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 #2301MNTANF, 2023
Temporary Assistance for Needy Families
Activities Allowed or Unallowed, Allowable Costs/Cost Principles
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, documentation was not maintained to support all hours charged to the TANF program.
Cause: The Association has designed internal controls over this area; however, the controls were not properly 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 4 employees out of 15 were selected for testing, which accounted for $147,203 of $617,470 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.