EIN: 416005897
UEI: LUBPJ3UB91F5
Data as of August 25, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 25, 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 25, 2026 (153 days ago).
What is a management decision? →The Minnesota Department of Human Services maintains the computer system, METS, which is used by Sibley County to support the eligibility determination process. In the case files tested for eligibility, not all documentation to support participant eligibility was updated or input correctly. In the sample of 40 case files tested, two participants’ Social Security numbers were not verified. Questioned Costs: Not applicable. Sibley County administers the program, but the State of Minnesota pays benefits to participants in this program. Context: The State of Minnesota and Sibley County split the eligibility determination process. Generally, Sibley 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 3,456 active METS 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 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 Sibley 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, Sibley County should consider providing further training to program personnel. View of Responsible Official: Acknowledge
Show full finding ▾Hide full finding ▴2024-002 Eligibility – METS Prior Year Finding Number: N/A Year of Finding Origination: 2024 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’ Social Security number verification. Minnesota Statutes, section 256B.05, requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer system, METS, which is used by Sibley County to support the eligibility determination process. In the case files tested for eligibility, not all documentation to support participant eligibility was updated or input correctly. In the sample of 40 case files tested, two participants’ Social Security numbers were not verified. Questioned Costs: Not applicable. Sibley County administers the program, but the State of Minnesota pays benefits to participants in this program. Context: The State of Minnesota and Sibley County split the eligibility determination process. Generally, Sibley 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 3,456 active METS 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 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 Sibley 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, Sibley County should consider providing further training to program personnel. View of Responsible Official: Acknowledge
Finding Number: 2024-002 Finding Title: Eligibility - METS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: John Stepien, Financial Assistance Supervisor Corrective Action Planned: The Financial Assistance supervisor will run BOBI report MNCM 220A at least 2 times per month to identify outstanding verifications for MA cases in METS. This will identify specific cases missing SSN verifications. Anticipated Completion Date: The MNCM 220A reported is generated quarterly. The anticipated completion date is October 6th for the next quarterly report.
The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Sibley 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. The following exceptions were noted in the sample of 40 case files tested: • Five participants’ citizenship were not verified. • One participant’s income did not match the documentation in the file. • Three participants’ assets information did not have supporting documentation in the file. 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, Sibley County performs the “intake function” needed for this program, while the State maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the State. The population consisted of 541 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 indicated some of the case files were transferred from another county and the supporting documentation was not included in the information provided. In other case files, the program personnel responsible for resolving eligibility issues in MAXIS did not ensure all required information was input or updated correctly or verified. Recommendation: We recommend Sibley 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, Sibley County should consider providing further training to program personnel. View of Responsible Official: Acknowledge
Show full finding ▾Hide full finding ▴2024-003 Eligibility – MAXIS Prior Year Finding Number: 2023-001 Year of Finding Origination: 2022 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Qualified 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. Specific eligibility requirements are included for participants’ citizenship verification, income limits, and asset verification. Minnesota Statutes, section 256B.05, requires county agencies to administer Medical Assistance. Condition: The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Sibley 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. The following exceptions were noted in the sample of 40 case files tested: • Five participants’ citizenship were not verified. • One participant’s income did not match the documentation in the file. • Three participants’ assets information did not have supporting documentation in the file. 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, Sibley County performs the “intake function” needed for this program, while the State maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the State. The population consisted of 541 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 indicated some of the case files were transferred from another county and the supporting documentation was not included in the information provided. In other case files, the program personnel responsible for resolving eligibility issues in MAXIS did not ensure all required information was input or updated correctly or verified. Recommendation: We recommend Sibley 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, Sibley County should consider providing further training to program personnel. View of Responsible Official: Acknowledge
