2025-004 Procurement Prior Year Finding Number: N/A Year of Finding Origination: 2025 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Justice Program: 16.710 Public Safety Partnership and Community Policing Grants Award Number and Year: 15JCOPS-24-GG-02198-TECP; 2025 Pass-Through Agency: N/A - Direct Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish, document, 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 2 U.S. Code of Federal Regulations § 200.318(i) states that the County must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to, the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Additionally, the County must follow further federal guidance over full and open competition as provided in Title 2 U.S. Code of Federal Regulations § 200.319 and perform a cost or price analysis as provided in Title 2 U.S. Code of Federal Regulations § 200.324. Condition: For one contract over the simplified acquisition threshold tested, no documentation was maintained detailing the history of the procurement demonstrating full and open competition, or that a cost or price analysis was performed. Questioned Costs: $273,011; known questioned costs were calculated as the amount of the contract. Context: The threshold used for the procurement testing was based on the County's policy for simplified acquisition threshold which is over $175,000. The population consisted of two contracts over the simplified acquisition threshold; both contracts were tested. Effect: Documentation detailing the procurement was not maintained and therefore it cannot be determined whether the County provided full and open competition or performed a cost or price analysis. Cause: The County relied on a sole source contract established within the County between a vendor and the Ramsey/Washington Recycling & Energy Board. Ramsey County staff who purchased the generators believed that the contract used was competitively bid. Recommendation: We recommend the County maintain documentation on the history of a procurement, provide for full and open competition, and perform a cost or price analysis to support compliance with Title 2 U.S. Code of Federal Regulations §§ 200.318, 200.319, and 200.324. View of Responsible Official: Concur
2025-001 Eligibility-MAXIS Prior Year Finding Number: 2024-003 Year of Finding Origination: 2024 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2501MNTANF; 2025 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, document, 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 United States Code § 602(a)(1)(B)(iii) requires each state to create a written document that shall set forth the objective criteria for the delivery of benefits and the determination of eligibility. The Minnesota Department of Human Services’ State Plan for Temporary Assistance for Needy Families (TANF) and Minn. Stat. § 142G.10, subd. 1 establish the general eligibility requirements for TANF benefits. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Ramsey County to support the eligibility determination process. In the recipient files reviewed for eligibility, not all documentation was available, updated, or input correctly to support recipient eligibility. The following exceptions were noted in the sample of 40 MAXIS recipient files tested: • One recipient file in which the relationship between the minor child and the parent or other caretaker relative was not documented; • Six recipients’ files in which the applicant did not complete required questions on the application; • One recipient file in which the income in MAXIS did not agree with the supporting documentation on file; • One recipient file in which the amount of rent for a housing subsidy did not match supporting documentation on file; • One recipient file in which the housing subsidy in MAXIS did not have supporting documentation on file; and • One recipient file in which the number of months on TANF exceeded 60 months with no exceptions to extend past the 60-month limit. Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to recipients in this program. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Ramsey County performs the “intake function” needed for this program, while the State maintains the MAXIS system, which supports the eligibility determination process. Recipients receive benefit payments from the State. The population of eligible recipients was 3,982 for Temporary Assistance for Needy Families in 2025; the sample size was 40 recipients. The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information in MAXIS and lack of verification or follow-up of eligibility determining factors increase the risk that program recipients will receive benefits when they are not eligible. Cause: Program personnel entering recipient data into MAXIS did not ensure all required information was input correctly, supported, and retained. Recommendation: We recommend Ramsey 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. In addition, Ramsey County should consider providing further training to program personnel. View of Responsible Official: Concur
2025-002 Special Tests and Provisions – Child Support Non-Cooperation Prior Year Finding Number: 2024-003 Year of Finding Origination: 2024 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2501MNTANF; 2025 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, document, 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 45 U.S. Code of Federal Regulations § 264.30 states: “What procedures exist to ensure cooperation with the child support enforcement requirements? (a)(1) The State agency must refer all appropriate individuals in the family of a child, for whom paternity has not been established or for whom a child support order needs to be established, modified, or enforced, to the child support enforcement agency (i.e., the IV-D agency). (2) Referred individuals must cooperate in establishing paternity and in establishing, modifying, or enforcing a support order with respect to the child. (b) If the IV-D agency determines that an individual is not cooperating, and the individual does not qualify for a good cause or other exception established by the State agency responsible for making good cause determinations in accordance with section 454(29) of the Act or for a good cause domestic violence waiver granted in accordance with § 260.52 of this chapter, then the IV-D agency must notify the IV-A agency promptly. (c) The IV-A agency must then take appropriate action by: (1) Deducting from the assistance that would otherwise be provided to the family of the individual an amount equal to not less than 25 percent of the amount of such assistance; or (2) Denying the family any assistance under the program.” Condition: Eligibility requirements include cooperating with child support. When a recipient is determined to be in non-cooperation status by the child support agency, counties are required to reduce benefits accordingly. The following exceptions were noted in the sample of six recipient files with non-cooperation in establishing paternity tested: • One recipient file did not have a child support non-cooperation letter included in supporting documentation; • One recipient file had sanctions that should have begun in July; however, the non-cooperation letter was not issued until September 17, 2025. Sanctions were applied in September but are supposed to be applied in the month subsequent to the non-cooperation letter; and • One recipient file had sanctions imposed on October 1, 2025. The client came into compliance on October 3, 2025, and had sanctions lifted in October; however, sanctions should have instead been lifted in November. Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to recipients in this program. Context: Child support non-cooperation is determined by Ramsey County, and the Providing Resources to Improve Support in Minnesota (PRISM) system maintains the information and recipient status. When a Child Support Officer at the County updates PRISM to show non-cooperation, it interfaces with MAXIS. From this interface, MAXIS receives a Worker’s Daily Report message which notifies the entity of child support non-cooperation. The County is responsible for updating the recipient’s record in MAXIS, including entering child support sanctions, or closing a recipient file on the seventh occurrence of noncompliance. The total population of recipients subject to child support non-cooperation for this program was 54; the sample size was 6 recipients. The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Benefit overpayments or underpayments could be paid when child support non-cooperation is not properly processed for a benefit month. Cause: Program personnel entering recipient data into MAXIS did not ensure all required information was input correctly, supported, and retained. Recommendation: We recommend Ramsey County implement additional procedures to provide reasonable assurance that child support non-cooperation benefits are being reduced as necessary in MAXIS. In addition, Ramsey County should consider providing further training to program personnel. View of Responsible Official: Concur
2025-003 Eligibility - MAXIS Prior Year Finding Number: 2024-004 Year of Finding Origination: 2024 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Grants to States for Medicaid Award Number and Year: 2205MN5ADM; 2025 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, document, 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 Grants to States for Medicaid. Specific eligibility requirements are included for recipients’ citizenship verification, income limits, applications, and asset verification. Minnesota Statutes, Section 256B.05, requires county agencies to administer Grants to States for Medicaid. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Ramsey County to support the eligibility determination process. In the recipient files reviewed for eligibility, not all documentation to support recipient eligibility was available, updated, or input correctly. The following exceptions were noted in the sample of 40 MAXIS recipient files tested: • Two recipients’ files in which the application was not documented; • One recipient file in which the verification of citizenship was not documented; • Three recipients’ files in which the verification of income was not documented, or documentation did not agree with MAXIS; • Six recipients’ files in which the verification of assets was not documented, or documentation did not agree with MAXIS; and • One recipient was incorrectly enrolled in a specific program type in MAXIS. Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to recipients in this program. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Ramsey County performs the “intake function” needed for this program, while the State maintains the MAXIS system, which supports the eligibility determination process. Recipients receive benefit payments from the State. The population consisted of 30,409 active MAXIS recipients enrolled in Grants to States for Medicaid in 2025; the sample size was 40 recipients. The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information in MAXIS and lack of verification or follow-up of eligibility determining factors increase the risk that program recipients will receive benefits when they are not eligible. Cause: Program personnel entering recipient file information into MAXIS did not ensure all required information was input correctly, supported, and retained. Recommendation: We recommend Ramsey 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. In addition, Ramsey County should consider providing further training to program personnel. View of Responsible Official: Concur