2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation that the verification was done. Questioned Costs: Unknown. Context: For four of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For four of four transactions tested for suspension and debarment, the County did not retain documentation that the procedures were done. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to report allowable costs and allowable activities. Condition: Inconsistencies were noted between the random moment study listing and the related payroll report codes used for included employees. Questioned Costs: None. Context: For one of two quarters tested, three individuals in training were improperly reported in section A of the 2550 Income Maintenance report. Also, in two of two quarters tested, one individual had wages incorrectly coded to section E of the 2550 Income Maintenance report instead of section A, since they were eligible for random moment studies. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Reimbursements from the Department of Human Services could be inaccurate if there are inconsistencies on how employee wages are reported between the random moment study listings and the 2550 Income Maintenance reports. Repeat Finding: No. Recommendation: We recommend the County ensures that all employees included on the random moment study listing are included on the proper line for reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to properly input income documentation in the state MAXIS system. Condition: Income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: None. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: No. Recommendation: We recommend that income verification be reviewed for each eligible case files. Views of responsible officials: There is no disagreement with the audit finding.
2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation that the verification was done. Questioned Costs: Unknown. Context: For four of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For four of four transactions tested for suspension and debarment, the County did not retain documentation that the procedures were done. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to report allowable costs and allowable activities. Condition: Inconsistencies were noted between the random moment study listing and the related payroll report codes used for included employees. Questioned Costs: None. Context: For one of two quarters tested, three individuals in training were improperly reported in section A of the 2550 Income Maintenance report. Also, in two of two quarters tested, one individual had wages incorrectly coded to section E of the 2550 Income Maintenance report instead of section A, since they were eligible for random moment studies. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Reimbursements from the Department of Human Services could be inaccurate if there are inconsistencies on how employee wages are reported between the random moment study listings and the 2550 Income Maintenance reports. Repeat Finding: No. Recommendation: We recommend the County ensures that all employees included on the random moment study listing are included on the proper line for reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to properly input income documentation in the state MAXIS system. Condition: Income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: None. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: No. Recommendation: We recommend that income verification be reviewed for each eligible case files. Views of responsible officials: There is no disagreement with the audit finding.
2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation that the verification was done. Questioned Costs: Unknown. Context: For four of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For four of four transactions tested for suspension and debarment, the County did not retain documentation that the procedures were done. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to report allowable costs and allowable activities. Condition: Inconsistencies were noted between the random moment study listing and the related payroll report codes used for included employees. Questioned Costs: None. Context: For one of two quarters tested, three individuals in training were improperly reported in section A of the 2550 Income Maintenance report. Also, in two of two quarters tested, one individual had wages incorrectly coded to section E of the 2550 Income Maintenance report instead of section A, since they were eligible for random moment studies. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Reimbursements from the Department of Human Services could be inaccurate if there are inconsistencies on how employee wages are reported between the random moment study listings and the 2550 Income Maintenance reports. Repeat Finding: No. Recommendation: We recommend the County ensures that all employees included on the random moment study listing are included on the proper line for reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to properly input income documentation in the state MAXIS system. Condition: Income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: None. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: No. Recommendation: We recommend that income verification be reviewed for each eligible case files. Views of responsible officials: There is no disagreement with the audit finding.
2022-002 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 200.403, costs reported under one federal program should not be included as a cost of any other federally financed program in either the current or a prior period. Condition: Federal expenditures were reported under two federal grant programs. Questioned Costs: $385,015 Context: During our testing, it was noted that there were costs reported under the SLFRF grant that were also being reported under other federally funded human service programs. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Ineligible costs are being reported on the Schedule of Expenditures of Federal Awards. Repeat Finding: No. Recommendation: We recommend that the County include consideration of any expenditures that may be part of other federal programs as part of their review. Views of responsible officials: There is no disagreement with the audit finding.
2022-003 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For one of five procurement transactions tested the proper procurement method was not used. For five of five transactions tested for suspension and debarment, the County retained documentation the procedures were done; however, the date of verification was not kept on file to support verification was done prior to the transaction taking place. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-007 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Treasury, the County is required to submit a quarterly project and expense report. A complete system of internal controls requires that this report be reviewed by someone other than the preparer. Condition: Quarterly project and expense reports were missing evidence that the report was reviewed by someone other than the preparer. Questioned Costs: None. Context: Two out of two quarterly project and expense reports tested were missing evidence that the report was reviewed by someone other than the preparer. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Reports could be prepared with errors that are not corrected prior to report submission. Effect: County could be incorrectly reporting to the granting agency. Repeat Finding: No. Recommendation: We recommend that the County ensures each report is reviewed by someone other than the preparer. Views of responsible officials: There is no disagreement with the audit finding.
