Audit 337930

FY End
2024-06-30
Total Expended
$16.64M
Findings
8
Programs
40
Organization: Rowan County, North Carolina (NC)
Year: 2024 Accepted: 2025-01-15

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
519261 2024-001 Material Weakness - N
519262 2024-001 Material Weakness - N
519263 2024-002 Significant Deficiency - N
519264 2024-002 Significant Deficiency - N
1095703 2024-001 Material Weakness - N
1095704 2024-001 Material Weakness - N
1095705 2024-002 Significant Deficiency - N
1095706 2024-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $3.13M Yes 2
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $1.67M - 0
93.563 Child Support Services $1.63M - 0
20.106 Airport Improvement Program, Covid-19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $1.06M Yes 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $764,064 Yes 0
93.667 Social Services Block Grant $676,993 - 0
93.658 Foster Care Title IV-E $625,093 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $584,406 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $582,251 - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $300,814 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $223,423 Yes 2
20.509 Formula Grants for Rural Areas and Tribal Transit Program $201,154 - 0
93.268 Covid-19 Immunization Cooperative Agreements $185,409 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $174,851 - 0
93.767 Children's Health Insurance Program $164,069 - 0
93.568 Covid-19 Low-Income Home Energy Assistance $147,590 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $129,339 - 0
93.217 Family Planning Services $85,885 - 0
93.994 Maternal and Child Health Services Block Grant to the States $82,894 - 0
21.016 Equitable Sharing $51,500 - 0
10.561 Covid-19 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $50,944 - 0
93.069 Public Health Emergency Preparedness $48,401 - 0
93.268 Immunization Cooperative Agreements $35,368 - 0
93.991 Preventive Health and Health Services Block Grant $29,862 - 0
16.922 Equitable Sharing Program $26,006 - 0
93.053 Nutrition Services Incentive Program $23,977 - 0
93.558 Temporary Assistance for Needy Families $21,127 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $16,943 - 0
93.917 Hiv Care Formula Grants $11,166 - 0
93.659 Adoption Assistance $10,808 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $9,500 - 0
93.568 Low-Income Home Energy Assistance $7,796 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $7,340 Yes 0
16.606 State Criminal Alien Assistance Program $4,551 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $3,573 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $3,293 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1,932 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $563 - 0
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $100 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50 - 0

Contacts

Name Title Type
GCB7UCV96NW6 Anna Bumgarner Auditee
7042168170 Erica Brown Auditor
No contacts on file

Notes to SEFA

Title: 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. The County has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the ten 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 the County under the programs of the federal government and the state of North Carolina for the year ended June 30, 2024. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award s and the State Single Audit Implementation Act. Because the schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position or cash flows of the County.
Title: 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. The County has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. The following are clustered by the N.C. Department of Health and Human Services and are treated separately for state audit requirement purposes:Subsidized Child Care Program; Foster Care, Adoption and Guardianship Assistance Program; Refugee and Entrant Assistance; and Special Children Adoption Fund
Title: 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. The County has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the ten percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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

