North Carolina Auditor finds NCDHHS failed to meet federal standards across various programs, including over $39M allocated for opioid crisis
State officials blamed staff turnover and managing the COVID-19 pandemic as reasons for noncompliance. Plus: Cops & Congress commentary.
Federal compliance audit reveals significant reporting and monitoring issues
The North Carolina Department of Health and Human Services (NCDHHS), “did not fully comply with Federal requirements related to multiple programs,” according to a report released today by the NC State Auditor, Democrat Jessica Holms.
The audit focused on multiple assistance programs aimed at addressing critical societal needs, including water assistance, foster care, adoption, Medicaid, opioid abuse, and substance abuse prevention and treatment.
NCDHHS did not adequately monitor over $39M in federal funds passed to subrecipients to address the opioid abuse crisis, the report said.
Auditors reviewed the monitoring procedures over all nine subrecipients that received State Opioid Response funds during the period. NCDHHS monitoring procedures required reviews over both fiscal and program areas for all sub-recipients. However, auditors found that no reviews were completed for eight (89%) subrecipients that received $38.9 million in opioid funds. “Inadequate monitoring increases the risk that federal funds may not be used in accordance with the federal requirements, which may reduce the funding available for opioid treatment and prevention services,” the audit said. According to NCDHHS, they implemented a “pause in monitoring due to the coronavirus pandemic; however, management did not get approval from the federal oversight agency.” Federal regulation requires the department to monitor the activities to ensure that the award is used for authorized purposes.
One of the key findings of the audit pertains to the Low Income Household Water Assistance Program (LIHWAP), where auditors discovered that NCDHHS failed to complete required reporting under the Federal Funding Accountability and Transparency Act (FFATA). Despite receiving significant federal funding amounting to $16.8 million, none of the 85 subawards were reported as mandated, depriving citizens of crucial information about the utilization of federal funds in their communities. NCDHHS officials attributed this failure to staffing shortages and recommended the development of a contingency plan to ensure timely reporting during staff shortages.
Similar reporting discrepancies were found in other programs, including the Foster Care Title IV-E and Adoption Assistance programs, where federal funds were improperly utilized, leading to increased costs and potential reimbursement obligations. In both cases, errors were attributed to inaccurate application of eligibility policies by county departments of social services.
Furthermore, the audit revealed deficiencies in the monitoring of subrecipient activities in programs aimed at addressing the opioid abuse crisis and substance abuse prevention and treatment. Despite receiving substantial federal funds totaling $39.1 million and $59.6 million, respectively, NCDHHS failed to adequately monitor subrecipient activities, posing risks of misuse of federal funds.
State officials at NCDHHS management acknowledged the findings and recommendations of the audit, agreeing to implement corrective measures. These include prioritizing the development of contingency plans, conducting additional training, revising monitoring procedures, and obtaining federal oversight agency approval when deviating from required processes and procedures.
The federal compliance audit has highlighted significant challenges in the management and oversight of federal grant programs administered by NCDHHS. Addressing these issues will be crucial to ensure the efficient and effective utilization of federal funds and the delivery of essential services to communities in need, including Rutherford County. According to a recent NCDHHS report, Rutherford County ranks fifth-highest in the state, out of 100 counties, for opioid overdose emergency department visits over the past year.
There were 38 fentanyl-positive deaths last year, according to another NCDHHS report that shows Rutherford County ranks sixth-highest out of 100 counties.
Cops and Congress commentary
Compliance with state opioid funds is imperative for effective aid in Rutherford County and beyond
What is going on under NCDHHS Secretary Kody Kinsley, Attorney General Josh Stein, and Governor Roy Cooper? They’re all Democrats, but so is the state auditor.
This issue transcends politics. In the battle against opioid addiction, every dollar, every resource, and every effort counts. Unfortunately, recent developments suggest that NCDHHS may be at risk of mismanaging crucial funds earmarked for combating this epidemic. With the looming presence of federal regulations, NCDHHS must prioritize stringent compliance to optimize the effectiveness of aid, especially in regions like Rutherford County, where the opioid crisis has inflicted profound harm.
Rutherford County, nestled in the heart of the foothills of the Blue Ridge mountains, has not been immune to the opioid epidemic gripping the nation. Communities here have grappled with the devastating consequences of addiction: shattered families, overwhelmed healthcare systems, and lives lost prematurely. In such a landscape, the need for effective intervention is urgent, and the proper utilization of state opioid funds is critical in turning the tide against this scourge.
However, recent reports suggest potential pitfalls in the management of these funds by NCDHHS, raising concerns about their efficacy in addressing the crisis. Compliance with federal regulations is not merely a bureaucratic formality; it is a safeguard against misallocation, ensuring that resources reach those who need them most. Failure to adhere to these regulations not only jeopardizes the effectiveness of aid programs but also risks incurring penalties that could further strain already limited resources.
Ensuring compliance is not just a matter of bureaucratic red tape; it is a moral imperative. Every dollar diverted from its intended purpose represents a missed opportunity to save lives and alleviate suffering. Rutherford County, like many other communities across North Carolina, cannot afford such inefficiencies when lives hang in the balance.
Moreover, the consequences of non-compliance extend far beyond individual communities. In a state grappling with the opioid crisis on a statewide scale, the mismanagement of funds by NCDHHS undermines the collective effort to combat this epidemic. It erodes public trust in the government's ability to address pressing public health issues and casts doubt on the effectiveness of future interventions.
To truly make a difference in Rutherford County and statewide, NCDHHS must prioritize compliance with federal regulations governing opioid funds. This means implementing robust oversight mechanisms, transparent reporting processes, and proactive measures to address any potential deviations from compliance standards.
Furthermore, NCDHHS must actively engage with local stakeholders, including community organizations, healthcare providers, and law enforcement agencies, to ensure that resources are allocated in a manner that reflects the unique needs of each community. Effective collaboration is essential in tailoring interventions that address the root causes of opioid addiction and provide comprehensive support to those affected.
Ultimately, the opioid crisis demands a concerted effort at every level of government and society. Compliance with state opioid funds is not merely a legal obligation; it is a moral imperative that will determine the effectiveness of our response to this epidemic. By ensuring strict adherence to federal regulations, NCDHHS can uphold its commitment to serving the people of Rutherford County and beyond, offering hope and healing to those struggling in the grip of addiction.
Government agencies often release unfavorable or controversial news stories on Friday afternoons, a practice commonly referred to as "taking out the trash." There are several reasons behind this strategy:
Reduced Media Coverage: Friday afternoons typically mark the end of the workweek for many journalists, and newsrooms may be less staffed over the weekend. By releasing stories late on Friday, agencies may hope to minimize media coverage, as journalists may not have the time or resources to thoroughly investigate or report on the story before the weekend.
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Optimizing News Cycle: Timing the release of unfavorable news stories towards the end of the week can also be a strategic attempt to control the news cycle. By ensuring that the news breaks when there are fewer opportunities for follow-up stories or competing news events, agencies may hope to contain the fallout and limit the story's longevity in the media cycle.
Overall, releasing stories on Friday afternoons allows government agencies to manage the narrative surrounding unfavorable news, minimize media coverage, and mitigate immediate public reaction. However, in an age of 24-hour news cycles and social media, such tactics may not always be as effective as intended, as stories can quickly gain traction and reach a wide audience regardless of the timing of their release. As an independent journalist, I am determined to report the facts, at any time of day when I can do so. Please share this article widely.
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