2022-002 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 200.403, costs reported under one federal program should not be included as a cost of any other federally financed program in either the current or a prior period. Condition: Federal expenditures were reported under two federal grant programs. Questioned Costs: $385,015 Context: During our testing, it was noted that there were costs reported under the SLFRF grant that were also being reported under other federally funded human service programs. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Ineligible costs are being reported on the Schedule of Expenditures of Federal Awards. Repeat Finding: No. Recommendation: We recommend that the County include consideration of any expenditures that may be part of other federal programs as part of their review. Views of responsible officials: There is no disagreement with the audit finding.
2022-003 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For one of five procurement transactions tested the proper procurement method was not used. For five of five transactions tested for suspension and debarment, the County retained documentation the procedures were done; however, the date of verification was not kept on file to support verification was done prior to the transaction taking place. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-007 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Treasury, the County is required to submit a quarterly project and expense report. A complete system of internal controls requires that this report be reviewed by someone other than the preparer. Condition: Quarterly project and expense reports were missing evidence that the report was reviewed by someone other than the preparer. Questioned Costs: None. Context: Two out of two quarterly project and expense reports tested were missing evidence that the report was reviewed by someone other than the preparer. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Reports could be prepared with errors that are not corrected prior to report submission. Effect: County could be incorrectly reporting to the granting agency. Repeat Finding: No. Recommendation: We recommend that the County ensures each report is reviewed by someone other than the preparer. Views of responsible officials: There is no disagreement with the audit finding.
2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation that the verification was done. Questioned Costs: Unknown. Context: For four of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For four of four transactions tested for suspension and debarment, the County did not retain documentation that the procedures were done. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to report allowable costs and allowable activities. Condition: Inconsistencies were noted between the random moment study listing and the related payroll report codes used for included employees. Questioned Costs: None. Context: For one of two quarters tested, three individuals in training were improperly reported in section A of the 2550 Income Maintenance report. Also, in two of two quarters tested, one individual had wages incorrectly coded to section E of the 2550 Income Maintenance report instead of section A, since they were eligible for random moment studies. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Reimbursements from the Department of Human Services could be inaccurate if there are inconsistencies on how employee wages are reported between the random moment study listings and the 2550 Income Maintenance reports. Repeat Finding: No. Recommendation: We recommend the County ensures that all employees included on the random moment study listing are included on the proper line for reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to properly input income documentation in the state MAXIS system. Condition: Income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: None. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: No. Recommendation: We recommend that income verification be reviewed for each eligible case files. Views of responsible officials: There is no disagreement with the audit finding.
2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation that the verification was done. Questioned Costs: Unknown. Context: For four of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For four of four transactions tested for suspension and debarment, the County did not retain documentation that the procedures were done. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to report allowable costs and allowable activities. Condition: Inconsistencies were noted between the random moment study listing and the related payroll report codes used for included employees. Questioned Costs: None. Context: For one of two quarters tested, three individuals in training were improperly reported in section A of the 2550 Income Maintenance report. Also, in two of two quarters tested, one individual had wages incorrectly coded to section E of the 2550 Income Maintenance report instead of section A, since they were eligible for random moment studies. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Reimbursements from the Department of Human Services could be inaccurate if there are inconsistencies on how employee wages are reported between the random moment study listings and the 2550 Income Maintenance reports. Repeat Finding: No. Recommendation: We recommend the County ensures that all employees included on the random moment study listing are included on the proper line for reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to properly input income documentation in the state MAXIS system. Condition: Income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: None. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: No. Recommendation: We recommend that income verification be reviewed for each eligible case files. Views of responsible officials: There is no disagreement with the audit finding.
2022-004 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering into a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation that the verification was done. Questioned Costs: Unknown. Context: For four of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For four of four transactions tested for suspension and debarment, the County did not retain documentation that the procedures were done. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-005 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to report allowable costs and allowable activities. Condition: Inconsistencies were noted between the random moment study listing and the related payroll report codes used for included employees. Questioned Costs: None. Context: For one of two quarters tested, three individuals in training were improperly reported in section A of the 2550 Income Maintenance report. Also, in two of two quarters tested, one individual had wages incorrectly coded to section E of the 2550 Income Maintenance report instead of section A, since they were eligible for random moment studies. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Reimbursements from the Department of Human Services could be inaccurate if there are inconsistencies on how employee wages are reported between the random moment study listings and the 2550 Income Maintenance reports. Repeat Finding: No. Recommendation: We recommend the County ensures that all employees included on the random moment study listing are included on the proper line for reimbursement requests. Views of responsible officials: There is no disagreement with the audit finding.
