Audit 310545

FY End
2023-12-31
Total Expended
$13.97M
Findings
38
Programs
33
Organization: Crow Wing County (MN)
Year: 2023 Accepted: 2024-06-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403466 2023-010 Significant Deficiency Yes I
403467 2023-010 Significant Deficiency Yes I
403468 2023-010 Significant Deficiency Yes I
403469 2023-011 Significant Deficiency Yes N
403470 2023-011 Significant Deficiency Yes N
403471 2023-011 Significant Deficiency Yes N
403472 2023-003 Material Weakness - L
403473 2023-004 Material Weakness - M
403474 2023-007 Significant Deficiency Yes I
403475 2023-008 Significant Deficiency - L
403476 2023-009 Significant Deficiency - G
403477 2023-002 Material Weakness - E
403478 2023-005 Material Weakness - AB
403479 2023-006 Material Weakness - E
403480 2023-012 Significant Deficiency - G
403481 2023-002 Material Weakness - E
403482 2023-005 Material Weakness - AB
403483 2023-006 Material Weakness - E
403484 2023-012 Significant Deficiency - G
979908 2023-010 Significant Deficiency Yes I
979909 2023-010 Significant Deficiency Yes I
979910 2023-010 Significant Deficiency Yes I
979911 2023-011 Significant Deficiency Yes N
979912 2023-011 Significant Deficiency Yes N
979913 2023-011 Significant Deficiency Yes N
979914 2023-003 Material Weakness - L
979915 2023-004 Material Weakness - M
979916 2023-007 Significant Deficiency Yes I
979917 2023-008 Significant Deficiency - L
979918 2023-009 Significant Deficiency - G
979919 2023-002 Material Weakness - E
979920 2023-005 Material Weakness - AB
979921 2023-006 Material Weakness - E
979922 2023-012 Significant Deficiency - G
979923 2023-002 Material Weakness - E
979924 2023-005 Material Weakness - AB
979925 2023-006 Material Weakness - E
979926 2023-012 Significant Deficiency - G

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $5.00M Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.44M Yes 3
93.558 Temporary Assistance for Needy Families $685,770 Yes 4
93.658 Foster Care_title IV-E $629,784 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $370,638 - 0
93.667 Social Services Block Grant $346,724 - 0
93.563 Child Support Enforcement $259,199 - 0
21.032 Local Assistance and Tribal Consistency Fund $100,000 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $98,056 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $79,064 - 0
20.205 Highway Planning and Construction $70,152 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $67,783 - 0
16.575 Crime Victim Assistance $67,467 - 0
93.994 Maternal and Child Health Services Block Grant to the States $65,532 - 0
93.958 Block Grants for Community Mental Health Services $57,224 - 0
93.069 Public Health Emergency Preparedness $55,522 - 0
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $51,481 - 0
97.042 Emergency Management Performance Grants $46,118 - 0
93.575 Child Care and Development Block Grant $37,004 - 0
93.778 Medical Assistance Program $33,733 Yes 0
97.012 Boating Safety Financial Assistance $28,118 - 0
93.590 Community-Based Child Abuse Prevention Grants $25,081 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $16,830 Yes 2
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $12,633 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $11,936 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $6,956 - 0
93.556 Promoting Safe and Stable Families $4,387 - 0
93.767 Children's Health Insurance Program $3,216 - 0
93.747 Elder Abuse Prevention Interventions Program $2,855 - 0
93.566 Refugee and Entrant Assistance_state Administered Programs $2,680 - 0
16.710 Public Safety Partnership and Community Policing Grants $2,103 - 0
93.251 Early Hearing Detection and Intervention $1,250 - 0
93.315 Rare Disorders: Research, Surveillance, Health Promotion, and Education $225 - 0

Contacts

Name Title Type
FM9SDDFC6KP6 Nancy Malecha Auditee
2188241048 Kristen Houle Auditor
No contacts on file

Notes to SEFA

Title: REPORTING ENTITY Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The schedule of expenditures of federal awards (the schedule) presents the activities of federal award programs expended by Crow Wing County (the County). The County’s reporting entity is defined in Note I.A. to the financial statements.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal award activity of the County under programs of the federal government for the year ended December 31, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) from the Office of Management and Budget (OMB). Because the schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: RECONCILIATION TO SCHEDULE OF INTERGOVERNMENTAL REVENUE Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Federal Grant Revenue per Schedule of Intergovernmental Revenue: $13,222,616 Expenditures above, not included as revenues on the Schedule of Intergovernmental Revenues: $761,277 Revenues included on the Schedule of Intergovernmental Revenue that are not considered Federal Grant Expenditures: ($10,949) Expenditures per Schedule of Expenditures of Federal Awards: $13,972,944

Finding Details

