Finding Text
Federal Agency: U.S. Department of Human Services
Federal Program Name: Medical Assistance (Medicaid Cluster)
Assistance Listing Number: 93.778
Federal Award Identification Number and Year: 2305MN5ADM, 2305MN5MAP; 2023
Pass-Through Agency: Minnesota Department of Human Services
Compliance Requirement Affected: Special Provisions
Award Period: Year Ended December 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or Specific Requirement: According to the contract between the Minnesota Department of Human Services and Nobles County, it is the responsibility of the Fiscal Reporting and Payment Agent (the County) to review all submitted cost reports for accuracy, as well as timeliness, and retain a paper copy of all members’ submitted reports. Six years of records should be kept on file to ensure compliance with the LCTS contract. It is also the responsibility of the County, as the fiscal liaison between the state and collaborative members, to distribute the LCTS funding to the various collaborative members no later than 30 days after receiving the quarterly payments from the state.
Condition: The County does not retain printed copies of the participating collaborative members’ reports. There is no physical evidence kept on file that the County is reviewing these reports for accuracy and timeliness. For the second half of 2023, the County was not remitting the LCTS funding to the Collaborative within the required timeline of the LCTS contract.
Questioned Costs: None.
Context: For two of two quarters tested, the County did not have printed 3220 LCTS reports on file for collaborative members and did not review the reports. For one of two quarters tested, the funds were not remitted to the collaborative members within the 30 day required timeframe.
Cause: Turnover at the collaborative and lack of review of the requirements of the contract by the County.
Effect: The County is not in compliance with the LCTS contract with the state. Collaborative members could be submitting inaccurate reports or filing late, and funding is not remitted timely.
Repeat Finding: No.
Recommendation: We recommend that the County review the contract with MN DHS, and implement proper review and approval procedures for all LCTS reports. We recommend that paper copies are kept on file for the required timeframe. We recommend that the County implement procedures to remit the quarterly funding to the collaborative in a timely manner.
Views of responsible officials: There is no disagreement with the audit finding. There is a corrective action plan in place.