FAC Explorer

Finding 571653 (2024-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-07-21
Audit: 362609
Organization: Hennepin County Minnesota (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, specifically regarding the lack of a renewal application in one case file.
  • Impacted Requirements: The County is not meeting the requirements of 2 CFR Part 200, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-Up: The County should implement a formal case file review process to ensure accuracy and compliance in eligibility determinations.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Medical Assistance Program Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2005MN5ADM; 2105MN5ADM; 2105MN5MAP; NH23IP922628 - 2024 Pass-Through Agency: Minnesota Department of Human Services Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award 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: During our testing, we noted the following instance of noncompliance in the sample of sixty case files tested: • One MAXIS case file did not have a renewal application on file. In addition, the County does not have a formalized supervisory case file review process in place to ensure accuracy and completeness of inputs into the two eligibility determination systems, MAXIS and METS. Questioned costs: None Context: The State of Minnesota Department of Human Services (DHS) contracts with county social services departments to perform the “intake function” (meeting with the social services client to determine income and categorical eligibility), while the State maintains the MAXIS and METS systems, which determine eligibility. Participants receive benefit payments from the state. The eligible individuals consist of two populations, and a total of 60 enrolled persons were selected, 49 from the MAXIS system and another 11 from the METS system. The sample sizes were based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Of the 60 selections, errors were noted in one of the cases (see condition section above for more detail). Cause: The County relied on reinstatement of program renewal requirements by DHS as a control over eligibility. In 2024, the County designed but did not fully implement a formalized case file review process. Effect: Although not found during our testing, benefits paid for participants in the program by the State of Minnesota may have paid for ineligible participants or paid the incorrect amount. Repeat Finding: Yes, 2023-007. Recommendation: We recommend the County strengthen internal controls over inputs used to determine eligibility to ensure they are correctly entered and the information required by the contract is retained in the County’s records. Views of responsible officials: Hennepin County has reviewed and agrees with the finding and recommendation.

Corrective Action Plan

Program: Medical Assistance Program. Assistance Listing Number 93.778 Type of Finding: Material Weakness in Internal Control over Compliance Condition: During our testing, we noted the following instance of noncompliance in the sample of sixty case files tested: • One MAXIS case file did not have a renewal application on file. In addition, the County does not have a formalized supervisory case file review process in place to ensure accuracy and completeness of inputs into the two eligibility determination systems, MAXIS and METS. Hennepin County’s Corrective Action Planned in Response to Finding: Hennepin County will strengthen internal controls over inputs used to determine eligibility to ensure they are correctly entered, and the information required by the contact is retained in the County’s records. Hennepin County Employee Responsible for the CAP: Vickie Goulette Planned Completion Date for CAP: December 31, 2025

