Audit 21275

2022-002 Eligibility Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Medical Assistance Program Award Number and Year: 2205MN5ADM; 2022 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. The following exceptions were noted in the sample of 40 case files tested: ? one transferred case file did not have an application or any verifications on file, ? one case file did not have documentation of verificiation of citizenship, ? two case files had incorrect income listed, and ? six case files did not have support for asset information, had incorrect asset information, or asset information was not properly entered into MAXIS. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The State of Minnesota Department of Human Services (DHS) contracts with county social services departments to perform the ?intake function? (meeting with the social services client to determine income and categorical eligibility), while the State maintains the MAXIS system, supporting the eligibility determination process and actually pays the benefits to the participants. Currently supervisory review of case files is not being performed. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. The lack of supervisory reviews increases the risk of case errors going undetected along with increased risk of incorrect procedures not being corrected. Cause: Program personnel entering case information into MAXIS did not ensure all required information was input into MAXIS correctly. This was caused by human errors and not obtaining verification information during case transfers. Due to staffing levels and the pandemic, supervisory review of case files is not being performed. Recommendation: We recommend Isanti County implement additional procedures to provide reasonable assurance that all necessary documentation is properly input or updated in MAXIS and issues are followed up on in a timely manner. Consideration should be given to providing further training to program personnel. Additionally, we recommend that supervisory case reviews are performed in MAXIS. View of Responsible Official: Acknowledge

2022-002 Eligibility Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Medical Assistance Program Award Number and Year: 2205MN5ADM; 2022 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. The following exceptions were noted in the sample of 40 case files tested: ? one transferred case file did not have an application or any verifications on file, ? one case file did not have documentation of verificiation of citizenship, ? two case files had incorrect income listed, and ? six case files did not have support for asset information, had incorrect asset information, or asset information was not properly entered into MAXIS. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The State of Minnesota Department of Human Services (DHS) contracts with county social services departments to perform the ?intake function? (meeting with the social services client to determine income and categorical eligibility), while the State maintains the MAXIS system, supporting the eligibility determination process and actually pays the benefits to the participants. Currently supervisory review of case files is not being performed. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. The lack of supervisory reviews increases the risk of case errors going undetected along with increased risk of incorrect procedures not being corrected. Cause: Program personnel entering case information into MAXIS did not ensure all required information was input into MAXIS correctly. This was caused by human errors and not obtaining verification information during case transfers. Due to staffing levels and the pandemic, supervisory review of case files is not being performed. Recommendation: We recommend Isanti County implement additional procedures to provide reasonable assurance that all necessary documentation is properly input or updated in MAXIS and issues are followed up on in a timely manner. Consideration should be given to providing further training to program personnel. Additionally, we recommend that supervisory case reviews are performed in MAXIS. View of Responsible Official: Acknowledge