U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Health and Human Services
Passed through the N.C. Dept. of Health and Human Services
Program Name: Medical Assistance Program
AL# 93.778
Grant Number: XIX-MAP23 / XIX-MAP24
Program Name: Foster Care
AL# 93.658
Grant Number: 2301NCFOST / 2401NCFOST
Program Name: Adoption Assistance
AL# 93.659
Grant Number: 2301NCADPT / 2401NCADPT
Program Name: SNAP Cluster
AL# 10.561
Grant Number: 235NC406S2514 / 245NC406S2514
Significant Deficiency
Finding 2024-001
Criteria: 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, two unattended workstations of DSS employees were logged
onto the state network.
Context: While performing testing of internal control over compliance related to the Division of
Social Services, we noted the above condition.
Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the
system throughout the DSS building.
Cause: Lack of proper internal controls over data security.
Identification of a Repeat Finding: This is a modified, repeat finding from the immediate previous
audit, 2023-003.
Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned
costs are applicable.
Recommendation: Require the County Data Processing Department 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.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.
U.S. Department of Labor Employment and Training Administration
Passed through the N.C. Dept. of Commerce
Program Name: WIOA Cluster
AL# 17.258, 17.259, 17.278
Grant Number: 23A55AY000007-01-00 / AA-38547-22-55-A-37
Significant Deficiency, Nonmaterial Non-Compliance Earmarking
Finding 2024-002
Criteria: In accordance with 20 CFR 681.590, local youth programs must expend not less than 20
percent of the funds allocated to them, except for the local area expenditures for administration, to
provide paid and unpaid work experiences.
Condition: The County Department of Social Services failed to meet the required earmark
percentage for paid and unpaid work experiences for Youth Activities.
Context: While performing tests over compliance related to the WIOA Cluster, we noted the above
condition.
Questioned Costs: In accordance with 2 CFR 200.516(a)(3), auditors are required to report known
questioned costs when likely questioned costs are greater than $25,000. The results of our compliance
testing noted $34,440 in known questioned costs.
Effect: Program expenditures could be disproportionately paid across programs.
Cause: The County failed to monitor required earmarking for program specific requirements.
Recommendation: Require the County Program Directors to implement procedures to ensure that
earmarking requirements are met.
Name of Contact Person: Michael Coone, Social Services Assistant Director
Views of Responsible Officials and Planned Corrective Actions: Management concurs with this
finding and will adhere to the Corrective Action Plan in this audit report.