Finding 478599 (2023-007)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-07-16
Audit: 315224
Organization: Hertford County (NC)

AI Summary

  • Core Issue: Repeat findings indicate the County failed to conduct timely eligibility reviews and entered inaccurate information for Medicaid beneficiaries.
  • Impacted Requirements: Compliance with federal regulations (42 CFR 435 and 2 CFR 200) regarding timely reviews and accurate documentation is not being met.
  • Recommended Follow-Up: Implement retraining for staff on eligibility processes and improve communication between departments to ensure all relevant information is shared.

Finding Text

Cause: Identification of a repeat finding: Recommendation: Views of responsible officials and planned corrective actions: US Department of Health and Human Services Passed through the NC Dept. of Health and Human Services Program Name: Medical Assistance Program (Medicaid; Title XIX) AL# 93.778 Finding: 2023-007 Untimely Review of SSI Termination SIGNIFICANT DEFICENCY Eligibility Criteria: Condition: Questioned Costs: Context: Effect: Identification of a repeat finding: This is a repeat finding from the immediate previous audit, 2022-008. The State sends notification to the County when a participant is no longer eligible under SSI determination. The County has a certain time period to initiate an ex parte review to determine whether the recipient qualifies for Medicaid under any other coverage group, such as Family and Children's Medicaid, North Carolina Health Choice for Children, Work First Family Assistance, or Medicaid for the Aged, Blind and Disabled. There were 4 beneficiaries not reviewed timely and determined to be eligible for Medicaid when their SSI benefits were terminated. There was no known affect to eligibility and there were no known questioned costs. We examined 60 cases from of a total of 305,518 Medicaid claims from the Medicaid beneficiary report provided by NC Department of Health and Human Services to re-determine eligibility. These findings are being reported with the financial statement audit as it relates to Medicaid administrative cost compliance audit. The County did not initiate ex parte review timely, therefore, no eligibility review was completed in the required time period. The lack of follow up and certification could lead to applicants receiving Medicaid benefits for which they were not eligible. Section III. Federal Award Findings and Questioned Costs (continued) The finance office should review the grant agreement and the Uniform Guidance more carefully to ensure all compliance requirements are meet. The County agrees with the finding. See the response in the corrective action plan. County oversight of the new federal grant requirement to have the stated policies in place. This is a repeat finding from the immediate previous audit, 2022-007. Cause: Recommendation: Views of responsible officials and planned corrective actions: US Department of Health and Human Services Passed through the NC Dept. of Health and Human Services Program Name: Medical Assistance Program (Medicaid; Title XIX) AL# 93.778 Finding: 2023-008 Inaccurate Information Entry SIGNIFICANT DEFICENCY Eligibility Criteria: Condition: Questioned Costs: Context: Effect: Identification of a repeat finding: The County agrees with the finding. See the response in the corrective action plan. There were 4 errors discovered during our procedures that inaccurate information was entered when determining eligibility. Ineffective communication between departments within the Department of Social Services. One area within DSS received State communications that applicants would no longer be eligible for SSI benefits and the County needed to conduct an application process. This information was not shared with other departments in DSS from which the recipient was also receiving benefits. Any State communications related to applicants’ benefits received by any DSS department should be shared with all areas from which the participant receives benefits. State files should be reviewed internally to ensure all actions have been properly closed and the corrective action has been taken. Workers should be retrained on what process needs to be followed when State communications are received. In accordance with 42 CFR 435, documentation must be obtained as needed to determine if a recipient meets specific standards, and documentation must be maintained to support eligibility determinations. In accordance with 2 CFR 200, management should have an adequate system of internal controls procedures in place to ensure an applicant is properly determined or redetermined for benefits. For those certifications/re-certifications there was a chance that information was not properly documented and reconciled to NC FAST and a participant could have been approved for benefits for which they were not eligible. This is a repeat finding from the immediate previous audit, 2022-009. There was no known affect to eligibility and there were no known questioned costs. We examined 60 cases from of a total of 305,518 Medicaid claims from the Medicaid beneficiary report provided by NC Department of Health and Human Services to re-determine eligibility. These findings are being reported with the financial statement audit as it relates to Medicaid administrative cost compliance audit.

Corrective Action Plan

Finding 2023-006 Untimely Adoption of Policy Name of contact person: Corrective Action: Proposed completion date: Finding 2023-007 Untimely Review of SSI Termination Name of contact person: Corrective Action: Proposed completion date: Finding 2023-008 Inaccurate Information Entry Name of contact person: Corrective Action: Immediately Leslie Edwards, Finance Director The Finance Office is currently fully staffed, the Finance Director and the County Manager will work together to ensure proper policies are completed and up to date for federal awards. The fiance director will ensure that policies needed for federal grant awards are in place. The policies were adopted in FY2023 and the finding should be eliminated in FY24. Section III - Federal Award Findings and Question Costs (continued) Regular review intervals will be established to ensure that these critical tasks are being addressed promptly and efficiently, minimizing the risk of delays in case processing. Prioritizing tasks according to urgency and compliance requirements. Focusing on terminated cases to prevent any potential service disruption to clients. Regular reminders will be issued to staff to review and work on their tasks according to the established guidelines. Management monitor daily to track progress of this issue and modify the controls as needed. All staff must use the provided checklists to review their work prior to submission or finalization. Staff are required to review the determination history to verify accuracy in household composition and income details. After completing a manual budget, workers must compare their results with the NCFAST-generated budget to confirm accuracy in budgeting and program eligibility. Training sessions include knowledge checks to validate understanding and retention of correct income entry methods. Engaging in peer reviews where feasible to promote a culture of accuracy and mutual accountability. Brenda Brown, Director; Melissa Castelow, Medicaid Supervisor; Satonya Gonzales, Medicaid Supervisor Brenda Brown, Director; Melissa Castelow, Medicaid Supervisor; Satonya Gonzales, Medicaid Supervisor

Categories

Internal Control / Segregation of Duties Eligibility Reporting

Other Findings in this Audit

  • 478598 2023-006
    Significant Deficiency Repeat
  • 478600 2023-008
    Significant Deficiency Repeat
  • 478601 2023-009
    Significant Deficiency Repeat
  • 478602 2023-010
    Significant Deficiency Repeat
  • 478603 2023-011
    Significant Deficiency
  • 1055040 2023-006
    Significant Deficiency Repeat
  • 1055041 2023-007
    Significant Deficiency Repeat
  • 1055042 2023-008
    Significant Deficiency Repeat
  • 1055043 2023-009
    Significant Deficiency Repeat
  • 1055044 2023-010
    Significant Deficiency Repeat
  • 1055045 2023-011
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.21M
93.778 Medical Assistance Program $1.03M
93.568 Low-Income Home Energy Assistance $496,195
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $464,194
93.563 Child Support Enforcement $319,854
93.667 Social Services Block Grant $195,542
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $192,466
97.042 Emergency Management Performance Grants $117,827
93.558 Temporary Assistance for Needy Families $99,105
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $71,310
93.658 Foster Care_title IV-E $49,673
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $30,049
93.053 Nutrition Services Incentive Program $17,117
93.659 Adoption Assistance $14,282
93.767 Children's Health Insurance Program $2,880
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $1,110
93.645 Stephanie Tubbs Jones Child Welfare Services Program $72