FAC Explorer

Finding 41701 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 38704
Organization: Forsyth County, North Carolina (NC)
Auditor: Cherry Bekaert LLP

AI Summary

  • Core Issue: The County lacks a formal policy for reviewing eligibility determinations for the Low-Income Home Energy Assistance Program.
  • Impacted Requirements: This finding violates Section 200.303 of the Uniform Grant Guidance, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Develop a formal checklist for reviewing applications, ensuring all eligibility criteria are documented before fund 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 - Eligibility Finding 2022-002 Criteria: In accordance with Section 200.303 of the Uniform Grant Guidance, a non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: While the County noted reviews had taken place, the County does not have a formal policy for supervisor reviews of eligibility determinations related to this program. Further, the County did not retain copies of all reviews that were completed during the year. Context: We tested a sample of 60 approved applications out of over 5,700 total applications approved during the year, in which it was noted the County did not have a formalized process for documenting their review of eligibility determinations. Effect: The County could have provided funding to ineligible recipients or amounts that exceeded the allowable limits which resulted in questioned costs. Questioned Costs: None. Cause: There is no formal policy or checklist to document the review process in place. Recommendation: We recommend the County develop a formal checklist that is specific 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.

Corrective Action Plan

Finding 2022-002, Material Weakness - Eligibility Corrective Action Plan: Goal: To ensure eligibility determination related to income documentation and calculation is completed appropriately for all applications by auditing a minimum of 5% of all applications completed monthly per employee and retaining electronic copies of the audits in One Drive. Plan: Designated Supervisors/Managers, Senior Income Maintenance Caseworkers, and Quality Assurance staff will be tasked with auditing cases using the state audit form. Performance Improvement Strategies: 1. Errors will be discussed individually with staff via monthly conferences with their supervisor or member of the supervisory team. 2. Copies of audit forms will be shared with staff which will identify trends, areas of improvement and progress. 3. In-service training will be developed based on common errors offered throughout the fiscal year and for all staff who are responsible for administering this program. 4. The QA/Training department will collaborate with Economic Services to develop a checklist to review approved applications that includes income documentation and calculation to ensure timely benefits to customers. Responsible Parties: Energy Programs Team and Customer Care Center Team management as well as the Quality Assurance Team will perform second party audits on 5% of all processed Low-Income Household Energy Assistance Program applications. Timeframes: Audits will be completed and retained on a monthly basis by IMC III (Lead Worker), and supervisor.

Categories

Eligibility Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 41702 2022-002
    Material Weakness
  • 41703 2022-002
    Material Weakness
  • 41704 2022-002
    Material Weakness
  • 41705 2022-003
    Significant Deficiency Repeat
  • 41706 2022-003
    Significant Deficiency Repeat
  • 41707 2022-003
    Significant Deficiency Repeat
  • 41708 2022-003
    Significant Deficiency Repeat
  • 41709 2022-003
    Significant Deficiency Repeat
  • 41710 2022-003
    Significant Deficiency Repeat
  • 41711 2022-004
    Significant Deficiency
  • 41712 2022-004
    Significant Deficiency
  • 44505 2022-004
    Significant Deficiency
  • 44506 2022-005
    -
  • 44507 2022-005
    -
  • 44508 2022-005
    -
  • 44509 2022-005
    -
  • 44510 2022-005
    -
  • 44511 2022-005
    -
  • 618143 2022-002
    Material Weakness
  • 618144 2022-002
    Material Weakness
  • 618145 2022-002
    Material Weakness
  • 618146 2022-002
    Material Weakness
  • 618147 2022-003
    Significant Deficiency Repeat
  • 618148 2022-003
    Significant Deficiency Repeat
  • 618149 2022-003
    Significant Deficiency Repeat
  • 618150 2022-003
    Significant Deficiency Repeat
  • 618151 2022-003
    Significant Deficiency Repeat
  • 618152 2022-003
    Significant Deficiency Repeat
  • 618153 2022-004
    Significant Deficiency
  • 618154 2022-004
    Significant Deficiency
  • 620947 2022-004
    Significant Deficiency
  • 620948 2022-005
    -
  • 620949 2022-005
    -
  • 620950 2022-005
    -
  • 620951 2022-005
    -
  • 620952 2022-005
    -
  • 620953 2022-005
    -

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $9.51M
21.023 Emergency Rental Assistance Program $4.92M
93.568 Low-Income Home Energy Assistance $2.21M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.71M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.64M
93.499 Low Income Household Water Assistance Program $1.02M
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $624,312
66.001 Air Pollution Control Program Support $484,388
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $426,727
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $392,903
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $260,685
10.923 Emergency Watershed Protection Program $249,989
93.926 Healthy Start Initiative $194,563
93.767 Children's Health Insurance Program $187,210
93.659 Adoption Assistance $182,421
93.268 Immunization Cooperative Agreements $181,913
93.994 Maternal and Child Health Services Block Grant to the States $176,112
93.217 Family Planning_services $168,324
93.053 Nutrition Services Incentive Program $141,649
93.052 National Family Caregiver Support, Title Iii, Part E $133,403
66.034 Surveys, Studies, Research, Investigations, Demonstrations, and Special Purpose Activities Relating to the Clean Air Act $131,203
93.658 Foster Care_title IV-E $131,178
21.019 Coronavirus Relief Fund $120,000
93.645 Stephanie Tubbs Jones Child Welfare Services Program $103,062
93.136 Injury Prevention and Control Research and State and Community Based Programs $83,898
16.738 Edward Byrne Memorial Justice Assistance Grant Program $74,912
93.667 Social Services Block Grant $66,831
93.069 Public Health Emergency Preparedness $55,515
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $54,196
93.563 Child Support Enforcement $46,180
93.558 Temporary Assistance for Needy Families $44,856
93.778 Medical Assistance Program $41,059
14.239 Home Investment Partnerships Program $40,300
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $33,525
93.940 Hiv Prevention Activities_health Department Based $30,452
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $26,427
93.991 Preventive Health and Health Services Block Grant $26,289
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $17,218
93.556 Promoting Safe and Stable Families $12,580
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $7,009
93.566 Refugee and Entrant Assistance_state Administered Programs $2,820
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $245