Finding 623493 (2022-001)

Finding 2022-001 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: 2205MN5ADM, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Number: 2205MN5ADM Award Period: Fiscal year 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: A nonfederal entity must: (i) Establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal Award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO); (ii) Comply with the U.S. Constitution, Federal statutes, regulations, and the terms and conditions of the Federal award; (iii) Evaluate and monitor the non-Federal entity?s compliance with statutes, regulations, and the terms and conditions of Federal awards; (iv) Take prompt action when instances of noncompliance are identified including noncompliance identified in audit findings; and (v) Take reasonable measures to safeguard protected personally identifiable information and other information the Federal awarding agency or pass-through entity designates as sensitive or the non-Federal entity considers sensitive consistent with applicable Federal, State, local, and tribal laws regarding privacy and responsibility of confidentiality. Condition: During our testing of random moment studies, we identified three individuals reported on the fourth quarter time study report that terminated prior to the start of the fourth quarter. Questioned Costs: Unknown Context: Out of the individuals selected for time study testing, it was noted that three individuals were incorrectly included on the random moment study roster that was submitted to the State for the fourth quarter. Cause: Controls were insufficient to ensure the County only reported active employees to the State on their random moment roster. Effect: The County reported employees previously terminated to the State of Minnesota which were subject to the random moment surveys The State Department of Health and Human Services conducts. Repeat Finding: No Recommendation: We recommend the County reviews its procedures for giving timely notice of an individual?s termination to other departments as well as ensuring departments are reviewing the information provided to granting agencies. Views of responsible officials: There is no disagreement with the finding.