Audit 49163

FY End
2022-06-30
Total Expended
$247.69M
Findings
10
Programs
67
Organization: Wake County, North Carolina (NC)
Year: 2022 Accepted: 2023-03-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
48891 2022-002 Significant Deficiency - AB
48892 2022-003 Material Weakness - E
48893 2022-002 Significant Deficiency - AB
48894 2022-002 Significant Deficiency - AB
48895 2022-001 Significant Deficiency Yes E
625333 2022-002 Significant Deficiency - AB
625334 2022-003 Material Weakness - E
625335 2022-002 Significant Deficiency - AB
625336 2022-002 Significant Deficiency - AB
625337 2022-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $61.63M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $49.19M Yes 0
21.023 Emergency Rental Assistance Program $38.68M Yes 0
93.778 Medical Assistance Program $19.50M Yes 1
93.563 Child Support Enforcement $5.74M Yes 0
93.658 Foster Care_title IV-E $5.51M - 0
93.568 Low-Income Home Energy Assistance $4.09M - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $3.55M - 0
14.218 Community Development Block Grants/entitlement Grants $2.91M - 0
93.917 Hiv Care Formula Grants $2.61M - 0
17.258 Wia Adult Program $2.40M Yes 0
17.259 Wia Youth Activities $1.98M Yes 0
20.205 Highway Planning and Construction $1.97M - 0
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $1.76M - 0
93.667 Social Services Block Grant $1.76M - 0
93.268 Immunization Cooperative Agreements $1.67M - 0
17.278 Wia Dislocated Worker Formula Grants $1.39M Yes 0
93.994 Maternal and Child Health Services Block Grant to the States $980,084 - 0
14.239 Home Investment Partnerships Program $890,530 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $692,165 - 0
93.659 Adoption Assistance $616,412 - 0
17.270 Reintegration of Ex-Offenders $572,272 - 0
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $545,487 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $491,245 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $357,617 - 0
93.137 Community Programs to Improve Minority Health Grant Program $347,074 - 0
93.940 Hiv Prevention Activities_health Department Based $321,752 - 0
93.556 Promoting Safe and Stable Families $296,562 - 0
17.277 Workforce Investment Act (wia) National Emergency Grants $268,350 - 0
93.217 Family Planning_services $244,411 - 0
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $237,279 - 0
93.767 Children's Health Insurance Program $217,219 - 0
16.835 Body Worn Camera Policy and Implementation $196,400 - 0
20.600 State and Community Highway Safety $186,218 - 0
20.509 Formula Grants for Rural Areas and Tribal Transit Program $180,942 - 0
14.267 Continuum of Care Program $154,286 - 0
97.083 Staffing for Adequate Fire and Emergency Response (safer) $122,210 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $104,901 - 0
14.231 Emergency Solutions Grant Program $100,000 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $92,599 - 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $92,458 - 0
20.530 Public Transportation Innovation $90,274 - 0
93.069 Public Health Emergency Preparedness $88,000 - 0
93.558 Temporary Assistance for Needy Families $85,638 - 0
16.922 Equitable Sharing Program $84,323 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $83,851 - 0
14.241 Housing Opportunities for Persons with Aids $77,569 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $67,300 - 0
93.387 National and State Tobacco Control Program (b) $64,015 - 0
10.916 Watershed Rehabilitation Program $57,000 - 0
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $56,402 - 0
16.738 Edward Byrne Memorial Justice Assistance Grant Program $49,914 - 0
16.034 Coronavirus Emergency Supplemental Funding Program $46,497 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $43,456 Yes 1
84.184 Safe and Drug-Free Schools and Communities_national Programs $37,838 - 0
93.103 Food and Drug Administration_research $32,842 - 0
20.507 Federal Transit_formula Grants $32,553 - 0
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $27,855 - 0
93.991 Preventive Health and Health Services Block Grant $25,009 - 0
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $23,251 - 0
17.274 Youthbuild $19,846 - 0
97.042 Emergency Management Performance Grants $12,627 - 0
45.312 National Leadership Grants $9,891 - 0
94.013 Volunteers in Service to America $9,852 - 0
45.310 Grants to States $9,214 - 0
21.019 Coronavirus Relief Fund $2,200 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $100 - 0

Contacts

Name Title Type
FTJ2WJPLWMJ3 Hope McCullough Auditee
9198566302 Tim Lyons Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Implementation Act, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where available. The County has elected not to use the 10percent 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 minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal and state grant activity of the County under programs of the federal government for the year ended June 30, 2021. The information in this Schedule is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Implementation Act. Therefore, some of the amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of the financial statements. Also, because the Schedule 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.
