FAC Explorer

Finding 29088 (2022-003)

Material Weakness
Requirement
BE
Questioned Costs
$1
Year
2022
Accepted
2022-12-18
Audit: 29366
Organization: Henderson County, North Carolina (NC)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: The County approved funding for applicants who were either ineligible or received amounts exceeding program limits.
  • Impacted Requirements: Internal controls were inadequate; there were no documented procedures or checklists for reviewing eligibility and allowable costs.
  • Recommended Follow-Up: Develop a formal checklist for application reviews to ensure compliance with eligibility and funding limits before disbursement.

Finding Text

U.S. Department of Health and Human Services Passed through the North Carolina Department of Health and Human Services Program Name: Low-Income Home Energy Assistance Program Federal Assistance Listing Number: 93.568 Material Weakness and Nonmaterial Noncompliance - Allowable Costs and Eligibility Finding 2022-003 Criteria: An effective system of internal control contemplates that management properly review and assess eligibility determinations and allowable costs identified do not exceed program limits prior to providing funding to an approved applicant. Condition: While a manager reviews each approved application prior to disbursement there were three (3) instances where either the applicant was determined to be ineligible, or the amount paid exceeded the allowable limit. Context: We tested a sample of 40 approved applications out of over 1,200 total applications approved during the year. Effect: The County provided funding to ineligible recipients or amounts that exceeded the allowable limits which resulted in questioned costs. Questioned Costs: Known questioned costs were $370.05 and likely questioned costs were calculated to be $28,861.74. Cause: While the County has a process to review each approved application before disbursement, there was no documented procedures regarding review or formal checklist completed for each review. Recommendation: We recommend the County develop a formal checklist that is specific in regard to what is being reviewed for each approved application, including but not limited to reviewing income support documentation and the income limit calculation, and ensure it is being completed prior to disbursing funds to the applicant. Views of responsible officials: Management agrees with the finding and is implementing procedures to correct this which is further discussed in the corrective action plan. Corrective Action Plan: See Corrective Action Plan prepared by the County.

Categories

Questioned Costs Eligibility Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 29085 2022-002
    -
  • 29086 2022-002
    -
  • 29087 2022-003
    Material Weakness
  • 29089 2022-003
    Material Weakness
  • 29090 2022-003
    Material Weakness
  • 29091 2022-003
    Material Weakness
  • 605527 2022-002
    -
  • 605528 2022-002
    -
  • 605529 2022-003
    Material Weakness
  • 605530 2022-003
    Material Weakness
  • 605531 2022-003
    Material Weakness
  • 605532 2022-003
    Material Weakness
  • 605533 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $3.80M
93.558 Temporary Assistance for Needy Families $1.21M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $780,188
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $759,305
93.563 Child Support Enforcement $707,762
20.507 Federal Transit_formula Grants $667,833
93.658 Foster Care_title IV-E $486,606
93.268 Immunization Cooperative Agreements $402,287
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $381,819
93.568 Low-Income Home Energy Assistance $308,394
93.667 Social Services Block Grant $279,093
16.838 Comprehensive Opioid Abuse Site-Based Program $230,676
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $215,072
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $193,032
93.556 Promoting Safe and Stable Families $154,872
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $120,167
93.136 Injury Prevention and Control Research and State and Community Based Programs $109,992
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $107,636
21.027 Coronavirus State and Local Fiscal Recovery Funds $77,727
97.042 Emergency Management Performance Grants $70,244
93.053 Nutrition Services Incentive Program $64,078
16.922 Equitable Sharing Program $58,316
93.217 Family Planning_services $52,675
10.935 Urban Agriculture and Innovative Production $52,046
93.052 National Family Caregiver Support, Title Iii, Part E $50,113
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $44,549
93.659 Adoption Assistance $39,521
93.069 Public Health Emergency Preparedness $36,828
93.767 Children's Health Insurance Program $32,046
93.991 Preventive Health and Health Services Block Grant $30,607
93.645 Stephanie Tubbs Jones Child Welfare Services Program $30,269
93.499 Low Income Household Water Assistance Program $26,519
97.039 Hazard Mitigation Grant $21,499
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $18,850
93.994 Maternal and Child Health Services Block Grant to the States $18,717
16.738 Edward Byrne Memorial Justice Assistance Grant Program $18,642
93.387 National and State Tobacco Control Program (b) $3,501
93.566 Refugee and Entrant Assistance_state Administered Programs $2,791
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $100
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50