Finding 403169 (2023-002)

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program (Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2305MN5ADM, 2305MN5MAP Federal Award Identification Number and Year: 2305MN5ADM, 2305MN5MAP, 2023 Compliance Requirement Affected: Allowable Costs and Allowable Activities Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The County maintains a list of all employees subject to random moment studies, which the State of Minnesota uses as a basis for determining salary reimbursement under federal programs. Condition: The County did not properly report employees working on the Medical Assistance program to the State of Minnesota during a time study conducted by the Minnesota Department of Human Services. Questioned Costs: None Context: During our testing of eligibility and testing of the first and third quarter random moment study listing completed during 2023 for the Medical Assistance program, it was noted that two individuals were not included on the third quarter Income Maintenance listing that should have been included. Cause: Lack of management oversight. Effect: The County could receive an incorrect federal funding allocation on incorrect employee information provided to the state for reimbursement. Repeat Finding: No Recommendation: We recommend the County review the listing of employees working on certain programs on a periodic basis throughout the year and document the review. Views of responsible officials: There is no disagreement with the audit finding.