Finding Text
Northampton County, North Carolina Schedule of Findings and Questioned Costs For the Year Ended June 30, 2025 U.S. Department of Health and Human Services Passed through the NC Department of Health and Human Services Program Name: Medical Assistance Program (Medicaid) AL #: 93.778 Finding: 2025-009 Inaccurate Information Entry SIGNIFICANT DEFICIENCY / NONCOMPLIANCE Eligibility Section III - Federal Award Findings and Questioned Costs Recommendation: The County should allocate sufficient resources to ensure that internal controls are properly implemented and that the financial records are properly maintained to support all transactions recorded in the general ledger. Views of responsible officials and planned corrective actions: The County agrees with the finding. Some of the issues were self-identified by the finance department staff and proactively disclosed to the auditor, demonstrating transparency. See Corrective Action Plan. Cause: County personnel was not following the County's credit card policy in regards to personnel authorized to use issued cards. There was turnover in Finance and the new staff was unable to locate all of the requested documentation for the credit card transactions tested. Section II. Financial Statement Findings (continued) Condition: There were a total of 24 errors found during our testing procedures: - There were 9 errors where income or household size was incorrectly calculated or inaccurate information was entered into the case file. - There was 3 error where resources were incorrectly calculated or were not properly documented in the case file. - There were 6 errors where required information needed for eligibility determinations were not requested or not requested timely at applications or redeterminations. - There were 6 errors where a redetermination of eligibility was not performed in accordance with program requirements. Criteria: Federal regulations under 42 CFR § 435.956 require states to verify eligibility factors using electronic data sources where available, and to obtain documentation for unverifiable information. Additionally, the state's Medicaid manual (Aged, Blind and Disabled manual, Family and Children Medicaid manual and the Integrated Policy manual) mandates that all eligibility determinations include cross-verification of applicant-provided data against reliable external sources to ensure accuracy and prevent improper payments. Questioned Costs: Due to the nature of the populations provided from which the samples were chosen, we are unable to calculate questioned costs for the above mentioned potential eligibility and noncompliance errors. 150Northampton County, North Carolina Schedule of Findings and Questioned Costs For the Year Ended June 30, 2025 Program Name: Medicaid Assistance Program (Medicaid; Title XIX) AL# 93.778 Recommendation: We recommend that management enhance internal controls by: (1) Providing comprehensive training to staff on the program's eligibility requirements and procedures outlined in the State's Medicaid manuals; (2) Ensuring that there is a formal internal review process and that it is adequately completed to identify and correct errors and monitor compliance; and (3) Communicating all program or policy changes clearly and timely across all departments who oversee eligibility determinations for federal funded programs. Cause: The deficiencies and noncompliance reported above are caused from ineffective record keeping and case review processes due to insufficient training of staff, lack of oversight from management, and/or inadequate communication between departments resulting in inconsistencies in data sharing and delayed information exchanges. Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2024-009, 2024-010, and 2024-011. Note in FY 2025 Medicaid findings were combined into a single finding. Effect: These control deficiencies and noncompliance increase the risk of improper Medicaid payments, potentially resulting in overpayments to ineligible beneficiaries or underpayments to those who qualify. Context: We examined 60 cases from of a total of 149,924 Medicaid claims from the Medicaid beneficiary report provided by NC Department of Health and Human Services to re-determine eligibility. These findings are being reported with the financial statement audit as it relates to Medicaid administrative cost compliance audit. Section III - Federal Award Findings and Questioned Costs SIGNIFICANT DEFICIENCY / NONCOMPLIANCE: Finding 2025-010 also apply to State requirements and State Awards. Section IV – State Award Findings and Questioned Costs Views of responsible officials and planned corrective actions: The County agrees with the finding and is implementing actions to correct these issues, which are further discussed in the corrective action plan. 151