Finding 485604 (2023-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-09-03
Audit: 318371
Organization: Sibley County (MN)

AI Summary

  • Core Issue: Incomplete documentation in MAXIS leads to potential eligibility errors for program participants.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations § 200.303 regarding internal controls over federal awards.
  • Recommended Follow-Up: Sibley County should enhance procedures to ensure accurate data entry and updates in MAXIS.

Finding Text

2023-001 Eligibility Prior Year Finding Number: 2022-002 Year of Finding Origination: 2022 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: 2305MN5ADM; 2023 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 Sibley County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was input into MAXIS. The following exceptions were noted in the sample of 40 MAXIS case files tested: • four case files which contained citizenship verification but citizenship in MAXIS was noted as not verified. • three case files where the asset or income listed in MAXIS did not match the documentation in the case file. Questioned Costs: None. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Sibley County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. 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 updated information in MAXIS to document verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS reviewed the support but did not enter or update the information in the system. Recommendation: We recommend Sibley County implement additional procedures to provide reasonable assurance that the information is properly input or updated in MAXIS. View of Responsible Official: Acknowledge.

Corrective Action Plan

Finding Number: 2023-001 Finding Title: Eligibility Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: John Stepien, Financial Assistance Supervisor Corrective Action Planned: • Staff will periodically check cases for citizenship. Citizenship verification is supposed to be an automatic process within MAXIS as an interface update with the Social Security Administration. Workers have come to rely on this automatic process, so reminders to staff to check that this process has actually happened, as well as checking cases periodically, will hopefully resolve this error from reoccurring in the future. • Vehicles are now considered a disregarded asset that is unlikely to increase in value. According to the most recent policy change, these vehicle assets no longer need to be reverified or updated within MAXIS as long as the reported asset has already been verified and entered in MAXIS. Review of this policy will be brought up during regular unit meetings and staff will be reminded that any information reported on an application or renewal needs to be compared to the information recorded in MAXIS and conflicting information needs to be verified. This would specifically include any new vehicles that were purchased, or any vehicles sold during the certification period. Income verifications are usually the primary focus when determining new eligibility, however this data is still subject to data entry error. Special attention to this in particular will be highlighted during regular unit meetings. Training on how to review, and calculate income on paystubs will be provided to eligibility staff as well as creating detailed case notes as to how the income was figured and the method used for calculating that income. This will hopefully resolve this error from reoccurring in the future. Anticipated Completion Date: These actions will begin August 5, 2024, during the regularly scheduled in person unit meeting. Unit meetings are held two times per month, once in person, and once virtually. Health Care is a standing agenda topic and adding these audit findings to the next meeting will be the start of our corrective action. This action will be an ongoing effort to eliminate errors in our cases.

Categories

Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1062046 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
20.205 Highway Planning and Construction $300,000
14.871 Section 8 Housing Choice Vouchers $180,289
93.558 Temporary Assistance for Needy Families $132,961
93.667 Social Services Block Grant $96,749
93.658 Foster Care_title IV-E $91,754
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $55,878
21.032 Local Assistance and Tribal Consistency Fund $50,959
93.563 Child Support Enforcement $42,332
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $38,417
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $27,193
93.994 Maternal and Child Health Services Block Grant to the States $16,934
93.959 Block Grants for Prevention and Treatment of Substance Abuse $14,547
93.967 Cdc's Collaboration with Academia to Strengthen Public Health $10,603
93.778 Medical Assistance Program $7,794
93.645 Stephanie Tubbs Jones Child Welfare Services Program $5,404
93.575 Child Care and Development Block Grant $5,242
93.590 Community-Based Child Abuse Prevention Grants $4,506
93.556 Promoting Safe and Stable Families $3,310
84.181 Special Education-Grants for Infants and Families $1,050
93.767 Children's Health Insurance Program $903
93.566 Refugee and Entrant Assistance_state Administered Programs $737
93.268 Covid-19 - Immunization Cooperative Agreements $717
93.747 Elder Abuse Prevention Interventions Program $623
93.251 Early Hearing Detection and Intervention $150