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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation that the verification of suspended and debarred vendors was completed. Questioned Costs: Unknown. Context: For one of one transaction tested for suspension and debarment, the County did not retain documentation that the procedures were done. Cause: Management oversight. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2022-004 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation that the verification of suspended and debarred vendors was completed. Questioned Costs: Unknown. Context: For one of one transaction tested for suspension and debarment, the County did not retain documentation that the procedures were done. Cause: Management oversight. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2022-004 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation that the verification of suspended and debarred vendors was completed. Questioned Costs: Unknown. Context: For one of one transaction tested for suspension and debarment, the County did not retain documentation that the procedures were done. Cause: Management oversight. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2022-004 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2023 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 not the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: Unknown. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the supporting documentation retained by the County to support the amount. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: Prior year finding identified as Finding 2022-006. Recommendation: We recommend that income verification be reviewed for each eligible case file to ensure the information matches MAXIS. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2023 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 not the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: Unknown. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the supporting documentation retained by the County to support the amount. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: Prior year finding identified as Finding 2022-006. Recommendation: We recommend that income verification be reviewed for each eligible case file to ensure the information matches MAXIS. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2023 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 not the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: Unknown. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the supporting documentation retained by the County to support the amount. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: Prior year finding identified as Finding 2022-006. Recommendation: We recommend that income verification be reviewed for each eligible case file to ensure the information matches MAXIS. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: COVID-19 Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-20-DW-27-0001, 2023 Pass-Through Agency: Minnesota Department of Employment and Economic Development, Business and Community Development Division Pass-Through Number: B-20-DW-27-0001 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Recipients of $150,000 or more of grant funds must submit, no later than 7 days after the end of each calendar quarter, a quarterly report to the State. Quarterly reports mush be in accordance with reporting requirements set forth in section 15011 of the CARES Act. The Grantee will monitor the activities of the sub-recipient according to 2 CFR §200.303 and 2 CFR §200.331 as necessary to ensure that the sub-award is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the sub-award; and that sub-award performance goals are achieved. This includes reviewing financial and programmatic reports required by the pass-through entity. Condition: Proper records were not retained for reports and there was no oversight by County management of the reports being submitted by the subrecipient to the State. Questioned Costs: None noted. Context: For one of two quarterly reports tested, there was no record on file for the report that was submitted. For one of two quarterly reports tested, the report was not submitted by the deadline listed in the grant agreement. For all reports, it was noted that there was no review by County management of the reports submitted by the subrecipient and the County received a copy of the report at the same time as the submission was completed. Cause: Insufficient management oversight. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County reviews their policies to ensure reporting requirements are met including a review of the subrecipient reports prior to submission. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: COVID-19 Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-20-DW-27-0001, 2023 Pass-Through Agency: Minnesota Department of Employment and Economic Development, Business and Community Development Division Pass-Through Number: B-20-DW-27-0001 Compliance Requirement Affected: Subrecipient Monitoring Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The grantee will monitor the activities of the sub-recipient according to 2 CFR §200.303 and 2 CFR §200.331 as necessary to ensure that the sub-award is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the sub-award; and that sub-award performance goals are achieved. Condition: Proper records were not retained as required by subrecipient monitoring purposes. Questioned Costs: None noted. Context: There are no monitoring policies or procedures in place at the County. There was no documentation on file to support that the County monitored the subrecipient to ensure they used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward or that the subrecipient audits were completed in accordance with requirements. Cause: Insufficient management oversight. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County reviews their policies to ensure they are monitoring subrecipients and retaining documentation as required by federal guidelines. Views of responsible officials: There is no disagreement with the audit finding.
