2023-005 Reporting – PR29 – CDBG Cash on Hand Quarterly and Federal Funding and Accountability and Transparency Act
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. Housing and Urban Development
Program: 14.218 Community Development Block Grants/Entitlement Grants
14.218 COVID-19 – Community Development Block Grants/Entitlement Grants
Pass-Through Agency: N/A - Direct
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.
The PR29 – CDBG Cash on Hand Quarterly report is a required quarterly report. The basis of accounting described in the directions is a cash basis. Also, the directions list accounts to be included in the reports, including program income accounts.
Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, that are codified in Title 2 U.S. Code of Federal Regulations, Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS).
Condition: In the sample of two quarterly PR29 – CDBG Cash on Hand Quarterly reports tested, errors were noted in both reports resulting from the County improperly including accruals in the reporting and not including all accounts, including those relating to program income. In addition, Ramsey County has not submitted subaward information in the FSRS as required by the FFATA for the Community Development Block Grant.
Questioned Costs: None.
Context: The PR29 – CDBG Cash on Hand Quarterly report is not used to claim reimbursement of federal funds.
A subaward is any award provided by a pass-through entity to a subrecipient for the subrecipient to administer part of a federal award received by the pass-through entity. The FFATA issue was noted during the audit of the Community Development Block Grant; however, it impacts federal programs County-wide.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Ramsey County is not in compliance with the requirements for PR29 – CDBG Cash on Hand Quarterly or FFATA reporting.
Cause: The County experienced staff turnover. In addition, the County missed HUD notifications that FFATA needed to be implemented.
Recommendation: We recommend Ramsey County implement procedures to complete reports as required by HUD and ensure the correct accounting basis is used and all accounts are being included. We recommend Ramsey County implement procedures to complete reports required by FFATA. In addition, we recommend Ramsey County work with HUD on how best to correct PR29 – CDBG Cash on Hand Quarterly reporting.
View of Responsible Official: Concur
2023-005 Reporting – PR29 – CDBG Cash on Hand Quarterly and Federal Funding and Accountability and Transparency Act
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. Housing and Urban Development
Program: 14.218 Community Development Block Grants/Entitlement Grants
14.218 COVID-19 – Community Development Block Grants/Entitlement Grants
Pass-Through Agency: N/A - Direct
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.
The PR29 – CDBG Cash on Hand Quarterly report is a required quarterly report. The basis of accounting described in the directions is a cash basis. Also, the directions list accounts to be included in the reports, including program income accounts.
Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, that are codified in Title 2 U.S. Code of Federal Regulations, Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS).
Condition: In the sample of two quarterly PR29 – CDBG Cash on Hand Quarterly reports tested, errors were noted in both reports resulting from the County improperly including accruals in the reporting and not including all accounts, including those relating to program income. In addition, Ramsey County has not submitted subaward information in the FSRS as required by the FFATA for the Community Development Block Grant.
Questioned Costs: None.
Context: The PR29 – CDBG Cash on Hand Quarterly report is not used to claim reimbursement of federal funds.
A subaward is any award provided by a pass-through entity to a subrecipient for the subrecipient to administer part of a federal award received by the pass-through entity. The FFATA issue was noted during the audit of the Community Development Block Grant; however, it impacts federal programs County-wide.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Ramsey County is not in compliance with the requirements for PR29 – CDBG Cash on Hand Quarterly or FFATA reporting.
Cause: The County experienced staff turnover. In addition, the County missed HUD notifications that FFATA needed to be implemented.
Recommendation: We recommend Ramsey County implement procedures to complete reports as required by HUD and ensure the correct accounting basis is used and all accounts are being included. We recommend Ramsey County implement procedures to complete reports required by FFATA. In addition, we recommend Ramsey County work with HUD on how best to correct PR29 – CDBG Cash on Hand Quarterly reporting.
View of Responsible Official: Concur
2023-005 Reporting – PR29 – CDBG Cash on Hand Quarterly and Federal Funding and Accountability and Transparency Act
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. Housing and Urban Development
Program: 14.218 Community Development Block Grants/Entitlement Grants
14.218 COVID-19 – Community Development Block Grants/Entitlement Grants
Pass-Through Agency: N/A - Direct
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.
The PR29 – CDBG Cash on Hand Quarterly report is a required quarterly report. The basis of accounting described in the directions is a cash basis. Also, the directions list accounts to be included in the reports, including program income accounts.
Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, that are codified in Title 2 U.S. Code of Federal Regulations, Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS).
Condition: In the sample of two quarterly PR29 – CDBG Cash on Hand Quarterly reports tested, errors were noted in both reports resulting from the County improperly including accruals in the reporting and not including all accounts, including those relating to program income. In addition, Ramsey County has not submitted subaward information in the FSRS as required by the FFATA for the Community Development Block Grant.
Questioned Costs: None.
Context: The PR29 – CDBG Cash on Hand Quarterly report is not used to claim reimbursement of federal funds.
A subaward is any award provided by a pass-through entity to a subrecipient for the subrecipient to administer part of a federal award received by the pass-through entity. The FFATA issue was noted during the audit of the Community Development Block Grant; however, it impacts federal programs County-wide.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Ramsey County is not in compliance with the requirements for PR29 – CDBG Cash on Hand Quarterly or FFATA reporting.
Cause: The County experienced staff turnover. In addition, the County missed HUD notifications that FFATA needed to be implemented.
Recommendation: We recommend Ramsey County implement procedures to complete reports as required by HUD and ensure the correct accounting basis is used and all accounts are being included. We recommend Ramsey County implement procedures to complete reports required by FFATA. In addition, we recommend Ramsey County work with HUD on how best to correct PR29 – CDBG Cash on Hand Quarterly reporting.
View of Responsible Official: Concur
2023-004 Eligibility
Prior Year Finding Number: 2022-006
Year of Finding Origination: 2022
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Material Weakness and Modified Opinion
Federal Agency: U.S. Department of the Treasury
Program: 21.023 COVID-19 – Emergency Rental Assistance Program
Pass-Through Agency: N/A - Direct
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.
The U.S. Department of the Treasury Frequently Asked Questions for Emergency Rental Assistance (ERA), revised July 27, 2022, requires grantees to obtain a current lease that identifies the unit where the applicant resides, to have support that an applicant is at risk of experiencing homelessness with a written attestation from the applicant or evidence of risk as determined by the grantee, have a reasonable basis for determining and redetermining income, and have documentation of the cost of any hotel or motel charged to the grant and the cost of the hotel or motel stay not include expenses incidental to the charge for the room.
Title 2 U.S. Code of Federal Regulations § 200.403(g) requires costs to be adequately documented.
In addition, the County’s Federal Emergency Program Guide for Tenant Application requires the County to obtain a written attestation if the Household has no qualifying income, or does not have documentation of all current income, and requires the County to use the Homeless Management Information System (HMIS) record when eligibility is based on homelessness.
Condition: In a sample of 16 participant’s eligibility documentation tested, the following exceptions were detected:
• For one participant, the address indicated on the ERA Request Form did not agree to the address included in the lease agreement.
• Three participants did not have documentation to support that they were at risk of experiencing homelessness.
• Three participants did not have documentation to support a reasonable basis for determining income.
• Two participants did not have documentation to support a redetermination of income.
• Three participants had instances where one-time payments, such as security deposits and application fees, were duplicated.
• Thirteen participants did not have documentation originating from the hotel or shelter supporting payment amount and that incidental expenses were not included.
• Eight participants had inconsistencies in the payment data provided between the participant name noted as the payee and the participant name noted as being applicable to in the transaction description.
Questioned Costs: $140,822. Questioned costs are calculated based on payments to sampled participants. The amounts relating to costs that were not supported by adequate documentation at the time of the audit are $138,844, and amounts relating to duplicate payments are $1,978. These questioned costs were provided to a subrecipient that made the direct payments on behalf of participants.
Context: The County had 80 total participants for the COVID-19 – Emergency Rental Assistance Program in 2023.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: The County is not in compliance with requirements of the U.S. Department of the Treasury and the County’s Program Guide for Tenant Application.
Cause: The County informed us that documentation could not be located, and that a number of staff who were involved in the program are no longer a part of the department. In addition, the County informed us that it had a contract in place with a consultant to assist the County in housing participants. However, no documentation was provided supporting detailed hotel expenses. Lastly, the County informed us that the inconsistencies in the payment data appears to have been clerical mistakes.
Recommendation: We recommend the County maintain documentation supporting participant eligibility in a location accessible to County staff. In addition, we recommend the County obtain documentation originating from hotels or shelters in sufficient detail as to provide support for costs charged to the grant and verify incidental expenses are not included.
View of Responsible Official: Concur
2023-006 Reporting – DHS Social Service Fund (DHS-2556)
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: 93.658 Foster Care – Title IV-E
Award Number and Year: 2301MNFOST, 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.
Administrative program costs for Foster Care are submitted to the Minnesota Department of Human Services (DHS) through the DHS Social Service Fund (DHS-2556) report on a quarterly basis. DHS provides reporting instructions, including information regarding eligible and ineligible costs.
Condition: The DHS-2556 second quarter report overstated payroll expense for individuals required to participate in the social services time study by $552,225 and understated payroll expense for individuals who do not participate in the social services time study.
Questioned Costs: None.
Context: DHS relies on accurate identification and reporting of program costs to ensure grant funds paid to the County are allowable and provide detailed information necessary for maintaining proper oversight over federal programs.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Errors in the reporting of costs on the quarterly reports can impair the ability of DHS to provide required oversight over federal programs and result in the County receiving either more or less federal funds than justified based on the actual underlying activity.
Cause: The error was due to an incorrect formula in a supporting workbook.
Recommendation: We recommend Ramsey County implement controls to ensure accurate reporting to DHS in accordance with federal program guidance and DHS instructions. We also recommend reports submitted incorrectly are corrected and resubmitted.
View of Responsible Official: Concur
2023-005 Reporting – PR29 – CDBG Cash on Hand Quarterly and Federal Funding and Accountability and Transparency Act
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. Housing and Urban Development
Program: 14.218 Community Development Block Grants/Entitlement Grants
14.218 COVID-19 – Community Development Block Grants/Entitlement Grants
Pass-Through Agency: N/A - Direct
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.
The PR29 – CDBG Cash on Hand Quarterly report is a required quarterly report. The basis of accounting described in the directions is a cash basis. Also, the directions list accounts to be included in the reports, including program income accounts.
Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, that are codified in Title 2 U.S. Code of Federal Regulations, Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS).
Condition: In the sample of two quarterly PR29 – CDBG Cash on Hand Quarterly reports tested, errors were noted in both reports resulting from the County improperly including accruals in the reporting and not including all accounts, including those relating to program income. In addition, Ramsey County has not submitted subaward information in the FSRS as required by the FFATA for the Community Development Block Grant.
Questioned Costs: None.
Context: The PR29 – CDBG Cash on Hand Quarterly report is not used to claim reimbursement of federal funds.
A subaward is any award provided by a pass-through entity to a subrecipient for the subrecipient to administer part of a federal award received by the pass-through entity. The FFATA issue was noted during the audit of the Community Development Block Grant; however, it impacts federal programs County-wide.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Ramsey County is not in compliance with the requirements for PR29 – CDBG Cash on Hand Quarterly or FFATA reporting.
Cause: The County experienced staff turnover. In addition, the County missed HUD notifications that FFATA needed to be implemented.
Recommendation: We recommend Ramsey County implement procedures to complete reports as required by HUD and ensure the correct accounting basis is used and all accounts are being included. We recommend Ramsey County implement procedures to complete reports required by FFATA. In addition, we recommend Ramsey County work with HUD on how best to correct PR29 – CDBG Cash on Hand Quarterly reporting.
View of Responsible Official: Concur
2023-005 Reporting – PR29 – CDBG Cash on Hand Quarterly and Federal Funding and Accountability and Transparency Act
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. Housing and Urban Development
Program: 14.218 Community Development Block Grants/Entitlement Grants
14.218 COVID-19 – Community Development Block Grants/Entitlement Grants
Pass-Through Agency: N/A - Direct
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.
