EIN: 566001814
UEI: GYUNA9W1NFM1
Audited by: Martin Starnes & Associates, CPAs, P.A.
Oversight agency: 93 [Department of Health and Human Services]
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Data as of September 7, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 18, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by September 18, 2026 (8 days from today).
What is a management decision? →Upon surprise inspection, two workstations of DSS employees were logged onto the state network without anyone attending to the workstation. Context: While performing testing of internal control over compliance related to the Division of Social Services, we noted the above condition. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lack of proper internal controls over data security. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County Data Processing Department to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. View of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Show full finding ▾Hide full finding ▴U.S. Department of Health and Human Services Passed-through N.C. Department of Health and Human Services Program Name: Medical Assistance Program (Medicaid; Title XIX) AL Number: 93.778 Grant Number: XIX-MAP24 Program Name: Foster Care, Adoption, & Guardianship AL Number: 93.658, 93.659, 93.090 Grant Number: 1701NCFOST, 1701NCADPT Finding 2025-001 Significant Deficiency Criteria: In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, two workstations of DSS employees were logged onto the state network without anyone attending to the workstation. Context: While performing testing of internal control over compliance related to the Division of Social Services, we noted the above condition. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lack of proper internal controls over data security. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County Data Processing Department to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. View of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.
Finding: 2025-001 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management’s Response: Agency agrees with finding. Corrective Action taken/to be taken below: Corrective Action: The Department will strengthen internal controls related to workstation security to prevent unattended access to state systems. Effective immediately, all DSS employees with access to state eligibility systems are required to lock their workstation when away from their desk or log out of the system entirely. Implementation Steps: 1. Policy Reinforcement: DSS management will reissue written guidance to all staff reminding them of the requirement to lock or log out of workstations when unattended, consistent with the DSS Fiscal Manual and county IT security standards. 2. Mandatory Staff Acknowledgment: All DSS employees with state system access will complete a brief acknowledgment confirming understanding of workstation security requirements. 3. IT Controls: In coordination with the County IT Department, automatic screen-lock settings will be verified on all DSS workstations accessing state systems. 4. Monitoring and Verification: Supervisors will conduct periodic unannounced walkthroughs to verify compliance with workstation security requirements. Results will be documented and reviewed by DSS management. 5. Corrective Follow-Up: Any noncompliance identified will be addressed promptly through retraining and, if necessary, progressive disciplinary action. Responsible Party: DSS Director, DSS Program Managers, and County DSS Staff Anticipated Completion Date: Immediately upon issuance of this CAP; monitoring will be ongoing. Plan to Prevent Recurrence: Ongoing supervisory monitoring, documented compliance checks, and annual refresher training will be used to ensure continued adherence to workstation security requirements.
FAC accepted this audit on December 11, 2024 — management decision was due June 11, 2025.
FAC accepted this audit on March 22, 2024 — management decision was due September 22, 2024.
The County Department of Social Services failed to properly include documentation of income in the casefile for one applicant. Upon further review, the applicant was ultimately eligible. Context: Of the 1,204,842 benefit payments valued at $377,476,138, we examined 60 payment records ($18,111 value) and determined that in one casefile (2%) proper income documentation was not retained to support the eligibility determination. Upon further review and recalculation, the applicant was deemed eligible. Effect: Casefile did not have proper income documentation, which could allow benefits to be provided to individuals who are not eligible. Cause: Caseworker failed to retain income documentation in the casefile. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Casefiles should be reviewed to verify that all required documentation has been obtained before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Significant Deficiency Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include properly reviewed income calculations. In accordance with 45 CFR 435, documentation must be maintained to support eligibility determinations. Condition: The County Department of Social Services failed to properly include documentation of income in the casefile for one applicant. Upon further review, the applicant was ultimately eligible. Context: Of the 1,204,842 benefit payments valued at $377,476,138, we examined 60 payment records ($18,111 value) and determined that in one casefile (2%) proper income documentation was not retained to support the eligibility determination. Upon further review and recalculation, the applicant was deemed eligible. Effect: Casefile did not have proper income documentation, which could allow benefits to be provided to individuals who are not eligible. Cause: Caseworker failed to retain income documentation in the casefile. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Casefiles should be reviewed to verify that all required documentation has been obtained before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management’s Response: The Medicaid Program Manager reviewed the verification process and the requirement to upload all information into NCFAST with the Medicaid staff. The formal case file review process will continue to monitor this and other areas. Additional training will be offered if the case file reviews reveal deficiencies in this area. Proposed Completion Date: Immediately and ongoing.