Title: Cluster of Programs Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Implementation Act, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where available. The County has elected not to use the 10percent 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 minimis cost rate. The following are clustered by the NC Department of Health and Human Services and are treated separately for state audit requirement purposes: Subsidized Child Care and Foster Care Adoption

Finding Details

2022-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the federal program: Temporary Assistance for Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee Foster Care), Assistance Listing Number 93.674, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Condition: Employee?s time is tracked through the use of day sheets in which employees track their time by service code in 5-minute increments. Day sheets are used to complete weekly timesheets which are approved by supervisors. We noted three out of six day sheets selected for Chaffee Foster Care and three out of forty day sheets selected for TANF had more program minutes than what was reported on the employee?s approved time sheet. Context/Cause: As the day sheets included more program time than was included on the employee?s approved timesheet, the time spent on this program was understated during the 1571 monthly reimbursement request to the State. We noted the above condition in three out of six day sheets selected for Chafee Foster Care and three out of forty day sheets selected for TANF. Effects: Inaccurate reporting of time coded to programs affects the total federal and state reimbursement for the program. Recommendation: We recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. Auditee?s Response: We concur with the findings and are currently implementing controls to ensure the timesheets are appropriately reviewed.
2022-003 Material Weakness ? Eligibility Second Party Reviews Information on the federal program: Temporary Assistance for Needy Families, Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the DSS Administrative Letter for Economic and Family Service 07-2018, Work First Program Second Party Review Checklists must be completed at application and recertification for no less than 25% of the monthly ongoing Work First cases. The protocol must outline the persons responsible for completing the reviews and the process for follow-up as required. If second party reviews identify a trend in deficiencies; the County process for providing necessary training must also be outlined. Condition: Wake County was not abiding by the State policy and procedures outlined above. Reviews were not taking place at the frequency level based on number of cases. The County only reviewed 12% of the required cases during the 2022 fiscal year. Context: Wake County completed second party reviews for 193 out of 1592 cases during fiscal year 2022. Wake County was not meeting the proper policy procedures of examining no less than 25% of cases. . Effect: Lack of appropriate level of reviews occurring during the year, there is a risk that the County could provide benefits to individuals that are not eligible to receive those benefits. Cause: The County was unable to complete the required reports due to vacancies in the supervisor and quality assurance team which are responsible for completing the reviews. Recommendation: It is recommended that the County abide by the State policies in terms of the frequency and amount of case reviews each month. We also recommend that policies and procedures are documented surrounding second party reviews and be reinforced to ensure that reviews are being completed and followed up as necessary. Views of responsible officials: We concur with the findings.
2022-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the federal program: Temporary Assistance for Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee Foster Care), Assistance Listing Number 93.674, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Condition: Employee?s time is tracked through the use of day sheets in which employees track their time by service code in 5-minute increments. Day sheets are used to complete weekly timesheets which are approved by supervisors. We noted three out of six day sheets selected for Chaffee Foster Care and three out of forty day sheets selected for TANF had more program minutes than what was reported on the employee?s approved time sheet. Context/Cause: As the day sheets included more program time than was included on the employee?s approved timesheet, the time spent on this program was understated during the 1571 monthly reimbursement request to the State. We noted the above condition in three out of six day sheets selected for Chafee Foster Care and three out of forty day sheets selected for TANF. Effects: Inaccurate reporting of time coded to programs affects the total federal and state reimbursement for the program. Recommendation: We recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. Auditee?s Response: We concur with the findings and are currently implementing controls to ensure the timesheets are appropriately reviewed.