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, 2023 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one 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. Also, for one of five transactions tested for suspension and debarment, the County did not have documentation that the verification was done. 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. Repeat Finding: Prior year finding identified as Finding 2022-003 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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, 2023 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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 containing the expenditures incurred during each quarter. Condition: The County did not submit all expenditures related to 2023 in the quarterly reports related to 2023. Questioned Costs: None noted. Context: The 4th quarter Project and Expenditure report filed was missing $600,000 of pass-through costs incurred by the County for a project. Cause: The federal reporting website did not allow the County to retrieve all necessary information timely necessary for the report and the reporting window closed before the necessary information was gathered. Effect: Expenditures could be claimed in the wrong period. Repeat Finding: No. Recommendation: We recommend that the County review their policies and federal requirements to ensure all costs incurred are reported timely. Views of responsible officials: This finding was due to reporting system issues which caused the County’s inability to report this project expenditure in the 4th quarter of 2023.
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, 2023 Compliance Requirement Affected: Earmarking Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the Final Rule, recipients can elect a one-time “standard allowance” of $10 million (not to exceed the recipient’s award amount) to spend on the “provision of government services” during the period of performance. Treasury has determined that there are no subawards under the revenue loss category allowed for eligible use. The definition of subrecipient in the Uniform Guidance provides that a subaward is provided for the purpose of “carrying out” a portion of a federal award. Recipients’ use of revenue loss funds does not give rise to subrecipient relationships. Condition: The County granted subawards with "revenue loss" money. Questioned Costs: None noted. Context: Out of the total expenditures reported in 2023, $122,330 granted as subawards was reported under “revenue loss” instead of the specific projects they were allowable under. Cause: Management oversight. Effect: The County could be claiming expenditures on their quarterly reports in the incorrect projects. Repeat Finding: No. Recommendation: We recommend that the County reviews their policies and federal requirements to ensure all costs are reported under the correct category. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Federal guidelines require grant recipients to implement internal controls for each direct and material compliance requirement applicable to the federal grant to ensure compliance with said requirements. Condition: No internal casefile reviews were completed for public health or Diversionary Work Program (DWP) recipients. Questioned Costs: None noted. Context: There was no internal casefile review process in place for public health or DWP casefiles. Cause: Management unaware of the requirement. Effect: Casefiles could be incomplete or inaccurate and subsequently, benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to ensure casefiles are reviewed and documented for public health and DWP recipients. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The County is required to keep documentation of reviews and approvals on file for all disbursements and journal entries to ensure proper monitoring and approval of expenditures coded to the grant. Condition: Not all general disbursements or journal entries tested had documentation of a review by a supervisor on file. Questioned Costs: Unknown. Context: For seven of forty disbursements tested, there was no documentation of a supervisor reviewing the grant expenditures. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor sign off on all disbursements and journal entries to ensure proper review of expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services, proper records should be kept in place to support compliance with eligibility. Condition: Public health casefiles tested did not have the proper supporting documentation for eligibility determination. Questioned Costs: Unknown. Context: Three of eight public health casefiles tested did not have proper supporting documentation for eligibility determination. Cause: Lack of oversight by management. Effect: Benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to verify proper documentation is kept on file for all clients deemed eligible. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Earmarking Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services and the Minnesota Department of Human Services, all administrative expenditures reported on the grant must be under 7.5% of total expenditures submitted on the quarterly DWP reports. Condition: Quarterly DWP reports had administrative expenditures that were more than 7.5% of the total expenditures submitted. Questioned Costs: None noted. Context: One out of two quarterly 2902 DWP reports tested had administrative expenditures that were more than 7.5% of the total expenditures submitted. Cause: County policy does not align with federal requirements. Effect: Ineligible expenses could be reported. Repeat Finding: No. Recommendation: We recommend that the County implements a policy to review this requirement on a quarterly basis. