2023-002 Eligibility - MAXIS 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. The manual includes specific eligibility requirements for participants’ citizenship verification, income limits, and asset verification, as well as requirements for adoption assistance cases to include a signed adoption assistance agreement. 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 Norman 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. The following exceptions were noted in the sample of 40 case files tested: • One applicant’s citizenship verification method did not match the documentation in the case file. • One case file did not document the participant’s income correctly. • Two case files did not document the participants’ assets correctly. • One case file did not contain the required adoption assistance agreement. Additionally, it was noted that reviews of the case files were not performed during 2023. 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, Norman 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 population consisted of 342 active MAXIS cases enrolled in the Medical Assistance Program in 2023; the sample size was 40 case files. 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 and lack of verification of key eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS did not obtain and update the information in the system. Recommendation: We recommend Norman County implement additional procedures to provide reasonable assurance that all documentation needed to support eligibility determinations exists, the program personnel properly input or update the documentation in MAXIS, and the program personnel follow up on issues in a timely manner. We also recommend the county implement case file review procedures to help maintain accuracy. In addition, Norman County should consider providing further training to program personnel. View of Responsible Official: Concur
2023-003 Reporting 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. As part of Norman County’s Local Collaborative Time Study (LCTS) reporting requirements for Schools (DHS-3220.1) and Public Health (DHS-3220.3), LCTS fiscal site contacts are required to verify that the information on the LCTS Fiscal and Cost Schedule is accurate and that it complies with all guidelines set forth in the LCTS Cost Schedule Instructions described in DHS Bulletin #16-32-04 – Local Collaborative Time Study (LCTS) Fiscal Operations. It also states that the County’s LCTS Fiscal Reporting and Payment Agent is required to review all cost schedules from participating agencies. Condition: County staff did not maintain documentation to support that the LCTS Cost Schedules DHS-3220 tested were reviewed by the County’s LCTS Fiscal Reporting and Payment Agent. Questioned Costs: None. Context: Each member of a collaborative submits the LCTS Cost Schedules DHS-3220 to DHS quarterly for reimbursement of LCTS money, which is reimbursed to the County with federal Medical Assistance Program funds. The Norman County Social Services Department acts as the LCTS Fiscal Reporting and Payment Agent for the local collaborative in Norman County. The population consisted of 12 LCTS Cost Schedules DHS-3220 quarterly reports for the three members of the collaborative; the sample size was four reports. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Lack of a review process increases the risk that reports will not be submitted as required or accurate. Cause: Staff from the County’s Social Services Department indicated they were not aware of the signature requirements for the quarterly reports. Recommendation: We recommend the County implement procedures to ensure the cost schedules are reviewed and evidence of the review is retained. View of Responsible Official: Concur