Finding 1224599 (2025-003)

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance & Supplemental Nutrition Assistance Program Cluster Assistance Listing Numbers: 93.778 & 10.561 Federal Award Identification Numbers and Years: 2505MN5ADM – 2025 & 232MN101S2514 – 2025 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55250010 & H58260061 & H55255048 Compliance Requirement: Allowable Activities & Special Provisions Award Period: 2025 Type of Finding: Significant Deficiency 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 1st and 2nd quarters of the Income Maintenance RMS listings sent to the State that was not supposed to be included in the listing. Questioned costs: None Context: Noted errors in two out of four quarterly RMS listings. One individual who was terminated at the end of 2024 was improperly included in the 1st and 2nd quarter RMS listings. Cause: The County's RMS controls and procedures were not robust enough to note that the RMS listings should have excluded the noted individual. 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 properly listed on the income maintenance RMS listings. Repeat Finding: Yes 2024-002 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.