Finding 1055040 (2023-006)

US Department of Treasury Program Name: Coronavirus State and Local Fiscal Recovery Fund AL# 21.027 Finding: 2023-006 Untimely Adoption of Policy SIGNIFICANT DEFICENCY Criteria: Condition: Effect: Section III. Federal Award Findings and Questioned Costs Late Submission of Data Collection Form In accordance with the Single Audit Act of 1984 (amended in 1996), and the Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements for Federal Awards (Uniform Guidance), a single audit reporting package and data collection form is required to submitted to the Federal Audit Clearinghouse (FAC) 30 days after receipt of the auditor's report, or 9 months after the end of the fiscal year, whichever comes first. The report was not finalized until 12 months after year end. Federal agencies that provide funding and other public associations need current financial information about each unit of local government. The County's audits have been submitted late over the past several years. The County was unable to provide information necessary to complete the audit timely as a result of staffing issues. The County should allocate sufficient resources to ensure that all records are reconciled timely to allow time for the audit to be completed timely. The County agrees with the finding. Please refer to the corrective action plan for details. In accordance with the U.S. Department of Treasury 31 CFR Part 35, Coronavirus State and Local Fiscal Recovery Funds Final Rule and the Uniform Guidance, General Financial Management Internal Controls, Eligible Projects Determination & Documentation Policy, Cost Principles/Allowable Costs Policy, Civil Rights Compliance / Nondiscrimination Policy, Records Retention Policy are required to be adopted as condition of receiving the funds. The County expended the funds as revenue replacement without adopting the policies specific to the federal award. The County could use the funds for unallowable costs that were prohibited by the Final Rule. Cause: Identification of a repeat finding: Recommendation: Views of responsible officials and planned corrective actions: US Department of Health and Human Services Passed through the NC Dept. of Health and Human Services Program Name: Medical Assistance Program (Medicaid; Title XIX) AL# 93.778 Finding: 2023-007 Untimely Review of SSI Termination SIGNIFICANT DEFICENCY Eligibility Criteria: Condition: Questioned Costs: Context: Effect: Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-008. The State sends notification to the County when a participant is no longer eligible under SSI determination. The County has a certain time period to initiate an ex parte review to determine whether the recipient qualifies for Medicaid under any other coverage group, such as Family and Children's Medicaid, North Carolina Health Choice for Children, Work First Family Assistance, or Medicaid for the Aged, Blind and Disabled. There were 4 beneficiaries not reviewed timely and determined to be eligible for Medicaid when their SSI benefits were terminated. There was no known affect to eligibility and there were no known questioned costs. We examined 60 cases from of a total of 305,518 Medicaid claims from the Medicaid beneficiary report provided by NC Department of Health and Human Services to re-determine eligibility. These findings are being reported with the financial statement audit as it relates to Medicaid administrative cost compliance audit. The County did not initiate ex parte review timely, therefore, no eligibility review was completed in the required time period. The lack of follow up and certification could lead to applicants receiving Medicaid benefits for which they were not eligible. Section III. Federal Award Findings and Questioned Costs (continued) The finance office should review the grant agreement and the Uniform Guidance more carefully to ensure all compliance requirements are meet. The County agrees with the finding. See the response in the corrective action plan. County oversight of the new federal grant requirement to have the stated policies in place. This is a repeat finding from the immediate previous audit, 2022-007.