Finding 1181352 (2025-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-18

AI Summary

  • Core Issue: Case files for the Work First Program are missing essential documentation, impacting eligibility verification.
  • Impacted Requirements: Incomplete income verifications, missing applications, and errors in NC FAST hinder compliance with federal and state guidelines.
  • Recommended Follow-Up: Conduct internal reviews of case files, retrain staff on documentation standards, and ensure all eligibility verification documents are complete and accurate.

Finding Text

Criteria: Temporary Assistance for Needy Families - Work First Program case files require proper documentation be contained in the case record to verify eligibility, along with continued compliance to additional requirements set forth through federal and state guidance and specified requirements set forth in the Lenoir County Work First Electing County Plan. The case file should contain a completed, signed (telephonic signature is allowable) and dated standardized forms, including application and others. Additionally, employment program participation is required for specified applicants. Eligibility criteria further outlined in the Work First Policy Manual and the Lenoir County Work First Electing County Plan (2023 - 2025). Condition: There were Two (2) instances of missing or incomplete income verifications, One (1) instance of missing application documentation, Two (2) instances of missing required forms, One (1) instance of errors within the NC FAST time period recording that were not addressed, Three (3) instances of evidence being entered incorrectly into NC FAST, Two (2) instances of missing residency verifications, Two (2) instance of missing or incorrect kinship verifications, Two (2) instances of unenforced or noncompliance with child support enforcement, and One (1) instance of missing or incomplete documentation of work services compliance. Also, some specifications detailed in the Lenoir County Work First Electing County Plan were not enforced in any cases reviewed. Questioned Costs: While there was an affect to eligibility, there were no questioned costs. Context: We examined 25 out of 240 TANF - Work First case files active during the fiscal year to ensure verifications used to determine eligibility were properly documented. Effect: For the active cases, there was a chance that information was not adequately documented or were not accessible NC FAST which affect general adherence to prescribed guidelines. Identification of a repeat finding: This is not a repeat finding. Cause: Ineffective record keeping and ineffective case review process, incomplete documentation, and incorrect application of rules for purposes of determining eligibility. Recommendation: Files should be reviewed internally to ensure proper documentation is in place for eligibility. Workers should be retrained on what files should contain and the importance of complete and accurate record keeping. We recommend that all supporting documentation used for eligibility verification be reviewed for completeness and reconciled to the information provided in worker dictation. Views of responsible officials and planned corrective actions: The County agrees with the finding. Supervisors will perform second party reviews to ensure proper documentation is contained in files to support eligibility determinations. Workers will be retrained on what information should be maintained in case files, the importance of complete and accurate record keeping, and reserve calculations. The County finance office will also participating in the review process.

Corrective Action Plan

2025 – 004 Eligibility Correctiveaction:ThisfindingislistedfortheWorkFirstCashAssistanceandWorkFirstEmploymentProgramsfor this physical year. This root cause for this finding is new supervisors and workers transitioned into both program areas. Limited experience among staff and instances of worker oversight led to errors in evidence entered incorrectly, missing or incomplete income, kinship or residency verifications, missing application documentation, missing required forms, unenforced or noncompliance with child support unresolved, and misinterpretation of policy from the Work Fist Electing County Plan. Staff were uncertain about when and how to obtain certain verifications when applying the Work First policy to case actions. To help mitigate these areas of concern, Lenoir County will implement the following for the Work First case actions cited for the Single County Audit Fiscal Year ending June 30, 2025. Staff meeting will be held Wednesday, February 18, 2026 and the following training materials will be discussed and provided to the Medicaid staff to ensure continued understanding and knowledge of program requirements. Section 104 (Cash Assist. Application Process & Procedures) Section 112 (Kinship & Living Requirements) Section 116 (Child Support Services) Job Aide (Requesting & Viewing Online Data) Section 104D (Family Violence Option) Section 105 (Federal & State Time Limits) Section 1 14 (Income & Budgeting) Section 108 (State/County Residence Rule) Review of Work First Electing County Plan Providing staff with copies of the Single County Audit findings, the Corrective Action plan and staff expectations to ensure that staff is well informed of the findings and what is expected from the Corrective Action Plan implementation. A new Lead Worker was hired for this program during the past fiscal year and is now completing 2nd party reviews on case actions. Supervisors and/or Lead Worker will complete 100% 2nd party reviews on all new hires until each worker receives a 98% or higher accuracy processing rating and will complete a minimum of 5 2nd party reviews for each existing worker to target these key areas of concern until all workers reach and maintain a 98% or higher accuracy processing rating. Supervisors and Lead Workers will continue to monitor case actions and provide monthly statistical data detailing case findings. The Supervisor and Lead Worker will provide a list of findings and maintain scheduled monthly meetings with staff to provide feedback and coaching to ensure continued compliance of program requirements. The meetings held will consist of staff unit meetings and/or individual conferences provided by the Supervisors in an effort to effectively catch and manage error trends that have been discovered from 2nd party review findings. All documentation will be submitted to the Administrator for review and will be discussed and reviewed with the Supervisors during monthly conference meetings. The Administrator will provide monthly updates on case actions and findings to the Director. Proposed Completion Date: Training will be held with Work First Cash Assistance Staff on Wednesday, February 18, 2026 for eligibility issues cited. Corrective Action Plan will be implemented immediately after training and significant improvement of all areas cited must be maintained by June 30, 2026.

Categories

Eligibility

Other Findings in this Audit

  • 1181349 2025-001
    Material Weakness Repeat
  • 1181350 2025-002
    Material Weakness Repeat
  • 1181351 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 MEDICAL ASSISTANCE PROGRAM $2.14M
93.563 CHILD SUPPORT SERVICES $1.23M
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $807,809
97.044 ASSISTANCE TO FIREFIGHTERS GRANT $491,874
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $456,752
16.838 COMPREHENSIVE OPIOID, STIMULANT, AND OTHER SUBSTANCES USE PROGRAM $354,827
20.526 BUSES AND BUS FACILITIES FORMULA, COMPETITIVE, AND LOW OR NO EMISSIONS PROGRAMS $301,200
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $236,792
16.585 TREATMENT COURT DISCRETIONARY GRANT PROGRAM $164,119
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $146,978
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $128,073
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $116,858
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $68,322
93.217 FAMILY PLANNING SERVICES $55,528
93.917 HIV CARE FORMULA GRANTS $53,337
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $49,859
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $40,000
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $35,958
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $33,804
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $30,741
93.667 SOCIAL SERVICES BLOCK GRANT $24,556
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $24,251
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $14,800
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $13,126
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $8,125
93.658 FOSTER CARE TITLE IV-E $4,646
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $3,411
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3,000
16.606 STATE CRIMINAL ALIEN ASSISTANCE PROGRAM $2,219
93.110 MATERNAL AND CHILD HEALTH FEDERAL CONSOLIDATED PROGRAMS $2,000
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $1,500
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $100