FAC Explorer

Finding 8698 (2022-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-01-17
Audit: 11849
Organization: Dakota County (MN)
Auditor: Cliftonlarsonallen

AI Summary

  • Core Issue: The Minnesota Department of Human Services has a material weakness in internal controls over SNAP eligibility determinations, leading to incomplete documentation in 13 out of 60 casefiles.
  • Impacted Requirements: Compliance with federal regulations requires proper verification of citizenship and income, as well as accurate data management in the MAXIS system.
  • Recommended Follow-Up: Implement processes to ensure all eligibility documentation is collected, verified, and accurately updated in MAXIS, with timely follow-up on any discrepancies.

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: 222MN101S2514 – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Number: H55210010 Award Period: 2022 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 related to the verification of citizenship for 5 of the 60 casefiles tested. • There was no verification of income on 5 of the 60 casefiles tested. • There were issues with 3 other casefiles relating to the clients providing documentation of citizenship and income, but the MAXIS system was not updated to show proper documentation and was instead left blank. Questioned costs: None Context: 13 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 – 2021-003 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

2022-004 – SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM CLUSTER – SPECIAL PROVISIONS 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: 2022 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 ensure processes and procedures are in place to properly document and support eligibility determination, properly input and update MAXIS, and properly resolve issues promptly. Periodic review of case files will be included in the annual internal audit work plan. Name of the contact person responsible for corrective action: Daren Nyquist, Administration Manager Planned completion date for corrective action plan: December 31, 2023

Categories

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

Other Findings in this Audit

  • 8699 2022-006
    Material Weakness
  • 8700 2022-007
    Significant Deficiency
  • 8701 2022-009
    Significant Deficiency Repeat
  • 8702 2022-005
    Material Weakness Repeat
  • 8703 2022-008
    Significant Deficiency
  • 8704 2022-010
    Significant Deficiency Repeat
  • 8705 2022-003
    Material Weakness Repeat
  • 8706 2022-006
    Material Weakness
  • 8707 2022-007
    Significant Deficiency
  • 8708 2022-007
    Significant Deficiency
  • 8709 2022-003
    Material Weakness Repeat
  • 8710 2022-006
    Material Weakness
  • 8711 2022-007
    Significant Deficiency
  • 585140 2022-004
    Material Weakness Repeat
  • 585141 2022-006
    Material Weakness
  • 585142 2022-007
    Significant Deficiency
  • 585143 2022-009
    Significant Deficiency Repeat
  • 585144 2022-005
    Material Weakness Repeat
  • 585145 2022-008
    Significant Deficiency
  • 585146 2022-010
    Significant Deficiency Repeat
  • 585147 2022-003
    Material Weakness Repeat
  • 585148 2022-006
    Material Weakness
  • 585149 2022-007
    Significant Deficiency
  • 585150 2022-007
    Significant Deficiency
  • 585151 2022-003
    Material Weakness Repeat
  • 585152 2022-006
    Material Weakness
  • 585153 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $12.81M
93.778 Medical Assistance Program $12.37M
93.563 Child Support Enforcement $7.36M
21.023 Emergency Rental Assistance Program $5.48M
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3.49M
14.218 Community Development Block Grants/entitlement Grants $2.52M
93.558 Temporary Assistance for Needy Families $2.23M
14.239 Home Investment Partnerships Program $1.70M
93.667 Social Services Block Grant $1.59M
93.658 Foster Care_title IV-E $1.43M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.27M
14.231 Emergency Solutions Grant Program $1.11M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $900,623
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $676,596
93.575 Child Care and Development Block Grant $549,203
93.268 Immunization Cooperative Agreements $521,118
14.267 Continuum of Care Program $484,283
97.067 Homeland Security Grant Program $449,997
17.259 Wia Youth Activities $445,679
20.205 Highway Planning and Construction $346,191
93.069 Public Health Emergency Preparedness $291,085
93.994 Maternal and Child Health Services Block Grant to the States $281,482
97.042 Emergency Management Performance Grants $257,277
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $240,256
16.575 Crime Victim Assistance $217,301
93.659 Adoption Assistance $198,656
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $193,027
93.090 Guardianship Assistance $112,486
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $105,935
93.669 Child Abuse and Neglect State Grants $92,859
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $88,446
95.001 High Intensity Drug Trafficking Areas Program $79,776
93.590 Community-Based Child Abuse Prevention Grants $72,234
16.579 Edward Byrne Memorial Formula Grant Program $48,509
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $47,317
93.556 Promoting Safe and Stable Families $37,022
93.645 Stephanie Tubbs Jones Child Welfare Services Program $22,930
10.555 National School Lunch Program $19,662
97.012 Boating Safety Financial Assistance $18,149
17.278 Wia Dislocated Worker Formula Grants $15,972
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $14,590
10.553 School Breakfast Program $9,842
17.258 Wia Adult Program $9,006
45.310 Grants to States $8,250
16.922 Equitable Sharing Program $8,014
10.572 Wic Farmers' Market Nutrition Program (fmnp) $3,897
93.251 Early Hearing Detection and Intervention $3,350
20.616 National Priority Safety Programs $2,816
84.181 Special Education-Grants for Infants and Families $2,100
20.600 State and Community Highway Safety $1,725
93.070 Environmental Public Health and Emergency Response $1,130
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $300