FAC Explorer

Finding 524351 (2024-004)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-02-24
Audit: 343583
Organization: Pitt County, North Carolina (NC)
Auditor: Martin Starnes & Associates CPAS P A

AI Summary

  • Core Issue: Inadequate internal controls led to improper payroll charges to the SNAP program due to a failure to update employee status after a demotion.
  • Impacted Requirements: Compliance with 2 CFR 200 and 24 CFR section 990 regarding accurate payroll cost documentation and monitoring.
  • Recommended Follow-Up: Management should update employee records in NC CORELS and ensure proper pay codes are used to prevent future discrepancies.

Finding Text

Non‐Material Non‐Compliance Material Weakness, Allowable Cost Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that activities allowed and allowable cost policies are implemented and functioning as intended. Management must monitor activities under federal awards to assure compliance with federal requirements. Management should have an adequate system of internal control procedures in place to properly review and assess the eligibility of payroll costs to ensure the accuracy of the payroll costs charged is within program requirements. In accordance with 24 CRF section 990, verification of accuracy of information used in determining payroll costs to be charged to the program should be maintained. Condition: An employee was demoted resulting in them not having to complete day sheets and requiring ADM time to be reported. Management did not update in NC CORELS and copied prior month day sheets to pay employee resulting in inappropriately charged amounts to the SNAP program. Context: Of the 570 expenditures during the current year valued at $671,155, we examined 40 (valued at $166,725) and determined that 1 (2% valued at $3,893) expenditure did not have proper documentation to support accuracy of payroll costs. Effect: Salaries allocated to the program did not have approved time sheets to verify the accuracy of the hours charged. Cause: Due to employee being demoted and not updated in NC CORELS, employee was paid with inappropriate charged expenses to the SNAP program. Questioned Costs: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. Even though the sample results only identified $3,893 in known questioned costs, if tests were extended to the entire population, questioned costs could exceed $25,000. Recommendations: Management should ensure that employees being paid in NC CORELS are being paid according to proper pay codes and requirements. View of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report

Categories

Questioned Costs Allowable Costs / Cost Principles Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 524348 2024-004
    Material Weakness
  • 524349 2024-005
    Material Weakness
  • 524350 2024-006
    Significant Deficiency Repeat
  • 524352 2024-005
    Material Weakness
  • 524353 2024-006
    Significant Deficiency Repeat
  • 524354 2024-005
    Material Weakness
  • 524355 2024-006
    Significant Deficiency Repeat
  • 524356 2024-005
    Material Weakness
  • 524357 2024-006
    Significant Deficiency Repeat
  • 524358 2024-002
    Material Weakness
  • 524359 2024-003
    Material Weakness
  • 524360 2024-005
    Material Weakness
  • 524361 2024-006
    Significant Deficiency Repeat
  • 1100790 2024-004
    Material Weakness
  • 1100791 2024-005
    Material Weakness
  • 1100792 2024-006
    Significant Deficiency Repeat
  • 1100793 2024-004
    Material Weakness
  • 1100794 2024-005
    Material Weakness
  • 1100795 2024-006
    Significant Deficiency Repeat
  • 1100796 2024-005
    Material Weakness
  • 1100797 2024-006
    Significant Deficiency Repeat
  • 1100798 2024-005
    Material Weakness
  • 1100799 2024-006
    Significant Deficiency Repeat
  • 1100800 2024-002
    Material Weakness
  • 1100801 2024-003
    Material Weakness
  • 1100802 2024-005
    Material Weakness
  • 1100803 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $5.09M
93.563 Child Support Services $2.37M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $2.22M
93.354 Covid-19 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1.37M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $837,231
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $811,001
93.994 Maternal and Child Health Services Block Grant to the States $742,009
93.658 Foster Care Title IV-E $740,670
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $504,471
97.039 Hazard Mitigation Grant $470,994
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $397,717
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $320,760
93.268 Covid-19 Immunization Cooperative Agreements $294,543
20.509 Formula Grants for Rural Areas and Tribal Transit Program $170,938
93.767 Children's Health Insurance Program $124,216
93.217 Family Planning Services $115,310
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $90,844
10.561 Covid-19 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $83,566
97.042 Emergency Management Performance Grants $53,133
93.268 Immunization Cooperative Agreements $48,929
93.667 Social Services Block Grant $48,233
93.387 National and State Tobacco Control Program $46,334
93.069 Public Health Emergency Preparedness $41,322
14.231 Emergency Solutions Grant Program $41,127
16.738 Edward Byrne Memorial Justice Assistance Grant Program $35,306
93.659 Adoption Assistance $30,354
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $29,260
93.136 Injury Prevention and Control Research and State and Community Based Programs $29,000
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $25,768
93.991 Preventive Health and Health Services Block Grant $24,959
93.558 Temporary Assistance for Needy Families $24,421
93.556 Marylee Allen Promoting Safe and Stable Families Program $18,479
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $14,369
93.917 Hiv Care Formula Grants $11,836
14.267 Continuum of Care Program $10,777
93.110 Maternal and Child Health Federal Consolidated Programs $7,976
16.606 State Criminal Alien Assistance Program $7,302
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $2,840
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $2,194
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $1,745
93.568 Low-Income Home Energy Assistance $1,113
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $100