Audit 397052

2025-001 U.S. Department of Health and Human Services, AL No. 10.557 Eligibility MATERIAL WEAKNESS AND NONCOMPLIANCE Condition: Lack of adequate supporting documentation. No supporting income, residential and other eligibility documentation was maintained by the Health Department after certifying the individual and entering the data directly in the State’s reporting website. As a result, we were unable to perform testing procedures over eligibility compliance requirements. Criteria: LCHD is required to maintain adequate documentation to provide evidence of their compliance with requirements applicable to each program funded under the Uniform Guidance. Cause: LCHD lacked adequate procedures over the maintenance of documentation to verify program participants met all eligibility requirements; Categorical, Identity & Residence, Income, and Nutritional Risk. This was a result of miscommunication in identifying the documentation that should be kept and maintained during a participant’s Certification and length of time records should be maintained after entering the information in the State’s reporting website. Effect: Services may have been provided to ineligible participants. Recommendation: Management should continue to evaluate procedures for capturing, reporting, and maintaining personnel, expense, and participant eligibility documentation, related to their various federal award programs. In order to ensure services are only provided to eligible individuals. Procedures should include additional oversight and monitoring over original source data. Grantee’s Response: Management concurs and will implement additional procedures, oversight, and monitoring over required eligibility documentation.

2025-002 U.S. Department of Health and Human Services, AL No 93.323 Reporting MATERIAL WEAKNESS & NONCOMPLIANCE Condition: Controls in place did not ensure quarterly reports were submitted timely. During our testing, three of the three quarterly reports, over the nine month reporting period were not submitted by the 15th of the required reporting month. Reports were submitted between three and sixty-three days after the deadline. Criteria: Grant specifications require quarterly reporting due January 15th, April 15th, July 15th, and October 15th for the previous 3-month reporting period. Cause: LCHD lacked adequate procedures over the timely reporting of program related expenses, to ensure reports are prepared and submitted by the required reporting deadlines. Effect: Failure to file timely reports is a breach of the award terms and conditions. It prevents the federal awarding agency from performing effective oversight and could result in the suspension of future funding or a high-risk designation. Recommendation: Management should continue to evaluate procedures for capturing, and reporting of their various federal award programs. Procedures should include a secondary reviewer to verify the accuracy and timeliness of all submissions. Management should consider implementing a formalized grant reporting calendar that includes automated alerts for upcoming deadlines. Grantee’s Response: Management concurs and will continue to evaluate procedures for capturing and reporting grant activity, including implementing additional oversight and monitoring.

2025-003 U.S. Department of Health and Human Services, AL No 93.323 Special Tests – Prevailing Wages MATERIAL WEAKNESS Condition: Controls in place did not ensure certified payrolls were being received from the contractor and reviewed by a designated individual overseeing the renovation project at the Health Department, to ensure compliance with prevailing wage requirements. Criteria: The Davis Bacon Act (40 U.S.C. 3141-3144) requires all contractor and subcontractors on federal funded construction projects over $2,000 to pay laborers and mechanics prevailing wages. In addition to including prevailing wage rate clauses in construction contracts, the Health Department is required to monitor contractors by receiving and reviewing weekly certified payrolls to ensure laborers are paid no less than the prevailing wage. Cause: The Health Department lacked a formalized internal control process for tracking the specific requirements related to federally funded construction projects. In addition to fiscal and program staff primarily managing clinical grants and not being sufficiently trained on the specific labor compliance monitoring required for federal construction and renovation projects. Effect: The lack of monitoring could result in contractors underpaying employees or misclassifying labor roles, leading to grant funding suspension or debarment of contractor. Recommendation: Management should implement additional procedures to ensure all required grant requirements are identified and monitored to ensure requirements are met. Grantee’s Response: Management concurs and will continue to evaluate procedures for capturing, reporting and identifying grant activity, including implementing additional oversight and monitoring.