Finding 1238603 (2025-001)

2025-001 Eligibility-MAXIS Prior Year Finding Number: 2024-003 Year of Finding Origination: 2024 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2501MNTANF; 2025 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, document, 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. Title 42 United States Code § 602(a)(1)(B)(iii) requires each state to create a written document that shall set forth the objective criteria for the delivery of benefits and the determination of eligibility. The Minnesota Department of Human Services’ State Plan for Temporary Assistance for Needy Families (TANF) and Minn. Stat. § 142G.10, subd. 1 establish the general eligibility requirements for TANF benefits. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Ramsey County to support the eligibility determination process. In the recipient files reviewed for eligibility, not all documentation was available, updated, or input correctly to support recipient eligibility. The following exceptions were noted in the sample of 40 MAXIS recipient files tested: • One recipient file in which the relationship between the minor child and the parent or other caretaker relative was not documented; • Six recipients’ files in which the applicant did not complete required questions on the application; • One recipient file in which the income in MAXIS did not agree with the supporting documentation on file; • One recipient file in which the amount of rent for a housing subsidy did not match supporting documentation on file; • One recipient file in which the housing subsidy in MAXIS did not have supporting documentation on file; and • One recipient file in which the number of months on TANF exceeded 60 months with no exceptions to extend past the 60-month limit. Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to recipients in this program. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Ramsey County performs the “intake function” needed for this program, while the State maintains the MAXIS system, which supports the eligibility determination process. Recipients receive benefit payments from the State. The population of eligible recipients was 3,982 for Temporary Assistance for Needy Families in 2025; the sample size was 40 recipients. The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information in MAXIS and lack of verification or follow-up of eligibility determining factors increase the risk that program recipients will receive benefits when they are not eligible. Cause: Program personnel entering recipient data into MAXIS did not ensure all required information was input correctly, supported, and retained. Recommendation: We recommend Ramsey County implement additional procedures to provide reasonable assurance that all documentation needed to support eligibility determinations exists, the program personnel properly input or update the documentation in MAXIS, and the program personnel follow up on issues in a timely manner. In addition, Ramsey County should consider providing further training to program personnel. View of Responsible Official: Concur