Finding 1236918 (2025-004)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-09-28
Audit: 412356
Organization: Brown County (MN)

AI Summary

  • Core Issue: The County lacks adequate internal controls to ensure individuals on the RMS listing match those in the general ledger accounts.
  • Impacted Requirements: Compliance standards mandate that individuals must be accurately coded and reported in quarterly reports.
  • Recommended Follow-Up: Review RMS listings and account codes to ensure proper alignment of employees and reporting accuracy.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Grants to States for Medicaid (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2505MN5ADM and 2505MN5MAP, 2025 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5ADM and 2505MN5MAP Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Compliance standards require the County to separate individuals listed on the RMS listing into separate account coding for use on the quarterly reports. Condition: During testing of allowable costs and activities requirements, it was noted that the County did not have adequate internal controls designed to ensure that the individuals coded to the RMS general ledger accounts were also included on the RMS quarterly listing. Questioned Costs: None. Context: During testing of the Social Service Random Moment Study listing, two of two quarterly reports tested had an individual that was properly coded to the RMS listing account codes and was not listed on the RMS quarterly report. Cause: Lack of management oversight. Effect: There is minimal effect on the programs. Due to the funding structure, the random moment studies are only used to determine the allocation percentages to the various federal programs and not to determine the total amount of reimbursements. Repeat Finding: Yes, 2024-004 Recommendation: We recommend the County review the RMS listings and employees within the department and account codes to ensure the proper employees are included in the listing and general ledger accounts. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

RANDOM MOMENT STUDY (RMS) EMPLOYEES LISTING Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2505MN5ADM and 2505MN5MAP, 2025 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2505MN5ADM and 2505MN5MAP Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Recommendation: It is recommended the County review the RMS listings and employees within the department and account codes to ensure the proper employees are included on the listing and general ledger accounts. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County has implemented procedures and policies to have a person ensure account coding is made to the correct accounts. Name of the contact person responsible for corrective action plan: Anne Broskoff, Human Services Director Planned completion date for corrective action plan: December 31, 2026

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management Significant Deficiency

Other Findings in this Audit

  • 1236915 2025-003
    Material Weakness Repeat
  • 1236916 2025-003
    Material Weakness Repeat
  • 1236917 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 GRANTS TO STATES FOR MEDICAID $1.29M
20.509 FORMULA GRANTS FOR RURAL AREAS AND TRIBAL TRANSIT PROGRAM $305,683
20.205 HIGHWAY PLANNING AND CONSTRUCTION $251,546
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $216,884
93.667 SOCIAL SERVICES BLOCK GRANT $152,249
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $145,321
21.032 LOCAL ASSISTANCE AND TRIBAL CONSISTENCY FUND $100,000
93.658 FOSTER CARE TITLE IV-E $78,417
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $75,241
16.575 CRIME VICTIM ASSISTANCE $67,492
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $32,768
97.012 BOATING SAFETY FINANCIAL ASSISTANCE $25,979
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $25,951
93.563 CHILD SUPPORT SERVICES $22,157
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $21,529
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $15,798
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $15,337
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $13,855
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $5,333
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $4,812
93.472 TITLE IV-E PREVENTION PROGRAM $3,756
93.070 ENVIRONMENTAL PUBLIC HEALTH AND EMERGENCY RESPONSE $3,000
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $2,753
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $2,513
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $2,390
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $1,451
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $1,401
93.251 EARLY HEARING DETECTION AND INTERVENTION $450
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $197