Finding 1154219 (2024-006)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-23
Audit: 367140
Organization: Kandiyohi County (MN)

AI Summary

  • Core Issue: The County lacks a process to document reviews of disbursements when the main reviewer is unavailable, leading to potential errors.
  • Impacted Requirements: This finding violates Title 2 U.S. Code of Federal Regulations § 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: The County should establish procedures to ensure documentation of disbursement reviews is maintained, especially when electronic approvals are not available.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care – Title IV-E Assistance Listing Number: 93.658 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2401MNFOST Federal Award Identification Number and Year: 2401MNFOST, 2024 Compliance Requirement Affected: Activities Allowed/Allowable Costs Award Period: Year Ending December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must 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. Condition: The County's internal controls do not include a process to retain documentation of review when the main reviewer is out of the office. Questioned Costs: None. Context: The State system does not have the ability to document electronic review of the disbursements when the Fiscal Supervisor is out of the office, and alternative physical evidence of review was not retained. In our testing, we noted that 1 of 12 SSIS disbursements tested did not have documentation of review. Cause: The County does not have policies or procedures in place to document review when reviewer is out of the office. Effect: Errors in the disbursements could occur. Repeat Finding: Yes, Finding 2023-009. Recommendation: It is recommended that the County implement procedures to document review of disbursements when not able to show an electronic approval in the SSIS system. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The County will implement procedures to document review of disbursements when not able to show an electronic approval in the SSIS system.

Corrective Action Plan

SSIS ACTIVITIES ALLOWED/ALLOWABLE COSTS (2023-009) Recommendation: It is recommended that the County implement procedures to document review of disbursements when not able to show an electronic approval in the SSIS system. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will implement procedures to document review for all SSIS disbursements. Name of the contact person responsible for corrective action plan: Karen Anderson, Chief Financial Officer Planned completion date for corrective action plan: December 31, 2025

Categories

Student Financial Aid Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1154215 2024-007
    Material Weakness Repeat
  • 1154216 2024-004
    Material Weakness Repeat
  • 1154217 2024-004
    Material Weakness Repeat
  • 1154218 2024-005
    Material Weakness Repeat
  • 1154220 2024-004
    Material Weakness Repeat
  • 1154221 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.82M
93.658 Foster Care Title IV-E $1.36M
93.563 Child Support Services $726,917
93.558 Temporary Assistance for Needy Families $588,533
20.205 Highway Planning and Construction $551,754
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $516,873
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $491,846
93.667 Social Services Block Grant $341,954
93.268 Immunization Cooperative Agreements $182,653
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $101,881
16.575 Crime Victim Assistance $75,657
16.606 State Criminal Alien Assistance Program $66,945
93.994 Maternal and Child Health Services Block Grant to the States $55,995
20.600 State and Community Highway Safety $51,699
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $40,830
97.042 Emergency Management Performance Grants $32,483
93.778 Medical Assistance Program $29,662
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $28,220
97.012 Boating Safety Financial Assistance $26,330
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $21,699
93.556 Marylee Allen Promoting Safe and Stable Families Program $14,857
16.607 Bulletproof Vest Partnership Program $13,410
93.575 Child Care and Development Block Grant $13,103
93.590 Community-Based Child Abuse Prevention Grants $12,876
93.645 Stephanie Tubbs Jones Child Welfare Services Program $6,355
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $3,216
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,850
93.767 Children's Health Insurance Program $700
84.181 Special Education-Grants for Infants and Families $218