EIN: 416005775
UEI: DCH4NJM43TG5
Audited by: Minnesota Office of the State Auditor
Oversight agency: 21 [Department of the Treasury]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 29, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by March 29, 2026 (153 days ago).
What is a management decision? →The Minnesota Department of Human Services maintains the computer systems, METS, which is used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available or input correctly. The following exceptions were noted in a sample of 40 case files: • One case file lacked citizenship documentation. • One case file did not document the participant’s income correctly. Questioned Costs: Not applicable. Clay County administers the program, but the State of Minnesota pays benefits to participants in this program. Context: The State of Minnesota and Clay County split the eligibility determination process. Generally, Clay County resolves eligibility issues when prompted by the system, while the State performs the initial review of the case files, including determining the information in METS is verified. Participants receive benefits from the State. The population consisted of 17,456 active METS case files in the Medical Assistance Program in 2024; the sample size was 40 case files. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information in METS and lack of verification of key eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel responsible for resolving eligibility issues in METS did not ensure all required information was input or updated correctly or verified. Recommendation: We recommend Clay County implement additional procedures to provide reasonable assurance that all documentation needed to resolve eligibility issues exists and program personnel properly input, update, or verify the documentation in METS. In addition, Clay County should consider providing further training to program personnel. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2024-002 Eligibility - METS Prior Year Finding Number: 2023-002 Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Medical Assistance Program Award Number and Year: 2405MN5ADM; 2024 Pass-Through Agency: Minnesota Department of Human Services Criteria: 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. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. Specific eligibility requirements are included for participants’ citizenship verification and income limits. Minnesota Statutes, section 256B.05 requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer systems, METS, which is used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available or input correctly. The following exceptions were noted in a sample of 40 case files: • One case file lacked citizenship documentation. • One case file did not document the participant’s income correctly. Questioned Costs: Not applicable. Clay County administers the program, but the State of Minnesota pays benefits to participants in this program. Context: The State of Minnesota and Clay County split the eligibility determination process. Generally, Clay County resolves eligibility issues when prompted by the system, while the State performs the initial review of the case files, including determining the information in METS is verified. Participants receive benefits from the State. The population consisted of 17,456 active METS case files in the Medical Assistance Program in 2024; the sample size was 40 case files. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The improper input or updating of information in METS and lack of verification of key eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel responsible for resolving eligibility issues in METS did not ensure all required information was input or updated correctly or verified. Recommendation: We recommend Clay County implement additional procedures to provide reasonable assurance that all documentation needed to resolve eligibility issues exists and program personnel properly input, update, or verify the documentation in METS. In addition, Clay County should consider providing further training to program personnel. View of Responsible Official: Concur
Finding Number: 2024-002 Finding Title: Eligibility - METS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Mikala Wodarek, Social Services Supervisor Corrective Action Planned: Clay County Social Services acknowledges the audit finding that in 2 of the 40 METS Medical Assistance eligibility case files reviewed, required documentation was either missing or not properly recorded. To address this, all eligibility workers will receive refresher training on documentation standards, with a focus on citizenship and income verification requirements. The lead worker for this program will conduct random case reviews monthly, in addition to 3 case reviews for each worker around their annual performance evaluation. These case reviews will be reviewed with the worker thoroughly, coaching provided if necessary, and any errors found will be corrected. The supervisor will retain these case reviews and analyze them for patterns and provide team training and guidance as appropriate. For staff with repeated errors, performance management will be enacted in the form of verbal coaching, performance improvement plans, etc. In addition, annual training on eligibility documentation, specifically around citizenship status, will be added to the Division's training plan. Progress will be tracked through internal audits and summarized for leadership review. These actions are intended to ensure all required documentation is properly obtained, verified, and recorded in METS, thereby strengthening internal controls, reducing the risk of ineligible individuals receiving benefits, and improving future audit compliance. Anticipated Completion Date: Refresher training for eligibility workers and thorough review of 2024 audit findings both individually and as a group: completed on August 7, 2025 Case reviews by lead worker: Already implemented at the time of this writing and ongoing Review and reporting to leadership: Beginning January 1, 2026 and ongoing Annual training incorporated into department plan: Effective December 1, 2025
2023-002
The Minnesota Department of Human Services maintains the computer systems, MAXIS, which is used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available, updated, or input correctly into MAXIS. The following exceptions were noted in the sample of 40 case files tested: • One applicant’s application was processed 107 days after receipt. • Six participants’ citizenship verification method did not match the documentation in the file. • One case file did not document the participant’s income correctly. • Three case files did not document the participants’ assets correctly. Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to participants in this program. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Clay County performs the "intake function" needed for this program, while the state maintains the MAXIS systems, which supports the eligibility determination process. Participants receive benefit payments from the State. The population consisted of 3,484 active MAXIS cases enrolled in the Medical Assistance Program in 2024; the sample size was 40 case files. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS and lack of verification of key eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS did not obtain and update the information in the system. Recommendation: We recommend Clay County implement additional procedures to provide reasonable assurance that all documentation needed to support eligibility determinations exists, the program personnel properly input or update the documentation in MAXIS, and the program personnel follow up on issues in a timely manner. In addition, Clay County should consider providing further training to program personnel. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2024-003 Eligibility - MAXIS Prior Year Finding Number: 2023-002 Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Medical Assistance Program Award Number and Year: 2405MN5ADM; 2024 Pass-Through Agency: Minnesota Department of Human Services Criteria: 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. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. The manual includes specific eligibility requirements for participants’ citizenship verification, income limits, and asset verification, as well as requirements of agencies to process applications within 45 days for most applicants, and up to 60 days for certain applicants. Minnesota Statutes § 256B.05 requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer systems, MAXIS, which is used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was available, updated, or input correctly into MAXIS. The following exceptions were noted in the sample of 40 case files tested: • One applicant’s application was processed 107 days after receipt. • Six participants’ citizenship verification method did not match the documentation in the file. • One case file did not document the participant’s income correctly. • Three case files did not document the participants’ assets correctly. Questioned Costs: Not applicable. The County administers the program, but the State of Minnesota pays benefits to participants in this program. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Clay County performs the "intake function" needed for this program, while the state maintains the MAXIS systems, which supports the eligibility determination process. Participants receive benefit payments from the State. The population consisted of 3,484 active MAXIS cases enrolled in the Medical Assistance Program in 2024; the sample size was 40 case files. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS and lack of verification of key eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS did not obtain and update the information in the system. Recommendation: We recommend Clay County implement additional procedures to provide reasonable assurance that all documentation needed to support eligibility determinations exists, the program personnel properly input or update the documentation in MAXIS, and the program personnel follow up on issues in a timely manner. In addition, Clay County should consider providing further training to program personnel. View of Responsible Official: Concur
Finding Number: 2024-003 Finding Title: Eligibility - MAXIS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: Quinn Jaeger, Social Services Director Mikala Wodarek, Social Services Supervisor Corrective Action Planned: As part of the recent audit of MAXIS Medical Assistance eligibility determinations, Clay County Social Services recognizes that errors were found in several case files. In response, eligibility workers will receive targeted training on timely and accurate case entry in MAXIS, with particular emphasis on the verification and documentation of citizenship, income, and assets in accordance with OHS policy. The lead worker for this program will conduct random case reviews monthly, in addition to 3 case reviews for each worker around their annual performance evaluation. These case reviews will be reviewed with the worker thoroughly, coaching provided if necessary, and any errors found will be corrected. The supervisor will retain these case reviews and analyze them for patterns and provide team training and guidance as appropriate. For staff with repeated errors, performance management will be enacted in the form of verbal coaching, performance improvement plans, etc. The Health Care Team supervisor will strengthen internal procedures to reinforce documentation and timeliness standards, review results from case reviews on a regular basis, and initiate corrective performance measures when patterns of errors are observed. In addition, annual training on eligibility documentation will also be incorporated into the department's training plan. Anticipated Completion Date: Refresher training for eligibility workers and thorough review of 2024 audit findings both individually and as a group: completed on August 7, 2025 Case reviews by lead worker: Already implemented at the time of this 'writing and ongoing January 2026 and ongoing: Health Care supervisor begins quarterly reviews of audit findings and reports results to department leadership. January 2026 and ongoing: Annual eligibility documentation training incorporated into the department training calendar.
2023-002
FAC accepted this audit on January 9, 2024 — management decision was due July 9, 2024.
The Minnesota Department of Human Services (DHS) maintains the computer system, MAXIS, which is used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS case files tested: • One case file did not have documentation to support a parent relationship, • two case files had differences between documentation supporting asset amounts in the case file and amounts input into MAXIS, and • two case files had differences between what was noted in MAXIS as support and actual support in the case files for citizenship. Questioned Costs: Not applicable. The County administers the program but benefits to participants in this program are paid by the State of Minnesota. Context: The State of Minnesota contracts with the County's Health and Wellness Financial Assistance Services Department to perform the “intake function” (meeting with the social services client to determine income and categorical eligibility), while the Minnesota Department of Human Services maintains MAXIS, which supports the eligibility determination process and actually pays the benefits to participants. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS and documented verification of key eligibility-determining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS did not ensure all required information was input correctly or was supported and that all required information was obtained and/or retained. Recommendation: We recommend Clay County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly inputted or updated in MAXIS. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2022-002 Eligibility Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance Severity of Deficiency: Significant Deficiency Federal Agency: U.S. Department of Health and Human Services Program: 93.558 Temporary Assistance for Needy Families Award Number and Year: 2201MNTANF; 2022 Pass-Through Agency: Minnesota Department of Human Services Criteria: 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 Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available, updated, or input correctly to support participant eligibility. The following exceptions were noted in the sample of 40 MAXIS case files tested: • One case file did not have documentation to support a parent relationship, • two case files had differences between documentation supporting asset amounts in the case file and amounts input into MAXIS, and • two case files had differences between what was noted in MAXIS as support and actual support in the case files for citizenship. Questioned Costs: Not applicable. The County administers the program but benefits to participants in this program are paid by the State of Minnesota. Context: The State of Minnesota contracts with the County's Health and Wellness Financial Assistance Services Department to perform the “intake function” (meeting with the social services client to determine income and categorical eligibility), while the Minnesota Department of Human Services maintains MAXIS, which supports the eligibility determination process and actually pays the benefits to participants. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of updated information in MAXIS and documented verification of key eligibility-determining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS did not ensure all required information was input correctly or was supported and that all required information was obtained and/or retained. Recommendation: We recommend Clay County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly inputted or updated in MAXIS. View of Responsible Official: Concur
Finding Number: 2022-002 Finding Title: Eligibility Program: Temporary Assistance for Needy Families (AL No. 93.558) Name of Contact Person Responsible for Corrective Action: Rhonda Porter, Director and Karen Syverson, Supervisor Corrective Action Planned: All five cases found to have errors are being reviewed and will be corrected as appropriate. All case errors will be reviewed with staff who are involved in administering this program. Case file reviews will continue to occur, and any errors found will continue to be reviewed with staff and training provided. Anticipated Completion Date: The five cases found in error will be corrected by December 31, 2023. Family Team will review these errors on Dec. 14, 2023. Case file reviews will continue monthly.
For three covered transactions tested, the verification for suspended or debarred vendors was not performed before entering into the covered transaction. Questioned Costs: None Context: A sample of three vendors over the simplified acquisition threshold of $25,000 was tested. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County is not in compliance with federal grant requirements. Cause: There was no notation on the invoices informing the employee processing the claims that federal funds were being used. Recommendation: We recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; this documentation should be completed prior to entering into a covered transaction. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2022-003 Suspension and Debarment Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Criteria: Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. Condition: For three covered transactions tested, the verification for suspended or debarred vendors was not performed before entering into the covered transaction. Questioned Costs: None Context: A sample of three vendors over the simplified acquisition threshold of $25,000 was tested. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County is not in compliance with federal grant requirements. Cause: There was no notation on the invoices informing the employee processing the claims that federal funds were being used. Recommendation: We recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; this documentation should be completed prior to entering into a covered transaction. View of Responsible Official: Concur
Finding Number: 2022-003 Finding Title: Suspension and Debarment Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds (AL No. 21.027) Name of Contact Person Responsible for Corrective Action: Lori Johnson, Auditor-Treasurer and Mike Clark, Deputy Auditor-Accounts Payable Corrective Action Planned: For vendor payments using federal funds: if payment is over $25,000 the deputy auditor - accounts payable will complete an individual "Entity" search at the Federal SAM-System for Awards Management to verify vendor is not debarred, suspended, or otherwise excluded from conducting business with the County. The results of each search will be saved in a separate folder maintained by the deputy auditor - accounts payable. Each payment, using federal funds, will be coded with report code "A" and at the end of each quarter a report will be ran and if a vendor is approaching or has reached $25,000, and entity search will be conducted in the same manner as noted above. Verification will be done on an annual basis. Anticipated Completion Date: Prior to the December 5, 2023 board run, a report will be ran to determine vendors paid with federal funds and those vendors will be verified in the Federal SAM-System for Awards Management if total of payments exceed $25,000 for 2023. Going forward, the process will be as described above.
