Audit 341479

Item 2024-0001- Eligibility - Material Weakness Name of Federal Agency: United States Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families (TANF) Assistance Listing Number 93.558 Federal Award Identification Number and Year: 47515 - Year Ended June 30, 2024 Name of Pass-through Entity: North Carolina Department of Health and Human Services Criteria NC Pre-K guidance requires that all children whom a direct service provider requests funding for must be eligible to receive that funding. Condition The Halifax - Warren Smart Start Partnership (HWSS) requested and received funding for one child sampled who was not eligible. Cause Providers were instructed to only request funding for eligible children as part of their contract. The Partnership requested funding for one child who was deemed to be ineligible. Effect or Potential Effect The effect is noncompliance with the United States Department of Health and Human Services regulations, which could result in a loss of funding. Questioned Costs: $7,190 Context During testing of the eligibility compliance requirement, it was noted that, one student out of forty students tested was entered into the NCPK APP and deemed ineligible by the system. The scorecard was marked ineligible and sent to the site. Funding was requested for the child despite them being ineligible. Identification of Repeat Finding: Not a repeat finding. Recommendation Management should implement controls over record retention for eligibility documentation of children. Reporting Views of Responsible Officials Going forward, all initial rosters submitted to HWSS will be reviewed by at least two different HWSS staff and compared to eligibility results to verify eligibility prior to entering rosters into NCPK KIDS. Any changes to a roster during the year will also be verified by at least two HWSS staff.

Item 2024-0001- Eligibility - Material Weakness Name of Federal Agency: United States Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families (TANF) Assistance Listing Number 93.558 Federal Award Identification Number and Year: 47515 - Year Ended June 30, 2024 Name of Pass-through Entity: North Carolina Department of Health and Human Services Criteria NC Pre-K guidance requires that all children whom a direct service provider requests funding for must be eligible to receive that funding. Condition The Halifax - Warren Smart Start Partnership (HWSS) requested and received funding for one child sampled who was not eligible. Cause Providers were instructed to only request funding for eligible children as part of their contract. The Partnership requested funding for one child who was deemed to be ineligible. Effect or Potential Effect The effect is noncompliance with the United States Department of Health and Human Services regulations, which could result in a loss of funding. Questioned Costs: $7,190 Context During testing of the eligibility compliance requirement, it was noted that, one student out of forty students tested was entered into the NCPK APP and deemed ineligible by the system. The scorecard was marked ineligible and sent to the site. Funding was requested for the child despite them being ineligible. Identification of Repeat Finding: Not a repeat finding. Recommendation Management should implement controls over record retention for eligibility documentation of children. Reporting Views of Responsible Officials Going forward, all initial rosters submitted to HWSS will be reviewed by at least two different HWSS staff and compared to eligibility results to verify eligibility prior to entering rosters into NCPK KIDS. Any changes to a roster during the year will also be verified by at least two HWSS staff.