Audit 368940

2024-004: ALLOWABLE COSTS Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services and Meeker-McLeod-Sibley Community Health Services Pass-Through Number: 2405MN5MAP and 2405MN5ADM Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Standard internal control and compliance procedures require that the quarterly random moment study listings reported to the MN Department of Human Services be accurate for reimbursement of allowable costs and activities relating to the 2556 Social Services quarterly reports. Condition: During testing, it was noted the County did not have adequate procedures designed to ensure the 2556 Social Services quarterly listings were submitted accurately. Questioned Costs: None noted. Context: During testing, it was noted that two of two quarters tested for the 2556 Social Service listings had employees that were not accurately being reported. Additionally, one employee left the County in May 2024 and was incorrectly included in the third quarter 2556 Social Service listing. Cause: Turnover within the department. Effect: The County could receive an incorrect federal funding allocation on incorrect employee information provided to the state for reimbursement. Repeat Finding: No. Recommendation: We recommend the County review the listing of employees working on certain programs on a periodic basis throughout the year and document the review. Views of responsible officials: There is no disagreement with the audit finding.

2024-005: ELIGIBILITY Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2405MN5MAP and 2405MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services and Meeker-McLeod-Sibley Community Health Services Pass-Through Number: 2405MN5MAP and 2405MN5ADM Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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: No internal casefile reviews were performed for quarter 1 through 3 during 2024. Questioned Costs: None noted. Context: During eligibility testing, it was noted that casefile review was not performed for quarters 1 through 3 during 2024. Cause: Turnover within the department. Effect: Errors made in determining eligibility may not be discovered and benefits may be issued to clients who are not eligible. Repeat Finding: Yes – 2023-005. Recommendation: We recommend the County implement additional procedures to ensure case file reviews are being performed on a regular basis. Views of responsible officials: There is no disagreement with the audit finding.

2024-006: SUSPENSION AND DEBARMENT Federal Agency: U.S. Department of Treasury Federal Program Name: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP1480, 2024 Award Period: Year Ended December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Federal guidelines require grant recipients to perform verification procedures that a vendor is not federally suspended or debarred prior to entering into a covered transaction. Condition: The County did not retain documentation to support that vendors were not suspended or debarred. Questioned Costs: None. The vendor was not federally suspended or debarred. Context: During suspension and debarment testing, one of the six covered transactions we tested did not have a verification that the vendor was not federally suspended or debarred until after having a signed contract Cause: The County did not follow their policy regarding suspension and debarment. Effect: By entering into a contract with a vendor prior to verifying they are not federally suspended or debarred, it is possible that the County could have entered into a contract with a suspended vendor. Repeat Finding: No. Recommendation: We recommend the County implement additional procedures to ensure suspension and debarment verification procedures are followed prior to entering into a contract. Views of responsible officials: There is no disagreement with the audit finding.