Finding Text
Finding 2024-001 Internal Controls over Compliance – Eligibility (Significant Deficiency)
Assistance Listing Number 93.778 – Medical Assistance Program
Criteria: 2 CFR 200.303 requires that a federal award recipient must “(a) establish, document, and maintain effective
internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal
award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.”
Condition: During our review of compliance over eligibility, we identified one individual who was terminated from the
program in November 2022, but continued to receive benefits through September 2024.
Cause: Internal controls over eligibility compliance requirements were not properly designed and were not placed in
operation. Management is responsible for compliance with requirements over eligibility and for the design,
implementation, and maintenance of effective internal controls over compliance with the requirements of laws, statutes,
regulations, rules, and provisions of grant agreements applicable to its federal program.
Effect: As a result of this condition, an individual who was no longer eligible for benefits through the program continued
to receive benefits.
Recommendation: We recommend that FMAAA establish a process to ensure that terminated participants are properly
disenrolled from the program and are no longer receiving benefits after their final date of eligibility. This process should
include a secondary review of participant files by someone other than the preparer.
Management’s response: See corrective action plan.