Audit 49258

Item 2022-001 Eligibility, U.S. Department of Health and Human Services, NC Department of Health and Human Services: Award 42009, Temporary Assistance for Needy Families (TANF): Federal Assistance Listing Number 93.558. Criteria NC Pre-K guidance requires that all children whom a direct service provider requests funding for, must have documentation of eligibility to receive that funding. Condition The Partnership for Children and Families did not maintain documentation for two children receiving funding, both children for proof of income and one of the children for date of birth. Cause Partnerships were instructed to maintain eligibility documents as part of their contract. The Partnership for Children and Families was unable to locate several eligibility documents. Effect or Potential Effect The effect is noncompliance with the United States Department of Health and Human Services regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the eligibility compliance requirement, it was noted that the Partnership for Children and Families failed to maintain eligibility documents for two out of the 40 children sampled from all NC Pre-K providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over record retention for eligibility documentation of children. Reporting Views of Responsible Officials Management has implemented controls to ensure that all child eligibility documents are collected, approved and maintained by the Partnership for the duration of the compliance period. This control was adopted and implemented in fiscal year 2023.

Item 2022-001 Eligibility, U.S. Department of Health and Human Services, NC Department of Health and Human Services: Award 42009, Temporary Assistance for Needy Families (TANF): Federal Assistance Listing Number 93.558. Criteria NC Pre-K guidance requires that all children whom a direct service provider requests funding for, must have documentation of eligibility to receive that funding. Condition The Partnership for Children and Families did not maintain documentation for two children receiving funding, both children for proof of income and one of the children for date of birth. Cause Partnerships were instructed to maintain eligibility documents as part of their contract. The Partnership for Children and Families was unable to locate several eligibility documents. Effect or Potential Effect The effect is noncompliance with the United States Department of Health and Human Services regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the eligibility compliance requirement, it was noted that the Partnership for Children and Families failed to maintain eligibility documents for two out of the 40 children sampled from all NC Pre-K providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over record retention for eligibility documentation of children. Reporting Views of Responsible Officials Management has implemented controls to ensure that all child eligibility documents are collected, approved and maintained by the Partnership for the duration of the compliance period. This control was adopted and implemented in fiscal year 2023.

Item 2022-001 Eligibility, U.S. Department of Health and Human Services, NC Department of Health and Human Services: Award 42009, Temporary Assistance for Needy Families (TANF): Federal Assistance Listing Number 93.558. Criteria NC Pre-K guidance requires that all children whom a direct service provider requests funding for, must have documentation of eligibility to receive that funding. Condition The Partnership for Children and Families did not maintain documentation for two children receiving funding, both children for proof of income and one of the children for date of birth. Cause Partnerships were instructed to maintain eligibility documents as part of their contract. The Partnership for Children and Families was unable to locate several eligibility documents. Effect or Potential Effect The effect is noncompliance with the United States Department of Health and Human Services regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the eligibility compliance requirement, it was noted that the Partnership for Children and Families failed to maintain eligibility documents for two out of the 40 children sampled from all NC Pre-K providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over record retention for eligibility documentation of children. Reporting Views of Responsible Officials Management has implemented controls to ensure that all child eligibility documents are collected, approved and maintained by the Partnership for the duration of the compliance period. This control was adopted and implemented in fiscal year 2023.

Item 2022-001 Eligibility, U.S. Department of Health and Human Services, NC Department of Health and Human Services: Award 42009, Temporary Assistance for Needy Families (TANF): Federal Assistance Listing Number 93.558. Criteria NC Pre-K guidance requires that all children whom a direct service provider requests funding for, must have documentation of eligibility to receive that funding. Condition The Partnership for Children and Families did not maintain documentation for two children receiving funding, both children for proof of income and one of the children for date of birth. Cause Partnerships were instructed to maintain eligibility documents as part of their contract. The Partnership for Children and Families was unable to locate several eligibility documents. Effect or Potential Effect The effect is noncompliance with the United States Department of Health and Human Services regulations, which could result in a loss of funding. Questioned Costs: None. Context During our testing of the eligibility compliance requirement, it was noted that the Partnership for Children and Families failed to maintain eligibility documents for two out of the 40 children sampled from all NC Pre-K providers. Identification of Repeat Finding: No. Recommendation Management should implement controls over record retention for eligibility documentation of children. Reporting Views of Responsible Officials Management has implemented controls to ensure that all child eligibility documents are collected, approved and maintained by the Partnership for the duration of the compliance period. This control was adopted and implemented in fiscal year 2023.