Finding 575372 (2023-008)

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Requirement
E
Questioned Costs
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Year
2023
Accepted
2025-09-02
Audit: 365408
Organization: Renville County (MN)
Auditor: Abdo LLP

AI Summary

  • Core Issue: Renville County's eligibility determinations for medical assistance are flawed due to incorrect calculations of Adjusted Gross Income (AGI) and lack of supporting documentation.
  • Impacted Requirements: Compliance with federal regulations (Title 2 U.S. Code of Federal Regulations § 200.303) regarding effective internal controls over federal awards is at risk.
  • Recommended Follow-Up: Renville County should establish clear procedures for accurately calculating and documenting AGI to ensure compliance moving forward.

Finding Text

Medical Assistance Eligibility Condition: The Minnesota Department of Human Services (DHS) maintains the computer systems, MAXIS and METS, which are used by Renville County to support the eligibility determination process. In the case files reviewed for eligibility, there were several cases noted in which the Adjusted Gross Income (AGI) was not calculated correctly, and there was no supporting documentation provided for the differences. Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states 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. Cause: Program personnel entering case data into MAXIS or clearing case data flagged by METS did not properly calculate or retain support for the AGI entered into the system. Effect: As a result, the Board is out compliance with the statute. Recommendation: We recommend Renville County define and implement procedures for calculating and supporting AGI used for eligibility determinations. Management Response: The County acknowledges the finding and has implemented procedures to ensure AGI is calculated correctly.

Corrective Action Plan

Medical Assitance Eligiblity 1. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding: The County acknowledges the finding and has implemented procedures to ensure AGI is calculated correctly. 3. Official Responsible for Ensuring CAP: Lisa Herges, County Administrator, if the official responsible for ensuring corrective action of the compliance finding. 4. Planned Completion Date for CAP: December 31, 2025 5. Plan to Monitor Completion of CAP: The County Board will be monitoring this corrective action plan. Sincerely, Lisa Herges County Administrator

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $912,577
93.778 Medical Assistance Program $678,549
93.563 Child Support Services $297,638
97.067 Homeland Security Grant Program $206,581
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $176,071
93.558 Temporary Assistance for Needy Families $144,399
20.205 Highway Planning and Construction $128,152
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $106,647
93.667 Social Services Block Grant $103,120
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $89,864
93.658 Foster Care Title IV-E $75,026
16.831 Children of Incarcerated Parents $66,587
20.600 State and Community Highway Safety $48,856
93.268 Immunization Cooperative Agreements $30,497
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $24,042
93.994 Maternal and Child Health Services Block Grant to the States $23,754
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $19,455
93.069 Public Health Emergency Preparedness $17,462
16.575 Crime Victim Assistance $13,020
93.645 Stephanie Tubbs Jones Child Welfare Services Program $4,608
93.590 Community-Based Child Abuse Prevention Grants $2,948
84.184 School Safely National Activities $2,684
93.556 Marylee Allen Promoting Safe and Stable Families Program $2,584
93.575 Child Care and Development Block Grant $2,416
93.959 Block Grants for Prevention and Treatment of Substance Abuse $950
93.747 Elder Abuse Prevention Interventions Program $571
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $502
93.767 Children's Health Insurance Program $131