Finding 516063 (2024-003)

Finding: 2024-003 IV-D Non-Cooperation Edgecombe County County Administration Building 201 St. Andrew St., PO Box 10 Tarboro, NC 27886 252-641-7834 ∙ Fax 252-641-0456 www.edgecombecountync.gov For the Year Ended June 30, 2024 Corrective Action Plan Edgecombe County, NC Proposed Completion Date: June 30, 2024 Name of contact person: Linda Barfield, Chief Financial Officer Corrective Action: The budget variance in Debt Service stemmed from the reclassification of lease and subscription expenses originally budgeted at the departmental level. For financial reporting purposes, ease and subscription principal payments were reclassed to debt service to ensure accurate reporting. While the original departmental budgets were within approved limits, the reclassification affected the Debt Service budget after the fiscal year ended. FY24 is the first year of implementation of GASB 96 for subscriptions and the second year of GASB 87 for leases. The impacts of both these GASBs, was not fully known at the time the budget was adopted. The County will make the necessary budget amendments to FY25 budget before the end of the fiscal year to align the budget with anticipated financial reporting. Additionally, the County implemented additional review procedures to monitor such reclassifications closely and will continue to assess our budget tracking processes to prevent similar instances in future periods. Section II. Financial Statement Findings Proposed Completion Date: June 30, 2024 Name of contact person: Linda Barfield, Chief Financial Officer Corrective Action: The County initiated a rate study to assess the adequacy of our current rate structure in supporting both operating expenses and debt service obligations. The rate study analysis is still being finalized, so the impact to the rates is not yet known. The County plans to carefully consider adjustments or operational improvements based on the study’s findings to ensure compliance with bond covenants. Section III - Federal Award Findings and Question Costs Name of contact person: Brandy Dawes and Tina Radford, Medicaid Supervisors. Denise McKnight, Social Services Program Administrator Corrective Action: Application checklist updated to include line items to list all children in the household and absent parents. This list will ensure that the workers include IV-D referrals for all children when a parent is receiving benefits. Medicaid Supervisors and Quality Control workers will review files internally to ensure policy is applied to all cases and that the evidence entered into NCFAST and shows that a IV-D referral have been sent to Child Support.