Finding 1169644 (2024-002)

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Numbers: 93.778 Federal Award Identification Numbers and Years: 2405MN5ADM - 2024 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55245048 Compliance Requirement: Allowable Activities Award Period: 2024 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The Minnesota Department of Human Services (DHS) requires a listing of employees working on social services programs to be submitted quarterly, known as a random moment study listing (RMS listing). DHS then determines the amount applicable to the applicable income maintenance programs through random moment studies. Each quarter the County’s coordinator reviews their RMS listing to ensure the employees listed are accurate for the people working and being coded in the general ledger. 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: One individual was included in the 2nd quarter Social Services RMS listing sent to the State that was not supposed to be included in the listing, one individual was noted to have the same issue on the 2nd quarter of the public health local collaborative time study participant listing. Questioned costs: None Context: In our testing of two of the eight quarterly RMS listings, one individual was included in the 2nd quarter Social Services RMS listing sent to the State that was not supposed to be included in the listings, one individual was noted to have the same issue on the 2nd quarter public health local collaborative time study participant listing. There were 335 County staff listed in the 2nd quarter’s RMS listing and 52 participants listed in the 2nd quarter public health LCTS RMS listing. Cause: The County's RMS controls and procedures were not robust enough to note that the RMS listings should have excluded the noted individuals. Increased turnover and growth of the programs also created an increase in the number changes that were needed to be made to the listings. Effect: Lack of proper controls could affect allocation of fundings due to the staff not being in MAXIS or actually assigned to social services or public health LCTS case files to properly respond to the random moment requests that are sent by the State as part of the random moment study. Repeat Finding: Yes 2023-009 Recommendation: We recommend that the County review its procedures and control to ensure all RMS listings sent to the State properly exclude those necessary individuals no longer working in the programs. Views of responsible officials: There is no disagreement with the audit finding.