EIN: 416005915
UEI: REMFQKQV43M6
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 1, 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 April 1, 2026 (144 days ago).
What is a management decision? →As part of our audit, it was noted that the County did not receive documentation for the verification of assets for two MAGI cases where additional verification was required, as well as two non-MAGI cases. In addition, it was noted that only a small number of casefiles had documentation of a review performed. Questioned Costs: N/A Context: Four casefiles were noted to not have the required asset verification and only 15 cases had review documentation. Cause: Verifications were never received by the County. Controls were insufficient to ensure this process occurred. Effect: Lack of verification and control procedures could lead to an ineligible case which could result in an improper charge to the grant. Repeat Finding: No Recommendation: We recommend the County ensure it has controls in place to properly verify assets for cases when required and ensure reviews are being performed consistently with documentation retained. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴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: 2305MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Number(s): 2305MN5ADM Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria or Specific Requirement: The County should ensure it has controls in place over eligibility procedures related to verification of assets and review of casefiles. Condition: As part of our audit, it was noted that the County did not receive documentation for the verification of assets for two MAGI cases where additional verification was required, as well as two non-MAGI cases. In addition, it was noted that only a small number of casefiles had documentation of a review performed. Questioned Costs: N/A Context: Four casefiles were noted to not have the required asset verification and only 15 cases had review documentation. Cause: Verifications were never received by the County. Controls were insufficient to ensure this process occurred. Effect: Lack of verification and control procedures could lead to an ineligible case which could result in an improper charge to the grant. Repeat Finding: No Recommendation: We recommend the County ensure it has controls in place to properly verify assets for cases when required and ensure reviews are being performed consistently with documentation retained. Views of Responsible Officials: There is no disagreement with the audit finding.
Medical Assistance – Assistance Listing No. 93.778 Recommendation: The County should ensure it has controls in place to properly verify assets for cases when required and ensure reviews are being performed consistently with documentation retained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will ensure casefiles are reviewed consistently and document that review. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer, Amie Gendron Administrative Services Supervisor Planned completion date for corrective action plan: December 31, 2025
There is no documentation of a review of the following required reports for the program: LCTS Annual Collaborative Report and Annual Child and Teen Check-Up Report. Questioned Costs: N/A Context: Noted there is no documentation of review for the required program reports. Cause: The County does not have processes in place to ensure all required reports for the program are reviewed and that review is documented. Controls were insufficient to ensure this process occurred. Effect: Lack of documentation of the review of required reports for the program could lead to errors in the reports and therefore could lead to improper charges to the grant. Repeat Finding: No Recommendation: We recommend the County ensure it has proper controls in place to document the review of all required reports for the program. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴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: 2305MN5ADM, 2024 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Number(s): 2305MN5ADM Award Period: January 1, 2024 through December 31, 2024 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: The County should ensure it has proper controls in place to ensure all required reports for the program have documentation of someone other than the preparer reviewing the reports. Condition: There is no documentation of a review of the following required reports for the program: LCTS Annual Collaborative Report and Annual Child and Teen Check-Up Report. Questioned Costs: N/A Context: Noted there is no documentation of review for the required program reports. Cause: The County does not have processes in place to ensure all required reports for the program are reviewed and that review is documented. Controls were insufficient to ensure this process occurred. Effect: Lack of documentation of the review of required reports for the program could lead to errors in the reports and therefore could lead to improper charges to the grant. Repeat Finding: No Recommendation: We recommend the County ensure it has proper controls in place to document the review of all required reports for the program. Views of Responsible Officials: There is no disagreement with the audit finding.
Medical Assistance – Assistance Listing No. 93.778 Recommendation: The County should ensure it has proper controls in place to document the review of all required reports for the program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will enact a process to ensure all reports are received and approved prior to the reporting deadline. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer, Amie Gendron Administrative Services Supervisor Planned completion date for corrective action plan: December 31, 2025
FAC accepted this audit on September 28, 2023 — management decision was due March 28, 2024.
2022 ? 004 Internal Controls over Eligibility Determination Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Federal Assistance Identification Number and Year: 2205MN5ADM, 2205MN5MAP, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5ADM, 2205MN5MAP Award Period: Year ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The county does not have a process in place to ensure case file reviews are documented. Questioned Costs: None. Cause: Supervisors did not document their review process. Effect: The lack of a review and approve process increases the risk of ineligible participants will participate in the federal program. Repeat Finding: Yes, 2021-004. Recommendation: We recommend the County implement a review process over medical assistance case files. A sample of cases should be reviewed by someone knowledgeable of the program requirements on a periodic basis, and the review process should be documented. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 004 Internal Controls over Eligibility Determination Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Federal Assistance Identification Number and Year: 2205MN5ADM, 2205MN5MAP, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5ADM, 2205MN5MAP Award Period: Year ended December 31, 2022 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The county does not have a process in place to ensure case file reviews are documented. Questioned Costs: None. Cause: Supervisors did not document their review process. Effect: The lack of a review and approve process increases the risk of ineligible participants will participate in the federal program. Repeat Finding: Yes, 2021-004. Recommendation: We recommend the County implement a review process over medical assistance case files. A sample of cases should be reviewed by someone knowledgeable of the program requirements on a periodic basis, and the review process should be documented. Views of Responsible Officials: There is no disagreement with the audit finding.
United States Department of Health and Human Services 2022-004 Medical Assistance ? Assistance Listing No. 93.778 Recommendation: The County should implement a review process over medical assistance case files. A sample of cases should be reviewed by someone knowledgeable of the program requirements on a periodic basis and documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will add a case file documentation process for the casefiles being reviewed. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer Planned completion date for corrective action plan: December 31, 2023
2021-004
2022 ? 005 Special Provisions Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Federal Assistance Identification Number and Year: 2205MN5ADM, 2205MN5MAP, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5ADM, 2205MN5MAP Award Period: Year ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The contract between the Minnesota Department of Human Services and Wadena County states the County is required to review all report submitted by collaborative members for accuracy and timeliness and retain a paper copy of all submitted reports. Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: Quarterly grant reports filed by collaborative members were not submitted timely. The County had no documentation of review and approval. Questioned Costs: None. Cause: The County did not properly oversee to ensure collaborative members were submitting reports timely. Effect: Funding could be denied or inaccurate information could be submitted on the reports. Repeat Finding: Yes, 2021-005. Recommendation: We recommend the County implement procedures to ensure collaborative members submit quarterly reports timely. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 005 Special Provisions Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Federal Assistance Identification Number and Year: 2205MN5ADM, 2205MN5MAP, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5ADM, 2205MN5MAP Award Period: Year ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The contract between the Minnesota Department of Human Services and Wadena County states the County is required to review all report submitted by collaborative members for accuracy and timeliness and retain a paper copy of all submitted reports. Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: Quarterly grant reports filed by collaborative members were not submitted timely. The County had no documentation of review and approval. Questioned Costs: None. Cause: The County did not properly oversee to ensure collaborative members were submitting reports timely. Effect: Funding could be denied or inaccurate information could be submitted on the reports. Repeat Finding: Yes, 2021-005. Recommendation: We recommend the County implement procedures to ensure collaborative members submit quarterly reports timely. Views of Responsible Officials: There is no disagreement with the audit finding.
