2022-004 Eligibility
Prior Year Finding Number: N/A
Repeat Finding Since: N/A
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
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 systems, MAXIS and METS, which are used by the Western Prairie Human Services to support the eligibility determination process. The following exceptions were noted in the samples of 40 case files tested for each system:
• Three case files had asset information in MAXIS that did not have supporting documentation in the case file or did not agree with the supporting documentation,
• One METS case was processed outside of 45 days, and
• One METS case did not contain the income verification documentation from the Minnesota Department of Employment and Economic Development.
Questioned Costs: Not applicable. The Western Prairie Human Services 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 Western Prairie Human Services to perform the “intake function” needed (meeting with the social services client to determine income and categorical eligibility), while the State maintains MAXIS and METS, supporting the eligibility determination process and actually paying the benefits to participants.
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 and METS increases the risk that clients will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was input into MAXIS and METS correctly. This was caused by human error.
Recommendation: We recommend Western Prairie Human Services implement additional procedures to provide reasonable assurance that all necessary documentation is properly input or updated in MAXIS and METS and issues are followed up on in a timely manner.
View of Responsible Official: Concur
2022-005 Reporting
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: During report testing, the following were noted:
• One of two Income Maintenance Quarterly Expense Reports (DHS 2550) tested did not show documentation of review before being submitted.
• One of two Social Service Fund Reports (DHS 2556) tested did not show documentation of review before being submitted. In addition, documentation was not maintained to support the reported revenues. As a result, the auditor was unable to ascertain if the financial reports were prepared in accordance with the required accounting basis, if all applicable accounts were included, or if the reports agree with accounting records.
• The four Local Collaborative Time Study (LCTS) reports tested did not have documentation of review in accordance with DHS guidelines.
Questioned Costs: None.
Context: The Minnesota Department of Human Services requires entities to complete the DHS 2550/2556 reports quarterly and to retain an original signed copy of the submitted report for four years. The Minnesota Department of Human Services requires entities to complete the LCTS reports quarterly. The LCTS Fiscal Reporting and Payment Agent and Fiscal Site Contacts must print a copy, sign it, and retain the signed copy for the length of time required by the Western Prairie Human Services retention policy or four years, whichever is longer.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Lack of review and proper support could lead to incorrect reporting submissions.
Cause: There was turnover in the financial staff during this time and these items were an oversight.
Recommendation: We recommend Western Prairie Human Services maintain supporting documentation for quarterly reports. We also recommend Western Prairie Human Services implement procedures to review the reports for accuracy by someone other than the preparer and to retain the signed copies in accordance with the Minnesota Department of Human Services guidelines.
View of Responsible Official: Concur
2022-004 Eligibility
Prior Year Finding Number: N/A
Repeat Finding Since: N/A
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
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 systems, MAXIS and METS, which are used by the Western Prairie Human Services to support the eligibility determination process. The following exceptions were noted in the samples of 40 case files tested for each system:
• Three case files had asset information in MAXIS that did not have supporting documentation in the case file or did not agree with the supporting documentation,
• One METS case was processed outside of 45 days, and
• One METS case did not contain the income verification documentation from the Minnesota Department of Employment and Economic Development.
Questioned Costs: Not applicable. The Western Prairie Human Services 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 Western Prairie Human Services to perform the “intake function” needed (meeting with the social services client to determine income and categorical eligibility), while the State maintains MAXIS and METS, supporting the eligibility determination process and actually paying the benefits to participants.
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 and METS increases the risk that clients will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was input into MAXIS and METS correctly. This was caused by human error.
Recommendation: We recommend Western Prairie Human Services implement additional procedures to provide reasonable assurance that all necessary documentation is properly input or updated in MAXIS and METS and issues are followed up on in a timely manner.
View of Responsible Official: Concur
2022-005 Reporting
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: During report testing, the following were noted:
• One of two Income Maintenance Quarterly Expense Reports (DHS 2550) tested did not show documentation of review before being submitted.
• One of two Social Service Fund Reports (DHS 2556) tested did not show documentation of review before being submitted. In addition, documentation was not maintained to support the reported revenues. As a result, the auditor was unable to ascertain if the financial reports were prepared in accordance with the required accounting basis, if all applicable accounts were included, or if the reports agree with accounting records.
• The four Local Collaborative Time Study (LCTS) reports tested did not have documentation of review in accordance with DHS guidelines.
Questioned Costs: None.
Context: The Minnesota Department of Human Services requires entities to complete the DHS 2550/2556 reports quarterly and to retain an original signed copy of the submitted report for four years. The Minnesota Department of Human Services requires entities to complete the LCTS reports quarterly. The LCTS Fiscal Reporting and Payment Agent and Fiscal Site Contacts must print a copy, sign it, and retain the signed copy for the length of time required by the Western Prairie Human Services retention policy or four years, whichever is longer.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Lack of review and proper support could lead to incorrect reporting submissions.
Cause: There was turnover in the financial staff during this time and these items were an oversight.
Recommendation: We recommend Western Prairie Human Services maintain supporting documentation for quarterly reports. We also recommend Western Prairie Human Services implement procedures to review the reports for accuracy by someone other than the preparer and to retain the signed copies in accordance with the Minnesota Department of Human Services guidelines.
