Audit 346492

FY End
2024-06-30
Total Expended
$29.67M
Findings
2
Programs
48
Organization: Orange County, North Carolina (NC)
Year: 2024 Accepted: 2025-03-17

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
528489 2024-005 Significant Deficiency - L
1104931 2024-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $7.15M Yes 1
93.563 Child Support Services $1.48M - 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $691,638 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $635,294 - 0
93.767 Children's Health Insurance Program $381,731 - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $276,021 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $198,035 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $195,225 - 0
14.267 Continuum of Care Program $164,878 - 0
17.259 Wioa Youth Activities $160,989 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $122,460 - 0
93.994 Maternal and Child Health Services Block Grant to the States $113,789 - 0
93.378 Integrated Care for Kids Model $108,179 - 0
93.217 Family Planning Services $90,198 - 0
14.231 Emergency Solutions Grant Program $89,688 - 0
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $71,592 - 0
93.667 Social Services Block Grant $70,924 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $57,130 - 0
14.239 Home Investment Partnerships Program $53,277 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $43,998 Yes 0
93.069 Public Health Emergency Preparedness $34,966 - 0
93.940 Hiv Prevention Activities Health Department Based $31,000 - 0
93.991 Preventive Health and Health Services Block Grant $30,431 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $28,930 - 0
10.902 Soil and Water Conservation $28,651 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $25,710 - 0
93.268 Immunization Cooperative Agreements $24,370 - 0
14.401 Fair Housing Assistance Program $22,784 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $21,743 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $20,090 - 0
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $20,009 - 0
93.568 Low-Income Home Energy Assistance $15,197 - 0
20.600 State and Community Highway Safety $14,700 - 0
93.053 Nutrition Services Incentive Program $14,350 - 0
93.658 Foster Care Title IV-E $13,463 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $11,800 - 0
93.659 Adoption Assistance $10,938 - 0
93.558 Temporary Assistance for Needy Families $10,014 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $9,453 - 0
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $7,547 - 0
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $5,635 - 0
93.071 Medicare Enrollment Assistance Program $4,318 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $3,999 - 0
97.042 Emergency Management Performance Grants $3,283 - 0
93.778 Medical Assistance Program $1,780 Yes 0
45.310 Grants to States $1,013 - 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
GFFMCW9XDA53 Gary Donaldson Auditee
9192452453 Tim Lyons 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. The County has elected not to use the 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of Orange County, North Carolina (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 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements (Uniform Guidance) for Federal Awards and the State Single Audit Implementation Act. Because the SEFSA 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. Direct benefit payments are paid directly to recipients and are not included in the County's basic financial statements.
Title: Note 2: Summary of Significant Accounting Policies 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 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate 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 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3: Indirect Cost Rate 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 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate The County has elected not to use the 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance.
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. The County has elected not to use the 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate 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, Foster Care and Adoption, and Aging.
Title: Note 5: Benefit Payments Issued by the State 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 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate The amount listed below were paid directly to individual recipients by the State from federal and State monies. County personnel are involved with certain functions, primarily eligibility determinations that cause benefit payments to be issued by the State. These amounts disclose this additional aid to County recipients that do not appear in the basic financial statements because they are not revenues and expenditures to the County. See the Notes to the SEFA for chart/table.
Title: Note 6: Juvenile Crime Prevention Council reimbursed the following subrecipients as reported on the SEFSA. 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 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate See the Notes to the SEFA for chart/table.
Title: Note 7: 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 10 percent de Minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus 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

Information on the Federal Program: Low Income Housing Assistance Program (Section 8), Assistance Listing Number 14.871, U.S. Department of Housing and Urban Development. Criteria: Public Housing Agencies (PHAs) are required to submit timely a Financial Assessment Sub-system (FASSPH) GAAP-based unaudited and audited financial information electronically to HUD. Condition: We noted the County did not submit the 2023 FASS-PH report in a timely manner. The report was submitted in the past several months after the audit for that year’s end, while this year, the report was submitted on January 29, 2025, as a result of our single audit testing discovering it had not been submitted. Cause: The County had turnover in key positions leading to difficulties in finalizing the FASS-PH report on time. Effect: The County was not in compliance with the requirement to submit the FASS-PH report in a timely manner. This is not a material weakness as other information is supplied to HUD throughout the year but is still a significant deficiency as this report not being submitted causes the County to not be in compliance with HUD requirements. Recommendation: We recommend that the County designate specific personnel responsible for monitoring federal reporting deadlines and have internal controls in place to ensure that, even during times of staff turnover, these functions are still being carried out as required. Auditee’s Response: The 2023 FASS-PH report is now completed, and the 2024 FASS-PH is in progress of being completed. Both of these reports have been added to our year-end checklist
Information on the Federal Program: Low Income Housing Assistance Program (Section 8), Assistance Listing Number 14.871, U.S. Department of Housing and Urban Development. Criteria: Public Housing Agencies (PHAs) are required to submit timely a Financial Assessment Sub-system (FASSPH) GAAP-based unaudited and audited financial information electronically to HUD. Condition: We noted the County did not submit the 2023 FASS-PH report in a timely manner. The report was submitted in the past several months after the audit for that year’s end, while this year, the report was submitted on January 29, 2025, as a result of our single audit testing discovering it had not been submitted. Cause: The County had turnover in key positions leading to difficulties in finalizing the FASS-PH report on time. Effect: The County was not in compliance with the requirement to submit the FASS-PH report in a timely manner. This is not a material weakness as other information is supplied to HUD throughout the year but is still a significant deficiency as this report not being submitted causes the County to not be in compliance with HUD requirements. Recommendation: We recommend that the County designate specific personnel responsible for monitoring federal reporting deadlines and have internal controls in place to ensure that, even during times of staff turnover, these functions are still being carried out as required. Auditee’s Response: The 2023 FASS-PH report is now completed, and the 2024 FASS-PH is in progress of being completed. Both of these reports have been added to our year-end checklist