Finding Text
REPORTING
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: 2305MN5MAP and 2305MN5ADM, 2023
Pass-Through Agency: Minnesota Department of Human Services and Meeker-McLeod-Sibley Community Health Services
Pass-Through Number: 2305MN5MAP and 2305MN5ADM
Award Period: Year Ended December 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee mush 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. The DHS-2550 cost report is used by the Minnesota Department of Human Services (DHS) in conjunction with the county’s Income Maintenance Random Moment Time Study (IMRMS) data to determine allowable costs for reimbursement by various federal programs. Expenditures and revenue must have been disbursed or received during the quarter being reported.
Condition and Context: The fourth quarter DHS-2250 cost report did not reflect fourth quarter expenditures and was not formally reviewed and approved.
Questioned Costs: None
Cause: Turnover within the department.
Effect: The County could receive incorrect federal funding for the program if expenditures are not reviewed and reported timely.
Repeat Finding: No.
Recommendation: We recommend the County design procedures and controls to ensure all reports are formally reviewed and represent actual expenditures incurred during the period being reported.
Views of responsible officials: There is no disagreement with the audit finding.