FAC Explorer

Finding 576276 (2023-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-09-12
Audit: 366181
Organization: Dakota County (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The Minnesota Department of Human Services has a material weakness in internal controls over SNAP eligibility determinations, leading to documentation errors.
  • Impacted Requirements: Compliance with federal regulations requiring automation and accurate documentation for SNAP operations is not being met, risking improper benefit distribution.
  • Recommended Follow-Up: The County should establish processes and procedures to ensure all eligibility documentation is complete and accurately entered into MAXIS, with timely follow-up on any issues.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Name: Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Federal Award Identification Number and Year: 228MN300S6031 – 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55210010 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Agencies are required to automate their SNAP operations and computerize their systems for obtaining, maintaining, utilizing, and transmitting information concerning SNAP (7 CFR sections 272.10 and 277.18). This includes: (1) processing and storing all case file information necessary for eligibility determination and benefit calculation, identifying specific elements that affect eligibility, and notifying the certification unit of cases requiring notices of case disposition, adverse action and mass change, and expiration; (2) providing an automatic cutoff of participation for households that have not been recertified at the end of their certification period by reapplying and being determined eligible for a new period (7 CFR sections 272.10(b)(1)(iii) and 273.10(f) and (g)); and (3) generating data necessary to meet federal issuance and reconciliation reporting requirements. 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 (DHS) maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. While periodic supervisory case reviews are performed to monitor compliance with grant requirements for eligibility, when performing our case file review for eligibility, we noted: • There was no documentation or improper documentation related to the verification of citizenship for 6 of the 60 casefiles tested. • There was no verification of income on 3 of the 60 casefiles tested. • Income was input into Maxis incorrectly on 2 of the 60 casefiles tested. • There was not signature on application on 1 of the 60 casefiles tested. Questioned costs: None Context: 11 of the 60 casefiles tested had the above noted issues. Cause: The County has had significant turnover and new staff over the past three years as well as increases in caseloads. There was also changing guidance as waivers from the pandemic expired. All of this provided more opportunities for errors to occur. Effect: Improper input or updating of information in MAXIS and lack of verification or follow-up of eligibility determining factors increase the risk that a program participant will receive benefits when they are not eligible. Repeat finding: Yes – 2022-004 Recommendation: We recommend the County implement process and procedures to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input or updated in MAXIS and issues are followed up in a timely manner. Views of responsible officials: There is no disagreement with the finding.

Corrective Action Plan

U.S. Department of Agriculture Supplemental Nutrition Assistance Program Cluster Assistance Listing Number: 10.561 Passed Through Minnesota Department of Human Services Pass Through Number: H55210010 Award Period: 2023 Recommendation: We recommend the County implement process and procedures to provide reasonable assurance that all necessary documentation to support eligibility determination exists and is properly input or updated in MAXIS and issues are followed up in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The County will continue to train staff to ensure they are aware that review of casefiles needs to be documented by a signature for all applications, all information in casefiles needs to be accurately input into MAXIS for income and assets, and all applications should be processed in a timely and accurate manner. Name of the contact person responsible for corrective action: Tiffinie Miller, Deputy Director of Employment & Economic Assistance Planned completion date for corrective action plan: December 31, 2024

Categories

Eligibility Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 576277 2023-010
    Material Weakness
  • 576278 2023-012
    Material Weakness Repeat
  • 576279 2023-014
    Significant Deficiency
  • 576280 2023-015
    Significant Deficiency
  • 576281 2023-015
    Significant Deficiency
  • 576282 2023-015
    Significant Deficiency
  • 576283 2023-015
    Significant Deficiency
  • 576284 2023-015
    Significant Deficiency
  • 576285 2023-015
    Significant Deficiency
  • 576286 2023-015
    Significant Deficiency
  • 576287 2023-015
    Significant Deficiency
  • 576288 2023-015
    Significant Deficiency
  • 576289 2023-008
    Material Weakness
  • 576290 2023-006
    Material Weakness Repeat
  • 576291 2023-006
    Material Weakness Repeat
  • 576292 2023-012
    Material Weakness Repeat
  • 576293 2023-012
    Material Weakness Repeat
  • 576294 2023-014
    Significant Deficiency
  • 576295 2023-014
    Significant Deficiency
  • 576296 2023-009
    Material Weakness
  • 576297 2023-011
    Material Weakness
  • 576298 2023-012
    Material Weakness Repeat
  • 576299 2023-013
    Material Weakness
  • 576300 2023-014
    Significant Deficiency
  • 1152718 2023-007
    Material Weakness Repeat
  • 1152719 2023-010
    Material Weakness
  • 1152720 2023-012
    Material Weakness Repeat
  • 1152721 2023-014
    Significant Deficiency
  • 1152722 2023-015
    Significant Deficiency
  • 1152723 2023-015
    Significant Deficiency
  • 1152724 2023-015
    Significant Deficiency
  • 1152725 2023-015
    Significant Deficiency
  • 1152726 2023-015
    Significant Deficiency
  • 1152727 2023-015
    Significant Deficiency
  • 1152728 2023-015
    Significant Deficiency
  • 1152729 2023-015
    Significant Deficiency
  • 1152730 2023-015
    Significant Deficiency
  • 1152731 2023-008
    Material Weakness
  • 1152732 2023-006
    Material Weakness Repeat
  • 1152733 2023-006
    Material Weakness Repeat
  • 1152734 2023-012
    Material Weakness Repeat
  • 1152735 2023-012
    Material Weakness Repeat
  • 1152736 2023-014
    Significant Deficiency
  • 1152737 2023-014
    Significant Deficiency
  • 1152738 2023-009
    Material Weakness
  • 1152739 2023-011
    Material Weakness
  • 1152740 2023-012
    Material Weakness Repeat
  • 1152741 2023-013
    Material Weakness
  • 1152742 2023-014
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $30.70M
93.778 Medical Assistance Program $13.66M
93.563 Child Support Services $8.25M
14.218 Community Development Block Grants/entitlement Grants $4.19M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3.08M
21.023 Emergency Rental Assistance Program $2.60M
14.239 Home Investment Partnerships Program $2.54M
93.558 Temporary Assistance for Needy Families $2.49M
93.667 Social Services Block Grant $1.81M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.61M
93.658 Foster Care Title IV-E $1.31M
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $1.19M
14.231 Emergency Solutions Grant Program $1.02M
14.267 Continuum of Care Program $802,183
93.268 Immunization Cooperative Agreements $545,515
93.575 Child Care and Development Block Grant $534,344
17.259 Wioa Youth Activities $479,727
93.069 Public Health Emergency Preparedness $306,498
93.994 Maternal and Child Health Services Block Grant to the States $301,420
97.042 Emergency Management Performance Grants $293,188
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $281,417
93.659 Adoption Assistance $178,541
17.258 Wioa Adult Program $170,598
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $138,802
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $124,678
16.922 Equitable Sharing Program $106,573
17.278 Wioa Dislocated Worker Formula Grants $106,553
10.572 Wic Farmers' Market Nutrition Program (fmnp) $100,000
93.590 Community-Based Child Abuse Prevention Grants $85,660
93.556 Marylee Allen Promoting Safe and Stable Families Program $77,320
95.001 High Intensity Drug Trafficking Areas Program $77,230
16.585 Treatment Court Discretionary Grant Program $70,426
16.575 Crime Victim Assistance $62,699
21.019 Coronavirus Relief Fund $58,008
20.205 Highway Planning and Construction $49,476
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $29,409
97.012 Boating Safety Financial Assistance $12,000
16.579 Edward Byrne Memorial Formula Grant Program $11,301
10.555 National School Lunch Program $10,683
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $5,686
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $5,068
10.553 School Breakfast Program $4,948
93.251 Early Hearing Detection and Intervention $3,300
84.181 Special Education-Grants for Infants and Families $2,100