Finding Number: 2024-003 Finding Title: Eligibility - MAXIS Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: John Stepien, Financial Assistance Supervisor Corrective Action Planned: •Citizenship verification continues to be an error prone area. As an automated system process, the majority of our cases successfully complete the interface with SSA to determine citizenship. Determining the root cause of these errors is not always simple, but some contributing factors are failed interface links between MAXIS and SSA. Citizenship details on the MEMI panel which isn’t part of the normal review workflow for recertifications as it holds “additional” member information that typically doesn’t change from year to year. Also, human error plays a role as this type of verification is typically requested at the time a case opens and normally doesn’t change throughout the life of the case. Despite reminders and manual reviews, cases are still being missed. System modernization would go a long way to mitigate these types of error. In addition to continuing the reminders for staff, and periodically checking cases for failed interface verifications, the financial assistance supervisor will request ad-hoc reports from DHS specifically for healthcare cases that have a missing citizenship verification field or coded as “N” for no verification on the MEMI panel in MAXIS. This report will be shared with staff to target cases with missing citizenship verifications. In addition, it has been determined that the use of SMI to verify citizenship has been approved, however this verification has not been added to the case file in some instances which results in an error finding. •Asset verification rules have changed over the past year and a half and although the previous CAP stated we would hold reviews of this policy during regular unit meetings, the financial assistance supervisor has only held one review. This area will be revisited using state training in Trainlink and staff will be reminded that any information reported on an application or renewal needs to be compared to the information recorded in MAXIS and conflicting information needs to be verified. In addition, the process of receiving verifications will be reviewed. Currently, verification documents must be accepted from the client by any means, including mail, fax, paper, or email. Email containing verifications may be sent to the primary Financial Assistance email (recommended) but also may be sent to the agency’s primary email or the primary worker’s personal work email (not recommend). This puts the responsibility of moving those verifications to the case file on several different people. This process may lead to verifications being received but not added to the case files. Best practices will be shared with staff. Anticipated Completion Date: Trainlink training was shared and reviewed at the next in person unit meeting, September 4th. Ad-Hoc reports will be requested for the next quarter, October 6th Reviewing receipt of verification procedures will occur over the next several months and modifications (if necessary) or best practices will be shared January 2026.
2023-001
FAC accepted this audit on September 3, 2024 — management decision was due March 3, 2025.
The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Sibley County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was input into MAXIS. The following exceptions were noted in the sample of 40 MAXIS case files tested: • four case files which contained citizenship verification but citizenship in MAXIS was noted as not verified. • three case files where the asset or income listed in MAXIS did not match the documentation in the case file. Questioned Costs: None. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Sibley County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. 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 to document verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS reviewed the support but did not enter or update the information in the system. Recommendation: We recommend Sibley County implement additional procedures to provide reasonable assurance that the information is properly input or updated in MAXIS. View of Responsible Official: Acknowledge.
Show full finding ▾Hide full finding ▴2023-001 Eligibility Prior Year Finding Number: 2022-002 Year of Finding Origination: 2022 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: 2305MN5ADM; 2023 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 maintains the computer system, MAXIS, which is used by Sibley County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation to support participant eligibility was input into MAXIS. The following exceptions were noted in the sample of 40 MAXIS case files tested: • four case files which contained citizenship verification but citizenship in MAXIS was noted as not verified. • three case files where the asset or income listed in MAXIS did not match the documentation in the case file. Questioned Costs: None. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Sibley County performs the “intake function” needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. 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 to document verification of key eligibility-determining factors increases the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case data into MAXIS reviewed the support but did not enter or update the information in the system. Recommendation: We recommend Sibley County implement additional procedures to provide reasonable assurance that the information is properly input or updated in MAXIS. View of Responsible Official: Acknowledge.
Finding Number: 2023-001 Finding Title: Eligibility Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: John Stepien, Financial Assistance Supervisor Corrective Action Planned: • Staff will periodically check cases for citizenship. Citizenship verification is supposed to be an automatic process within MAXIS as an interface update with the Social Security Administration. Workers have come to rely on this automatic process, so reminders to staff to check that this process has actually happened, as well as checking cases periodically, will hopefully resolve this error from reoccurring in the future. • Vehicles are now considered a disregarded asset that is unlikely to increase in value. According to the most recent policy change, these vehicle assets no longer need to be reverified or updated within MAXIS as long as the reported asset has already been verified and entered in MAXIS. Review of this policy will be brought up during regular unit meetings and staff will be reminded that any information reported on an application or renewal needs to be compared to the information recorded in MAXIS and conflicting information needs to be verified. This would specifically include any new vehicles that were purchased, or any vehicles sold during the certification period. Income verifications are usually the primary focus when determining new eligibility, however this data is still subject to data entry error. Special attention to this in particular will be highlighted during regular unit meetings. Training on how to review, and calculate income on paystubs will be provided to eligibility staff as well as creating detailed case notes as to how the income was figured and the method used for calculating that income. This will hopefully resolve this error from reoccurring in the future. Anticipated Completion Date: These actions will begin August 5, 2024, during the regularly scheduled in person unit meeting. Unit meetings are held two times per month, once in person, and once virtually. Health Care is a standing agenda topic and adding these audit findings to the next meeting will be the start of our corrective action. This action will be an ongoing effort to eliminate errors in our cases.
