Audit 365408

Material Audit Adjustments Condition: During our audit, adjustments were needed to record a number of audit adjustments, including the follwing material entries: - To adjust beginning fund balances - To adjust capital asset activity and realted retainage - To adjust state and federal aid revenues and receivables - To adjust special assessment classifications - To adjust sales tax activity - To record additional receivable and payable accruals - To record accrued interest on investments - To record internal service fund activity Criteria: The financial statements are the responsibility of the County's management; therefore, the County must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: County staff has not prepared a year-end trial balance reflecting all necessary accounting entries. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the County's system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that mangement review each journal entry. obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed. Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The County Finance Coordinator plans to remedy this finding in future years. Updated Progress Since Prior Year: No changes have been made to address this finding.

Medical Assistance Eligibility Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, MAXIS and METS, which are used by Renville County to support the eligibility determination process. In the case files reviewed for eligibility, there were several cases noted in which the Adjusted Gross Income (AGI) was not calculated correctly, and there was no supporting documentation provided for the differences. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states 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. Cause: Program personnel entering case data into MAXIS or clearing case data flagged by METS did not properly calculate or retain support for the AGI entered into the system. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County define and implement procedures for calculating and supporting AGI used for eligibility determinations. Management Response: The County acknowledges the finding and has implemented procedures to ensure AGI is calculated correctly.

Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.

Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.

Material Audit Adjustments Condition: During our audit, adjustments were needed to record a number of audit adjustments, including the follwing material entries: - To adjust beginning fund balances - To adjust capital asset activity and realted retainage - To adjust state and federal aid revenues and receivables - To adjust special assessment classifications - To adjust sales tax activity - To record additional receivable and payable accruals - To record accrued interest on investments - To record internal service fund activity Criteria: The financial statements are the responsibility of the County's management; therefore, the County must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: County staff has not prepared a year-end trial balance reflecting all necessary accounting entries. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the County's system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that mangement review each journal entry. obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed. Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The County Finance Coordinator plans to remedy this finding in future years. Updated Progress Since Prior Year: No changes have been made to address this finding.

Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.

Material Audit Adjustments Condition: During our audit, adjustments were needed to record a number of audit adjustments, including the follwing material entries: - To adjust beginning fund balances - To adjust capital asset activity and realted retainage - To adjust state and federal aid revenues and receivables - To adjust special assessment classifications - To adjust sales tax activity - To record additional receivable and payable accruals - To record accrued interest on investments - To record internal service fund activity Criteria: The financial statements are the responsibility of the County's management; therefore, the County must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: County staff has not prepared a year-end trial balance reflecting all necessary accounting entries. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the County's system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that mangement review each journal entry. obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed. Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The County Finance Coordinator plans to remedy this finding in future years. Updated Progress Since Prior Year: No changes have been made to address this finding.

Medical Assistance Eligibility Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, MAXIS and METS, which are used by Renville County to support the eligibility determination process. In the case files reviewed for eligibility, there were several cases noted in which the Adjusted Gross Income (AGI) was not calculated correctly, and there was no supporting documentation provided for the differences. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states 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. Cause: Program personnel entering case data into MAXIS or clearing case data flagged by METS did not properly calculate or retain support for the AGI entered into the system. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County define and implement procedures for calculating and supporting AGI used for eligibility determinations. Management Response: The County acknowledges the finding and has implemented procedures to ensure AGI is calculated correctly.

Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.

Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.

Material Audit Adjustments Condition: During our audit, adjustments were needed to record a number of audit adjustments, including the follwing material entries: - To adjust beginning fund balances - To adjust capital asset activity and realted retainage - To adjust state and federal aid revenues and receivables - To adjust special assessment classifications - To adjust sales tax activity - To record additional receivable and payable accruals - To record accrued interest on investments - To record internal service fund activity Criteria: The financial statements are the responsibility of the County's management; therefore, the County must be able to prevent or detect a material misstatement in the financial statements including footnote disclosures. Cause: County staff has not prepared a year-end trial balance reflecting all necessary accounting entries. Effect: This indicates that it would be likely that a misstatement may occur and not be detected by the County's system of internal control. The audit firm cannot serve as a compensating control over this deficiency. Recommendation: We recommend that mangement review each journal entry. obtain an understanding of why the entry was necessary and modify procedures to ensure that future corrections are not needed. Management Response: Management will continue to review and gain an understanding of the audit adjustments in order to reduce the number of entries necessary for future audits. The County Finance Coordinator plans to remedy this finding in future years. Updated Progress Since Prior Year: No changes have been made to address this finding.

Late Single Audit Submission Condition: The County submitted the required 2022 reporting package and data collection form to the Federal Audit Clearinghouse after the required deadline. Criteria: 2 CFR § 200.512(a) requires that the auditee submit the data collection form and the reporting package to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Cause: The County’s 2022 audit was completed in January 2024 after the reporting deadline. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County implement procedures to ensure timely submission of all future reporting packages to the FAC, including calendar reminders and assignment of submission responsibility to specific personnel. Management Response: The County acknowledges the finding.