Finding 1224384 (2025-001)

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2505MN5ADM - 2025 Pass-Through Agency: Minnesota Department of Human Services Award Period: January 1, 2025, through December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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. The County and the Minnesota Department of Human Services (DHS) have a contract surrounding the federal funds. This contract has several obligations and reporting requirements the County must follow. In the guidance from the State of Minnesota provided the County must maintain controls over eligibility verification requirements. Condition: During our testing, we noted the County had a casefile that had listed citizenship verification as “No” within the system which would indicate that no citizenship had been verified. Note that although citizenship had been verified and a copy of the verification was retained, it was not properly completed within the Maxis system. Questioned costs: None Context: During our testing, it was noted that 1 of 40 tested did not have proper eligibility verification documentation within the Maxis system. Cause: The County’s controls were not sufficient to ensure that verification was properly updated within the Maxis system. Effect: The documentation within the maxis system does not accurately reflect the eligibility verification that has been performed. Repeat Finding: No Recommendation: We recommend the County design controls to ensure an adequate review process is in place to ensure all verification procedures are accurately documented. Views of responsible officials: There is no disagreement with the audit finding.