FAC Explorer

Finding 500426 (2023-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323197
Organization: Meeker County (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The fourth quarter DHS-2250 cost report lacked proper review and did not include actual expenditures.
  • Impacted Requirements: Compliance with Title 2 U.S. Code of Federal Regulations § 200.303 regarding internal controls over federal awards.
  • Recommended Follow-Up: Establish procedures to ensure all reports are formally reviewed and accurately reflect expenditures for timely federal funding.

Finding Text

REPORTING Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2305MN5MAP and 2305MN5ADM, 2023 Pass-Through Agency: Minnesota Department of Human Services and Meeker-McLeod-Sibley Community Health Services Pass-Through Number: 2305MN5MAP and 2305MN5ADM Award Period: Year Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee mush 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. The DHS-2550 cost report is used by the Minnesota Department of Human Services (DHS) in conjunction with the county’s Income Maintenance Random Moment Time Study (IMRMS) data to determine allowable costs for reimbursement by various federal programs. Expenditures and revenue must have been disbursed or received during the quarter being reported. Condition and Context: The fourth quarter DHS-2250 cost report did not reflect fourth quarter expenditures and was not formally reviewed and approved. Questioned Costs: None Cause: Turnover within the department. Effect: The County could receive incorrect federal funding for the program if expenditures are not reviewed and reported timely. Repeat Finding: No. Recommendation: We recommend the County design procedures and controls to ensure all reports are formally reviewed and represent actual expenditures incurred during the period being reported. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

REPORTING Recommendation: The County should design procedures and controls to ensure all reports are formally reviewed, all deadlines are met, and supporting documentation is retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will review procedures and implement changes as needed to ensure reports are formally reviewed, submitted timely, and proper documentation is retained. Name of the contact person responsible for corrective action: Charlene Dale, Human Services Supervisor Planned completion date for corrective action plan: December 31, 2024

Categories

Allowable Costs / Cost Principles Cash Management Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 500427 2023-004
    Significant Deficiency
  • 500428 2023-004
    Significant Deficiency
  • 500429 2023-005
    Significant Deficiency Repeat
  • 500430 2023-005
    Significant Deficiency Repeat
  • 500431 2023-005
    Significant Deficiency Repeat
  • 1076868 2023-004
    Significant Deficiency
  • 1076869 2023-004
    Significant Deficiency
  • 1076870 2023-004
    Significant Deficiency
  • 1076871 2023-005
    Significant Deficiency Repeat
  • 1076872 2023-005
    Significant Deficiency Repeat
  • 1076873 2023-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.19M
93.778 Medical Assistance Program $861,075
20.205 Highway Planning and Construction $334,729
93.563 Child Support Enforcement $330,751
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $298,359
93.558 Temporary Assistance for Needy Families $162,571
93.667 Social Services Block Grant $122,136
93.658 Foster Care_title IV-E $73,858
21.032 Local Assistance and Tribal Consistency Fund $50,000
16.575 Crime Victim Assistance $43,499
93.268 Immunization Cooperative Agreements $36,724
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $30,970
93.959 Block Grants for Prevention and Treatment of Substance Abuse $26,863
93.994 Maternal and Child Health Services Block Grant to the States $22,832
97.012 Boating Safety Financial Assistance $11,885
93.070 Environmental Public Health and Emergency Response $7,677
93.645 Stephanie Tubbs Jones Child Welfare Services Program $4,207
93.575 Child Care and Development Block Grant $3,769
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $3,514
93.556 Promoting Safe and Stable Families $2,653
93.251 Early Hearing Detection and Intervention $1,950
93.590 Community-Based Child Abuse Prevention Grants $1,813
84.181 Special Education-Grants for Infants and Families $1,269
93.747 Elder Abuse Prevention Interventions Program $1,256
93.767 Children's Health Insurance Program $1,194
93.566 Refugee and Entrant Assistance_state Administered Programs $1,045