FAC Explorer

Finding 421977 (2022-003)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-23
Audit: 312326
Organization: Surry County (NC)
Auditor: Gould Killian CPA Group P A

AI Summary

  • Core Issue: The County's second party review process is not effectively correcting identified errors in documentation, with 5% of cases showing unaddressed issues.
  • Impacted Requirements: This situation violates the requirement for effective internal controls under Uniform Guidance 2 CFR 200.303, which mandates compliance with Federal statutes and accurate documentation.
  • Recommended Follow-Up: The County should enhance training for supervisors and caseworkers on correcting errors and ensure timely follow-up on second party reviews to improve documentation accuracy.

Finding Text

Criteria: Uniform Guidance 2 CFR ? 200.303 requires the non-Federal entity to ?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: Second party reviews is a key internal control to assess the completeness and accuracy of the Medicaid and FNS case eligibility made by County staff. We selected forty second party reviews completed by the County for each program and noted that 2 cases for each program had errors that were identified by the reviewer with no subsequent correction made to case. So, it was total of 4 cases out of 80 cases. None of these errors were related to eligibility determination. These errors related todocumentation or required communications with the applicant.Questioned Costs: No questioned costs.Context: Of the second party reviews selected, corrections were not made to documentation 5% of thetime. These were not related to eligibility determination.Cause: The caseworker did not make corrections identified by the 2nd Party Review process thatrequired sending notices to the client or updating documentation in NCFAST. The 2nd Party Reviewprocess did not include follow-up to ensure corrections were made timely.Effect: The applicant may not receive important notifications from the County or the documentationmay be incomplete. Documentation should be complete and accurate.Identification of repeat finding: This is not a repeat finding.Recommendation: We would recommend the County review the 2nd Party Review process withsupervisors and case workers and the expectations related to correcting errors. The two errors thatwere uncorrected for the FNS program had to do with sending DSS-8569 to clients. Per the supervisor,this policy had changed during the year, so we would recommend having additional training on thispolicy.Views of Responsible Officials and Planned Corrective Actions: The County agrees with this findingand is taking coordinated effort and action. Refer to corrective action plan on subsequent page 17.

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.29M
93.778 Medical Assistance Program $1.85M
93.563 Child Support Enforcement $535,546
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $365,217
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $347,912
93.667 Social Services Block Grant $336,386
14.239 Home Investment Partnerships Program $320,894
16.838 Comprehensive Opioid Abuse Site-Based Program $193,219
93.268 Immunization Cooperative Agreements $124,047
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $122,191
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $106,312
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $66,908
93.994 Maternal and Child Health Services Block Grant to the States $59,087
93.659 Adoption Assistance $55,315
97.042 Emergency Management Performance Grants $50,353
93.136 Injury Prevention and Control Research and State and Community Based Programs $48,164
93.217 Family Planning_services $45,405
93.658 Foster Care_title IV-E $44,216
20.106 Airport Improvement Program $43,723
93.767 Children's Health Insurance Program $43,518
90.404 2018 Hava Election Security Grants $41,232
16.922 Equitable Sharing Program $39,904
93.556 Promoting Safe and Stable Families $38,537
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $37,349
93.069 Public Health Emergency Preparedness $35,478
93.991 Preventive Health and Health Services Block Grant $30,608
93.053 Nutrition Services Incentive Program $24,681
93.645 Stephanie Tubbs Jones Child Welfare Services Program $23,634
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $22,844
93.052 National Family Caregiver Support, Title Iii, Part E $14,842
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $11,050
97.067 Homeland Security Grant Program $9,829
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $9,166
93.568 Low-Income Home Energy Assistance $8,724
93.558 Temporary Assistance for Needy Families $8,053
93.324 State Health Insurance Assistance Program $6,216
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $1,920
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $100
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $50
93.566 Refugee and Entrant Assistance_state Administered Programs $31