FAC Explorer

Finding 20639 (2022-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-01-10
Audit: 28584
Organization: Rowan County, North Carolina (NC)
Auditor: Martin Starnes & Associates CPA P A

AI Summary

  • Core Issue: The County Department of Social Services did not properly determine income for five applicants, lacking necessary documentation like signatures and accurate calculations.
  • Impacted Requirements: Compliance with 2 CFR 200 and 45 CFR 435 was not met, as casefiles lacked proper income calculations and supporting documentation for eligibility.
  • Recommended Follow-up: Review casefiles to ensure accurate calculations and complete documentation are obtained before approving benefits.

Finding Text

U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Low Income Home Energy Assistance AL Number: 93.568 Grant Number: G18B1NCLIEA Material Weakness, Eligibility Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include properly reviewed income calculations. In accordance with 45 CFR 435, documentation must be maintained to support eligibility determinations. Condition: The County Department of Social Services failed to properly determine income for five applicants. The County Department of Social Services failed to obtain the applicant?s signature, including an online or telephonic signature, on the DSS-8178 Energy Programs Application. Upon further review, the applicants were ultimately eligible. Context: Of the 2,282 benefit payments valued at $2,138,857, we examined 60 payment records ($32,358 value) and determined that in six casefiles (10%) proper documentation was not retained to support the eligibility determination, including five casefiles that did not have properly calculated income, and one casefile that did not include a client?s signature authorizing the application. Upon further review and recalculation, the applicants were deemed eligible. Effect: Casefile did not have properly calculated income or a signed application form, which could allow benefits to be provided to individuals who are not eligible. Cause: Caseworker failed to accurately calculate income and obtain a signed application form. Questioned Cost: The finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: Casefiles should be reviewed to verify that calculations are accurate and all required documentation has been obtained before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.

Categories

Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20634 2022-004
    Material Weakness
  • 20635 2022-001
    Material Weakness
  • 20636 2022-002
    Material Weakness
  • 20637 2022-001
    Material Weakness
  • 20638 2022-002
    Material Weakness
  • 20640 2022-002
    Material Weakness
  • 20641 2022-001
    Material Weakness
  • 20642 2022-002
    Material Weakness
  • 20643 2022-001
    Material Weakness
  • 20644 2022-002
    Material Weakness
  • 20645 2022-003
    Significant Deficiency
  • 597076 2022-004
    Material Weakness
  • 597077 2022-001
    Material Weakness
  • 597078 2022-002
    Material Weakness
  • 597079 2022-001
    Material Weakness
  • 597080 2022-002
    Material Weakness
  • 597081 2022-001
    Material Weakness
  • 597082 2022-002
    Material Weakness
  • 597083 2022-001
    Material Weakness
  • 597084 2022-002
    Material Weakness
  • 597085 2022-001
    Material Weakness
  • 597086 2022-002
    Material Weakness
  • 597087 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $5.23M
93.778 Medical Assistance Program $3.11M
93.563 Child Support Enforcement $1.48M
93.568 Covid-19 Low-Income Home Energy Assistance $1.00M
93.658 Foster Care_title IV-E $824,560
93.667 Social Services Block Grant $616,981
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $496,367
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $415,821
20.509 Covid-19 Formula Grants for Rural Areas and Tribal Transit Program $355,789
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $282,527
93.568 Low-Income Home Energy Assistance $239,271
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $214,558
20.509 Formula Grants for Rural Areas and Tribal Transit Program $195,513
10.561 Covid-19 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $120,343
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $109,254
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $95,809
93.217 Family Planning_services $75,254
93.767 Children's Health Insurance Program $74,390
93.556 Marylee Allen Promoting Safe and Stable Families $65,796
93.994 Maternal and Child Health Services Block Grant to the States $62,555
93.645 Stephanie Tubbs Jones Child Welfare Services Program $44,207
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $39,401
93.044 Covid-19 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $38,618
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $37,316
93.069 Public Health Emergency Preparedness $35,084
93.659 Adoption Assistance $30,657
93.991 Preventive Health and Health Services Block Grant $29,901
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $27,826
93.053 Nutrition Services Incentive Program $27,236
93.268 Immunization Cooperative Agreements $25,347
93.558 Temporary Assistance for Needy Families $21,127
16.738 Edward Byrne Memorial Justice Assistance Grant Program $16,820
14.239 Home Investment Partnerships Program $14,965
20.106 Airport Improvement Program, Covid19 Airports Programs, and Infrastructure Investment and Jobs Act Programs $14,792
97.042 Emergency Management Performance Grants $11,221
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $6,300
93.268 Covid-19 Immunization Cooperative Agreements $3,400
16.606 State Criminal Alien Assistance Program $2,414
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $483
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $58
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50