FAC Explorer

Finding 1172131 (2025-007)

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

AI Summary

  • Core Issue: The County lacks adequate documentation and controls for eligibility determinations in the Temporary Assistance for Needy Families program, leading to several compliance errors.
  • Impacted Requirements: Key compliance criteria include proper OVS inquiries, accurate proration of benefits, verification of Social Security numbers, and inclusion of all relevant family members in applications.
  • Recommended Follow-up: The County should enhance documentation processes and establish a formal policy for timely correction of identified issues to ensure compliance and reduce eligibility risks.

Finding Text

U.S. Department of Health and Human Services Pass-through Entity: North Carolina Department of Health and Human Services Program Name: Temporary Assistance for Needy Families Federal Assistance Listing Number: 93.558 Significant Deficiency and Nonmaterial Noncompliance – Eligibility and Special Tests: Income Eligibility and Verification System Finding 2025-007 Criteria or Specific Requirement: 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 the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The County should have adequate documentation for each participant that supports each eligibility determination and the information entered into NCFAST. We noted several errors related to the following compliance criteria: a) An OVS inquiry must be completed and agreed to information reported in NCFAST. b) For the month of application, Work First cash assistance payments are prorated from the date of application, with the date of application being day one. c) All Work First applicants must provide a Social Security number or apply for a Social Security number if they do not have one. d) Parents and step-parents who apply for children must be included in the case with the child, unless they are otherwise ineligible. Condition: The following are the results of nonmaterial noncompliance noted for each criteria listed above out of the 25 program participants selected for testing: a) There were two instances where the OVS query was not run at the time of the determination. b) There was one instance where a hearing extension was incorrectly prorated. c) There was one instance where the social security number was not verified. d) There was one instance where kinship was not documented. Lastly, the following are the results of 60 program participants tested for control testing: e) There were three instances where the County did not remediate the errors identified within their internal review timely. f) There was one instance where a participant received benefits for one month where they should not have. g) There was one instance where incorrect forms were sent to a participant. Questioned Costs: None of the nonmaterial noncompliance items resulted in questioned costs. Effect: By not having the required documentation in the files or information being incorrectly documented, eligibility cannot be readily substantiated and there is a risk the County could provide funding to individuals who are not eligible. Cause: County oversight when performing reviews over applications. Additionally, the County does not have a formal process in place to ensure issues identified during the review process are appropriately corrected on a consistent and timely basis. Recommendation: Although these issues will occur from time to time considering the volume of case files, the County should review their processes to ensure proper supporting documentation of eligibility is maintained within each case file. Additionally, the County should consider implementing a formal policy for the requirements of having documentation corrected within a specific timeframe once identified and monitored throughout the year for adherence to the policy. 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

U.S. Department of Health and Human Services Pass-through Entity: North Carolina Department of Health and Human Services Program Name: Temporary Assistance for Needy Families Federal Assistance Listing Number: 93.558 Material Weakness and Nonmaterial Noncompliance – Eligibility and Special Tests: Income Eligibility and Verification System Finding 2025-007 Criteria or Specific Requirement: 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. The County should have adequate documentation for each participant that supports each eligibility determination, and the information entered into NCFAST. We noted several errors related to the following compliance criteria: a) An OVS inquiry must be completed and agreed to information reported in NC FAST. b) For the month of application, Work First cash assistance payments are prorated from the date of application, with the date of application being day one. c) All Work First applicants must provide a Social Security number or apply for a Social Security number if they do not have one. d) Parents and step-parents who apply for children must be included in the case with the child, unless they are otherwise ineligible. Condition: The following are the results of nonmaterial noncompliance noted for each criteria listed above out of the 25 program participants selected for testing a) There were two instances where the OVS query was not run at the time of the determination. b) There was one instance where a hearing extension was incorrectly prorated. c) There was one instance where the social security number was not verified. d) There was one instance where kinship was not documented. Lastly, the following are the results of 60 program participants tested for control testing: a) There were three instances where the County did not remediate the errors identified within their internal review timely. b) There was one instance where a participant received benefits for one month where they should not have. c) There was one instance where incorrect forms were sent to a participant. Questioned Costs: None of the nonmaterial noncompliance items resulted in questioned costs. Effect: By not having the required documentation in the files or information being incorrectly documented, eligibility cannot be readily substantiated and there is a risk the County could provide funding to individuals who are not eligible. Cause: County oversight when performing reviews over applications. Additionally, the County does not have a formal process in place to ensure issues identified during the review process are appropriately corrected on a consistent and timely basis. Recommendation: Although these issues will occur from time to time considering the volume of case files, the County should review their processes to ensure proper supporting documentation of eligibility is maintained within each case file. Additionally, Mecklenburg County should consider implementing a formal policy for the requirements of having documentation corrected within a specific timeframe once identified and monitored throughout the year for adherence to the policy. 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: Performance Improvement Strategy: The Economic Services Division (ESD) Quality and Training Specialist will conduct a 25% sample review of all ongoing cases. Errors identified during these reviews will be documented and communicated to both the Social Services Supervisor and the assigned Eligibility Specialist for correction within a defined timeframe. Failure to comply with correction timelines will result in corrective action. Case Review and Error Notification • ESD Sr. Quality and Training Specialist will review 25% of all ongoing cases. • Errors will be documented on checking sheets and emailed to both the supervisor and the assigned Eligibility Specialist. • Corrections must be completed within 5 business days of notification. Corrective Action • If corrections are not completed within the extended timeframe: o Corrective Action will be initiated in accordance with departmental performance management protocols. Responsible Individuals: Sarah Carter, Tatyenne Rone, Karl Parisien, Denize Cuff (Sr. Quality and Training Specialist), Danisa Concepcion (Quality and Training Supervisor), Staphon Snelling (Training & Development Manager), Scott Fritz (Social Services Manager), Program Supervisors Anticipated Completion Date: To be completed monthly. Training: Training Completion Required for the Following Quality Review Errors: • Ensure the OVS inquiry is completed, and that the information aligns with data reported in NC FAST. • Understand that Work First cash assistance payments are prorated from the application date, which is considered Day One. • Confirm that all Work First applicants must provide a valid Social Security number or apply for one if not already obtained. • Review and apply the rules of kinship, specifically regarding parents and stepparents. Additionally, train supervisors and eligibility specialists on the importance of timely resolution of quality sampling errors and how delays can impact audit outcomes. Responsible Individuals: Sr. Quality & Training Specialists, Quality & Training Supervisor, Training & Development Manager. Anticipated Completion Date: An email will be sent by the Staff Development Unit to the Eligibility Specialist with errors by January 2026, and in-person training will be completed by February 2026.

Categories

Eligibility Internal Control / Segregation of Duties 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
  • 1172121 2025-003
    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
  • 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