2022-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the federal program: Temporary Assistance for Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee Foster Care), Assistance Listing Number 93.674, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Condition: Employee?s time is tracked through the use of day sheets in which employees track their time by service code in 5-minute increments. Day sheets are used to complete weekly timesheets which are approved by supervisors. We noted three out of six day sheets selected for Chaffee Foster Care and three out of forty day sheets selected for TANF had more program minutes than what was reported on the employee?s approved time sheet. Context/Cause: As the day sheets included more program time than was included on the employee?s approved timesheet, the time spent on this program was understated during the 1571 monthly reimbursement request to the State. We noted the above condition in three out of six day sheets selected for Chafee Foster Care and three out of forty day sheets selected for TANF. Effects: Inaccurate reporting of time coded to programs affects the total federal and state reimbursement for the program. Recommendation: We recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. Auditee?s Response: We concur with the findings and are currently implementing controls to ensure the timesheets are appropriately reviewed.
2022-001 Significant Deficiency over Eligibility (Repeat Finding) Information on the federal program: Medicaid Cluster (Medicaid), Assistance Listing Number 93.778, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Medical Assistance. Criteria: Per the North Carolina Medicaid Assistance Program (Medicaid; Title XIX) Compliance Supplement and the DSS manuals (Aged, Blind and Disabled manual, Family and Children Medicaid manual and the Integrated Policy manual), case files for individuals or families receiving assistance are required to retain documentation to service as evidence for the appropriate eligibility determination, including: ? accurate computation of countable income and resources ? verification of unearned income ? verification of earned income Condition: We noted one instance were the amount of income verified through the NC FAST Online Verification System did not agree to the amount reported in the case file. We noted three instances where a vehicle was not added to the NCFAST dashboard to count towards the applicant?s resources. We noted one instance where the applicant?s social security number and citizenship was not validated at the time of application. Context/Cause: The County did not retain required documentation in case files at the time eligibility was determined. We noted the above conditions in 5 out of the 60 case files inspected for applicable payments. Effects: Case files not containing all required documentation results in a risk that the County could provide services to individuals not eligible to receive such services or that such services could be denied to eligible individuals. For all 5 cases, subsequent to being notified that required documentation had not been retained in the case file, the County was able to obtain documentation to substantiate that the applicant tested were eligible to receive benefits. Recommendation: We recommend that the County train and monitor employees on the eligibility determination process. We also recommend the County review and amend current policies and procedures in place to ensure that all eligibility determination documentation is completed and retained by the County. Auditee?s Response: We concur with the findings.
2022-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the federal program: Temporary Assistance for Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee Foster Care), Assistance Listing Number 93.674, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Condition: Employee?s time is tracked through the use of day sheets in which employees track their time by service code in 5-minute increments. Day sheets are used to complete weekly timesheets which are approved by supervisors. We noted three out of six day sheets selected for Chaffee Foster Care and three out of forty day sheets selected for TANF had more program minutes than what was reported on the employee?s approved time sheet. Context/Cause: As the day sheets included more program time than was included on the employee?s approved timesheet, the time spent on this program was understated during the 1571 monthly reimbursement request to the State. We noted the above condition in three out of six day sheets selected for Chafee Foster Care and three out of forty day sheets selected for TANF. Effects: Inaccurate reporting of time coded to programs affects the total federal and state reimbursement for the program. Recommendation: We recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. Auditee?s Response: We concur with the findings and are currently implementing controls to ensure the timesheets are appropriately reviewed.
2022-003 Material Weakness ? Eligibility Second Party Reviews Information on the federal program: Temporary Assistance for Needy Families, Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the DSS Administrative Letter for Economic and Family Service 07-2018, Work First Program Second Party Review Checklists must be completed at application and recertification for no less than 25% of the monthly ongoing Work First cases. The protocol must outline the persons responsible for completing the reviews and the process for follow-up as required. If second party reviews identify a trend in deficiencies; the County process for providing necessary training must also be outlined. Condition: Wake County was not abiding by the State policy and procedures outlined above. Reviews were not taking place at the frequency level based on number of cases. The County only reviewed 12% of the required cases during the 2022 fiscal year. Context: Wake County completed second party reviews for 193 out of 1592 cases during fiscal year 2022. Wake County was not meeting the proper policy procedures of examining no less than 25% of cases. . Effect: Lack of appropriate level of reviews occurring during the year, there is a risk that the County could provide benefits to individuals that are not eligible to receive those benefits. Cause: The County was unable to complete the required reports due to vacancies in the supervisor and quality assurance team which are responsible for completing the reviews. Recommendation: It is recommended that the County abide by the State policies in terms of the frequency and amount of case reviews each month. We also recommend that policies and procedures are documented surrounding second party reviews and be reinforced to ensure that reviews are being completed and followed up as necessary. Views of responsible officials: We concur with the findings.