The County Department of Social Services failed to properly include IV-D child support referrals in the casefiles for three applicants. Upon further review, the applicants were ultimately eligible. Context: Of the 1,204,842 benefit payments valued at $377,476,138, we examined 60 payment records ($18,111 value) and determined that in three casefiles (5%) proper IV-D child support referrals were not provided to the applicants. Upon further review and recalculation, the applicants were deemed eligible. Effect: Casefiles did not have proper IV-D child support referrals, which could allow applicants to be excluded from benefits for which they are eligible. Cause: Caseworker failed to provide IV-D child support referrals. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Casefiles should be reviewed to verify that all required referrals have been made before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Significant Deficiency Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that standardized forms are used and maintained. In accordance with 45 CFR 303, child support referrals must be provided to applicable cases. Condition: The County Department of Social Services failed to properly include IV-D child support referrals in the casefiles for three applicants. Upon further review, the applicants were ultimately eligible. Context: Of the 1,204,842 benefit payments valued at $377,476,138, we examined 60 payment records ($18,111 value) and determined that in three casefiles (5%) proper IV-D child support referrals were not provided to the applicants. Upon further review and recalculation, the applicants were deemed eligible. Effect: Casefiles did not have proper IV-D child support referrals, which could allow applicants to be excluded from benefits for which they are eligible. Cause: Caseworker failed to provide IV-D child support referrals. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Casefiles should be reviewed to verify that all required referrals have been made before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management’s Response: Currently, DHB Administrative Letter 13-23 prohibits caseworkers from sending IV-D referrals for the remainder of the CCU period. Once this restriction is in removed, the Medicaid Program Manager will review the requirement to send IV-D referrals with staff. The formal case file review process will continue to monitor this and other areas. Additional training will be offered if the case file reviews reveal deficiencies in this area. Proposed Completion Date: Immediately and ongoing.
FAC accepted this audit on January 16, 2023 — management decision was due July 16, 2023.
Upon surprise inspection, one unattended workstation of a DSS employee was logged onto the state network without anyone attending to the workstation. Context: While performing testing of internal control over compliance related to the Division of Social Services, we noted the above condition. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lack of proper internal controls over data security. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County Data Processing Department to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding: 2022-001 U.S. Department of Health & Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Medicaid Cluster AL # 93.778 Grant Number: XIX-MAP22 Program Name: Foster Care Title IV-E AL # 93.658 Grant Number: 1701NCFOST Program Name: Adoption Assistance AL # 93.659 Grant Number: 1701NCADPT Significant Deficiency Criteria: In accordance with the Division of Social Services Fiscal Manual, DSS employees should control physical access to the state network terminals or personal computers that are connected to the state mainframe. Condition: Upon surprise inspection, one unattended workstation of a DSS employee was logged onto the state network without anyone attending to the workstation. Context: While performing testing of internal control over compliance related to the Division of Social Services, we noted the above condition. Effect: Unauthorized access to the state system could be obtained due to the unattended logon to the system throughout the DSS building. Cause: Lack of proper internal controls over data security. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Require the County Data Processing Department to implement procedures to require logout of workstations where access to the state DSS system is granted. The control procedures should include random verification of logout in instances where offices are unattended. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Federal Award Findings and Questioned Costs Finding: 2022-001 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Agency agrees with the finding and will ensure random reviews of workstations will be completed. Agency will ensure immediate refresher in Unit meetings regarding computer security. Additionally, County DSS will continue with an annual training to review computer security and will ensure computer security is addressed in new employee orientation. Proposed Completion Date: Immediately and ongoing.
The County Department of Social Services did not have adequate review controls in place to ensure the proper eligibility determinations were being made and documented. The County did not have evidence of reviews performed over the program tested for the entire period under audit. Context: The County did not have evidence of reviews performed over the program for the entire period under audit. Effect: Casefiles could be missing the required eligibility determination documentation which would allow benefits to be provided to individuals who are not eligible. Cause: Weakness in implementation of controls over second party review procedures performed by management. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Evidence of documentation of reviews should be retained and include electronic signatures of reviewer. Any deficiencies noted during the review should be corrected within a timely manner and documented as such. Name of Contact Person: Karen Harrington, DSS Director Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding: 2022-003 U.S. Department of Health & Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Aging Cluster AL # 93.044, 93.045 Grant Number: 15-16 AANCT3HD; 15-16 AANCT3CM Significant Deficiency Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to properly review and assess the eligibility of individuals to ensure the accuracy of the benefits being provided is within program requirements. Verification of accuracy of information used in determining eligibility should be performed by management. Evidence of the review should be documented and include authorized signatures. Condition: The County Department of Social Services did not have adequate review controls in place to ensure the proper eligibility determinations were being made and documented. The County did not have evidence of reviews performed over the program tested for the entire period under audit. Context: The County did not have evidence of reviews performed over the program for the entire period under audit. Effect: Casefiles could be missing the required eligibility determination documentation which would allow benefits to be provided to individuals who are not eligible. Cause: Weakness in implementation of controls over second party review procedures performed by management. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. Recommendation: Evidence of documentation of reviews should be retained and include electronic signatures of reviewer. Any deficiencies noted during the review should be corrected within a timely manner and documented as such. Name of Contact Person: Karen Harrington, DSS Director Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. Please refer to the Corrective Action Plan.