2022-005 Medical Assistance ? Assistance Listing No. 93.778 Recommendation: The County should implement procedures to ensure collaborative members submit reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will enact a process to ensure all reports are received prior to the reporting deadline. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer Planned completion date for corrective action plan: December 31, 2023
2021-005
2022 ? 006 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Federal Assistance Identification Number and Year: 2205MN5ADM, 2205MN5MAP, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5ADM, 2205MN5MAP Award Period: Year ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The Annual LCTS Collaborative Report did not have documentation of a formal review by someone other than the preparer prior to submission. Questioned Costs: None. Cause: The County does not have adequate internal controls in place to ensure review of the report. Effect: Errors in the report would not be detected prior to submission. Repeat Finding: Yes, 2021-006. Recommendation: We recommend the County implement an internal control procedure to ensure the report is formally reviewed and approved by someone other than the person who prepared the reports. Views of Responsible Officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2022 ? 006 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Federal Assistance Identification Number and Year: 2205MN5ADM, 2205MN5MAP, 2022 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 2205MN5ADM, 2205MN5MAP Award Period: Year ended December 31, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The Annual LCTS Collaborative Report did not have documentation of a formal review by someone other than the preparer prior to submission. Questioned Costs: None. Cause: The County does not have adequate internal controls in place to ensure review of the report. Effect: Errors in the report would not be detected prior to submission. Repeat Finding: Yes, 2021-006. Recommendation: We recommend the County implement an internal control procedure to ensure the report is formally reviewed and approved by someone other than the person who prepared the reports. Views of Responsible Officials: There is no disagreement with the audit finding.
United States Department of Health and Human Services 2022-006 Medical Assistance ? Assistance Listing No. 93.778 Recommendation: The County should implement a review process over the LCTS Annual Collaborative Report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will enact a process to ensure the review of the annual collaborative report is documented. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer Planned completion date for corrective action plan: December 31, 2023
2021-006
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
2021 ? 004 Internal Controls over Eligibility Determination Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Federal Assistance Identification Number and Pass-Through Numbers: 2105MN5ADM, 2105MN5MAP Award Period: Year ended December 31, 2021 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The county does not have a process in place to ensure case file reviews are documented. Questioned costs: None. Cause: Supervisors did not document their review process. Effect: The lack of a review and approve process increases the risk of ineligible participants will participate in the federal program. Repeat Finding: No. Recommendation: We recommend the County implement a review process over medical assistance case files. A sample of cases should be reviewed by someone knowledgeable of the program requirements on a periodic basis, and the review process should be documented. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2021 ? 004 Internal Controls over Eligibility Determination Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Federal Assistance Identification Number and Pass-Through Numbers: 2105MN5ADM, 2105MN5MAP Award Period: Year ended December 31, 2021 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The county does not have a process in place to ensure case file reviews are documented. Questioned costs: None. Cause: Supervisors did not document their review process. Effect: The lack of a review and approve process increases the risk of ineligible participants will participate in the federal program. Repeat Finding: No. Recommendation: We recommend the County implement a review process over medical assistance case files. A sample of cases should be reviewed by someone knowledgeable of the program requirements on a periodic basis, and the review process should be documented. Views of responsible officials: There is no disagreement with the audit finding.
Medical Assistance ? Assistance Listing No. 93.778 Recommendation: The County should implement a review process over medical assistance case files. A sample of cases should be reviewed by someone knowledgeable of the program requirements on a periodic basis and documented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will add a case file documentation process for the casefiles being reviewed. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer Planned completion date for corrective action plan: December 31, 2022
2021 ? 005 Special Provisions Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Federal Assistance Identification Number and Pass-Through Numbers: 2105MN5ADM, 2105MN5MAP Award Period: Year ended December 31, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: The contract between the Minnesota Department of Human Services and Wadena County states the County is required to review all report submitted by collaborative members for accuracy and timeliness and retain a paper copy of all submitted reports. Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: Quarterly grant reports filed by collaborative members were not submitted timely. The County had not documentation of review and approval. Questioned costs: None. Cause: The County did not properly oversee to ensure collaborative members were submitting reports timely. Effect: Funding could be denied or inaccurate information could be submitted on the reports. Repeat Finding: No. Recommendation: We recommend the County implement procedures to ensure collaborative members submit quarterly reports timely. The quarterly reports should be reviewed for accuracy and paper copies should be retained. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2021 ? 005 Special Provisions Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Federal Assistance Identification Number and Pass-Through Numbers: 2105MN5ADM, 2105MN5MAP Award Period: Year ended December 31, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: The contract between the Minnesota Department of Human Services and Wadena County states the County is required to review all report submitted by collaborative members for accuracy and timeliness and retain a paper copy of all submitted reports. Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: Quarterly grant reports filed by collaborative members were not submitted timely. The County had not documentation of review and approval. Questioned costs: None. Cause: The County did not properly oversee to ensure collaborative members were submitting reports timely. Effect: Funding could be denied or inaccurate information could be submitted on the reports. Repeat Finding: No. Recommendation: We recommend the County implement procedures to ensure collaborative members submit quarterly reports timely. The quarterly reports should be reviewed for accuracy and paper copies should be retained. Views of responsible officials: There is no disagreement with the audit finding.