View of Responsible Official: Concur
2022-004 Eligibility
Prior Year Finding Number: N/A
Repeat Finding Since: N/A
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
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 systems, MAXIS and METS, which are used by the Western Prairie Human Services to support the eligibility determination process. The following exceptions were noted in the samples of 40 case files tested for each system:
• Three case files had asset information in MAXIS that did not have supporting documentation in the case file or did not agree with the supporting documentation,
• One METS case was processed outside of 45 days, and
• One METS case did not contain the income verification documentation from the Minnesota Department of Employment and Economic Development.
Questioned Costs: Not applicable. The Western Prairie Human Services 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 Western Prairie Human Services to perform the “intake function” needed (meeting with the social services client to determine income and categorical eligibility), while the State maintains MAXIS and METS, supporting the eligibility determination process and actually paying the benefits to participants.
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 and METS increases the risk that clients will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was input into MAXIS and METS correctly. This was caused by human error.
Recommendation: We recommend Western Prairie Human Services implement additional procedures to provide reasonable assurance that all necessary documentation is properly input or updated in MAXIS and METS and issues are followed up on in a timely manner.
View of Responsible Official: Concur
2022-005 Reporting
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: During report testing, the following were noted:
• One of two Income Maintenance Quarterly Expense Reports (DHS 2550) tested did not show documentation of review before being submitted.
• One of two Social Service Fund Reports (DHS 2556) tested did not show documentation of review before being submitted. In addition, documentation was not maintained to support the reported revenues. As a result, the auditor was unable to ascertain if the financial reports were prepared in accordance with the required accounting basis, if all applicable accounts were included, or if the reports agree with accounting records.
• The four Local Collaborative Time Study (LCTS) reports tested did not have documentation of review in accordance with DHS guidelines.
Questioned Costs: None.
Context: The Minnesota Department of Human Services requires entities to complete the DHS 2550/2556 reports quarterly and to retain an original signed copy of the submitted report for four years. The Minnesota Department of Human Services requires entities to complete the LCTS reports quarterly. The LCTS Fiscal Reporting and Payment Agent and Fiscal Site Contacts must print a copy, sign it, and retain the signed copy for the length of time required by the Western Prairie Human Services retention policy or four years, whichever is longer.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Lack of review and proper support could lead to incorrect reporting submissions.
Cause: There was turnover in the financial staff during this time and these items were an oversight.
Recommendation: We recommend Western Prairie Human Services maintain supporting documentation for quarterly reports. We also recommend Western Prairie Human Services implement procedures to review the reports for accuracy by someone other than the preparer and to retain the signed copies in accordance with the Minnesota Department of Human Services guidelines.
View of Responsible Official: Concur
2022-004 Eligibility
Prior Year Finding Number: N/A
Repeat Finding Since: N/A
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
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 systems, MAXIS and METS, which are used by the Western Prairie Human Services to support the eligibility determination process. The following exceptions were noted in the samples of 40 case files tested for each system:
• Three case files had asset information in MAXIS that did not have supporting documentation in the case file or did not agree with the supporting documentation,
• One METS case was processed outside of 45 days, and
• One METS case did not contain the income verification documentation from the Minnesota Department of Employment and Economic Development.
Questioned Costs: Not applicable. The Western Prairie Human Services 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 Western Prairie Human Services to perform the “intake function” needed (meeting with the social services client to determine income and categorical eligibility), while the State maintains MAXIS and METS, supporting the eligibility determination process and actually paying the benefits to participants.
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 and METS increases the risk that clients will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was input into MAXIS and METS correctly. This was caused by human error.
Recommendation: We recommend Western Prairie Human Services implement additional procedures to provide reasonable assurance that all necessary documentation is properly input or updated in MAXIS and METS and issues are followed up on in a timely manner.
View of Responsible Official: Concur
2022-005 Reporting
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: During report testing, the following were noted:
• One of two Income Maintenance Quarterly Expense Reports (DHS 2550) tested did not show documentation of review before being submitted.
• One of two Social Service Fund Reports (DHS 2556) tested did not show documentation of review before being submitted. In addition, documentation was not maintained to support the reported revenues. As a result, the auditor was unable to ascertain if the financial reports were prepared in accordance with the required accounting basis, if all applicable accounts were included, or if the reports agree with accounting records.
• The four Local Collaborative Time Study (LCTS) reports tested did not have documentation of review in accordance with DHS guidelines.
Questioned Costs: None.
Context: The Minnesota Department of Human Services requires entities to complete the DHS 2550/2556 reports quarterly and to retain an original signed copy of the submitted report for four years. The Minnesota Department of Human Services requires entities to complete the LCTS reports quarterly. The LCTS Fiscal Reporting and Payment Agent and Fiscal Site Contacts must print a copy, sign it, and retain the signed copy for the length of time required by the Western Prairie Human Services retention policy or four years, whichever is longer.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Lack of review and proper support could lead to incorrect reporting submissions.
Cause: There was turnover in the financial staff during this time and these items were an oversight.
Recommendation: We recommend Western Prairie Human Services maintain supporting documentation for quarterly reports. We also recommend Western Prairie Human Services implement procedures to review the reports for accuracy by someone other than the preparer and to retain the signed copies in accordance with the Minnesota Department of Human Services guidelines.
View of Responsible Official: Concur