Finding 1167576 (2025-002)

2025-002 Significant Deficiency over Activities Allowed and Unallowed and Allowable Costs/Cost Principles Information on the Federal Program: Medical Assistance Program (Medicaid Cluster), Assistance Listing Number 93.778, Foster Care – Title IV-E, Assistance Listing Number 93.658, U.S. Department of Health and Human Services, passed through the N.C Department of Health and Human Services (NCDHHS), Division of Social Services 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 one out of forty day sheets selected for Medicaid had more program minutes than what was reported on the employee’s approved time sheet. Additionally, we noted two out of forty day sheets selected for Foster Care – Title IV-E 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. 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 finding and are currently implementing controls to address the issues identified by the auditor.