Audit 410296

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Grants to States for Medicaid (Medicaid Cluster) and Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.778 and 93.558 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Health Federal Award Identification and Pass-Through Numbers: 2505MN5ADM, 2505MN5MAP, and 2501MNTANF Award Period: Year Ended December 31, 2025 Compliance Requirement: Activities Allowed/Allowable Costs Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: Uniform Guidance requires the County to charge salaries and wages based on records that accurately reflect the work performed by participating workers related to income maintenance, social services, and local collaborative public health activities on the RMS listings. The Uniform Guidance further requires the County to reconcile payroll account coding so that only the wages of participants are charged. Condition and Context: During our testing of the income maintenance RMS listings,1 of 2 quarterly reports had 2 participants who were reported on the listing but whose salaries and wages were not included in the appropriate payroll account codes. During testing of the social services RMS listings, 2 of 2 quarterly reports had 1 participant who was reported on the listing but whose salaries and wages were not included in the appropriate payroll account codes. During testing of the local collaborative public health RMS listings, 1 of 2 quarterly reports had 1 participant who was reported on the listing but who should not have been. The sample sizes were based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Questioned Costs: None noted. Cause: Lack of management oversight. Effect: There is minimal effect on the programs. Due to the funding structure, the random moment studies are only used to determine the allocation percentages to the various federal programs and not to determine the total amount of reimbursement. Repeat Finding: No. Recommendation: We recommend the County implement a quarterly review and reconciliation procedure to ensure that the population of participating workers included in each RMS listing agrees to the population of participating workers whose salaries and wages were recorded to the corresponding payroll account codes. Views of responsible officials: There is no disagreement with the audit finding. Quarterly review procedures will be implemented.

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Temporary Assistance for Needy Families (TANF) Assistance Listing Number: 93.558 Pass-Through Agency: Minnesota Department of Human Services and Minnesota Department of Health Federal Award Identification and Pass-Through Numbers: 2501MNTANF Award Period: Year Ended December 31, 2025 Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Federal guidelines require grant recipients to implement internal controls for each direct and material compliance requirement applicable to the federal grant to ensure compliance with said requirements. Condition and Context: During testing of controls over Eligibility (i.e., casefile reviews), it was noted that there was no formal documentation on file to indicate that internal reviews were performed over public health casefiles. The sample sizes were based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Questioned Costs: None noted. Cause: Lack of standard documentation procedures over internal reviews. Effect: The County may be incorrectly concluding that an applicant is eligible for the federal programs they are applying for. Repeat Finding: Yes – 2024-005. Recommendation: We recommend the County perform internal casefile reviews. In addition, the County should implement standard documentation that will formalize the performed reviews. Views of responsible officials: There is no disagreement with the audit finding. Additional documentation and specific casefile reviews will be implemented.