2022-006 Federal Agency: U.S. Department of Agriculture Federal Program Name: State Administrative Matching Grants for Supplemental Nutrition Assistance Program (SNAP Cluster) Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 22MN101S2514, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 22MN101S2514 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The County is required to properly input income documentation in the state MAXIS system. Condition: Income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: None. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the support documentation retained by the County to support the amount. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: No. Recommendation: We recommend that income verification be reviewed for each eligible case files. Views of responsible officials: There is no disagreement with the audit finding.
2022-002 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 200.403, costs reported under one federal program should not be included as a cost of any other federally financed program in either the current or a prior period. Condition: Federal expenditures were reported under two federal grant programs. Questioned Costs: $385,015 Context: During our testing, it was noted that there were costs reported under the SLFRF grant that were also being reported under other federally funded human service programs. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Ineligible costs are being reported on the Schedule of Expenditures of Federal Awards. Repeat Finding: No. Recommendation: We recommend that the County include consideration of any expenditures that may be part of other federal programs as part of their review. Views of responsible officials: There is no disagreement with the audit finding.
2022-003 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For one of five procurement transactions tested the proper procurement method was not used. For five of five transactions tested for suspension and debarment, the County retained documentation the procedures were done; however, the date of verification was not kept on file to support verification was done prior to the transaction taking place. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-007 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Treasury, the County is required to submit a quarterly project and expense report. A complete system of internal controls requires that this report be reviewed by someone other than the preparer. Condition: Quarterly project and expense reports were missing evidence that the report was reviewed by someone other than the preparer. Questioned Costs: None. Context: Two out of two quarterly project and expense reports tested were missing evidence that the report was reviewed by someone other than the preparer. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Reports could be prepared with errors that are not corrected prior to report submission. Effect: County could be incorrectly reporting to the granting agency. Repeat Finding: No. Recommendation: We recommend that the County ensures each report is reviewed by someone other than the preparer. Views of responsible officials: There is no disagreement with the audit finding.
2022-002 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 200.403, costs reported under one federal program should not be included as a cost of any other federally financed program in either the current or a prior period. Condition: Federal expenditures were reported under two federal grant programs. Questioned Costs: $385,015 Context: During our testing, it was noted that there were costs reported under the SLFRF grant that were also being reported under other federally funded human service programs. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Lack of oversight by management. Effect: Ineligible costs are being reported on the Schedule of Expenditures of Federal Awards. Repeat Finding: No. Recommendation: We recommend that the County include consideration of any expenditures that may be part of other federal programs as part of their review. Views of responsible officials: There is no disagreement with the audit finding.
2022-003 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Procurement, Suspension and Debarment Award Period: Year Ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: According to Uniform Guidance 2 CFR 180.300, the County must check for federally suspended or debarred vendors prior to entering a covered transaction and the County must also comply with procurement requirements in accordance with Uniform Guidance 2 CFR 200.318. Condition: Support for the procurement method used by the County was not retained. For suspension and debarment, the County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one of five procurement transactions tested, support for the use of noncompetitive proposals method was not retained. For one of five procurement transactions tested the proper procurement method was not used. For five of five transactions tested for suspension and debarment, the County retained documentation the procedures were done; however, the date of verification was not kept on file to support verification was done prior to the transaction taking place. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: County policy does not align with federal requirements. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction or they could be overpaying for the transaction if not properly procured. Repeat Finding: No. Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to the process if procurement transactions are federally funded. Views of responsible officials: There is no disagreement with the audit finding.
2022-007 Federal Agency: U.S. Department of the Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP2889, 2022 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Treasury, the County is required to submit a quarterly project and expense report. A complete system of internal controls requires that this report be reviewed by someone other than the preparer. Condition: Quarterly project and expense reports were missing evidence that the report was reviewed by someone other than the preparer. Questioned Costs: None. Context: Two out of two quarterly project and expense reports tested were missing evidence that the report was reviewed by someone other than the preparer. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: Reports could be prepared with errors that are not corrected prior to report submission. Effect: County could be incorrectly reporting to the granting agency. Repeat Finding: No. Recommendation: We recommend that the County ensures each report is reviewed by someone other than the preparer. Views of responsible officials: There is no disagreement with the audit finding.