The PR29 – CDBG Cash on Hand Quarterly report is a required quarterly report. The basis of accounting described in the directions is a cash basis. Also, the directions list accounts to be included in the reports, including program income accounts.
Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, that are codified in Title 2 U.S. Code of Federal Regulations, Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS).
Condition: In the sample of two quarterly PR29 – CDBG Cash on Hand Quarterly reports tested, errors were noted in both reports resulting from the County improperly including accruals in the reporting and not including all accounts, including those relating to program income. In addition, Ramsey County has not submitted subaward information in the FSRS as required by the FFATA for the Community Development Block Grant.
Questioned Costs: None.
Context: The PR29 – CDBG Cash on Hand Quarterly report is not used to claim reimbursement of federal funds.
A subaward is any award provided by a pass-through entity to a subrecipient for the subrecipient to administer part of a federal award received by the pass-through entity. The FFATA issue was noted during the audit of the Community Development Block Grant; however, it impacts federal programs County-wide.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Ramsey County is not in compliance with the requirements for PR29 – CDBG Cash on Hand Quarterly or FFATA reporting.
Cause: The County experienced staff turnover. In addition, the County missed HUD notifications that FFATA needed to be implemented.
Recommendation: We recommend Ramsey County implement procedures to complete reports as required by HUD and ensure the correct accounting basis is used and all accounts are being included. We recommend Ramsey County implement procedures to complete reports required by FFATA. In addition, we recommend Ramsey County work with HUD on how best to correct PR29 – CDBG Cash on Hand Quarterly reporting.
View of Responsible Official: Concur
2023-005 Reporting – PR29 – CDBG Cash on Hand Quarterly and Federal Funding and Accountability and Transparency Act
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. Housing and Urban Development
Program: 14.218 Community Development Block Grants/Entitlement Grants
14.218 COVID-19 – Community Development Block Grants/Entitlement Grants
Pass-Through Agency: N/A - Direct
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.
The PR29 – CDBG Cash on Hand Quarterly report is a required quarterly report. The basis of accounting described in the directions is a cash basis. Also, the directions list accounts to be included in the reports, including program income accounts.
Under the requirements of the Federal Funding Accountability and Transparency Act (Pub. L. No. 109-282), as amended by Section 6202 of Public Law 110-252, that are codified in Title 2 U.S. Code of Federal Regulations, Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS).
Condition: In the sample of two quarterly PR29 – CDBG Cash on Hand Quarterly reports tested, errors were noted in both reports resulting from the County improperly including accruals in the reporting and not including all accounts, including those relating to program income. In addition, Ramsey County has not submitted subaward information in the FSRS as required by the FFATA for the Community Development Block Grant.
Questioned Costs: None.
Context: The PR29 – CDBG Cash on Hand Quarterly report is not used to claim reimbursement of federal funds.
A subaward is any award provided by a pass-through entity to a subrecipient for the subrecipient to administer part of a federal award received by the pass-through entity. The FFATA issue was noted during the audit of the Community Development Block Grant; however, it impacts federal programs County-wide.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Ramsey County is not in compliance with the requirements for PR29 – CDBG Cash on Hand Quarterly or FFATA reporting.
Cause: The County experienced staff turnover. In addition, the County missed HUD notifications that FFATA needed to be implemented.
Recommendation: We recommend Ramsey County implement procedures to complete reports as required by HUD and ensure the correct accounting basis is used and all accounts are being included. We recommend Ramsey County implement procedures to complete reports required by FFATA. In addition, we recommend Ramsey County work with HUD on how best to correct PR29 – CDBG Cash on Hand Quarterly reporting.
View of Responsible Official: Concur
2023-004 Eligibility
Prior Year Finding Number: 2022-006
Year of Finding Origination: 2022
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Material Weakness and Modified Opinion
Federal Agency: U.S. Department of the Treasury
Program: 21.023 COVID-19 – Emergency Rental Assistance Program
Pass-Through Agency: N/A - Direct
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.
