Audits are held on a planned, scheduled basis. The Department of Auditor General, Bureau of Public Assistance Audits, is responsible for notifying DHS that it will conduct an audit in a specific county and district on a specific date. The DHS, Office of Income Maintenance, will then notify the CAO of the date the audit is to begin.
If the date of the audit would conflict with circumstances beyond the CAO's control and place undue hardship on CAO staff, the CAO may request a delay by contacting its Area Manager. The delay must be for a valid reason, e. g., the CAO is moving to a new location. The Area Manager will then work with the Auditor General to reschedule the audit.
When reviewing case records, an auditor will review the record, conduct interviews, and review the CAO corrective action taken as a result of an audit exception.
The auditors will complete a Notice of Exception (AG 1) for each case record with an exception.
The auditors will request an opening conference with the Executive Director. During the conference, the Executive Director and the auditors will decide the best method for the transfer of records.
The auditors will:
provide the CAO with a Register Call Sheet (AG 5), as needed, listing by number, the case records to be audited;
complete the case record review and individual interview(s) as soon as possible;
respond promptly to a written request by the CAO for a record needed to make a benefit or category change;
review each case record in the sample for accuracy and validity of the benefits provided;
verify that the case record substantiates the amount of the benefits paid;
verify that the CAO used correct policy and procedure concerning eligibility for benefits;
verify that the CAO used correct policy and procedures concerning overpayments, restitution, and reimbursement; and
verify that all required case record documentation is complete.
The CAO will:
provide adequate working space for the auditors;
provide case records to the auditors within 24 hours of the request;
NOTE: If the record is unavailable, the CAO will advise the auditors, in writing, when the record will be available and the reason for the delay.
request, in writing, a case record from the auditors when it needs the case to make a change in the benefit or category;
NOTE: The CAO will specify the reason it needs the record. and
return the case record to the auditors promptly after completing the necessary action.
The auditors will interview selected recipients whose cases were audited during the Record Review Phase. The auditors may also make collateral contacts to verify information and interview CAO staff as needed.
The purpose of the individual interview(s) is to substantiate specific case record information and to obtain any other information about the recipient's eligibility for benefits. When interviewing a recipient, the auditor will:
identify himself to the recipient and/or the collateral contact by presenting Department of Auditor General identifying credentials;
make their role clear to the recipient, as it relates to the agency and the individual;
conduct the interview with the individual(s) in a confidential, tactful, and respectful manner; and
immediately notify the Executive Director or delegate, using the AG 1, of any verified information affecting the recipient's benefits.
The purpose of interviews with CAO staff is to obtain information regarding internal CAO methods used to administer DHS policies and procedures.
When interviewing CAO staff, the auditor will:
schedule the interview based on procedures established during the opening conference;
clearly define their role to the individual being interviewed; and
conduct the interview professionally and courteously
When making a collateral contact, the auditor will:
obtain verification such as wage information, using authorized DHS forms;
include a copy of the Authorization for Information (PA 4) when requesting verification;
identify himself to the collateral contact by presenting Department of Auditor General identifying credentials; and
indicate on the AG 1 that collateral information is either attached or pending.
NOTE: The CAO will not duplicate this verification. However, if necessary, the CAO may seek clarification of the information from the source.
When the CAO receives an AG 1, it will review the findings and determine if corrective action is required. If corrective action is required, the CAO will act immediately to clear the exception. The CAO will reply to each exception on the Report of Exception (PA 157), which is on the reverse side of the AG 1. When more than one action is required to clear the exception, each should be clearly identified as it is shown on the AG 1.
The CAO will:
return the PA 157 to the auditors, according to county procedures, as soon as any necessary corrective action has been completed. See Section 805.33, Disposition of Exceptions; and
complete all corrective actions no later than 30 calendar days after the date the auditors submit the exception.
During operational reviews, in addition to the AG 1s, the auditors will provide the CAO with a list of cases determined to be in error. The listed cases are ones for which the auditors did not submit an AG 1.
Revised August 1, 2024, replacing October 9, 2012