Finding Text
Department of Health and Human Services Passed Through Ramsey County Minnesota Family Investment Program Adult Services (MFIP), Federal Financial Assistance Listing 93.558, Award #2201MNTANF, 2022 Temporary Assistance for Needy Families Allowable Activities and Costs Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: For one employee tested, there was no formal documentation of a secondary review of the payroll allocation calculation. Cause: The Association has designed internal controls over this area; however, the controls were not formerly documented. Effect: The condition may affect the Association?s ability to support compliance with allowable activities and costs requirements. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 3 employees out of 14 were selected for testing, which accounted for $94,033 of $651,866 of federal program expenditures. Repeat Finding from Prior Year(s): No. Recommendation: We recommend the procedures related to payroll allocations be reviewed with applicable program employees to ensure proper documentation and review is properly supported and the documentation is retained. Views of Responsible Officials: Management agrees with the finding.