2022-002
FAC accepted this audit on September 25, 2023 — management decision was due March 25, 2024.
The Minnesota Department of Human Services (DHS) maintains the computer system, MAXIS, which is used by Sibley County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available or updated to support participant eligibility. In a sample of 40 MAXIS case files tested, four case files included outdated vehicle information. Questioned Costs: None. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Sibley County performs the ?intake function? needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. 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 reviewed the support but did not enter or update the information in the system or was not required to verify or correspond to a recertification or renewal as it was not required during the pandemic. Recommendation: We recommend Sibley County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly 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 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: 2205MN5ADM; 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 Sibley County to support the eligibility determination process. In the case files reviewed for eligibility, not all documentation was available or updated to support participant eligibility. In a sample of 40 MAXIS case files tested, four case files included outdated vehicle information. Questioned Costs: None. Context: The State of Minnesota and the County split the eligibility determination process. Pursuant to Minnesota statutes, Sibley County performs the ?intake function? needed for this program, while the state maintains the MAXIS system, which supports the eligibility determination process. Participants receive benefit payments from the state. 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 reviewed the support but did not enter or update the information in the system or was not required to verify or correspond to a recertification or renewal as it was not required during the pandemic. Recommendation: We recommend Sibley County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly updated in MAXIS. View of Responsible Official: Concur.
Finding Number: 2022-002 Finding Title: Eligibility Program: 93.778 Medical Assistance Program Name of Contact Person Responsible for Corrective Action: John Stepien - Financial Assistance Supervisor Corrective Action Planned: Ongoing communication with agency Eligibility staff will occur regularly. Unit meetings are planned and will be held twice per month with Health Care as a standing agenda item. The importance of updating MAXIS with reported information will be discussed at these meetings. DHS also provides County and Tribal nations with regular update meetings which agency staff will be encouraged to watch every other Wednesday. In addition, the HCE-PIX meetings are specifically directed toward heath care and the updates that were made to policy and procedure. These meetings occur between 2 to 5 times per month and the information shared will also be a topic of discussion during our semimonthly unit meetings. During the unwinding period of the Public Health emergency DHS has sent out several bulletins with policy updates and the procedures these new policies require along with agency responsibilities. Communicating these changes regularly will aide in the appropriate and accurate determination of Health Care eligibility. Anticipated Completion Date: July 01, 2023 and ongoing.
FAC accepted this audit on September 24, 2020 — management decision was due March 24, 2021.
The Minnesota Department of Human Services (DHS) maintains the computer systems, MAXIS and METS, which are used by Sibley 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 instances were noted in the sample of 50 case files tested: ? For one case file, there was no documentation to verify the participant?s citizenship in METS. ? For six case files, the asset information in MAXIS was not updated or input correctly for the current application. ? For one MAXIS case file, the signed adoption assistance agreement and the letter from DHS indicating the participant qualifies for medical assistance was not included in the case file. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: Pursuant to Minnesota statutes, the County performs any ?intake function? needed for this program, while the state maintains MAXIS and METS, which support the eligibility determination process and actually pay the benefits to the 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 and documented verification of key eligibilitydetermining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was input or updated in the systems correctly or that all required information was obtained and/or retained. Recommendation: We recommend the County implement additional review procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly input or updated in MAXIS and METS and maintained in case files. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2019-003 Prior Year Finding Number: N/A Repeat Finding Since: N/A Eligibility Program: U.S. Department of Health and Human Services? Medical Assistance Program (CFDA No. 93.778), Award No. 1905MN5ADM, 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 Sibley 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 instances were noted in the sample of 50 case files tested: ? For one case file, there was no documentation to verify the participant?s citizenship in METS. ? For six case files, the asset information in MAXIS was not updated or input correctly for the current application. ? For one MAXIS case file, the signed adoption assistance agreement and the letter from DHS indicating the participant qualifies for medical assistance was not included in the case file. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: Pursuant to Minnesota statutes, the County performs any ?intake function? needed for this program, while the state maintains MAXIS and METS, which support the eligibility determination process and actually pay the benefits to the 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 and documented verification of key eligibilitydetermining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: Program personnel entering case information into MAXIS and METS did not ensure all required information was input or updated in the systems correctly or that all required information was obtained and/or retained. Recommendation: We recommend the County implement additional review procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations exists and is properly input or updated in MAXIS and METS and maintained in case files. View of Responsible Official: Acknowledged