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Federal guidelines require grant recipients to implement internal controls for each direct and material compliance requirement applicable to the federal grant to ensure compliance with said requirements. Condition: No internal casefile reviews were completed for public health or Diversionary Work Program (DWP) recipients. Questioned Costs: None noted. Context: There was no internal casefile review process in place for public health or DWP casefiles. Cause: Management unaware of the requirement. Effect: Casefiles could be incomplete or inaccurate and subsequently, benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to ensure casefiles are reviewed and documented for public health and DWP recipients. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The County is required to keep documentation of reviews and approvals on file for all disbursements and journal entries to ensure proper monitoring and approval of expenditures coded to the grant. Condition: Not all general disbursements or journal entries tested had documentation of a review by a supervisor on file. Questioned Costs: Unknown. Context: For seven of forty disbursements tested, there was no documentation of a supervisor reviewing the grant expenditures. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor sign off on all disbursements and journal entries to ensure proper review of expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services, proper records should be kept in place to support compliance with eligibility. Condition: Public health casefiles tested did not have the proper supporting documentation for eligibility determination. Questioned Costs: Unknown. Context: Three of eight public health casefiles tested did not have proper supporting documentation for eligibility determination. Cause: Lack of oversight by management. Effect: Benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to verify proper documentation is kept on file for all clients deemed eligible. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Earmarking Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services and the Minnesota Department of Human Services, all administrative expenditures reported on the grant must be under 7.5% of total expenditures submitted on the quarterly DWP reports. Condition: Quarterly DWP reports had administrative expenditures that were more than 7.5% of the total expenditures submitted. Questioned Costs: None noted. Context: One out of two quarterly 2902 DWP reports tested had administrative expenditures that were more than 7.5% of the total expenditures submitted. Cause: County policy does not align with federal requirements. Effect: Ineligible expenses could be reported. Repeat Finding: No. Recommendation: We recommend that the County implements a policy to review this requirement on a quarterly basis. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation that the verification of suspended and debarred vendors was completed. Questioned Costs: Unknown. Context: For one of one transaction tested for suspension and debarment, the County did not retain documentation that the procedures were done. Cause: Management oversight. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2022-004 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation that the verification of suspended and debarred vendors was completed. Questioned Costs: Unknown. Context: For one of one transaction tested for suspension and debarment, the County did not retain documentation that the procedures were done. Cause: Management oversight. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2022-004 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation that the verification of suspended and debarred vendors was completed. Questioned Costs: Unknown. Context: For one of one transaction tested for suspension and debarment, the County did not retain documentation that the procedures were done. Cause: Management oversight. Effect: County could be using a vendor that is suspended or debarred at the time of the transaction. Repeat Finding: Prior year finding identified as Finding 2022-004 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2023 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 not the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: Unknown. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the supporting documentation retained by the County to support the amount. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: Prior year finding identified as Finding 2022-006. Recommendation: We recommend that income verification be reviewed for each eligible case file to ensure the information matches MAXIS. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2023 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 not the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: Unknown. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the supporting documentation retained by the County to support the amount. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: Prior year finding identified as Finding 2022-006. Recommendation: We recommend that income verification be reviewed for each eligible case file to ensure the information matches MAXIS. Views of responsible officials: There is no disagreement with the audit finding.
