2023-003 Special Tests and Provisions
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Agriculture
Program: 10.665 Schools and Roads – Grants to States
Award Number and Year: P.L. 117-58; 2023
Pass-Through Agency: Minnesota Management and Budget
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Title 16 United States Code § 7142 states that a participating county can use Title III funds only after a 45-day public comment period.
Condition: The County expended fiscal year 2019 Title III funds in May 2023, prior to the 45-day public comment period.
Questioned Costs: None.
Context: The 45-day public comment period for fiscal year 2019 Title III funds was from October 27, 2023, to December 11, 2023.
Effect: Failing to follow program requirements could result in inappropriately expending funds and affect future funding.
Cause: New County personnel were unaware of these requirements.
Recommendation: We recommend County staff establish procedures to ensure Title III funds are not expended prior to the required public comment period.
View of Responsible Official: Concur
2023-004 Eligibility
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, METS and MAXIS, which are used by Lake County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS and 40 METS case files tested:
• In METS, three case files did not contain documentation that social security numbers were verified. Additionally, two of those three files did not contain documentation that citizenship was verified.
• In MAXIS, there was one instance where judicial determination or voluntary placement agreement for Foster Care was missing.
Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to participants in this program.
Context: The State of Minnesota and Lake County Public Health and Human Services split the eligibility determination process. Pursuant to Minnesota statutes, Lake County Public Health and Human Services performs the “intake function” needed for this program, while the state maintains the MAXIS and METS systems, which support the eligibility determination process. Participants receive benefit payments from the state.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: The lack of updated information in MAXIS and METS documenting verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was obtained or retained.
Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained, retained, and properly input or updated in MAXIS and METS. In addition, Lake County should consider providing further training to program personnel.
View of Responsible Official: Concur
2023-005 Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220)
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are accurate and completed in accordance with DHS reporting instructions. DHS Bulletin No. 16-32-04 requires the Local Collaborative Time Study (LCTS) Fiscal Reporting and Payment Agent to review DHS-3220 quarterly reports prior to their submission.
Condition: In a sample of six DHS-3220 Cost Schedules tested, none were reviewed by the County’s LCTS Fiscal Reporting and Payment Agent.
Questioned Costs: None.
Context: The DHS-3220 Cost Schedules are submitted quarterly by each member of a collaborative to DHS for reimbursement of LCTS money, which is reimbursed to the County, in part, with federal Medical Assistance Program funds. Lake County Public Health and Human Services acts as the LCTS Fiscal Reporting and Payment Agent for the local collaborative in Lake County.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: If reviews are not performed, there is an increased possibility that an error will occur and not be detected, resulting in the County receiving the incorrect amount of federal reimbursements.
Cause: Staff from Lake County Public Health and Human Services were not aware of the review requirements for the collaborative partners’ quarterly reports.
Recommendation: We recommend the County implement procedures to ensure the DHS-3220 Cost Schedules are reviewed and evidence of the review is retained.
View of Responsible Official: Concur
2023-004 Eligibility
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, METS and MAXIS, which are used by Lake County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS and 40 METS case files tested:
• In METS, three case files did not contain documentation that social security numbers were verified. Additionally, two of those three files did not contain documentation that citizenship was verified.
• In MAXIS, there was one instance where judicial determination or voluntary placement agreement for Foster Care was missing.
Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to participants in this program.
Context: The State of Minnesota and Lake County Public Health and Human Services split the eligibility determination process. Pursuant to Minnesota statutes, Lake County Public Health and Human Services performs the “intake function” needed for this program, while the state maintains the MAXIS and METS systems, which support the eligibility determination process. Participants receive benefit payments from the state.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: The lack of updated information in MAXIS and METS documenting verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was obtained or retained.
Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained, retained, and properly input or updated in MAXIS and METS. In addition, Lake County should consider providing further training to program personnel.
View of Responsible Official: Concur
2023-005 Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220)
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are accurate and completed in accordance with DHS reporting instructions. DHS Bulletin No. 16-32-04 requires the Local Collaborative Time Study (LCTS) Fiscal Reporting and Payment Agent to review DHS-3220 quarterly reports prior to their submission.
Condition: In a sample of six DHS-3220 Cost Schedules tested, none were reviewed by the County’s LCTS Fiscal Reporting and Payment Agent.
Questioned Costs: None.
Context: The DHS-3220 Cost Schedules are submitted quarterly by each member of a collaborative to DHS for reimbursement of LCTS money, which is reimbursed to the County, in part, with federal Medical Assistance Program funds. Lake County Public Health and Human Services acts as the LCTS Fiscal Reporting and Payment Agent for the local collaborative in Lake County.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: If reviews are not performed, there is an increased possibility that an error will occur and not be detected, resulting in the County receiving the incorrect amount of federal reimbursements.
Cause: Staff from Lake County Public Health and Human Services were not aware of the review requirements for the collaborative partners’ quarterly reports.
Recommendation: We recommend the County implement procedures to ensure the DHS-3220 Cost Schedules are reviewed and evidence of the review is retained.
View of Responsible Official: Concur
2023-003 Special Tests and Provisions
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Agriculture
Program: 10.665 Schools and Roads – Grants to States
Award Number and Year: P.L. 117-58; 2023
Pass-Through Agency: Minnesota Management and Budget
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Title 16 United States Code § 7142 states that a participating county can use Title III funds only after a 45-day public comment period.
