FAC Explorer

Finding 1172121 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-02-03
Audit: 385263
Organization: Mecklenburg County (NC)
Auditor: CHERRY BEKAERT LLP

AI Summary

  • Core Issue: Inconsistent documentation of controls over allowable costs was found in 3 out of 40 samples tested.
  • Impacted Requirements: Failure to follow departmental policy increases the risk of charging unallowable costs, leading to potential noncompliance with federal regulations.
  • Recommended Follow-up: Ensure all expenditure documents are properly reviewed and approved, and maintain clear documentation to support compliance with federal requirements.

Finding Text

U.S. Department of Agriculture Pass-through Entity: North Carolina Department of Health and Human Services Program Name: Special Supplemental Nutrition Program for Women, Infants, and Children Federal Assistance Listing Number 10.557 Significant Deficiency – Allowable Costs/Costs Principles Finding 2025-003 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There were 3 out of 40 samples tested where clear and consistent documentation of a control over allowable costs and activities was not present. Effect: Without consistent documentation and adherence to departmental policy for approving allowable costs, there is an increased risk that unallowable expenditures may be charged to the program, potentially resulting in noncompliance with federal requirements and questioned costs. Questioned Costs: None. Cause: The departmental policy to approve expenditure documents as an allowable cost for the program was not followed. Recommendation: The County should consistently follow departmental policy by ensuring all expenditure documents for the program are properly reviewed and approved as allowable costs before being approved for payment and maintain clear documentation of controls over program activities to support compliance with federal requirements. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Corrective Action Plan: See Corrective Action Plan prepared by the County.

Corrective Action Plan

Program Name: Special Supplemental Nutrition Program for Women, Infants, and Children Federal Assistance Listing Number 10.557 Significant Deficiency – Allowable Costs/Costs Principles Repeat Finding 2025-003 Criteria: Per Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There were 3 out of 40 samples tested where clear and consistent documentation of a control over allowable costs and activities was not present. Effect: Without consistent documentation and adherence to departmental policy for approving allowable costs, there is an increased risk that unallowable expenditures may be charged to the program, potentially resulting in noncompliance with federal requirements and questioned costs. Questioned Costs: None. Cause: The departmental policy to approve expenditure documents as an allowable cost for the program was not followed. Recommendation: The County should consistently follow departmental policy by ensuring all expenditure documents for the program are properly reviewed and approved as allowable costs before being approved for payment and maintain clear documentation of controls over program activities to support compliance with federal requirements. Views of Responsible Officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Corrective Action Plan. Correction Action Plan: Program leadership will collaborate with the County Finance Team to ensure departmental policy is followed when purchases are made using WIC Federal funds. Internal purchase approval documents will be created to enhance the approval workflow. All purchases will be submitted to the WIC Program Director for approval. The program Director and the Sr. Admin Assistant will review the orders and ensure they are allowable items per the NC State WIC program guidelines. A shared folder will be created to save the purchase order forms, and the invoices to ensure Mecklenburg County Health Department Policy A-13, Retention of Administrative Documents is followed. The following the phases of the corrective action plan will be completed by March 1st, 2026. Phase 1: Review of Federal and State Guidelines Phase 2: Mecklenburg County Procurement Policy Review Phase 3: Creation and Implementation of new internal purchase approval processes. Phase 4: Staff Training Anticipated Completion Date: March 1st, 2026 Responsible Person(s): Ali Raza, WIC Director