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: 232MN101S2514, 232MN101S2520, 232MN127Q7503, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 232MN101S2514, 232MN101S2520, 232MN127Q7503 Compliance Requirement Affected: Special Provisions Award Period: Year Ended December 31, 2023 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 not the state MAXIS system did not match the support documentation retained by the County to support the amount. Questioned Costs: Unknown. Context: For one of sixty casefiles tested, it was noted that income information entered into the state MAXIS system did not match the supporting documentation retained by the County to support the amount. Cause: Lack of oversight by management. Effect: Benefits could be provided to ineligible clients. Repeat Finding: Prior year finding identified as Finding 2022-006. Recommendation: We recommend that income verification be reviewed for each eligible case file to ensure the information matches MAXIS. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: COVID-19 Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-20-DW-27-0001, 2023 Pass-Through Agency: Minnesota Department of Employment and Economic Development, Business and Community Development Division Pass-Through Number: B-20-DW-27-0001 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Recipients of $150,000 or more of grant funds must submit, no later than 7 days after the end of each calendar quarter, a quarterly report to the State. Quarterly reports mush be in accordance with reporting requirements set forth in section 15011 of the CARES Act. The Grantee will monitor the activities of the sub-recipient according to 2 CFR §200.303 and 2 CFR §200.331 as necessary to ensure that the sub-award is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the sub-award; and that sub-award performance goals are achieved. This includes reviewing financial and programmatic reports required by the pass-through entity. Condition: Proper records were not retained for reports and there was no oversight by County management of the reports being submitted by the subrecipient to the State. Questioned Costs: None noted. Context: For one of two quarterly reports tested, there was no record on file for the report that was submitted. For one of two quarterly reports tested, the report was not submitted by the deadline listed in the grant agreement. For all reports, it was noted that there was no review by County management of the reports submitted by the subrecipient and the County received a copy of the report at the same time as the submission was completed. Cause: Insufficient management oversight. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County reviews their policies to ensure reporting requirements are met including a review of the subrecipient reports prior to submission. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: COVID-19 Community Development Block Grants Assistance Listing Number: 14.228 Federal Award Identification Number and Year: B-20-DW-27-0001, 2023 Pass-Through Agency: Minnesota Department of Employment and Economic Development, Business and Community Development Division Pass-Through Number: B-20-DW-27-0001 Compliance Requirement Affected: Subrecipient Monitoring Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The grantee will monitor the activities of the sub-recipient according to 2 CFR §200.303 and 2 CFR §200.331 as necessary to ensure that the sub-award is used for authorized purposes, in compliance with Federal statutes, regulations, and the terms and conditions of the sub-award; and that sub-award performance goals are achieved. Condition: Proper records were not retained as required by subrecipient monitoring purposes. Questioned Costs: None noted. Context: There are no monitoring policies or procedures in place at the County. There was no documentation on file to support that the County monitored the subrecipient to ensure they used the subaward for authorized purposes in compliance with federal statutes, regulations, and the terms and conditions of the subaward or that the subrecipient audits were completed in accordance with requirements. Cause: Insufficient management oversight. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County reviews their policies to ensure they are monitoring subrecipients and retaining documentation as required by federal guidelines. Views of responsible officials: There is no disagreement with the audit finding.
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, 2023 Compliance Requirement Affected: Suspension and Debarment Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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. Condition: The County did not retain documentation for the date that the verification was done. Questioned Costs: Unknown. Context: For one 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. Also, for one of five transactions tested for suspension and debarment, the County did not have documentation that the verification was done. 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. Repeat Finding: Prior year finding identified as Finding 2022-003 (procurement portion resolved). Recommendation: We recommend the County align their county-wide policies to address any necessary modifications to ensure all suspension and debarment requirements are met. Views of responsible officials: There is no disagreement with the audit finding.
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, 2023 Compliance Requirement Affected: Reporting Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters 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 containing the expenditures incurred during each quarter. Condition: The County did not submit all expenditures related to 2023 in the quarterly reports related to 2023. Questioned Costs: None noted. Context: The 4th quarter Project and Expenditure report filed was missing $600,000 of pass-through costs incurred by the County for a project. Cause: The federal reporting website did not allow the County to retrieve all necessary information timely necessary for the report and the reporting window closed before the necessary information was gathered. Effect: Expenditures could be claimed in the wrong period. Repeat Finding: No. Recommendation: We recommend that the County review their policies and federal requirements to ensure all costs incurred are reported timely. Views of responsible officials: This finding was due to reporting system issues which caused the County’s inability to report this project expenditure in the 4th quarter of 2023.
