Finding 638136 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-06-08

AI Summary

  • Core Issue: The County failed to document the required minimum of 160 second party reviews for Medicaid eligibility, providing only 99, which raises concerns about internal controls.
  • Impacted Requirements: Compliance with Uniform Guidance 2 CFR 200.303 is at risk, as the County did not meet the mandated reporting and review standards for Medicaid cases.
  • Recommended Follow-Up: The County should maintain a detailed list of all second party reviews, including case numbers and outcomes, or utilize the State's review form to ensure proper documentation and compliance.

Finding Text

US Department of Health and Human Services Passed through the NC Dept. of Health and Human Services Program Name: Medicaid Assistance Program (Medicaid) AL #: 93.778 Finding 2022-01: Significant Deficiency in Internal Control Criteria: Uniform Guidance 2 CFR ? 200.303 requires the non-Federal entity to ?establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.? Each County in the State is required to submit quarterly reports with the second party review results with a minimum number of second party reviews completed. Condition: The County is required to complete a minimum number of second party reviews and report the results to the State, which is considered a key control over eligibility determination for Medicaid cases. There is incomplete documentation of the minimum 160 cases that County indicated it performed. GK selected a sample of 10 (10%) of the second party reviews from the list of 99 completed reviews provided by the County and determined that there were no errors in the available cases. Questioned Costs: No questioned costs. Context: The County is required to complete at least 16 Adult Medicaid cases and 24 Family/Children Medicaid cases each quarter and send a summarized report to the State, for a total of 160 cases each year. The County was able to provide a list of 99 of these reviews for the audit, which is 62% of the total 160 required. Cause: Due to lack of documentation, we were not able to sample from a complete population of second party reviews. Effect: Although the 10 selected second party reviews appeared to be appropriately performed, we are unable to conclude on the effectiveness of this internal control or compliance with the State quality control requirement to ensure their review findings were appropriate and that corrections were made timely. Identification of repeat finding: This is not a repeat finding. Recommendation: We would recommend the County make a list of each second party review completed, including the case number, program, date of review, whether there were errors to be corrected. Alternatively, we would recommend that the County use the Second Party Review form provided by the State for all cases and retain a copy of the review until the completion of the audit. Views of responsible officials and planned corrective actions: The County agrees with this finding.

Categories

Allowable Costs / Cost Principles Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61694 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.47M
93.778 Medical Assistance Program $790,284
66.458 Capitalization Grants for Clean Water State Revolving Funds $329,358
93.658 Foster Care_title IV-E $181,332
20.509 Formula Grants for Rural Areas and Tribal Transit Program $141,097
90.404 2018 Hava Election Security Grants $130,783
93.558 Temporary Assistance for Needy Families $102,935
93.667 Social Services Block Grant $94,994
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $93,375
10.665 Schools and Roads - Grants to States $89,673
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $89,535
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $79,087
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $71,861
97.042 Emergency Management Performance Grants $63,049
93.575 Child Care and Development Block Grant $62,520
93.563 Child Support Enforcement $58,071
16.738 Edward Byrne Memorial Justice Assistance Grant Program $46,476
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $39,450
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $21,236
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $17,359
93.767 Children's Health Insurance Program $14,158
93.053 Nutrition Services Incentive Program $12,787
93.568 Low-Income Home Energy Assistance $11,314
93.645 Stephanie Tubbs Jones Child Welfare Services Program $4,468
93.659 Adoption Assistance $2,573
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $712
93.556 Promoting Safe and Stable Families $-8,597