Finding 44433 (2022-005)

United States Department of Health and Human Services Pass-through from North Carolina Department of Health and Human Services Program Name: Block Grants for Prevention and Treatment of Substance Abuse Federal Assistance Listing Number - 93.959 Finding 2022-005 Significant Deficiency and Noncompliance - Special Tests and Provisions Criteria: North Carolina regulations require entities that receive, use, or expend State funds, including federal funds passed through the North Carolina Department of Health and Human Services (NCDHHS), to submit a notarized Conflict of Interest policy to the applicable state agency. Condition and Context: During our testing of this special provision, management was able to provide the signed Annual Conflict of Interest Verification provided to the NCDHHS; however, management was unable to locate a copy of the notarized Conflict of Interest policy that was on file with the NCDHHS during the audit period. Cause: Management oversight in document retention. Effect: Without adequate controls over document retention, the Organization may not be able to demonstrate to responsible officials that documentation filing requirements are met. Recommendation: Contact the NCDHHS to obtain a copy of the notarized Conflict of Interest statement on file. If the Organization is unable to do so, it should file a signed and notarized Conflict of Interest policy with the agency as soon as possible. Views of Management: Management agrees with the finding and is implementing procedures that are further discussed in the corrective action plan. See Corrective Action Plan.