Federal Award Findings and Questioned Costs (continued) Finding: 2022-003 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Congregate Nutrition ? Second Party Review Process The following Second Party Review process was implemented July 2022: Each month the Business Manager reviews two completed CRFs for each SMO site. The two CRFs that are selected from a site should be different types (example: one new CRF and one annual re-assessment, or one annual re-assessment and one termination). There is a spreadsheet where these audits are tracked in the secure SNS Z:drive. It will be stored by fiscal year then Internal Audit then SMO Audit Log. In the spreadsheet, the Business Manager enters the site, the first and last name of the client, the review/audit date, and site. In addition, the following items will be reviewed and documented: ? Dates Match: new registration date or change of information date is included and matches date on the back at the bottom of the document - key date ? Type of CRF: new/returning/annual/change/termination ? Term. Reason: if terminated, the termination date and reason are both indicated ? Complete: all boxes/sections are completed or marked refused to answer if option available ? Signed: CRF is signed by both client and site supervisor ? Timely: update is completed each year (indicated on the bottom of the back page) during the same month that the client started unless there is a change of information ? Electronic Signature of person completing internal review: first initial, last name (types in excel sheet) Second party reviews with checklists and reviewer signatures were already in place for remaining Aging Cluster services. Proposed Completion Date: Immediately and ongoing.
FAC accepted this audit on February 9, 2022 — management decision was due August 9, 2022.
While testing special tests related to the Community Services Block grant, it was noted that the County does not have a Board of Directors that consists of at least 15 members. Context: The County maintained 13 Board members of which one-third of the members are elected public officials, at least one third of the members were chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served, and the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community. Effect: Board does not contain 15 members. Cause: Vacancies of Board members Identification of a Repeat Finding: This is a modified and repeat finding from the immediate previous audit 2020-001. Questioned Costs: None. Funding is not reduced due to the Board consisting of less than 15 members. Recommendation: The department should monitor the amount of tripartite Board members on an ongoing basis. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding: 2021-001 U.S. Department of Health & Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Community Services Block Grant CFDA # 93.569 Grant Number: 32179 Non-Compliance Significant Deficiency Criteria: In accordance with the CSBG Act at 42 USC 9910 (b) public organizations must administer CSBG through a tripartite Board of Directors consisting of at least 15 members. Condition: While testing special tests related to the Community Services Block grant, it was noted that the County does not have a Board of Directors that consists of at least 15 members. Context: The County maintained 13 Board members of which one-third of the members are elected public officials, at least one third of the members were chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served, and the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community. Effect: Board does not contain 15 members. Cause: Vacancies of Board members Identification of a Repeat Finding: This is a modified and repeat finding from the immediate previous audit 2020-001. Questioned Costs: None. Funding is not reduced due to the Board consisting of less than 15 members. Recommendation: The department should monitor the amount of tripartite Board members on an ongoing basis. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Finding: 2021-001 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: CSBG Program Director and staff concur with the finding and will take immediate action to monitor the amount of tripartite board members on an ongoing basis. Actions to address this deficiency will continue as follows: 1. Board member status, recruitment, recruitment efforts and nominations will be discussed and documented at each quarterly CSBG board meeting. 2. CSBG Director and staff will conduct active recruitment efforts in accordance with recommendations made during quarterly CSBG board meetings. 3. During the 5/11/2021 quarterly CSBG board meeting, board status and recruitment were discussed. Two recommendations for board members were made. Active recruitment for these individuals, and others if needed, will continue in order to stabilize the board with the required 15 members. Proposed Completion Date: Immediately and ongoing.
