494 - 0
93.324 State Health Insurance Assistance Program $7,513 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $7,224 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $3,223 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $2,542 - 0
16.835 Body Worn Camera Policy and Implementation $2,362 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $1,035 - 0

Contacts

Name Title Type
LTXVW6QF6297 R. Andrew Prince Auditee
9104553404 Marcela Spivey 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: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal and State Awards (SEFSA) includes the federal and State grant activity of the Onslow County under the programs of the federalgovernment 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 FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act . Because the Schedulepresents only a selected portion of the operations of Onslow County, it is not intended to and does not present the financial position, changes in net position or cash flows of Onslow 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: The auditee did not use the de minimis cost rate. 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, and Subsidized Child Care Program.
Title: Note 5: Opioid Settlement Fund 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: The auditee did not use the de minimis cost rate. The NC Department of Justice does not consider Opioid Settlement Funds either Federal or State Financial assistance since they are from a settlement with private major drug companies. Since these funds are subject to the State Single Audit Implementation Act, they are reported as "Other Financial Assistance" on the SEFSA, and considered State Awards for State single audit requirements.

Finding Details

Finding: 2022-007 U.S. Department of Agriculture Passed through the N.C. Department of Health and Human Services Program Name: Supplemental Nutrition Assistance Program Cluster AL #: 10.561 Internal Control, Significant Deficiency Criteria: Counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This documentation includes proper use of standardized Form 1682. Condition: EPI casefile did not include a signed Form 1682. Context: This compliance requirement falls under DSS Crosscutting Requirements by the N.C. Department of Health and Human Services. The EPI system was implemented to track and collect overpayments in various programs under the Division of Social Services. The program under which the case error was noted for the County was Food and Nutrition Services Program (Food Stamps). Effect: Claims can be incorrectly reported into EPI. Cause: Turnover in supervisor position left duties unfulfilled and an unsigned Form 1682 in the case file. Questioned Costs: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Upon further review, the case was still eligible to report a claim entry into EPI. Recommendation: The County should have procedures in place to cover the review process upon turnover within department. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding: 2022-007 U.S. Department of Agriculture Passed through the N.C. Department of Health and Human Services Program Name: Supplemental Nutrition Assistance Program Cluster AL #: 10.561 Internal Control, Significant Deficiency Criteria: Counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This documentation includes proper use of standardized Form 1682. Condition: EPI casefile did not include a signed Form 1682. Context: This compliance requirement falls under DSS Crosscutting Requirements by the N.C. Department of Health and Human Services. The EPI system was implemented to track and collect overpayments in various programs under the Division of Social Services. The program under which the case error was noted for the County was Food and Nutrition Services Program (Food Stamps). Effect: Claims can be incorrectly reported into EPI. Cause: Turnover in supervisor position left duties unfulfilled and an unsigned Form 1682 in the case file. Questioned Costs: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Upon further review, the case was still eligible to report a claim entry into EPI. Recommendation: The County should have procedures in place to cover the review process upon turnover within department. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding: 2022-005 U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Temporary Assistance for Needed Families AL #: 93.558 Internal Control, Significant Deficiency Criteria: The County policies require the department to conduct second-party reviews as part of the system of quality control. Management should have adequate second-party review procedures in place to properly review and assess the eligibility of individuals in order to ensure that the benefits being provided are within program requirements and documentation in the case file is complete and accurate. Evidence of review should be documented and be for the entire year. Condition: Process for second party reviews did not take place throughout the entire fiscal year. Context: Supervisors did not complete second party reviews throughout the entire fiscal year for the Temporary Assistance for Needed Families program. Effect: The County?s second-party review process is not effective at ensuring that case files are complete and accurate. Errors could exist that go uncorrected. Cause: Turnover in department left certain duties unfulfilled during part of the fiscal year. Questioned Cost: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Recommendation: The County should have procedures in place to cover the second-party review process upon turnover within department. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.
Finding: 2022-005 U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Temporary Assistance for Needed Families AL #: 93.558 Internal Control, Significant Deficiency Criteria: The County policies require the department to conduct second-party reviews as part of the system of quality control. Management should have adequate second-party review procedures in place to properly review and assess the eligibility of individuals in order to ensure that the benefits being provided are within program requirements and documentation in the case file is complete and accurate. Evidence of review should be documented and be for the entire year. Condition: Process for second party reviews did not take place throughout the entire fiscal year. Context: Supervisors did not complete second party reviews throughout the entire fiscal year for the Temporary Assistance for Needed Families program. Effect: The County?s second-party review process is not effective at ensuring that case files are complete and accurate. Errors could exist that go uncorrected. Cause: Turnover in department left certain duties unfulfilled during part of the fiscal year. Questioned Cost: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Recommendation: The County should have procedures in place to cover the second-party review process upon turnover within department. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.
