Finding 588691 (2022-003)

US Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: (WIC) Special Supplemental Nutrition Program for Women, Infants, and Children AL # 10.557 Grant Number: 403 13A2 5403 Finding: 2022-003 NON-MATERIAL NON-COMPLIANCE MATERIAL WEAKNESS Criteria: In accordance with 7 CFR 246, benefits should be terminated timely to prevent payment errors. In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that benefits are paid only through the proper certification period. Condition: One casefile certification was not set for the proper period. As a result, benefits continued for six months after they should have terminated. Context: Of the 89,500 benefit payments valued at $4,833,494, we examined 60 payment records ($2,436 value) and determined that one (2% valued at $369) of the participants received benefits after the proper certification period. Effect: Certification periods not being through the proper period could cause the County to expend funds over the eligible amount. Cause: The caseworker did not review to ensure that the certification period was proper. 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 $369 (federal share $369 and state share $0) in questioned costs, if tests were extended to the entire population, questioned costs could exceed $25,000. Recommendation: Caseworkers should review cases to ensure that certification periods are through the proper period. Name of Contact Person: Nicole Alston Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.