U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Material Weakness, Special Tests and Provisions Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This information includes but is not limited to the dates of the overpayment period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or verification from an employer, other income verification and household composition verification, and the budgets used to compute the amount of the overpayment. This also includes proper use of standardized form 1682. Condition: We noted nine instances of claims entered in EPI where adequate case documentation was not maintained. Nine case files did not include a signed form 1682. Context: We sampled 40 claims that were current in the EPI system and noted the above condition in nine (22.5%) of the claims tested. Effect: The County may not have required supporting documentation for claims entered into the EPI system. There is a risk that claims may not be valid as a result. Cause: Turnover in the department left duties unfulfilled and unsigned or missing forms in the case files. Questioned Cost: 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 implement controls, such as additional training and supervisory review, to ensure that all required documentation is adequate and maintained within the case file. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Material Weakness, Special Tests and Provisions Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This information includes but is not limited to the dates of the overpayment period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or verification from an employer, other income verification and household composition verification, and the budgets used to compute the amount of the overpayment. This also includes proper use of standardized form 1682. Condition: We noted nine instances of claims entered in EPI where adequate case documentation was not maintained. Nine case files did not include a signed form 1682. Context: We sampled 40 claims that were current in the EPI system and noted the above condition in nine (22.5%) of the claims tested. Effect: The County may not have required supporting documentation for claims entered into the EPI system. There is a risk that claims may not be valid as a result. Cause: Turnover in the department left duties unfulfilled and unsigned or missing forms in the case files. Questioned Cost: 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 implement controls, such as additional training and supervisory review, to ensure that all required documentation is adequate and maintained within the case file. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Significant Deficiency, Special Tests and Provisions Criteria: In accordance with the Office of Management and Budget Memorandum M-07-16, safeguarding personally identifiable information in the possession of the government and preventing its breach are essential to ensure the government retains the trust of the American public. All individuals with authorized access to personally identifiable information and their supervisors must sign, at least annually, a document clearly describing their responsibilities. Condition: We noted three instances where an employee’s file did not include a signed confidentiality document. Context: Of the 25 personnel files examined, three (12%) did not contain the signed document. Effect: Sufficient back up documentation did not exist to support the employee received the proper PII training. Cause: Lack of proper internal controls over PII training and documentation. Questioned Cost: This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The County should implement a review process to ensure all employees receive the required PII training each year. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Significant Deficiency, Special Tests and Provisions Criteria: In accordance with the Office of Management and Budget Memorandum M-07-16, safeguarding personally identifiable information in the possession of the government and preventing its breach are essential to ensure the government retains the trust of the American public. All individuals with authorized access to personally identifiable information and their supervisors must sign, at least annually, a document clearly describing their responsibilities. Condition: We noted three instances where an employee’s file did not include a signed confidentiality document. Context: Of the 25 personnel files examined, three (12%) did not contain the signed document. Effect: Sufficient back up documentation did not exist to support the employee received the proper PII training. Cause: Lack of proper internal controls over PII training and documentation. Questioned Cost: This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The County should implement a review process to ensure all employees receive the required PII training each year. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Material Weakness, Special Tests and Provisions Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This information includes but is not limited to the dates of the overpayment period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or verification from an employer, other income verification and household composition verification, and the budgets used to compute the amount of the overpayment. This also includes proper use of standardized form 1682. Condition: We noted nine instances of claims entered in EPI where adequate case documentation was not maintained. Nine case files did not include a signed form 1682. Context: We sampled 40 claims that were current in the EPI system and noted the above condition in nine (22.5%) of the claims tested. Effect: The County may not have required supporting documentation for claims entered into the EPI system. There is a risk that claims may not be valid as a result. Cause: Turnover in the department left duties unfulfilled and unsigned or missing forms in the case files. Questioned Cost: 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 implement controls, such as additional training and supervisory review, to ensure that all required documentation is adequate and maintained within the case file. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Material Weakness, Special Tests and Provisions Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, counties must acquire adequate case documentation to substantiate the claim entry into the Enterprise Program Integrity (EPI). This information includes but is not limited to the dates of the overpayment period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or verification from an employer, other income verification and household composition verification, and the budgets used to compute the amount of the overpayment. This also includes proper use of standardized form 1682. Condition: We noted nine instances of claims entered in EPI where adequate case documentation was not maintained. Nine case files did not include a signed form 1682. Context: We sampled 40 claims that were current in the EPI system and noted the above condition in nine (22.5%) of the claims tested. Effect: The County may not have required supporting documentation for claims entered into the EPI system. There is a risk that claims may not be valid as a result. Cause: Turnover in the department left duties unfulfilled and unsigned or missing forms in the case files. Questioned Cost: 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 implement controls, such as additional training and supervisory review, to ensure that all required documentation is adequate and maintained within the case file. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Significant Deficiency, Special Tests and Provisions Criteria: In accordance with the Office of Management and Budget Memorandum M-07-16, safeguarding personally identifiable information in the possession of the government and preventing its breach are essential to ensure the government retains the trust of the American public. All individuals with authorized access to personally identifiable information and their supervisors must sign, at least annually, a document clearly describing their responsibilities. Condition: We noted three instances where an employee’s file did not include a signed confidentiality document. Context: Of the 25 personnel files examined, three (12%) did not contain the signed document. Effect: Sufficient back up documentation did not exist to support the employee received the proper PII training. Cause: Lack of proper internal controls over PII training and documentation. Questioned Cost: This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The County should implement a review process to ensure all employees receive the required PII training each year. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medicaid Cluster AL Number: 93.778 Grant Number: XIX-MAP Program Name: Child Care Development Fund Cluster AL Number: 93.596 Grant Number: G1801NCCCDF Non-Material Non-Compliance Significant Deficiency, Special Tests and Provisions Criteria: In accordance with the Office of Management and Budget Memorandum M-07-16, safeguarding personally identifiable information in the possession of the government and preventing its breach are essential to ensure the government retains the trust of the American public. All individuals with authorized access to personally identifiable information and their supervisors must sign, at least annually, a document clearly describing their responsibilities. Condition: We noted three instances where an employee’s file did not include a signed confidentiality document. Context: Of the 25 personnel files examined, three (12%) did not contain the signed document. Effect: Sufficient back up documentation did not exist to support the employee received the proper PII training. Cause: Lack of proper internal controls over PII training and documentation. Questioned Cost: This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: The County should implement a review process to ensure all employees receive the required PII training each year. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.