Categories

Eligibility Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 571651 2024-002
    Material Weakness
  • 571652 2024-004
    Significant Deficiency
  • 571654 2024-004
    Significant Deficiency
  • 571655 2024-004
    Significant Deficiency
  • 571656 2024-004
    Significant Deficiency
  • 571657 2024-004
    Significant Deficiency
  • 1148093 2024-002
    Material Weakness
  • 1148094 2024-004
    Significant Deficiency
  • 1148095 2024-003
    Material Weakness Repeat
  • 1148096 2024-004
    Significant Deficiency
  • 1148097 2024-004
    Significant Deficiency
  • 1148098 2024-004
    Significant Deficiency
  • 1148099 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $91.70M
20.205 Highway Planning and Construction $23.14M
93.563 Child Support Services $22.53M
93.658 Foster Care Title IV-E $18.55M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $15.39M
93.667 Social Services Block Grant $6.76M
93.914 Hiv Emergency Relief Project Grants $6.36M
20.933 National Infrastructure Investments $6.00M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $4.91M
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $4.56M
93.575 Child Care and Development Block Grant $4.38M
14.218 Community Development Block Grants/entitlement Grants $4.07M
14.905 Lead Hazard Reduction Demonstration Grant Program $2.22M
14.267 Continuum of Care Program $2.12M
93.297 Teenage Pregnancy Prevention Program $2.09M
93.788 Opioid Str $1.84M
93.493 Congressional Directives $1.58M
93.958 Block Grants for Community Mental Health Services $1.40M
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $1.30M
93.889 National Bioterrorism Hospital Preparedness Program $1.15M
17.258 Wioa Adult Program $845,970
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $845,324
16.738 Edward Byrne Memorial Justice Assistance Grant Program $832,769
14.913 Healthy Homes Production Program $826,144
97.067 Homeland Security Grant Program $810,416
93.940 Hiv Prevention Activities Health Department Based $698,589
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $681,156
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $632,482
14.276 Youth Homelessness Demonstration Program $621,914
16.753 Congressionally Recommended Awards $612,942
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $576,126
97.042 Emergency Management Performance Grants $540,912
17.259 Wioa Youth Activities $528,557
95.001 High Intensity Drug Trafficking Areas Program $504,806
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $500,000
93.069 Public Health Emergency Preparedness $483,980
21.027 Coronavirus State and Local Fiscal Recovery Funds $470,828
10.727 Inflation Reduction Act Urban & Community Forestry Program $469,035
16.833 National Sexual Assault Kit Initiative $440,600
93.145 Hiv-Related Training and Technical Assistance $440,025
17.278 Wioa Dislocated Worker Formula Grants $433,268
93.253 Poison Center Support and Enhancement Grant $420,485
93.590 Community-Based Child Abuse Prevention Grants $420,218
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $305,043
16.575 Crime Victim Assistance $297,587
16.741 Dna Backlog Reduction Program $295,658
93.556 Marylee Allen Promoting Safe and Stable Families Program $282,994
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $280,025
14.231 Emergency Solutions Grant Program $268,287
93.583 Refugee and Entrant Assistance Wilson/fish Program $267,551
93.924 Ryan White Hiv/aids Dental Reimbursement and Community Based Dental Partnership Grants $242,038
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $226,135
93.247 Advanced Nursing Education Workforce Grant Program $222,456
93.150 Projects for Assistance in Transition From Homelessness (path) $220,911
16.582 Crime Victim Assistance/discretionary Grants $211,312
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $196,936
93.595 Welfare Reform Research, Evaluations and National Studies $128,683
93.136 Injury Prevention and Control Research and State and Community Based Programs $115,495
20.939 Safe Streets and Roads for All $112,178
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $108,439
93.945 Assistance Programs for Chronic Disease Prevention and Control $104,253
93.527 Grants for New and Expanded Services Under the Health Center Program $98,450
93.344 Research, Monitoring and Outcomes Definitions for Vaccine Safety $95,724
20.600 State and Community Highway Safety $87,410
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $84,986
16.827 Justice Reinvestment Initiative $84,725
93.251 Early Hearing Detection and Intervention $78,000
93.008 Medical Reserve Corps Small Grant Program $72,944
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $71,040
93.070 Environmental Public Health and Emergency Response $59,222
93.268 Immunization Cooperative Agreements $55,885
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $51,142
93.959 Block Grants for Prevention and Treatment of Substance Abuse $49,570
21.016 Equitable Sharing $47,881
10.555 National School Lunch Program $39,681
16.922 Equitable Sharing Program $39,332
16.609 Project Safe Neighborhoods $37,174
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $32,637
93.558 Temporary Assistance for Needy Families $32,000
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $31,326
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $30,383
97.012 Boating Safety Financial Assistance $26,404
93.270 Viral Hepatitis Prevention and Control $26,224
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $25,200
10.553 School Breakfast Program $25,065
16.036 Comprehensive Forensic Dna Analysis Grant Program $23,257
14.239 Home Investment Partnerships Program $15,772
93.526 Grants for Capital Development in Health Centers $13,948
93.659 Adoption Assistance $10,513
10.182 Pandemic Relief Activities: Local Food Purchase Agreements with States, Tribes, and Local Governments $8,493
93.800 Organized Approaches to Increase Colorectal Cancer Screening $7,847
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $6,603
84.002 Adult Education - Basic Grants to States $5,617
93.669 Child Abuse and Neglect State Grants $2,484
97.132 Financial Assistance for Targeted Violence and Terrorism Prevention $1,045