2022-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the federal program: Temporary Assistance for Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee Foster Care), Assistance Listing Number 93.674, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Condition: Employee?s time is tracked through the use of day sheets in which employees track their time by service code in 5-minute increments. Day sheets are used to complete weekly timesheets which are approved by supervisors. We noted three out of six day sheets selected for Chaffee Foster Care and three out of forty day sheets selected for TANF had more program minutes than what was reported on the employee?s approved time sheet. Context/Cause: As the day sheets included more program time than was included on the employee?s approved timesheet, the time spent on this program was understated during the 1571 monthly reimbursement request to the State. We noted the above condition in three out of six day sheets selected for Chafee Foster Care and three out of forty day sheets selected for TANF. Effects: Inaccurate reporting of time coded to programs affects the total federal and state reimbursement for the program. Recommendation: We recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. Auditee?s Response: We concur with the findings and are currently implementing controls to ensure the timesheets are appropriately reviewed.
2022-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the federal program: Temporary Assistance for Needy Families Cluster (TANF), Assistance Listing Number 93.558, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services John H. Chafee Foster Care Program for Successful Transition to Adulthood (Chafee Foster Care), Assistance Listing Number 93.674, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Service. Criteria: Per the NCDHHS policy manual, salaries, wages, and fringe benefits of Department of Social Service employees hired under the state merit system are allowable. Salaries shall be allocated to programs by time distribution methods and supported by payroll and attendance records for individuals. Condition: Employee?s time is tracked through the use of day sheets in which employees track their time by service code in 5-minute increments. Day sheets are used to complete weekly timesheets which are approved by supervisors. We noted three out of six day sheets selected for Chaffee Foster Care and three out of forty day sheets selected for TANF had more program minutes than what was reported on the employee?s approved time sheet. Context/Cause: As the day sheets included more program time than was included on the employee?s approved timesheet, the time spent on this program was understated during the 1571 monthly reimbursement request to the State. We noted the above condition in three out of six day sheets selected for Chafee Foster Care and three out of forty day sheets selected for TANF. Effects: Inaccurate reporting of time coded to programs affects the total federal and state reimbursement for the program. Recommendation: We recommend that the County implements a review control over weekly timesheets to ensure the timesheets include all program time coded on the day sheets. Auditee?s Response: We concur with the findings and are currently implementing controls to ensure the timesheets are appropriately reviewed.
2022-001 Significant Deficiency over Eligibility (Repeat Finding) Information on the federal program: Medicaid Cluster (Medicaid), Assistance Listing Number 93.778, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Medical Assistance. Criteria: Per the North Carolina Medicaid Assistance Program (Medicaid; Title XIX) Compliance Supplement and the DSS manuals (Aged, Blind and Disabled manual, Family and Children Medicaid manual and the Integrated Policy manual), case files for individuals or families receiving assistance are required to retain documentation to service as evidence for the appropriate eligibility determination, including: ? accurate computation of countable income and resources ? verification of unearned income ? verification of earned income Condition: We noted one instance were the amount of income verified through the NC FAST Online Verification System did not agree to the amount reported in the case file. We noted three instances where a vehicle was not added to the NCFAST dashboard to count towards the applicant?s resources. We noted one instance where the applicant?s social security number and citizenship was not validated at the time of application. Context/Cause: The County did not retain required documentation in case files at the time eligibility was determined. We noted the above conditions in 5 out of the 60 case files inspected for applicable payments. Effects: Case files not containing all required documentation results in a risk that the County could provide services to individuals not eligible to receive such services or that such services could be denied to eligible individuals. For all 5 cases, subsequent to being notified that required documentation had not been retained in the case file, the County was able to obtain documentation to substantiate that the applicant tested were eligible to receive benefits. Recommendation: We recommend that the County train and monitor employees on the eligibility determination process. We also recommend the County review and amend current policies and procedures in place to ensure that all eligibility determination documentation is completed and retained by the County. Auditee?s Response: We concur with the findings.