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, 2023 Compliance Requirement Affected: Earmarking Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the Final Rule, recipients can elect a one-time “standard allowance” of $10 million (not to exceed the recipient’s award amount) to spend on the “provision of government services” during the period of performance. Treasury has determined that there are no subawards under the revenue loss category allowed for eligible use. The definition of subrecipient in the Uniform Guidance provides that a subaward is provided for the purpose of “carrying out” a portion of a federal award. Recipients’ use of revenue loss funds does not give rise to subrecipient relationships. Condition: The County granted subawards with "revenue loss" money. Questioned Costs: None noted. Context: Out of the total expenditures reported in 2023, $122,330 granted as subawards was reported under “revenue loss” instead of the specific projects they were allowable under. Cause: Management oversight. Effect: The County could be claiming expenditures on their quarterly reports in the incorrect projects. Repeat Finding: No. Recommendation: We recommend that the County reviews their policies and federal requirements to ensure all costs are reported under the correct category. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Federal guidelines require grant recipients to implement internal controls for each direct and material compliance requirement applicable to the federal grant to ensure compliance with said requirements. Condition: No internal casefile reviews were completed for public health or Diversionary Work Program (DWP) recipients. Questioned Costs: None noted. Context: There was no internal casefile review process in place for public health or DWP casefiles. Cause: Management unaware of the requirement. Effect: Casefiles could be incomplete or inaccurate and subsequently, benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to ensure casefiles are reviewed and documented for public health and DWP recipients. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The County is required to keep documentation of reviews and approvals on file for all disbursements and journal entries to ensure proper monitoring and approval of expenditures coded to the grant. Condition: Not all general disbursements or journal entries tested had documentation of a review by a supervisor on file. Questioned Costs: Unknown. Context: For seven of forty disbursements tested, there was no documentation of a supervisor reviewing the grant expenditures. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor sign off on all disbursements and journal entries to ensure proper review of expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services, proper records should be kept in place to support compliance with eligibility. Condition: Public health casefiles tested did not have the proper supporting documentation for eligibility determination. Questioned Costs: Unknown. Context: Three of eight public health casefiles tested did not have proper supporting documentation for eligibility determination. Cause: Lack of oversight by management. Effect: Benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to verify proper documentation is kept on file for all clients deemed eligible. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Earmarking Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services and the Minnesota Department of Human Services, all administrative expenditures reported on the grant must be under 7.5% of total expenditures submitted on the quarterly DWP reports. Condition: Quarterly DWP reports had administrative expenditures that were more than 7.5% of the total expenditures submitted. Questioned Costs: None noted. Context: One out of two quarterly 2902 DWP reports tested had administrative expenditures that were more than 7.5% of the total expenditures submitted. Cause: County policy does not align with federal requirements. Effect: Ineligible expenses could be reported. Repeat Finding: No. Recommendation: We recommend that the County implements a policy to review this requirement on a quarterly basis. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Federal guidelines require grant recipients to implement internal controls for each direct and material compliance requirement applicable to the federal grant to ensure compliance with said requirements. Condition: No internal casefile reviews were completed for public health or Diversionary Work Program (DWP) recipients. Questioned Costs: None noted. Context: There was no internal casefile review process in place for public health or DWP casefiles. Cause: Management unaware of the requirement. Effect: Casefiles could be incomplete or inaccurate and subsequently, benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to ensure casefiles are reviewed and documented for public health and DWP recipients. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: The County is required to keep documentation of reviews and approvals on file for all disbursements and journal entries to ensure proper monitoring and approval of expenditures coded to the grant. Condition: Not all general disbursements or journal entries tested had documentation of a review by a supervisor on file. Questioned Costs: Unknown. Context: For seven of forty disbursements tested, there was no documentation of a supervisor reviewing the grant expenditures. Cause: Lack of oversight by management. Effect: Ineligible costs could be reported. Repeat Finding: No. Recommendation: We recommend that the County has a supervisor sign off on all disbursements and journal entries to ensure proper review of expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Public Health Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Eligibility Award Period: Year Ended December 31, 2023 Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services, proper records should be kept in place to support compliance with eligibility. Condition: Public health casefiles tested did not have the proper supporting documentation for eligibility determination. Questioned Costs: Unknown. Context: Three of eight public health casefiles tested did not have proper supporting documentation for eligibility determination. Cause: Lack of oversight by management. Effect: Benefits could be provided for ineligible clients. Repeat Finding: No. Recommendation: We recommend that the County aligns their policies to verify proper documentation is kept on file for all clients deemed eligible. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Federal Award Identification Number and Year: 2301MNTANF, 2023 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2301MNTANF Compliance Requirement Affected: Earmarking Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Under the compliance and reporting guidance issued by the Department of the Health and Human Services and the Minnesota Department of Human Services, all administrative expenditures reported on the grant must be under 7.5% of total expenditures submitted on the quarterly DWP reports. Condition: Quarterly DWP reports had administrative expenditures that were more than 7.5% of the total expenditures submitted. Questioned Costs: None noted. Context: One out of two quarterly 2902 DWP reports tested had administrative expenditures that were more than 7.5% of the total expenditures submitted. Cause: County policy does not align with federal requirements. Effect: Ineligible expenses could be reported. Repeat Finding: No. Recommendation: We recommend that the County implements a policy to review this requirement on a quarterly basis. Views of responsible officials: There is no disagreement with the audit finding.