Finding 524280 (2024-005)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-02-24
Audit: 343473
Organization: Johnston County (NC)

AI Summary

  • Core Issue: Significant deficiencies in verifying eligibility for Food and Nutrition Services (FNS) led to potential ineligible benefits being issued.
  • Impacted Requirements: Non-compliance with federal and state regulations on eligibility verification, risking federal funding and program integrity.
  • Recommended Follow-up: Implement training for staff on eligibility requirements and enhance internal review processes to catch errors before benefits are disbursed.

Finding Text

Johnston County, North Carolina Schedule of Findings and Questioned Costs For the Year Ended June 30, 2024 Finding: 2024-005 FNS Eligibility Determinations SIGNIFICANT DEFICIENCY Eligibility Criteria: Condition: Questioned Costs: Context: Effect: Cause: Recommendation: Views of responsible officials and planned corrective actions: Section III. Federal Award Findings and Questioned Costs (continued) US Department of Health and Human Services Passed through the NC Dept. of Health and Human Services Program Name: Food and Nutrition Services (FNS) Cluster AL # 10.551 and 10.561 Eligibility for food and nutrition assistance programs, such as the Supplemental Nutrition Assistance Program (SNAP), is governed by federal regulations outlined in 7 CFR Part 273. These regulations mandate that state agencies verify critical eligibility factors, including income, household composition, and residency, to ensure benefits are provided only to qualifying individuals and families. Additionally, North Carolina state regulations, codified under NC Administrative Code 10A NCAC 71U .0100, require local departments of social services to adhere to specific policies and procedures for determining eligibility and documenting supporting evidence. Failure to comply with these federal and state regulations can lead to ineligible disbursements, loss of federal funding, and program sanctions. There were a total of 9 errors found in our testing: 5 instances where the caseworker did not request adequate information from the recipient related to income or an incorrect income amount was entered in NCFAST; 3 instances where the caseworker did not request adequate information from the recipient related to an expense deduction or an incorrect expense deduction was entered in NCFAST; 1 instance where the caseworker did not include proper residency information in the case file. One case involved an applicant whose income was not inlcuded in the case file. This omission resulted in an incorrect eligibility determination, allowing the applicant to receive benefits despite exceeding the income threshold specified by the program guidelines. Due to the nature of the populations provided from which the samples were chosen, we are unable to calculate questioned costs for the above mentioned potential eligibility issue. We examined 25 of 35,003 FNS/SNAP cases from a report of all active FNS/SNAP beneficiaries in the fiscal year provided by the County's Department of Social Services. The finding is being reported with the financial statement audit as it relates to FNS administrative cost compliance audit. Failure to properly verify eligibility may result in benefits being provided to ineligible individuals, diverting resources from those who qualify and increasing the risk of program non-compliance, financial losses, and reputational harm to the administering agency. Due to the errors noted, eligibility cannot be sufficiently substantiated and there is a risk that the County could provide funding and/or benefits to individuals who are not program eligible. The County should provide training of management and staff on the program's eligibility requirements, proper case review process, and required verifications for eligibility. Also, the County should ensure that their formal internal review process is adequately completed to identify and correct errors in case reviews. The County agrees with the finding. See Corrective Action Plan in the following section. 233

Corrective Action Plan

Corrective Action Plan For the Year Ended June 30, 2024 Finding: 2024-005 Name of contact person: Corrective Action: Proposed Completion Date: Corrective Actions for Finding 2024-001, 2024-002, 2024-003, and 2024-004 also apply to the State Award Findings. Section IV - State Award Findings and Question Costs Section III - Federal Award Findings and Question Costs (continued) Darren Phillips, Supervisor QA/PI The Eligibility Error case will be referred to Program Integrity as an Agency Error to redo the Client's budget and to see if any money is owed back to the County and State. We have developed a training slideshow for all FNS workers to cover all errors made on the audited cases. Training will be conducted by 2/28/2025. 236

Categories

Eligibility Significant Deficiency

Other Findings in this Audit

  • 524276 2024-001
    Significant Deficiency Repeat
  • 524277 2024-002
    Significant Deficiency
  • 524278 2024-003
    Significant Deficiency Repeat
  • 524279 2024-004
    Significant Deficiency
  • 1100718 2024-001
    Significant Deficiency Repeat
  • 1100719 2024-002
    Significant Deficiency
  • 1100720 2024-003
    Significant Deficiency Repeat
  • 1100721 2024-004
    Significant Deficiency
  • 1100722 2024-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
66.458 Clean Water State Revolving Fund $34.95M
21.027 Coronavirus State and Local Fiscal Recovery Funds $25.23M
93.778 Medical Assistance Program $7.10M
14.871 Section 8 Housing Choice Vouchers $5.88M
66.468 Drinking Water State Revolving Fund $5.75M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.67M
93.563 Child Support Services $1.91M
93.658 Foster Care Title IV-E $1.67M
11.307 Economic Adjustment Assistance $1.50M
93.558 Temporary Assistance for Needy Families $1.27M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.12M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.00M
93.667 Social Services Block Grant $649,325
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $634,182
93.767 Children's Health Insurance Program $553,946
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $474,515
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $432,632
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $357,291
93.568 Low-Income Home Energy Assistance $297,828
16.922 Equitable Sharing Program $133,714
93.994 Maternal and Child Health Services Block Grant to the States $104,847
93.659 Adoption Assistance $82,896
93.217 Family Planning Services $75,867
93.268 Immunization Cooperative Agreements $73,093
97.042 Emergency Management Performance Grants $62,500
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $51,853
93.053 Nutrition Services Incentive Program $44,664
93.069 Public Health Emergency Preparedness $40,684
93.645 Stephanie Tubbs Jones Child Welfare Services Program $39,780
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $32,300
93.991 Preventive Health and Health Services Block Grant $30,431
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $20,999
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $14,870
16.738 Edward Byrne Memorial Justice Assistance Grant Program $13,015
93.556 Marylee Allen Promoting Safe and Stable Families Program $10,593
93.917 Hiv Care Formula Grants $3,370
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $2,764
93.110 Maternal and Child Health Federal Consolidated Programs $2,142
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $42