FAC Explorer

Finding 34004 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-12-07
Audit: 35515
Organization: Alexander County (NC)
Auditor: Martin Starnes & Associates CPAS P A

AI Summary

  • Core Issue: Inadequate internal controls led to discrepancies in income documentation for energy assistance applicants.
  • Impacted Requirements: Compliance with federal guidelines (2 CFR 200) and state program policies (EP-300, EP-400) for eligibility verification was not met.
  • Recommended Follow-Up: Workers need to ensure all eligibility documentation is complete and accurate during the application process.

Finding Text

U.S. Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Low-Income Home Energy Assistance AL # 93.568 Grant Number: 2201NCLIEA MATERIAL WEAKNESS, ELIGIBILITY Finding: 2022-002 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure the accuracy of benefits being provided is within program requirements. Management must monitor activities under federal awards to assure compliance with federal requirements. In accordance with EP-400 Crisis Intervention Programs section 400.03 (F) and EP-300 Low Income Energy Assistance Program, section 300.09 (A), online verification system must be run in NC FAST on each CIP and LIEAP application. Also, in accordance with EP- 300 Low Income Energy Assistance Program, section 300.09 (A), income verification used should be documented in NC FAST and the information should be uploaded in NC FAST. Condition: Three applicants had income documented in NC FAST that did not match the supporting source documents within the system. Two other applicants did not have documentation of online verifications (OVS) being performed at the point of application. After review of the cases with workers, all applicants were found to still be eligible for energy benefits. Context: Of the 1,193 applicants during the current fiscal year valued at $541,867, we examined 60 applicants ($28,174 value) and determined that the above condition applied to five applicants (8%, valued at $2,665). We determined that all five were still eligible after redetermination with the correct documentation. Effect: Applicants could receive benefits for which they are not eligible. Cause: Workers did not take proper steps in making sure what was used for eligibility determination was complete and accurate per program guidelines. Questioned Costs: The finding represents an internal control issue; therefore, no questioned costs are applicable. Upon further review, each applicant was still eligible to receive energy benefits. Recommendation: Workers should review their eligibility determinations and ensure all documentation is included and accurate. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan submitted with this report.

Categories

Eligibility Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 33999 2022-002
    Material Weakness
  • 34000 2022-002
    Material Weakness
  • 34001 2022-002
    Material Weakness
  • 34002 2022-002
    Material Weakness
  • 34003 2022-002
    Material Weakness
  • 34005 2022-002
    Material Weakness
  • 34006 2022-001
    Material Weakness
  • 34007 2022-001
    Material Weakness
  • 34008 2022-001
    Material Weakness
  • 34009 2022-001
    Material Weakness
  • 610441 2022-002
    Material Weakness
  • 610442 2022-002
    Material Weakness
  • 610443 2022-002
    Material Weakness
  • 610444 2022-002
    Material Weakness
  • 610445 2022-002
    Material Weakness
  • 610446 2022-002
    Material Weakness
  • 610447 2022-002
    Material Weakness
  • 610448 2022-001
    Material Weakness
  • 610449 2022-001
    Material Weakness
  • 610450 2022-001
    Material Weakness
  • 610451 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $1.00M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $297,932
93.563 Child Support Enforcement $249,664
93.568 Low-Income Home Energy Assistance - Energy Assistance Payments $196,658
93.568 Covid-19 - Lieap Arpa $189,841
93.658 Foster Care_title IV-E $181,339
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $178,616
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $152,228
93.667 Social Services Block Grant $146,321
93.568 Low-Income Home Energy Assistance - Crisis Intervention Program $107,226
93.268 Covid-19 - Immunization Cooperative Agreements $104,838
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $99,658
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $75,234
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $68,300
93.069 Public Health Emergency Preparedness $49,144
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $48,607
93.568 Lihwap Caa $46,081
93.217 Family Planning_services $36,677
93.991 Preventive Health and Health Services Block Grant $30,607
93.053 Nutrition Services Incentive Program $30,604
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $27,798
10.561 Covid-19 Fns Arpa Funds $24,309
93.767 Children's Health Insurance Program $21,085
97.042 Emergency Management Performance Grants $21,056
93.568 Low-Income Home Energy Assistance $20,821
93.556 Marylee Allen Promoting Safe and Stable Families Program - Admin $20,653
93.045 Covid-19 Nutrition Services $18,570
93.994 Maternal and Child Health Services Block Grant to the States $16,728
90.404 2020 Hava Election Security Grants $12,833
16.738 Edward Byrne Memorial Justice Assistance Grant Program $11,997
93.268 Immunization Cooperative Agreements $11,712
93.645 Stephanie Tubbs Jones Child Welfare Services Program $11,431
10.561 Fns Caa Funds $8,928
93.958 Block Grants for Community Mental Health Services $5,518
93.324 State Health Insurance Assistance Program $5,222
93.568 Covid-19 - Lihwap Administration $5,079
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $4,658
93.071 Medicare Enrollment Assistance Program $3,851
93.558 Temporary Assistance for Needy Families $3,469
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1,642
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $1,500
93.659 Adoption Assistance $1,374
93.568 Covid-19 - Lieap Arpa Administration $1,134
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $100
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50