The County Department of Social Services failed to properly determine income for one applicant. Upon further review, the applicant was ultimately eligible. Context: Of the 2,691,594 benefit payments valued at $308,597,907, we examined 60 payment records ($3,891 value) and determined that (2%) one casefile did not have properly calculated income. Upon further review and recalculation, the applicant was deemed eligible. Effect: Casefile did not have properly calculated income, which could allow benefits to be provided to individuals who are not eligible. Cause: The caseworker did not correctly include the unemployment income. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. The County was able to substantiate that the applicant was eligible to receive benefits. Recommendation: Caseworkers should review their eligibility determinations and ensure all information is entered correctly. Calculations should be reviewed for accuracy before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding: 2021-002 U.S. Department of Health & Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Medicaid Cluster CFDA # 93.778 Grant Number: XIX-MAP21 Significant Deficiency Criteria: In accordance with the 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include properly reviewed income calculations. In accordance with 45 CFR 435, documentation must be maintained to support eligibility determinations. Condition: The County Department of Social Services failed to properly determine income for one applicant. Upon further review, the applicant was ultimately eligible. Context: Of the 2,691,594 benefit payments valued at $308,597,907, we examined 60 payment records ($3,891 value) and determined that (2%) one casefile did not have properly calculated income. Upon further review and recalculation, the applicant was deemed eligible. Effect: Casefile did not have properly calculated income, which could allow benefits to be provided to individuals who are not eligible. Cause: The caseworker did not correctly include the unemployment income. Questioned Costs: None. The finding represents an internal control issue; therefore, no questioned costs are applicable. The County was able to substantiate that the applicant was eligible to receive benefits. Recommendation: Caseworkers should review their eligibility determinations and ensure all information is entered correctly. Calculations should be reviewed for accuracy before approving benefits. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See Corrective Action Plan.
Finding: 2021-002 Name of Contact Person: Karen Harrington, DSS Director Corrective Action/Management?s Response: Caseworkers will review the eligibility determinations to ensure the information is accurate. The formal case file review process will continue to monitor this and other areas. Additional training will be offered if the case file reviews reveal deficiencies in this area. Proposed Completion Date: Immediately and ongoing.
FAC accepted this audit on February 9, 2021 — management decision was due August 9, 2021.
While testing special tests related to the Community Services Block grant, it was noted that the County does not have a Board of Directors that consists of at least 15 members. Context: The County maintained 11 Board members of which one-third of the members are elected public officials, at least one third of the members were chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served, and the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community. Effect: Board does not contain 15 members. Cause: Vacancies of Board members Questioned Costs: None. Funding is not reduced due to the Board consisting of less than 15 members. Recommendation: The department should monitor the amount of tripartite Board members on an ongoing basis. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See corrective action plan.
Show full finding ▾Hide full finding ▴Finding: 2020-001 U.S. Department of Health & Human Services Passed through the N.C. Dept. of Health and Human Services Program Name: Community Services Block Grant CFDA # 93.569 Grant Number: 32179 NON-MATERIAL NON-COMPLIANCE SIGNIFICANT DEFICIENCY Criteria: In accordance with the CSBG Act at 42 USC 9910 (b) public organizations must administer CSBG through a tripartite Board of Directors consisting of at least 15 members. Condition: While testing special tests related to the Community Services Block grant, it was noted that the County does not have a Board of Directors that consists of at least 15 members. Context: The County maintained 11 Board members of which one-third of the members are elected public officials, at least one third of the members were chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served, and the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other major groups and interests in the community. Effect: Board does not contain 15 members. Cause: Vacancies of Board members Questioned Costs: None. Funding is not reduced due to the Board consisting of less than 15 members. Recommendation: The department should monitor the amount of tripartite Board members on an ongoing basis. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding. See corrective action plan.
Finding: 2020-001 Corrective Action/Management?s Response: CSBG Program Director and staff concur with the finding and will take immediate action to monitor the amount of tripartite board members on an ongoing basis. Actions to address this deficiency will continue as follows: 1. Board member status, recruitment, recruitment efforts and nominations will be discussed and documented at each quarterly CSBG board meeting. 2. CSBG Director and staff will conduct active recruitment efforts in accordance with recommendations made during quarterly CSBG board meetings. Proposed Completion Date: Immediately and ongoing.
FAC accepted this audit on November 19, 2019 — management decision was due May 19, 2020.
FAC accepted this audit on December 22, 2018 — management decision was due June 22, 2019.
FAC accepted this audit on December 12, 2017 — management decision was due June 12, 2018.
GSA_MIGRATION
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GSA_MIGRATION
2016-003
FAC accepted this audit on January 3, 2017 — management decision was due July 3, 2017.
GSA_MIGRATION
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