Finding Text
2023-003 Reporting Prior Year Finding Number: N/A Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Medical Assistance Program Award Number and Year: 2305MN5ADM, 2023 Pass-Through Agency: Minnesota Department of Human Services Criteria: 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. As part of Norman County’s Local Collaborative Time Study (LCTS) reporting requirements for Schools (DHS-3220.1) and Public Health (DHS-3220.3), LCTS fiscal site contacts are required to verify that the information on the LCTS Fiscal and Cost Schedule is accurate and that it complies with all guidelines set forth in the LCTS Cost Schedule Instructions described in DHS Bulletin #16-32-04 – Local Collaborative Time Study (LCTS) Fiscal Operations. It also states that the County’s LCTS Fiscal Reporting and Payment Agent is required to review all cost schedules from participating agencies. Condition: County staff did not maintain documentation to support that the LCTS Cost Schedules DHS-3220 tested were reviewed by the County’s LCTS Fiscal Reporting and Payment Agent. Questioned Costs: None. Context: Each member of a collaborative submits the LCTS Cost Schedules DHS-3220 to DHS quarterly for reimbursement of LCTS money, which is reimbursed to the County with federal Medical Assistance Program funds. The Norman County Social Services Department acts as the LCTS Fiscal Reporting and Payment Agent for the local collaborative in Norman County. The population consisted of 12 LCTS Cost Schedules DHS-3220 quarterly reports for the three members of the collaborative; the sample size was four reports. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Lack of a review process increases the risk that reports will not be submitted as required or accurate. Cause: Staff from the County’s Social Services Department indicated they were not aware of the signature requirements for the quarterly reports. Recommendation: We recommend the County implement procedures to ensure the cost schedules are reviewed and evidence of the review is retained. View of Responsible Official: Concur