Finding 610815 (2022-002)

U.S. Department of Health and Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Temporary Assistance for Needy Families AL# 93.558 Grant Number: G2101NCTANF / 2201NCTANF Significant Deficiency Non-Material Non-Compliance Finding 2022-002 Criteria: In accordance with 2 CFR 200 and the Division of Social Services Fiscal Manual, management should have an adequate system of internal control procedures in place to ensure that daysheet entries are supported by documentation in case record files. Condition: The County Department of Social Services failed to retain proper documentation regarding daysheet entries. Context: Of the 476 payroll charges valued at $1,777,797, we examined 40 daysheets ($179,133 value) and determined that one daysheet (3% valued at $988) did not have documentation to substantiate time charged to the TANF 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 $988 (federal share of $988 and state share $0) in questioned costs, if tests were extended to the entire population, questioned costs could exceed $25,000. Effect: Caseworker time entry could be charged to the wrong program/grant causing administrative costs to be misallocated. Cause: Caseworker failed to retain documentation of time charged to program. Recommendation: Require the County Program Directors to implement procedures to ensure that daysheets are properly supported by documentation of time charged to each program. Name of Contact Person: Tiffany Murray, Finance Director Views of Responsible Officials and Planned Corrective Actions: Management concurs with this finding and will adhere to the Corrective Action Plan in this audit report.