Finding Text
Federal Agency: U.S. Department of Human Services
Federal Program Name: Medical Assistance (Medicaid Cluster)
Assistance Listing Number: 93.778
Federal Award Identification Number and Year: 2305MN5ADM, 2305MN5MAP; 2023
Pass-Through Agency: Minnesota Department of Human Services
Compliance Requirement Affected: Reporting
Award Period: Year Ended December 31, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters
Criteria or Specific Requirement: 2 CFR 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. Additionally, 2 CFR 200.403 lists general criteria for allowability of costs under federal awards, and the 2556 Social Services quarterly report has further guidance on what is allowed to be reported.
Condition: There is no formal review being completed on reports that are required to be submitted to MN DHS. The quarterly 3220 LCTS and annual LCTS Collaborative reports were not reviewed. The annual LCTS Spending Report was submitted after the due date. The County reported $121,563 in disbursements on the 2556 Social Services quarterly report that were funded with other state or federal grants and included no revenue offset in the required line of the report.
Questioned Costs: Amount less than $25,000.
Context: No formal review is being completed on two of the four quarterly 3220 LCTS reports tested and one of one annual LCTS Collaborative report tested. For one of one annual LCTS Spending report, the report was submitted after the due date and a review was not in place to ensure compliance. Within two of the two 2556 Social Services quarterly reports that were tested, it was found that disbursements funded by other sources were included on the report.
Cause: Turnover and lack of review of the requirements of the 2556 instructions by the County.
Effect: Ineligible costs are being reported and the reports are not being submitted timely.
Repeat Finding: No.
Recommendation: We recommend that the County implement review procedures to ensure that the reports are submitted timely and accurately, and record of review is kept on file.
Views of responsible officials: There is no disagreement with the audit finding. There is a corrective action plan in place.