Finding 21161 (2022-002)

2022-002 Eligibility Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2201MNTANF; 2022 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 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: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. In the case files tested for compliance with Temporary Assistance for Needy Families Program eligibility requirements, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 cases tested: ? One case file had an incomplete combined application form (CAF) and incorrect assets entered based on the CAF; ? One case file had a parent relationship entered in MAXIS that was not supported by the case file documentation; and ? Two case files had information in MAXIS that did not agree to supporting documentation in the case file. Questioned Costs: None Context: The State of Minnesota contracts with the County?s Human Services Department to perform the ?intake function? (meeting with the social services client to determine income and categorical eligibility), while the Minnesota Department of Human Services maintains MAXIS, which supports the eligibility determination process and pays the benefits to the participants. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of documented verification of key eligibility-determining factors and the improper input of information into MAXIS increases the risk that participants will receive benefits when they are not eligible. Cause: County program personnel gathering and entering case information into MAXIS did not ensure all required information was completed, obtained, and input correctly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support Temporary Assistance for Needy Families eligibility determinations is properly input into MAXIS and maintained in the case files. Consideration should be given to providing additional training to County program personnel. View of Responsible Official: Acknowledged