Finding Text
Item 2024-007: Eligibility Identification of federal programs: Commodity Food Supplemental Program, Assistance Listing Number 10.565 (a program included in the Food Distribution Cluster) Federal award grant number: 204645 Federal agency: U.S. Department of Agriculture Pass-through entity: Minnesota Department of Health Criteria: The Uniform Guidance (2 CFR 200.303) requires that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to maintain documentation to support eligibility requirements for program recipients. Condition: During our testing of eligibility requirements, we noted that proper documentation was not available to provide proof of eligibility for program recipients. Cause: Management did not retain or maintain appropriate documentation. Effect: Improper control procedures can lead to individuals receiving food distributions when not meeting eligibility criteria. Questioned costs: None Context: The population subject to commodity supplemental food program eligibility requirements included over 250 individuals. The sample size of 60 was determined using the guidance in the AICPA Audit and Accounting Guide—Government Auditing Standards and Single Audits. We noted one application that was not on file, one application that was out of date, and one application that was not signed. We noted 19 applications where there was no indication that eligibility requirements were reevaluated on an annual basis. Repeat finding: No Recommendation: We recommend that SHN unify the procedures from pre-merger entities to have one set of controls and procedures as all findings relate to only one of the pre-merger entities. Views of responsible officials of the auditee: SHN concurs with this finding and a response is included in the corrective action plan.