Audit 393386

U.S. Department of Health and Human Services Passed through the N.C. Department of Health and Human Services, Division of Social Services Program Name: SNAP Cluster AL #10.561 (215NC406S2514) Significant Deficiency, non-material non-compliance and internal control Special Tests and Provisions (Enterprise Program Integrity) Finding: 2025-002 Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, Counties must acquire adequate case documentation to substantiate the claim entry into the NC Fast Enterprise Program Integrity (“EPI” system. 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. Condition: We noted instances of claims entered in EPI where adequate case documentation to substantiate the claim entry was not maintained. Context: We sampled 60 claims that were current in the EPI system and noted the above condition in 4 (6.7%) of the claims tested. For the claim, the DSS-1682 corrected amount was not properly updated within the NCFAST system. Therefore, initial investigation in the claims file does not agree to the amount entered in EPI to be collected on by the County. Effect: The County may not have accurate supporting documentation for claims entered in EPI system. There is a risk that claims may not be valid as a result. Cause: Documentation to support a claim entered into EPI was not accurate. Questioned Costs: The finding represents potential questioned costs. However, in accordance with 2CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Likely questioned costs do not exceed $25,000. Recommendation: County DSS staff should implement controls to ensure that all documentation is maintained and agrees to what was entered into EPI. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.

U.S. Department of Health and Human Services Passed through the N.C. Department of Health and Human Services, Division of Social Services Program Name: Medicaid AL #93.778 (XIX-MAP23), SNAP Cluster AL #10.561 (215NC406S2514), Child Care Development Cluster AL #93.596 (G2301NCCCDF) Significant Deficiency, non-material non-compliance and internal control Reporting (Purchase of Service) Finding 2025-003 Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, Counties must have an approved contract for all purchased services reported on form DSS-1571. Condition: We noted an instance of an unsigned purchased service agreement. Context: We sampled 40 purchased services reported on form DSS-1571 and noted there were 5 samples pertaining to the unsigned purchased service agreement mentioned above. Effect: The County may have unapproved purchased services. There is a risk of unallowable purchased services as a result. Cause: Expenses were paid before a signed contract was obtained. Questioned Costs: The finding represents potential questioned costs. However, in accordance with 2CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Likely questioned costs do not exceed $25,000. Recommendation: County DSS staff should implement controls to ensure contracts are signed before submitting claims from potential vendors. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.