Medical Assistance ? Assistance Listing No. 93.778 Recommendation: The County should implement procedures to ensure collaborative members submit reports timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will enact a process to ensure all reports are received prior to the reporting deadline. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer Planned completion date for corrective action plan: December 31, 2022
2021 ? 006 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Federal Assistance Identification Number and Pass-Through Numbers: 2105MN5ADM, 2105MN5MAP Award Period: Year ended December 31, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The Annual LCTS Collaborative Report did not have documentation of a formal review by someone other than the preparer prior to submission. Questioned costs: None. Cause: The County does not have adequate internal controls in place to ensure review of the report. Effect: Errors in the report would not be detected prior to submission. Repeat Finding: No. Recommendation: We recommend the County implement an internal control procedure to ensure the report is formally reviewed and approved by someone other than the person who prepared the reports. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2021 ? 006 Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program (Part of Medicaid Cluster) Assistance Listing Number: 93.778 Pass-Through Agency: Minnesota Department of Human Services Federal Assistance Identification Number and Pass-Through Numbers: 2105MN5ADM, 2105MN5MAP Award Period: Year ended December 31, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 state that the County 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 and Context: The Annual LCTS Collaborative Report did not have documentation of a formal review by someone other than the preparer prior to submission. Questioned costs: None. Cause: The County does not have adequate internal controls in place to ensure review of the report. Effect: Errors in the report would not be detected prior to submission. Repeat Finding: No. Recommendation: We recommend the County implement an internal control procedure to ensure the report is formally reviewed and approved by someone other than the person who prepared the reports. Views of responsible officials: There is no disagreement with the audit finding.
Medical Assistance ? Assistance Listing No. 93.778 Recommendation: The County should implement a review process over the LCTS Annual Collaborative Report. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will enact a process to ensure the review of the annual collaborative report is documented. Name(s) of the contact person(s) responsible for corrective action: Heather Olson Auditor/Treasurer Planned completion date for corrective action plan: December 31, 2022
FAC accepted this audit on January 31, 2022 — management decision was due July 31, 2022.
The following exceptions were noted in the sample of two subrecipients tested: ? There were no signed agreements on file for the subrecipients tested. ? None of the subrecipients tested were provided with sufficient award information. ? The one subrecipient tested that required monitoring by the County, did not have sufficient monitoring procedures performed over them. Additionally, the County does not have documented policies and procedures for subrecipient monitoring. Questioned Costs: None. Context: Wadena County passed funds to local governments which the County is familiar with and who have been operating for many years. The County typically does not pass-through federal funds to subrecipients. If expenditures of subrecipients are found to be ineligible, it is the County's responsibility to recoup those costs and return any unspent funds to the Department of the Treasury. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Wadena County is not meeting federal regulations pertaining to subrecipient monitoring. Also, the County cannot be assured its subrecipients are administering federal awards in compliance with all applicable federal requirements. Cause: Wadena County does not generally provide federal awards to subrecipients and, therefore, did not have policies and procedures in place for subrecipient monitoring activities. Additionally, the County was not aware of the full extent of requirements for subrecipient monitoring. Recommendation: We recommend Wadena County work with departments that pass funds through to subrecipients to identify responsibilities such as completing risk assessments and monitoring procedures over federal programs, as well as creating and maintaining proper documentation to meet the requirements of federal programs. This would include documenting the monitoring procedures performed (such as on-site visits and review of the subrecipients? audit findings) and any related follow-up on findings, and performing and documenting a risk assessment of subrecipients. Additionally, we recommend the County include applicable CFDA numbers in communications regarding the program to its subrecipients. We also recommend the County develop and document policies and procedures for monitoring all federal awards. View of Responsible Official: Acknowledge