Categories

Allowable Costs / Cost Principles Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1172114 2025-002
    Material Weakness Repeat
  • 1172115 2025-002
    Material Weakness Repeat
  • 1172116 2025-002
    Material Weakness Repeat
  • 1172117 2025-002
    Material Weakness Repeat
  • 1172118 2025-002
    Material Weakness Repeat
  • 1172119 2025-002
    Material Weakness Repeat
  • 1172120 2025-002
    Material Weakness Repeat
  • 1172122 2025-004
    Material Weakness Repeat
  • 1172123 2025-005
    Material Weakness Repeat
  • 1172124 2025-006
    Material Weakness Repeat
  • 1172125 2025-006
    Material Weakness Repeat
  • 1172126 2025-006
    Material Weakness Repeat
  • 1172127 2025-007
    Material Weakness Repeat
  • 1172128 2025-007
    Material Weakness Repeat
  • 1172129 2025-007
    Material Weakness Repeat
  • 1172130 2025-007
    Material Weakness Repeat
  • 1172131 2025-007
    Material Weakness Repeat
  • 1172132 2025-008
    Material Weakness Repeat
  • 1172133 2025-008
    Material Weakness Repeat
  • 1172134 2025-008
    Material Weakness Repeat
  • 1172135 2025-008
    Material Weakness Repeat
  • 1172136 2025-008
    Material Weakness Repeat
  • 1172137 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.563 CHILD SUPPORT SERVICES $9.67M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $4.85M
93.659 ADOPTION ASSISTANCE $3.66M
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $2.99M
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $2.55M
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $2.45M
93.686 ENDING THE HIV EPIDEMIC: A PLAN FOR AMERICA — RYAN WHITE HIV/AIDS PROGRAM PARTS A AND B $2.25M
93.940 HIV PREVENTION ACTIVITIES HEALTH DEPARTMENT BASED $1.62M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $1.38M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $996,439
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $911,062
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $763,544
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $685,849
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $590,949
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $557,953
93.667 SOCIAL SERVICES BLOCK GRANT $544,375
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $532,636
20.507 FEDERAL TRANSIT FORMULA GRANTS $436,910
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $374,578
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $369,315
93.217 FAMILY PLANNING SERVICES $367,975
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $355,754
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $355,287
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $307,072
93.304 RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH $300,617
93.917 HIV CARE FORMULA GRANTS $266,139
16.745 CRIMINAL AND JUVENILE JUSTICE AND MENTAL HEALTH COLLABORATION PROGRAM $247,732
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $190,254
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $190,157
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $174,597
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $174,590
66.034 SURVEYS, STUDIES, RESEARCH, INVESTIGATIONS, DEMONSTRATIONS, AND SPECIAL PURPOSE ACTIVITIES RELATING TO THE CLEAN AIR ACT $161,872
16.753 CONGRESSIONALLY RECOMMENDED AWARDS $160,522
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $158,272
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $122,111
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $113,405
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $112,064
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $107,634
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $101,401
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $97,465
10.935 URBAN AGRICULTURE AND INNOVATIVE PRODUCTION $92,515
14.267 CONTINUUM OF CARE PROGRAM $86,348
93.318 PROTECTING AND IMPROVING HEALTH GLOBALLY: BUILDING AND STRENGTHENING PUBLIC HEALTH IMPACT, SYSTEMS, CAPACITY AND SECURITY $85,950
93.387 NATIONAL AND STATE TOBACCO CONTROL PROGRAM $61,697
66.039 DIESEL EMISSION REDUCTION ACT (DERA) NATIONAL GRANTS $46,276
16.812 SECOND CHANCE ACT REENTRY INITIATIVE $45,563
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $35,000
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $34,653
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $34,188
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $33,288
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $30,741
97.045 COOPERATING TECHNICAL PARTNERS $23,100
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $20,796
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $20,000
16.021 JUSTICE SYSTEMS RESPONSE TO FAMILIES $19,989
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $18,166
93.658 FOSTER CARE TITLE IV-E $16,990
93.431 NETWORKING2SAVE”: CDC’S NATIONAL NETWORK APPROACH TO PREVENTING AND CONTROLLING TOBACCO-RELATED CANCERS IN SPECIAL POPULATIONS $15,921
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $13,008
66.001 AIR POLLUTION CONTROL PROGRAM SUPPORT $6,600
93.103 FOOD AND DRUG ADMINISTRATION RESEARCH $5,005
97.039 HAZARD MITIGATION GRANT $1,800
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND OTHER SUBSTANCES USE PROGRAM $1,602
93.778 MEDICAL ASSISTANCE PROGRAM $-1,148
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $-3,288
93.499 LOW INCOME HOUSEHOLD WATER ASSISTANCE PROGRAM $-83,973