Finding Text
2024-003 Reporting Prior Year Finding Number: N/A Year of Finding Origination: 2024 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 Medicaid Cluster Award Number and Year: 2405MN5ADM; 2024 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. For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are completed in accordance with DHS reporting instructions. As part of Western Prairie Human Services’ reporting requirements, the County submits the Social Service Fund Report, Form DHS-2556 on a quarterly basis to DHS. Condition: The following errors were noted in the Social Service Fund Report, Form DHS-2556 submitted to DHS for the third quarter of 2024: • State revenues were understated by $158,645. • Federal revenues were understated by $41,926. • Charges for services were understated by $1,130. • Miscellaneous revenue was overstated by $51,837. Questioned Costs: None. Context: Western Prairie Human Services was unable to submit corrections for the Social Service Fund Report, Form DHS-2556 for the third quarter of 2024. The population consisted of eight quarterly reports: four for the Income Maintenance Quarterly Expense Report, Form DHS-2550 and four for the Social Services Fund Report, Form DHS-2556. The sample size of four quarterly reports was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Incorrect information relating to revenues was reported to DHS on a Social Service Fund Report, Form DHS-2556. Cause: The Western Prairie Human Services’ controls over preparation of the quarterly reports were not sufficient to identify that the related revenues were not properly reported. Recommendation: We recommend that Western Prairie Human Services implement controls that ensure that all applicable amounts are reported on the reports in a manner that is consistent with DHS guidance. View of Responsible Official: Concur