FAC Explorer

Finding 1182004 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-23
Audit: 393386
Organization: Davidson County, North Carolina (NC)
Auditor: MARTIN STARNES & ASSOCIATES CPAS P A

AI Summary

  • Core Issue: Inadequate case documentation for claims entered into the EPI system, affecting accuracy and validity.
  • Impacted Requirements: Compliance with North Carolina DSS documentation standards for substantiating claims, including overpayment evidence.
  • Recommended Follow-Up: County DSS should enhance controls to ensure all necessary documentation is maintained and aligns with EPI entries.

Finding Text

U.S. Department of Health and Human Services Passed through the N.C. Department of Health and Human Services, Division of Social Services Program Name: SNAP Cluster AL #10.561 (215NC406S2514) Significant Deficiency, non-material non-compliance and internal control Special Tests and Provisions (Enterprise Program Integrity) Finding: 2025-002 Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, Counties must acquire adequate case documentation to substantiate the claim entry into the NC Fast Enterprise Program Integrity (“EPI” system. This information includes, but is not limited to the dates of the overpayment period, documentary evidence to substantiate that an overpayment occurred, such as wage stubs or verification from an employer, other income verification and household composition verification, and the budgets used to compute the amount of the overpayment. Condition: We noted instances of claims entered in EPI where adequate case documentation to substantiate the claim entry was not maintained. Context: We sampled 60 claims that were current in the EPI system and noted the above condition in 4 (6.7%) of the claims tested. For the claim, the DSS-1682 corrected amount was not properly updated within the NCFAST system. Therefore, initial investigation in the claims file does not agree to the amount entered in EPI to be collected on by the County. Effect: The County may not have accurate supporting documentation for claims entered in EPI system. There is a risk that claims may not be valid as a result. Cause: Documentation to support a claim entered into EPI was not accurate. Questioned Costs: The finding represents potential questioned costs. However, in accordance with 2CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Likely questioned costs do not exceed $25,000. Recommendation: County DSS staff should implement controls to ensure that all documentation is maintained and agrees to what was entered into EPI. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.

Corrective Action Plan

Finding: 2025‐002 Issue: There were (4) cases cited for inadequate documentation to substantiate Program Integrity claims. Correction Action: Davidson County Quality and Training Supervisor will monitor 100% of all substantiated Program Integrity claims by reviewing case documentation, evidence, budgets, spreadsheets, and notices. Program Integrity Investigators will be reminded of the importance of calculating and documenting income and expenses accurately, and following policy guidelines to ensure appropriate claim balances are established. The Quality and Training Supervisor will continue to meet with Program Integrity Investigators on a monthly basis to ensure compliance. Timeframe: Effective immediately. Any remedial training that is identified by the Quality and Training Supervisor will be completed within one week of the error found.

Categories

Special Tests & Provisions Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1182003 2025-002
    Material Weakness Repeat
  • 1182005 2025-003
    Material Weakness Repeat
  • 1182006 2025-003
    Material Weakness Repeat
  • 1182007 2025-003
    Material Weakness Repeat
  • 1182008 2025-003
    Material Weakness Repeat
  • 1182009 2025-003
    Material Weakness Repeat
  • 1182010 2025-003
    Material Weakness Repeat
  • 1182011 2025-003
    Material Weakness Repeat
  • 1182012 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 MEDICAL ASSISTANCE PROGRAM (MEDICAID; TITLE XIX) - ADMIN $2.73M
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM- ADMIN $1.22M
93.658 FOSTER CARE TITLE IV-E - ADMIN $1.14M
93.563 CHILD SUPPORT ENFORCEMENT- IV-D ADMINISTRATION $1.12M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES - ADMINISTRATION $966,612
93.658 FOSTER CARE TITLE IV-E - DIRECT BENEFITS $723,901
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $720,098
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $608,233
93.667 SOCIAL SERVICES BLOCK GRANT - OTHER SVCS & TRNG $480,855
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM - ADMIN $295,830
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $258,266
20.507 FEDERAL TRANSIT - FORMULA GRANTS (URBANIZED AREA FORMULA PROGRAM) $234,659
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM - ADMIN $232,762
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND - ADMIN $206,676
93.044 SPECIAL PROGRAMS FOR THE AGING - TITLE III, PART B - GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $135,449
93.568 LOW-INCOME HOME ENERGY ASSISTANCE - ADMINISTRATION $120,572
93.778 MEDICAL ASSISTANCE PROGRAM (MEDICAID; TITLE XIX) - MEDICAID ADMINISTRATIVE $113,676
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM - CAPITAL $112,000
93.658 FOSTER CARE TITLE IV-E - CPS $110,664
16.922 EQUITABLE SHARING PROGRAM $90,750
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM - FRAUD ADMINISTRATION $87,067
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $85,612
93.217 FAMILY PLANNING SERVICES $80,965
93.778 MEDICAL ASSISTANCE PROGRAM (MEDICAID; TITLE XIX) - STATE COUNTY SPECIAL $71,490
93.044 COVID-19 - SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS, AMERICAN RESCUE PLAN FOR SUPPORTIVE SERVICES UNDER TITLE III-B OF THE OLDER AMERICANS ACT $70,166
93.667 SOCIAL SERVICES BLOCK GRANT - STATE IN HOME SERVICE FUND $68,388
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $67,642
93.268 COVID-19 - IMMUNIZATION COOPERATIVE AGREEMENTS $64,111
20.205 HIGHWAY PLANNING AND CONSTRUCTION (FEDERAL-AID HIGHWAY PROGRAM) $61,560
93.667 SOCIAL SERVICES BLOCK GRANT - STATE ADULT DAY CARE $56,404
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $53,552
45.301 MUSEUMS FOR AMERICA $47,300
93.778 MEDICAL ASSISTANCE PROGRAM (MEDICAID; TITLE XIX) - TRANSPORTATION ADMIN $46,568
93.052 COVID-19 - NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $43,315
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $37,736
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $36,621
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $35,871
96.067 HOMELAND SECURITY GRANT PROGRAM $35,000
93.991 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT $28,488
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $26,000
93.659 ADOPTION ASSISTANCE - IV-E OPTIONAL TRAINING $24,219
93.967 CENTERS FOR DISEAS CONTROL AND PREVENTION'S COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $24,000
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $20,735
93.778 MEDICAL ASSISTANCE PROGRAM (MEDICAID; TITLE XIX) - ADULT HOME SPECIALIST $18,072
93.917 HIV CARE FORMULA GRANTS - RYAN WHITE CARE ACT $15,214
93.045 COVID-19 - SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $15,142
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $11,621
16.601 CORRECTIONS TRAINING AND STAFF DEVELOPMENT $11,621
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $10,533
45.310 GRANTS TO STATES $9,031
20.703 INTERAGENCY HAZARDOUS MATERIALS PUBLIC SECTOR TRAINING AND PLANNING GRANTS $8,900
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $8,780
20.507 COVID-19 - FEDERAL TRANSIT - FORMULA GRANTS (URBANIZED AREA FORMULA PROGRAM) $5,122
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD - ADMIN $1,164
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD - DIRECT BENEFITS $474
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $100
93.116 PROJECT GRANTS AND COOPERATIVE AGREEMENTS FOR TUBERCULOSIS CONTROL PROGRAMS $50