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
DHS maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available to support participant eligibility. In a sample of 40 case files tested, three case files did not include documentation to support citizenship. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of documented verification of information input into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel responsible for entering case information into MAXIS did not ensure all required information was verified or updated properly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained and properly updated in MAXIS. In addition, consideration should be given to providing additional training to program personnel. View of Responsible Official: Acknowledge
Show full finding ▾Hide full finding ▴2021-002 Eligibility Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Health and Human Services Program: 93.778 Medical Assistance Program Award Number and Year: 2105MN5ADM, 2021 Pass-Through Agency: Minnesota Department of Human Services (DHS) Criteria: 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: DHS maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available to support participant eligibility. In a sample of 40 case files tested, three case files did not include documentation to support citizenship. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of documented verification of information input into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel responsible for entering case information into MAXIS did not ensure all required information was verified or updated properly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained and properly updated in MAXIS. In addition, consideration should be given to providing additional training to program personnel. View of Responsible Official: Acknowledge
Finding Number: 2021-002 Finding Title: Eligibility Program: Medical Assistance Program, (AL No. 93.778) Name of Contact Person Responsible for Corrective Action: Rhonda Porter, Director Jamie Stewart, Financial Services Supervisor Eligibility Workers Corrective Action Planned: 1. All of the audit findings and case errors will be reviewed with the Eligibility Workers and strategies will be developed with the Supervisor and Eligibility Workers to eliminate errors from occurring in the future. 2. Citizenship requirements will be reviewed with staff and processes for documentation in the electronic case file and MAXIS will be reviewed with all Eligibility Workers. 3. Monthly case reviews will be done, and any errors will be addressed with all Eligibility Workers for correction and training purposes, and we will focus on citizenship documentation. Anticipated Completion Date: December 2022, ongoing.
FAC accepted this audit on January 19, 2022 — management decision was due July 19, 2022.
FAC accepted this audit on December 27, 2020 — management decision was due June 27, 2021.
The Minnesota Department of Human Services (DHS) maintains the computer systems, MAXIS and METS, which are used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available to support participant eligibility in MAXIS. In other circumstances, information was not updated or input correctly into MAXIS. The following instances were noted in the sample of 25 MAXIS case files tested: ? One instance in which the documentation of citizenship in MAXIS was a naturalization card; however the case file did not contain documentation that citizenship was verified. ? Two instances in which eligibility had not been re-determined for 2019 and the written applications used to determine eligibility were not retained in the case file. ? Two instances in which MAXIS listed unearned income; however, there was no indication or verification of a bank account or Direct Express debit card for the deposits. ? One instance of life insurance listed on the application; however, there was no documentation of verification in the case file and the life insurance policy was not listed in MAXIS. ? One instance of a trust account listed in MAXIS that was documented as verified in the case file; however, the trust account was not identified as revocable or irrevocable. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of documented verification of information input into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel responsible for entering case information into MAXIS did not ensure all required information was verified or updated properly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained and properly updated in MAXIS. In addition, consideration should be given to providing additional training to program personnel. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2019-002 Prior Year Finding Number: 2016-002 Repeat Finding Since: 2016 Eligibility Testing Program: U.S. Department of Health and Human Services? Medical Assistance Program (CFDA No. 93.778), Award Nos. 1905MN5ADM and 1905MN5MAP, 2019 Pass-Through Agency: Minnesota Department of Human Services Criteria: 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 systems, MAXIS and METS, which are used by Clay County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available to support participant eligibility in MAXIS. In other circumstances, information was not updated or input correctly into MAXIS. The following instances were noted in the sample of 25 MAXIS case files tested: ? One instance in which the documentation of citizenship in MAXIS was a naturalization card; however the case file did not contain documentation that citizenship was verified. ? Two instances in which eligibility had not been re-determined for 2019 and the written applications used to determine eligibility were not retained in the case file. ? Two instances in which MAXIS listed unearned income; however, there was no indication or verification of a bank account or Direct Express debit card for the deposits. ? One instance of life insurance listed on the application; however, there was no documentation of verification in the case file and the life insurance policy was not listed in MAXIS. ? One instance of a trust account listed in MAXIS that was documented as verified in the case file; however, the trust account was not identified as revocable or irrevocable. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The lack of documented verification of information input into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel responsible for entering case information into MAXIS did not ensure all required information was verified or updated properly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is obtained and properly updated in MAXIS. In addition, consideration should be given to providing additional training to program personnel. View of Responsible Official: Acknowledged
Finding Number: 2019-002 Finding Title: Eligibility Testing Program: Medical Assistance Program (CFDA # 93.778) Name of Contact Person Responsible for Corrective Action: Rhonda Porter, Director Larry Young, Financial Services Supervisor Eligibility Workers Corrective Action Planned: 1. All of the audit findings and case errors will be reviewed with the Eligibility Workers and strategies will be developed with the Supervisor and Eligibility Workers to eliminate errors from occurring in the future. 2. Monthly case reviews will be done and any errors will be addressed with all Eligibility Workers for correction and training purposes. 3. Workload demands will continue to be assessed as to whether additional staff resources are needed to address processing errors. Anticipated Completion Date: December 2021
2018-002
FAC accepted this audit on September 26, 2019 — management decision was due March 26, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2016-002
GSA_MIGRATION
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GSA_MIGRATION
2017-001
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on September 27, 2018 — management decision was due March 27, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2016-002
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on September 28, 2017 — management decision was due March 28, 2018.
GSA_MIGRATION
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