Finding 1157363 (2024-007)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369649
Organization: Polk County (MN)

AI Summary

  • Core Issue: Inconsistent documentation and improper data entry in MAXIS risk ineligible participants receiving benefits.
  • Impacted Requirements: The County must ensure compliance with federal regulations by maintaining effective internal controls over eligibility determinations.
  • Recommended Follow-Up: Implement additional review procedures to verify documentation and data accuracy in MAXIS, with a corrective action plan due by December 31, 2025.

Finding Text

Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states 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 Minnesota Department of Human Services (DHS) maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available or updated to support participant eligibility. In 6 of 40 the case files reviewed in 2024, documentation contained inconsistent information for citizenship verification in MAXIS. Context: The State of Minnesota contracts with the County Health and Human Services Department to perform the “intake function” (meeting with the social services clients to determine income and categorical eligibility), while the Minnesota Department of Human Services maintains the computer system, MAXIS, which supports the eligibility determination process and actually pays the benefits to the participants. Effect: The improper input of information into MAXIS and lack of verification or follow-up of eligibility determining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: Program personnel entering case information into MAXIS did not review or ensure all required information was input or updated correctly. Recommendation: We recommend the County implement additional procedures, including reviews, to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input into MAXIS. County’s Response: A Corrective Action Plan has been established with an anticipated completion date of December 31, 2025.

Corrective Action Plan

Name of Contact Person Responsible for Corrective Action: Karen Warmack, Social Services Director Corrective Action Planned: The County will implement additional procedures, including reviews, to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input into MAXIS. County Comment: A Corrective Action Plan has been established with an anticipated completion date of December 31, 2025. Anticipated Completion Date: December 31, 2025.

Categories

Eligibility Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.32M
20.205 Highway Planning and Construction $1.83M
93.563 Child Support Services $949,396
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $564,028
93.658 Foster Care Title IV-E $350,733
93.667 Social Services Block Grant $293,443
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $226,583
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $214,916
93.958 Block Grants for Community Mental Health Services $198,537
93.959 Block Grants for Prevention and Treatment of Substance Abuse $161,534
16.575 Crime Victim Assistance $133,188
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $119,969
93.778 Medical Assistance Program $75,493
93.558 Temporary Assistance for Needy Families $40,905
97.042 Emergency Management Performance Grants $29,072
93.069 Public Health Emergency Preparedness $17,158
93.276 Drug-Free Communities Support Program Grants $14,208
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $12,946
97.012 Boating Safety Financial Assistance $11,073
93.590 Community-Based Child Abuse Prevention Grants $9,744
93.575 Child Care and Development Block Grant $9,347
93.556 Marylee Allen Promoting Safe and Stable Families Program $6,255
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $4,371
93.645 Stephanie Tubbs Jones Child Welfare Services Program $2,676
16.543 Missing Children's Assistance $2,471
93.767 Children's Health Insurance Program $898