Condition: The County expended fiscal year 2019 Title III funds in May 2023, prior to the 45-day public comment period.
Questioned Costs: None.
Context: The 45-day public comment period for fiscal year 2019 Title III funds was from October 27, 2023, to December 11, 2023.
Effect: Failing to follow program requirements could result in inappropriately expending funds and affect future funding.
Cause: New County personnel were unaware of these requirements.
Recommendation: We recommend County staff establish procedures to ensure Title III funds are not expended prior to the required public comment period.
View of Responsible Official: Concur
2023-004 Eligibility
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, METS and MAXIS, which are used by Lake County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS and 40 METS case files tested:
• In METS, three case files did not contain documentation that social security numbers were verified. Additionally, two of those three files did not contain documentation that citizenship was verified.
• In MAXIS, there was one instance where judicial determination or voluntary placement agreement for Foster Care was missing.
Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to participants in this program.
Context: The State of Minnesota and Lake County Public Health and Human Services split the eligibility determination process. Pursuant to Minnesota statutes, Lake County Public Health and Human Services performs the “intake function” needed for this program, while the state maintains the MAXIS and METS systems, which support the eligibility determination process. Participants receive benefit payments from the state.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: The lack of updated information in MAXIS and METS documenting verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was obtained or retained.
Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained, retained, and properly input or updated in MAXIS and METS. In addition, Lake County should consider providing further training to program personnel.
View of Responsible Official: Concur
2023-005 Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220)
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are accurate and completed in accordance with DHS reporting instructions. DHS Bulletin No. 16-32-04 requires the Local Collaborative Time Study (LCTS) Fiscal Reporting and Payment Agent to review DHS-3220 quarterly reports prior to their submission.
Condition: In a sample of six DHS-3220 Cost Schedules tested, none were reviewed by the County’s LCTS Fiscal Reporting and Payment Agent.
Questioned Costs: None.
Context: The DHS-3220 Cost Schedules are submitted quarterly by each member of a collaborative to DHS for reimbursement of LCTS money, which is reimbursed to the County, in part, with federal Medical Assistance Program funds. Lake County Public Health and Human Services acts as the LCTS Fiscal Reporting and Payment Agent for the local collaborative in Lake County.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: If reviews are not performed, there is an increased possibility that an error will occur and not be detected, resulting in the County receiving the incorrect amount of federal reimbursements.
Cause: Staff from Lake County Public Health and Human Services were not aware of the review requirements for the collaborative partners’ quarterly reports.
Recommendation: We recommend the County implement procedures to ensure the DHS-3220 Cost Schedules are reviewed and evidence of the review is retained.
View of Responsible Official: Concur
2023-004 Eligibility
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, METS and MAXIS, which are used by Lake County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS and 40 METS case files tested:
• In METS, three case files did not contain documentation that social security numbers were verified. Additionally, two of those three files did not contain documentation that citizenship was verified.
• In MAXIS, there was one instance where judicial determination or voluntary placement agreement for Foster Care was missing.
Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to participants in this program.
Context: The State of Minnesota and Lake County Public Health and Human Services split the eligibility determination process. Pursuant to Minnesota statutes, Lake County Public Health and Human Services performs the “intake function” needed for this program, while the state maintains the MAXIS and METS systems, which support the eligibility determination process. Participants receive benefit payments from the state.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: The lack of updated information in MAXIS and METS documenting verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible.
Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was obtained or retained.
Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained, retained, and properly input or updated in MAXIS and METS. In addition, Lake County should consider providing further training to program personnel.
View of Responsible Official: Concur
2023-005 Local Collaborative Time Study (LCTS) Reporting (Cost Schedules DHS-3220)
Prior Year Finding Number: N/A
Year of Finding Origination: 2023
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Health and Human Services
Program: 93.778 Medical Assistance Program
Award Number and Year: 2305MN5ADM; 2023
Pass-Through Agency: Minnesota Department of Human Services
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are accurate and completed in accordance with DHS reporting instructions. DHS Bulletin No. 16-32-04 requires the Local Collaborative Time Study (LCTS) Fiscal Reporting and Payment Agent to review DHS-3220 quarterly reports prior to their submission.
Condition: In a sample of six DHS-3220 Cost Schedules tested, none were reviewed by the County’s LCTS Fiscal Reporting and Payment Agent.
Questioned Costs: None.
Context: The DHS-3220 Cost Schedules are submitted quarterly by each member of a collaborative to DHS for reimbursement of LCTS money, which is reimbursed to the County, in part, with federal Medical Assistance Program funds. Lake County Public Health and Human Services acts as the LCTS Fiscal Reporting and Payment Agent for the local collaborative in Lake County.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: If reviews are not performed, there is an increased possibility that an error will occur and not be detected, resulting in the County receiving the incorrect amount of federal reimbursements.
Cause: Staff from Lake County Public Health and Human Services were not aware of the review requirements for the collaborative partners’ quarterly reports.
Recommendation: We recommend the County implement procedures to ensure the DHS-3220 Cost Schedules are reviewed and evidence of the review is retained.
View of Responsible Official: Concur