The U.S. Department of the Treasury Frequently Asked Questions for Emergency Rental Assistance (ERA), revised July 27, 2022, requires grantees to obtain a current lease that identifies the unit where the applicant resides, to have support that an applicant is at risk of experiencing homelessness with a written attestation from the applicant or evidence of risk as determined by the grantee, have a reasonable basis for determining and redetermining income, and have documentation of the cost of any hotel or motel charged to the grant and the cost of the hotel or motel stay not include expenses incidental to the charge for the room.
Title 2 U.S. Code of Federal Regulations § 200.403(g) requires costs to be adequately documented.
In addition, the County’s Federal Emergency Program Guide for Tenant Application requires the County to obtain a written attestation if the Household has no qualifying income, or does not have documentation of all current income, and requires the County to use the Homeless Management Information System (HMIS) record when eligibility is based on homelessness.
Condition: In a sample of 16 participant’s eligibility documentation tested, the following exceptions were detected:
• For one participant, the address indicated on the ERA Request Form did not agree to the address included in the lease agreement.
• Three participants did not have documentation to support that they were at risk of experiencing homelessness.
• Three participants did not have documentation to support a reasonable basis for determining income.
• Two participants did not have documentation to support a redetermination of income.
• Three participants had instances where one-time payments, such as security deposits and application fees, were duplicated.
• Thirteen participants did not have documentation originating from the hotel or shelter supporting payment amount and that incidental expenses were not included.
• Eight participants had inconsistencies in the payment data provided between the participant name noted as the payee and the participant name noted as being applicable to in the transaction description.
Questioned Costs: $140,822. Questioned costs are calculated based on payments to sampled participants. The amounts relating to costs that were not supported by adequate documentation at the time of the audit are $138,844, and amounts relating to duplicate payments are $1,978. These questioned costs were provided to a subrecipient that made the direct payments on behalf of participants.
Context: The County had 80 total participants for the COVID-19 – Emergency Rental Assistance Program in 2023.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: The County is not in compliance with requirements of the U.S. Department of the Treasury and the County’s Program Guide for Tenant Application.
Cause: The County informed us that documentation could not be located, and that a number of staff who were involved in the program are no longer a part of the department. In addition, the County informed us that it had a contract in place with a consultant to assist the County in housing participants. However, no documentation was provided supporting detailed hotel expenses. Lastly, the County informed us that the inconsistencies in the payment data appears to have been clerical mistakes.
Recommendation: We recommend the County maintain documentation supporting participant eligibility in a location accessible to County staff. In addition, we recommend the County obtain documentation originating from hotels or shelters in sufficient detail as to provide support for costs charged to the grant and verify incidental expenses are not included.
View of Responsible Official: Concur
2023-006 Reporting – DHS Social Service Fund (DHS-2556)
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: 93.658 Foster Care – Title IV-E
Award Number and Year: 2301MNFOST, 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.
Administrative program costs for Foster Care are submitted to the Minnesota Department of Human Services (DHS) through the DHS Social Service Fund (DHS-2556) report on a quarterly basis. DHS provides reporting instructions, including information regarding eligible and ineligible costs.
Condition: The DHS-2556 second quarter report overstated payroll expense for individuals required to participate in the social services time study by $552,225 and understated payroll expense for individuals who do not participate in the social services time study.
Questioned Costs: None.
Context: DHS relies on accurate identification and reporting of program costs to ensure grant funds paid to the County are allowable and provide detailed information necessary for maintaining proper oversight over federal programs.
The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Errors in the reporting of costs on the quarterly reports can impair the ability of DHS to provide required oversight over federal programs and result in the County receiving either more or less federal funds than justified based on the actual underlying activity.
Cause: The error was due to an incorrect formula in a supporting workbook.
Recommendation: We recommend Ramsey County implement controls to ensure accurate reporting to DHS in accordance with federal program guidance and DHS instructions. We also recommend reports submitted incorrectly are corrected and resubmitted.
View of Responsible Official: Concur