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(s) and Year: 2505MN5ADM & 2505MN5MAP – 2025 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Number(s): 2505MN5ADM & 2505MN5MAP Award Period: Year-Ended December 31, 2025 Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Non-federal entities are required to establish, document, and maintain effective internal controls over federal awards that provide reasonable assurance that the entity is managing the award in compliance with federal statutes, regulations, and the terms and conditions of the award. Management should establish and operate monitoring activities to monitor the internal control system and evaluate the results. Because eligibility is a direct and material compliance requirement for the Medicaid Cluster, internal review procedures over eligibility casefiles are an important control to help ensure required procedures are completed and documented. Condition: There is an absence of internal reviews over casefiles. Without an effective review process, missing or incomplete verification support may not be detected, increasing the risk of noncompliance with eligibility requirements and unsupported benefit determinations. Questioned Costs: None Context: There is an absence of internal reviews over casefiles. Without an effective review process, missing or incomplete verification support may not be detected, increasing the risk of noncompliance with eligibility requirements and unsupported benefit determinations. Effect: The County is not in compliance with requirements for eligibility and controls are not operating effectively. Repeat Finding: Not applicable. Recommendation: We recommend the County management implement formal internal review procedures over casefiles to ensure required procedures are completed and adequately documented. Views of responsible officials: There is no disagreement with the audit finding.