FAC Explorer

Finding 1182012 (2025-003)

Material Weakness Repeat Finding
Requirement
L
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: An unsigned purchased service agreement was found, indicating potential non-compliance with contract requirements.
  • Impacted Requirements: Counties must have an approved contract for all purchased services reported on form DSS-1571, as per North Carolina DSS guidelines.
  • Recommended Follow-Up: County DSS should establish controls to ensure all contracts are signed before claims are submitted to avoid unapproved services.

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: Medicaid AL #93.778 (XIX-MAP23), SNAP Cluster AL #10.561 (215NC406S2514), Child Care Development Cluster AL #93.596 (G2301NCCCDF) Significant Deficiency, non-material non-compliance and internal control Reporting (Purchase of Service) Finding 2025-003 Criteria: Per the North Carolina DSS Crosscutting Requirements compliance supplement, Counties must have an approved contract for all purchased services reported on form DSS-1571. Condition: We noted an instance of an unsigned purchased service agreement. Context: We sampled 40 purchased services reported on form DSS-1571 and noted there were 5 samples pertaining to the unsigned purchased service agreement mentioned above. Effect: The County may have unapproved purchased services. There is a risk of unallowable purchased services as a result. Cause: Expenses were paid before a signed contract was obtained. 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 contracts are signed before submitting claims from potential vendors. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.

Corrective Action Plan

Finding 2025‐003 Issue: There were (5) samples of purchased services reported on the DSS‐1571 to an unsigned vendor. Corrective Action: Davidson County will monitor vendor contracts prior to the vendor providing and or invoicing for services, when possible. The DSS Business/Fiscal Team will check for active vendor contracts prior to approving and paying invoices for services. Timeframe: Effective immediately. Any services needed will be vetted through the DSS Business/Fiscal Team prior to scheduling (when possible). DSS Business/Fiscal Team will monitor active contracts annually to ensure compliance.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1182003 2025-002
    Material Weakness Repeat
  • 1182004 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

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