Audit 359948

FY End
2023-12-31
Total Expended
$7.14M
Findings
4
Programs
36
Organization: Carlton County, Minnesota (MN)
Year: 2023 Accepted: 2025-06-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
567054 2023-006 Significant Deficiency - E
567055 2023-006 Significant Deficiency - E
1143496 2023-006 Significant Deficiency - E
1143497 2023-006 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $1.95M Yes 1
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $1.05M Yes 0
93.563 Child Support Enforcement $852,886 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $613,293 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $397,671 - 0
93.558 Temporary Assistance for Needy Families $370,255 - 0
93.658 Foster Care Title IV-E $321,472 - 0
93.667 Social Services Block Grant $284,054 - 0
97.067 Homeland Security Grant Program $149,439 - 0
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $143,058 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $129,450 - 0
97.042 Emergency Management Performance Grants $95,815 - 0
16.831 Children of Incarcerated Parents $72,657 - 0
93.994 Maternal and Child Health Services Block Grant to the States $61,209 - 0
16.575 Crime Victim Assistance $55,705 - 0
20.616 National Priority Safety Programs $53,596 - 0
20.600 State and Community Highway Safety $30,932 - 0
20.205 Highway Planning and Construction $30,351 - 0
93.069 Public Health Emergency Preparedness $28,165 - 0
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $15,980 - 0
93.268 Covid-19 - Immunization Cooperative Agreements $15,742 - 0
93.590 Community-Based Child Abuse Prevention Grants $13,854 - 0
93.354 Covid-19 - Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $13,756 - 0
93.575 Child Care and Development Block Grant $10,486 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $9,805 - 0
97.012 Boating Safety Financial Assistance $6,334 - 0
93.556 Marylee Allen Promoting Safe and Stable Families Program $6,183 - 0
93.070 Environmental Public Health and Emergency Response $5,547 - 0
93.659 Adoption Assistance $4,413 - 0
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $4,113 - 0
84.181 Special Education-Grants for Infants and Families $3,610 - 0
93.747 Elder Abuse Prevention Interventions Program $3,218 - 0
93.767 Children's Health Insurance Program $2,506 - 0
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $2,114 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $1,178 - 0
93.645 Covid-19 - Stephanie Tubbs Jones Child Welfare Services Program $20 - 0

Contacts

Name Title Type
WJ21QLZNHCN9 Kevin Devriendt Auditee
2183849127 Julie Blaha Auditor
No contacts on file

Notes to SEFA

Title: Reconciliation to Schedule of Intergovernmental Revenue Accounting Policies: Summary of Significant Accounting Policies Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Carlton County. The County’s reporting entity is defined in Note 1 to the financial statements. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Carlton 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). Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of Carlton County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Carlton County. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: De Minimis Cost Rate Carlton County has elected to not use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. See Notes to the SEFA for Charts/Table
Title: Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs Accounting Policies: Summary of Significant Accounting Policies Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by Carlton County. The County’s reporting entity is defined in Note 1 to the financial statements. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Carlton 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). Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of Carlton County, it is not intended to and does not present the financial position, changes in net position, or cash flows of Carlton County. Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: De Minimis Cost Rate Carlton County has elected to not use the ten percent de minimis indirect cost rate allowed under the Uniform Guidance. During the current year, Carlton County has identified $193,428 of 2020 expenditures to be applied to the Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and COVID-19 Airports Programs, Assistance Listing No. 20.106. These expenditures were not identified in time to be included in the 2020 Schedule of Expenditures of Federal Awards. Because they are not current year expenditures, they are not included in the 2023 Schedule of Expenditures of Federal Awards.

Finding Details

2023-006 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. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. Specific eligibility requirements are included for participants’ assets. Minnesota Statutes § 256B.05 requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Carlton County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available, updated, or input correctly into MAXIS. In the sample of 40 case files tested, three case files had assets listed in MAXIS that did not match the documentation in the case file. 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 the County split the eligibility determination process. Pursuant to Minnesota statutes, Carlton County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS to document 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 file information into MAXIS did not ensure all required information was input or updated correctly, supported, or retained. Recommendation: We recommend Carlton County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly input or updated in MAXIS. In addition, Carlton County should consider providing further training to program personnel. View of Responsible Official: Concur
2023-006 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. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. Specific eligibility requirements are included for participants’ assets. Minnesota Statutes § 256B.05 requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Carlton County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available, updated, or input correctly into MAXIS. In the sample of 40 case files tested, three case files had assets listed in MAXIS that did not match the documentation in the case file. 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 the County split the eligibility determination process. Pursuant to Minnesota statutes, Carlton County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS to document 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 file information into MAXIS did not ensure all required information was input or updated correctly, supported, or retained. Recommendation: We recommend Carlton County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly input or updated in MAXIS. In addition, Carlton County should consider providing further training to program personnel. View of Responsible Official: Concur
2023-006 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. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. Specific eligibility requirements are included for participants’ assets. Minnesota Statutes § 256B.05 requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Carlton County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available, updated, or input correctly into MAXIS. In the sample of 40 case files tested, three case files had assets listed in MAXIS that did not match the documentation in the case file. 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 the County split the eligibility determination process. Pursuant to Minnesota statutes, Carlton County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS to document 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 file information into MAXIS did not ensure all required information was input or updated correctly, supported, or retained. Recommendation: We recommend Carlton County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly input or updated in MAXIS. In addition, Carlton County should consider providing further training to program personnel. View of Responsible Official: Concur
2023-006 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. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. Specific eligibility requirements are included for participants’ assets. Minnesota Statutes § 256B.05 requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Carlton County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available, updated, or input correctly into MAXIS. In the sample of 40 case files tested, three case files had assets listed in MAXIS that did not match the documentation in the case file. 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 the County split the eligibility determination process. Pursuant to Minnesota statutes, Carlton County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS to document 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 file information into MAXIS did not ensure all required information was input or updated correctly, supported, or retained. Recommendation: We recommend Carlton County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly input or updated in MAXIS. In addition, Carlton County should consider providing further training to program personnel. View of Responsible Official: Concur