Show full finding ▾Hide full finding ▴Finding Number: 2020-002 Prior Year Finding Number: N/A Repeat Finding Since: N/A Subrecipient Monitoring Program: U.S. Department of Treasury?s COVID-19 ? Coronavirus Relief Fund (CFDA No. 21.019), Award No. SLT0016, 2020 Pass-Through Agency: Minnesota Management and Budget 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. Also, the County must comply with the requirements for pass-through entities as identified in Title 2 U.S. Code of Federal Regulations ? 200.332, such as clearly identifying the award to the subrecipient; evaluating the subrecipient?s risk of noncompliance with federal statutes, regulations, and the terms and conditions of the award; monitoring the activities of the subrecipient; and verifying the subrecipient is audited, if required. Condition: The following exceptions were noted in the sample of two subrecipients tested: ? There were no signed agreements on file for the subrecipients tested. ? None of the subrecipients tested were provided with sufficient award information. ? The one subrecipient tested that required monitoring by the County, did not have sufficient monitoring procedures performed over them. Additionally, the County does not have documented policies and procedures for subrecipient monitoring. Questioned Costs: None. Context: Wadena County passed funds to local governments which the County is familiar with and who have been operating for many years. The County typically does not pass-through federal funds to subrecipients. If expenditures of subrecipients are found to be ineligible, it is the County's responsibility to recoup those costs and return any unspent funds to the Department of the Treasury. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Wadena County is not meeting federal regulations pertaining to subrecipient monitoring. Also, the County cannot be assured its subrecipients are administering federal awards in compliance with all applicable federal requirements. Cause: Wadena County does not generally provide federal awards to subrecipients and, therefore, did not have policies and procedures in place for subrecipient monitoring activities. Additionally, the County was not aware of the full extent of requirements for subrecipient monitoring. Recommendation: We recommend Wadena County work with departments that pass funds through to subrecipients to identify responsibilities such as completing risk assessments and monitoring procedures over federal programs, as well as creating and maintaining proper documentation to meet the requirements of federal programs. This would include documenting the monitoring procedures performed (such as on-site visits and review of the subrecipients? audit findings) and any related follow-up on findings, and performing and documenting a risk assessment of subrecipients. Additionally, we recommend the County include applicable CFDA numbers in communications regarding the program to its subrecipients. We also recommend the County develop and document policies and procedures for monitoring all federal awards. View of Responsible Official: Acknowledge
Finding Number: 2020-002 Finding Title: Subrecipient Monitoring Program: COVID-19 ? Coronavirus Relief Fund (CFDA No. 21.019) Name of Contact Person Responsible for Corrective Action: Heather Olson, Auditor/Treasurer heather.olson@co.wadena.mn.us Corrective Action Planned: Due to the continuing changes with the Coronavirus Relief Funds the County was unaware that subrecipient monitoring was needed. The county will monitor any subrecipients that receive monies from the Relief Funding in the future. Forms will be required by subrecipients in the instance they receive any funds. Any government that receives funding through the relief fund will also be required to sign off on receiving said funds. The County plans to work on a policy to deal with these types of funds and how to monitor them after funds have been disbursed during the first three months of 2022. Anticipated Completion Date: March 31, 2022
FAC accepted this audit on December 28, 2020 — management decision was due June 28, 2021.
The Minnesota Department of Human Services (DHS) maintains the computer systems, MAXIS and METS, which are used by Wadena 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 80 case files tested: ? In one case file, the number of vehicles was not consistent between the application and MAXIS. In addition, MAXIS listed other assets that had not been updated since 2015. ? In one case file, bank accounts were identified as belonging to the incorrect individual; one of which was not verified. In addition, MAXIS listed a life insurance policy that had not been updated since 2012. ? In one case file, a checking account was included in MAXIS with a zero balance and was indicated as not verified; however, the case file documentation contained a bank statement with a balance of $367. ? In one case file, a life insurance policy was listed on the application; however, it was not verified or documented in MAXIS. ? In one case file, assets were identified as belonging to the incorrect individuals. ? In three case files, the client?s social security number was not verified in METS. In addition, in two of these case files, the client?s citizenship was not verified in METS. 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 pays 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 in MAXIS or METS and verification of eligibility-determining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel entering case information into MAXIS or 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. The County indicated that METS did not notify it of the need to verify social security numbers and citizenship documentation. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations are obtained and properly updated in MAXIS or METS. 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: N/A Repeat Finding Since: N/A Eligibility Testing 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 Wadena 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 80 case files tested: ? In one case file, the number of vehicles was not consistent between the application and MAXIS. In addition, MAXIS listed other assets that had not been updated since 2015. ? In one case file, bank accounts were identified as belonging to the incorrect individual; one of which was not verified. In addition, MAXIS listed a life insurance policy that had not been updated since 2012. ? In one case file, a checking account was included in MAXIS with a zero balance and was indicated as not verified; however, the case file documentation contained a bank statement with a balance of $367. ? In one case file, a life insurance policy was listed on the application; however, it was not verified or documented in MAXIS. ? In one case file, assets were identified as belonging to the incorrect individuals. ? In three case files, the client?s social security number was not verified in METS. In addition, in two of these case files, the client?s citizenship was not verified in METS. 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 pays 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 in MAXIS or METS and verification of eligibility-determining factors increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel entering case information into MAXIS or 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. The County indicated that METS did not notify it of the need to verify social security numbers and citizenship documentation. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations are obtained and properly updated in MAXIS or METS. 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 Name of Contact Person Responsible for Corrective Action: Deb Nelson Financial Assistance Supervisor II Deb.Nelson@co.wadena.mn.us 218-632-2548 Corrective Action Planned: Wadena County Human Services uses the MN Department of Human Services (DHS) Combined Manual as the governing document for managing the public assistance programs in the MAXIS and METS software systems. In addition to applying the policies in this manual, Wadena County Human Services will conduct regular case reviews and as part of those reviews, effort will be made to verify appropriate supporting documents required by DHS are obtained for the case file. New Eligibility Workers are assigned an internal mentor who will provide one on one training in addition to the DHS required program training. Anticipated Completion Date: January 31, 2021
The following instances were noted in the sample of reports tested: ? The third quarter DHS-2550 and DHS-2556 reports did not include eligible salary expenses. ? The two DHS-3220 and four DHS-3220.1 reports tested did not have documentation of review by the County?s FRAPA. ? Out of four DHS-3220.1 reports tested, one was submitted late. ? The LCTS Annual Spending report was prepared on the modified accrual basis of accounting. Questioned Costs: None Context: Upon communication by the external auditor of these differences, the County submitted revised third quarter DHS-2550 and DHS-2556 reports. The late DHS-3220.1 report was prepared by a new employee who submitted the report on the day she completed training, two days after the deadline. Effect: Expenditures on the third quarter DHS-2550 report was under reported by $771, and expenditures on the third quarter DHS-2556 report was under reported by $2,042, before the revised reports were submitted. The DHS-3220 and DHS-3220.1 reports lacked documentation of review, and one DHS-3220.1 was submitted late. The LCTS Annual Spending report overstated expenditures by $16,817. Cause: The portion of salary expenses for the health reimbursement account was missed in error of the third quarter DHS-2550 and DHS-2556 reports. The Social Services Administrative Services Supervisor, who acts as the County?s FRAPA, informed us that she was not aware that she needed to keep documentation of the reviews of the DHS-3220 and DHS-3220.1 reports. The DHS-3220.1 report that was submitted late was due to staff turnover. Preparing the LCTS Annual Spending report on the modified accrual basis of account was an oversite. Recommendation: We recommend the County implement supervisory review procedures for all quarterly reports prior to submission and document evidence of this review. In addition, we recommend the County implement procedures to ensure reports are submitted timely and using the correct accounting basis. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴Finding Number: 2019-003 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 award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The Minnesota DHS provides reporting requirements for reimbursements through the Medical Assistance Program in the form of bulletins and other communication. As part of the County?s reporting requirements, the County submits the Income Maintenance DHS-2550 reports, the Social Services DHS-2556 reports, and the Local Collaborative Time Study (LCTS) Cost Schedules DHS-3220 and DHS-3220.1 on a quarterly basis. The LCTS Annual Spending Report is submitted after year-end. Requirements for the Local Collaborative Time Study (LCTS) Cost Schedules (DHS-3220 reports) are laid out in DHS Bulletin #16-32-04 ? Local Collaborative Time Study (LCTS) Fiscal Operations. The bulletin states that LCTS fiscal site contacts are required to verify that the information on the LCTS Fiscal and Cost Schedule is accurate and that it complies with all guidelines set forth in the LCTS Cost Schedule instructions. It also states that the County?s LCTS fiscal reporting and payment agent (FRAPA) is required to review all cost schedules from participating agencies on or before the 20th calendar day following the end of each quarter. The instructions to the LCTS Annual Spending report state that the report must be completed on a cash basis. Condition: The following instances were noted in the sample of reports tested: ? The third quarter DHS-2550 and DHS-2556 reports did not include eligible salary expenses. ? The two DHS-3220 and four DHS-3220.1 reports tested did not have documentation of review by the County?s FRAPA. ? Out of four DHS-3220.1 reports tested, one was submitted late. ? The LCTS Annual Spending report was prepared on the modified accrual basis of accounting. Questioned Costs: None Context: Upon communication by the external auditor of these differences, the County submitted revised third quarter DHS-2550 and DHS-2556 reports. The late DHS-3220.1 report was prepared by a new employee who submitted the report on the day she completed training, two days after the deadline. Effect: Expenditures on the third quarter DHS-2550 report was under reported by $771, and expenditures on the third quarter DHS-2556 report was under reported by $2,042, before the revised reports were submitted. The DHS-3220 and DHS-3220.1 reports lacked documentation of review, and one DHS-3220.1 was submitted late. The LCTS Annual Spending report overstated expenditures by $16,817. Cause: The portion of salary expenses for the health reimbursement account was missed in error of the third quarter DHS-2550 and DHS-2556 reports. The Social Services Administrative Services Supervisor, who acts as the County?s FRAPA, informed us that she was not aware that she needed to keep documentation of the reviews of the DHS-3220 and DHS-3220.1 reports. The DHS-3220.1 report that was submitted late was due to staff turnover. Preparing the LCTS Annual Spending report on the modified accrual basis of account was an oversite. Recommendation: We recommend the County implement supervisory review procedures for all quarterly reports prior to submission and document evidence of this review. In addition, we recommend the County implement procedures to ensure reports are submitted timely and using the correct accounting basis. View of Responsible Official: Concur
Finding Number: 2019-003 Finding Title: Reporting Name of Contact Person Responsible for Corrective Action: Amie Gendron Human Services Administrative Services Supervisor Amie.Gendron@co.wadena.mn.us 218-632-2535 Corrective Action Planned: Administrative Services Supervisor receives a daily reminder email from MN Department of Human Services indicating which collaborative partners have outstanding quarterly cost reports due; the email comes until the last day of report submission. The supervisor will check the link each day and print any newly submitted reports. The supervisor compares report line data from previous quarters to identify any reported amounts that are questionable, then signs off on the report. The supervisor will email the fiscal contact, two days before the final report due date, reminding them of the report submission. The Administrative Services Supervisor will continue to notify DHS and obtain their directive to submit reports with the data available by the report due date and will follow up with amended reports, when information is corrected. IFS account activity reports used to prepare quarterlies are maintained for audit purposes. Anticipated Completion Date: Corrective action has been implemented with the 3rd quarter 2020 reports.
FAC accepted this audit on September 24, 2018 — management decision was due March 24, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on August 21, 2017 — management decision was due February 21, 2018.
GSA_MIGRATION
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