FAC Explorer

Finding 44753 (2022-005)

Material Weakness
Requirement
BL
Questioned Costs
$1
Year
2022
Accepted
2023-09-05
Audit: 43802
Organization: Anoka County (MN)
Auditor: Minnesota State Auditor's Office

AI Summary

  • Core Issue: Anoka County failed to report federal revenue offsets in quarterly reports to DHS, leading to significant understatements.
  • Impacted Requirements: This finding violates Title 2 U.S. Code of Federal Regulations § 200.303, which mandates effective internal controls for accurate federal award management.
  • Recommended Follow-Up: Implement stronger controls to ensure all DHS reports accurately reflect federal revenue offsets and comply with reporting guidelines.

Finding Text

2022-005 Allowable Costs/Cost Principles and Reporting Prior Year Finding Number: N/A Repeat Finding Since: N/A 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: 93.778 Medical Assistance Program Award Number and Year: 2205MN5ADM, 2205MN5MAP; 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. For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are completed accurately and in accordance with report instructions. As part of the County?s reporting requirements for the Medical Assistance Program, the County submits to DHS the quarterly Social Service Fund Report (DHS-2556) and the Income Maintenance Quarterly Expense Report (DHS-2550). Condition: Federal revenue offsets from the State and Local Fiscal Recovery Funds (ALN 21.027) were omitted from all quarterly DHS-2550 and DHS-2556 reports submitted to DHS during 2022. This resulted in an understatement of federal revenue offsets of $197,934 on the DHS-2550 and $752,717 on the DHS-2556 reports for the year. Questioned Costs: $950,651 Context: The DHS relies on accurate reporting of program costs to ensure that resulting grant funds paid to the County are for applicable federal program activities/costs and provide detailed information necessary for maintaining proper oversight over federal programs. Effect: Errors in the submission of costs on the quarterly reports can impair the DHS?s ability to provide required oversight over federal programs and can result in the County receiving either more or less federal funds than allowed based on the actual underlying activity. Cause: The County neglected to move the State and Local Fiscal Recovery Funds (ALN 21.027) revenue from the General Fund to the Human Services fund at the time the expenditures occurred resulting in an adjustment for financial reporting and omission of the federal revenue offset reported to DHS. Recommendation: We recommend Anoka County implement controls that ensure all DHS reports include federal revenue offsets and are completed accurately in accordance with DHS guidance. View of Responsible Official: Acknowledge

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 44747 2022-003
    Material Weakness
  • 44748 2022-003
    Material Weakness
  • 44749 2022-003
    Material Weakness
  • 44750 2022-003
    Material Weakness
  • 44751 2022-005
    Material Weakness
  • 44752 2022-003
    Material Weakness
  • 621189 2022-003
    Material Weakness
  • 621190 2022-003
    Material Weakness
  • 621191 2022-003
    Material Weakness
  • 621192 2022-003
    Material Weakness
  • 621193 2022-005
    Material Weakness
  • 621194 2022-003
    Material Weakness
  • 621195 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $5.61M
20.205 Highway Planning and Construction $5.28M
20.205 Covid-19 - Highway Planning and Construction $1.53M
93.667 Social Services Block Grant $1.40M
93.658 Foster Care_title IV-E $1.30M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.27M
93.563 Child Support Enforcement $1.24M
14.218 Community Development Block Grants/entitlement Grants $989,314
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $555,587
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $493,243
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $472,562
93.575 Child Care and Development Block Grant $439,834
14.239 Home Investment Partnerships Program $341,790
14.231 Covid-19 - Emergency Solutions Grant Program $284,639
93.069 Public Health Emergency Preparedness $253,239
93.994 Maternal and Child Health Services Block Grant to the States $228,212
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $216,370
93.268 Covid-19 - Immunization Cooperative Agreements $202,059
93.669 Child Abuse and Neglect State Grants $188,277
97.067 Homeland Security Grant Program $168,738
20.507 Federal Transit_formula Grants $168,000
16.833 National Sexual Assault Kit Initiative $153,064
97.042 Emergency Management Performance Grants $143,862
10.555 National School Lunch Program $131,762
95.001 High Intensity Drug Trafficking Areas Program $127,183
17.235 Senior Community Service Employment Program $115,944
17.277 Workforce Investment Act (wia) National Emergency Grants $110,727
16.590 Grants to Encourage Arrest Policies and Enforcement of Protection Orders Program $110,677
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $109,421
90.404 Covid-19 - 2018 Hava Election Security Grants $103,428
93.323 Covid-19 - Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $101,729
16.575 Crime Victim Assistance $93,575
93.778 Medical Assistance Program $91,076
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $85,000
93.590 Community-Based Child Abuse Prevention Grants $81,302
93.674 Covid-19 - John H. Chafee Foster Care Program for Successful Transition to Adulthood $78,745
10.553 School Breakfast Program $77,775
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $71,195
17.278 Wia Dislocated Worker Formula Grants $66,980
17.277 Covid-19 - Workforce Investment Act (wia) National Emergency Grants $65,692
17.259 Wia Youth Activities $61,381
16.585 Drug Court Discretionary Grant Program $60,512
16.741 Dna Backlog Reduction Program $49,247
32.009 Covid-19 - Emergency Connectivity Fund Program $47,433
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $47,031
94.002 Retired and Senior Volunteer Program $40,102
14.239 Covid-19 - Home Investment Partnerships Program $34,219
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $28,765
93.268 Immunization Cooperative Agreements $27,000
93.136 Injury Prevention and Control Research and State and Community Based Programs $25,652
93.556 Promoting Safe and Stable Families $19,926
93.645 Stephanie Tubbs Jones Child Welfare Services Program $18,143
97.012 Boating Safety Financial Assistance $12,683
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $12,351
10.555 Covid-19 - National School Lunch Program $12,206
16.543 Missing Children's Assistance $8,307
20.219 Recreational Trails Program $7,125
93.566 Refugee and Entrant Assistance_state Administered Programs $7,000
93.583 Refugee and Entrant Assistance_wilson/fish Program $6,571
17.258 Wia Adult Program $3,610
93.251 Early Hearing Detection and Intervention $3,250
93.558 Temporary Assistance for Needy Families $1,401
10.572 Wic Farmers' Market Nutrition Program (fmnp) $1,077
20.616 National Priority Safety Programs $1,051
20.600 State and Community Highway Safety $993
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $300