Audit 394831

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Foster Care, Adoption, and Guardianship Assistance Program Cluster AL # 93.658, 93.659 Grant Number: 1701NCFOST; 1701NCADPT Finding: 2025-001 NON-MATERIAL NON-COMPLIANCE MATERIAL WEAKNESS- ELIGIBILITY Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include all required documentation. In accordance with 45 CFR 1356.21, the agency must file form 5120a within 12 months for recertification and ongoing eligibility determination. This includes proper use of standardized form 5120a. Condition: The County Department of Social Services failed to maintain adequate and correct case documentation. Two casefiles were missing form 5120a which recertifies eligibility for the foster care program. Upon further review, the cases were still eligible. Context: We sampled 22 adoption and 13 foster care casefiles and noted the above condition in 2 (5%) of the casefiles tested. Effect: The County may not have required supporting documentation for casefiles. There is a risk that casefiles may not be valid as a result. Cause: Caseworker failed to maintain adequate and correct documentation of form 5120a. Questioned Costs: The finding represents an internal control weakness; therefore, no questioned costs are applicable. Upon further review, the cases were still eligible. Identification of a Repeat Finding: This is a modified and repeated finding from the immediate and previous audit, 2024-005. Recommendation: The County should implement controls to ensure that all required documentation is adequate, correct, and maintained within the case file. Name of Contact Person: Candice Gobble, DSS Director Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Medicaid Cluster AL # 93.778 Grant Number: XIX-MAP24 Finding: 2025-002 NON-MATERIAL NON-COMPLIANCE MATERIAL WEAKNESS- ELIGIBILITY Criteria: In accordance with 42 CFR 431, benefits should be terminated timely to prevent payment errors. In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that benefits are properly terminated when a case is no longer eligible. Condition: One casefile was not properly terminated when it no longer met resource requirements. As a result, covid extensions continued past the deadline. Context: Of the 1,167,414 benefit payments valued at $596,429,470, we examined 60 payment records ($28,996 value) and determined that one (2% valued at $25) of the participants received benefits after the covid extension deadline. Effect: Benefits not being properly terminated could cause the County to expend funds over the eligible amount. Cause: The caseworker did not review to ensure that benefits were properly terminated. Questioned Costs: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Even though the sample results only identified $25 (federal share $22 and state share $3) in questioned costs, if tests were extended to the entire population, questioned costs could exceed $25,000. Recommendation: Caseworkers should review cases to ensure that benefits are properly terminated when eligibility requirements are no longer met. Name of Contact Person: Candice Gobble, DSS Director Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.