Finding: 2022-006 U.S. Department of Health and Human Services Passed through the N.C. Department of Health and Human Services Program Name: Medical Assistance Program (Medicaid; Title XIX) AL #: 93.778 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 income 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 1,159,466 benefit payment cases valued at $357,644,529, we examined 60 payment records ($11,247 value) and determined that the above condition to one payment (.15% valued at $17). We determined that the participant 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 weakness; 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.
Finding: 2022-007 U.S. Department of Agriculture Passed through the N.C. Department of Health and Human Services Program Name: Supplemental Nutrition Assistance Program Cluster AL #: 10.561 Internal Control, Significant Deficiency Criteria: Counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This documentation includes proper use of standardized Form 1682. Condition: EPI casefile did not include a signed Form 1682. Context: This compliance requirement falls under DSS Crosscutting Requirements by the N.C. Department of Health and Human Services. The EPI system was implemented to track and collect overpayments in various programs under the Division of Social Services. The program under which the case error was noted for the County was Food and Nutrition Services Program (Food Stamps). Effect: Claims can be incorrectly reported into EPI. Cause: Turnover in supervisor position left duties unfulfilled and an unsigned Form 1682 in the case file. Questioned Costs: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Upon further review, the case was still eligible to report a claim entry into EPI. Recommendation: The County should have procedures in place to cover the review process upon turnover within department. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding: 2022-007 U.S. Department of Agriculture Passed through the N.C. Department of Health and Human Services Program Name: Supplemental Nutrition Assistance Program Cluster AL #: 10.561 Internal Control, Significant Deficiency Criteria: Counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This documentation includes proper use of standardized Form 1682. Condition: EPI casefile did not include a signed Form 1682. Context: This compliance requirement falls under DSS Crosscutting Requirements by the N.C. Department of Health and Human Services. The EPI system was implemented to track and collect overpayments in various programs under the Division of Social Services. The program under which the case error was noted for the County was Food and Nutrition Services Program (Food Stamps). Effect: Claims can be incorrectly reported into EPI. Cause: Turnover in supervisor position left duties unfulfilled and an unsigned Form 1682 in the case file. Questioned Costs: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Upon further review, the case was still eligible to report a claim entry into EPI. Recommendation: The County should have procedures in place to cover the review process upon turnover within department. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding: 2022-005 U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Temporary Assistance for Needed Families AL #: 93.558 Internal Control, Significant Deficiency Criteria: The County policies require the department to conduct second-party reviews as part of the system of quality control. Management should have adequate second-party review procedures in place to properly review and assess the eligibility of individuals in order to ensure that the benefits being provided are within program requirements and documentation in the case file is complete and accurate. Evidence of review should be documented and be for the entire year. Condition: Process for second party reviews did not take place throughout the entire fiscal year. Context: Supervisors did not complete second party reviews throughout the entire fiscal year for the Temporary Assistance for Needed Families program. Effect: The County?s second-party review process is not effective at ensuring that case files are complete and accurate. Errors could exist that go uncorrected. Cause: Turnover in department left certain duties unfulfilled during part of the fiscal year. Questioned Cost: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Recommendation: The County should have procedures in place to cover the second-party review process upon turnover within department. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.
Finding: 2022-005 U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Temporary Assistance for Needed Families AL #: 93.558 Internal Control, Significant Deficiency Criteria: The County policies require the department to conduct second-party reviews as part of the system of quality control. Management should have adequate second-party review procedures in place to properly review and assess the eligibility of individuals in order to ensure that the benefits being provided are within program requirements and documentation in the case file is complete and accurate. Evidence of review should be documented and be for the entire year. Condition: Process for second party reviews did not take place throughout the entire fiscal year. Context: Supervisors did not complete second party reviews throughout the entire fiscal year for the Temporary Assistance for Needed Families program. Effect: The County?s second-party review process is not effective at ensuring that case files are complete and accurate. Errors could exist that go uncorrected. Cause: Turnover in department left certain duties unfulfilled during part of the fiscal year. Questioned Cost: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Recommendation: The County should have procedures in place to cover the second-party review process upon turnover within department. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.
Finding: 2022-006 U.S. Department of Health and Human Services Passed through the N.C. Department of Health and Human Services Program Name: Medical Assistance Program (Medicaid; Title XIX) AL #: 93.778 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 income 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 1,159,466 benefit payment cases valued at $357,644,529, we examined 60 payment records ($11,247 value) and determined that the above condition to one payment (.15% valued at $17). We determined that the participant 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 weakness; 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.