Finding Number: 2019-003 Finding Title: Eligibility Program: Medical Assistance Program (CFDA No. 93.778) Name of Contact Person Responsible for Corrective Action: John Stepien, Income Maintenance and Child Support Supervisor Corrective Action Planned: The department will include a case file review for mandatory verifications at time of case transfer, renewal, or recertification. Verifications will be scanned to case file prior to case processing rather than after. Worker will get an electronic worklist to ensure documentation are in the case file prior to processing a new application or change in circumstance. Anticipated Completion Date: Ongoing
The following errors were noted in the reports submitted for 2019: ? The LCTS Cost Schedule DHS-3220 report prepared for Sibley County Corrections was not prepared on the cash basis. March expenditures that were not paid until April were included on the first quarter report. SIBLEY COUNTY GAYLORD, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2019 Page 168 ? Due to a spreadsheet formula error, the LCTS Annual Spending Report submitted to DHS excluded all May 2019 expenditures. Questioned Costs: None. Context: A revised LCTS Annual Spending Report has since been submitted by the County to correct for the error identified in the audit; however, the County was unable to submit corrections for the LCTS Cost Schedule DHS-3220 report. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Errors on the quarterly reports can result in the County receiving either more or less federal funding than can be justified based on the actual underlying activity. The expenditures reported on the first quarter DHS-3220 Sibley County Corrections report were overstated by $144, while the second quarter DHS-3220 report was subsequently understated by the same amount. Expenditures on the LCTS Annual Spending Report were understated by $11,117. Cause: The County?s controls over preparation of the quarterly reports were not sufficient to identify the related expenditures were not properly reported. Recommendation: We recommend that the County implement controls that ensure that all eligible costs are reported on the reports in a manner that is consistent with DHS guidance. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2019-004 Prior Year Finding Number: N/A Repeat Finding Since: N/A Reporting Program: U.S. Department of Health and Human Services? Medical Assistance Program (CFDA No. 93.778), Award No. 1905MN5ADM, 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. For County federal awards received from the Minnesota Department of Human Services (DHS), internal control should be established and maintained to provide assurance that program reports submitted to DHS are completed in accordance with DHS reporting instructions. As part of the County?s reporting requirements, the County submits the Local Collaborative Time Study (LCTS) Cost Schedule DHS-3220 reports on a quarterly basis and the LCTS Annual Report Spending Report annually. Condition: The following errors were noted in the reports submitted for 2019: ? The LCTS Cost Schedule DHS-3220 report prepared for Sibley County Corrections was not prepared on the cash basis. March expenditures that were not paid until April were included on the first quarter report. SIBLEY COUNTY GAYLORD, MINNESOTA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) FOR THE YEAR ENDED DECEMBER 31, 2019 Page 168 ? Due to a spreadsheet formula error, the LCTS Annual Spending Report submitted to DHS excluded all May 2019 expenditures. Questioned Costs: None. Context: A revised LCTS Annual Spending Report has since been submitted by the County to correct for the error identified in the audit; however, the County was unable to submit corrections for the LCTS Cost Schedule DHS-3220 report. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Errors on the quarterly reports can result in the County receiving either more or less federal funding than can be justified based on the actual underlying activity. The expenditures reported on the first quarter DHS-3220 Sibley County Corrections report were overstated by $144, while the second quarter DHS-3220 report was subsequently understated by the same amount. Expenditures on the LCTS Annual Spending Report were understated by $11,117. Cause: The County?s controls over preparation of the quarterly reports were not sufficient to identify the related expenditures were not properly reported. Recommendation: We recommend that the County implement controls that ensure that all eligible costs are reported on the reports in a manner that is consistent with DHS guidance. View of Responsible Official: Acknowledged
Finding Number: 2019-004 Finding Title: Reporting Program: Medical Assistance Program (CFDA No. 93.778) Name of Contact Person Responsible for Corrective Action: Rosy Quast, Fiscal Supervisor Corrective Action Planned: County partners will review all expenses to ascertain that all applicable costs are reported on a cash basis of accounting for all reports. Sibley County will plan to review spreadsheet formulas as needed, and will implement more extensive review before report submission. Anticipated Completion Date: Ongoing
FAC accepted this audit on September 16, 2019 — management decision was due March 16, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
FAC accepted this audit on September 26, 2018 — management decision was due March 26, 2019.
GSA_MIGRATION
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GSA_MIGRATION
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