Federal Reports

we reported that the North Carolina Department of Public Instruction improved its oversight of LEA single audit resolution during the period covered by our review and noted that several aspects of its oversight were effective. However, we also identified specific aspects of the North Carolina Department of Public Instruction’s oversight that could be improved to correct control weaknesses and ensure compliance with regulatory requirements. We found that the North Carolina Department of Public Instruction did not have adequate written policies and procedures that described all aspects of its oversight of the LEA audit resolution process, an adequate system for tracking LEA findings acrossaudit periods or across the State, or a quality assurance process for its oversight of LEA audit resolution. Finally, we noted that management decisions for LEA audit findings did not meet all Federal content requirements.

The New Jersey Department of Human Services (State agency) did not always pay electronic health record (EHR) incentive payments in accordance with Federal and State requirements. The State agency made incorrect EHR incentive payments to 15 hospitals totaling $2.5 million. Specifically, the State agency overpaid 10 hospitals a total of $2.4 million and underpaid 5 hospitals a total of $137,000 for a net overpayment of almost $2.3 million. Because the incentive payment is calculated once and then paid out over 3 years, payments made after September 30, 2013, will also be incorrect. The adjustments to these payments total $514,000. Additionally, the State agency did not report one professional incentive payment to the National Level Repository (NLR). The State agency correctly paid the five professional groups we reviewed.