COUNTY OF WASHINGTONLocal Government

Federal Agency: U.S. Department of Transportation Federal Program Name: Highway Planning and Construction Assistance Listing Number: 20.205 Federal Award Identification Number and Year: 082-090-010, 082-638-015, 082-030-007, 082-612-025, 082-596-005 Pass-Through Agency: Minnesota Department of Transportation Pass-Through Numbers: 082-090-010, 082-638-015, 082-030-007, 082-612-025, 082-596-005 Award Period: Year-Ended December 31, 2025 Type of Finding: Significant Deficiency in Internal Control Over Financial Reporting Criteria or Specific Requirement: County management should be aware of the need to have adequate policies and procedures in place for timely reimbursement requests for highway projects. Condition: Policies and procedures in place for timely reimbursement requests will ensure that the County is receiving funds it is owed. In addition, this will ensure there are no cash flow shortages and increase opportunities for investment earnings. Questioned Costs: None. Context: A reimbursement request for work performed in 2024 (work certified as of Nov. 2024) was not submitted until June 2025. In addition, two other pay requests received in 2025 should have been recorded as accruals in 2024 when the expense was incurred and reported. Cause: The County had one highway project for which costs were incurred in October and November 2024, and the related reimbursement was submitted and approved in June 2025. Repeat Finding: No. Recommendation: We recommend County management review internal controls currently in place and design and implement procedures to request reimbursements in a timelier fashion and to submit requests for reimbursements on at least a quarterly basis. Views of Responsible Officials: There is no disagreement with the audit finding. The County will implement procedures to ensure timely submission of reimbursement requests.

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Pass-Through Agency: Minnesota Department of Health and Human Services Pass-Through Numbers: 23011MNTANF Federal Award Identification Number and Year: 2301MNTANF, 2023 Award Period: Year-Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: Eligibility standards require there to be an agency approval on all Combined Application Form’s. Condition: During our testing, two of 40 cases tested did not have agency approval on them. Questioned Costs: None. Cause: The case worker did not properly complete. Repeat Finding: No Recommendation: We recommend the County ensure all eligibility combined application forms are double checked for agency signature. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Pass-Through Agency: Minnesota Department of Health and Human Services Pass-Through Numbers: 2301MNTANF Federal Award Identification Number and Year: 2301MNTANF, 2023 Award Period: Year-Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: Eligibility standards require there to be a minor child in the household. Condition: During our testing, one of 40 cases was noted to not have a minor child in the household and receiving benefits. Questioned Costs: None. Cause: The case worker did not properly complete Repeat Finding: No Recommendation: We recommend the County ensure all eligibility case applications are doublechecked for a minor child in the home to be eligible for the program. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families Assistance Listing Number: 93.558 Pass-Through Agency: Minnesota Department of Health and Human Services Pass-Through Numbers: 2301MNTANF Federal Award Identification Number and Year: 2301MNTANF, 2023 Award Period: Year-Ended December 31, 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: There is a control requirement for eligibility grant requirements. Condition: During our testing, it was determined that the County did not do a sufficient amount of internal casefile reviews. Questioned Costs: None. Cause: The supervisors were more focused on getting the cases updated with coming out of the public health emergency and training, then doing internal casefile reviews. Repeat Finding: No Recommendation: We recommend the County do more internal casefile reviews for the amount of cases that they have. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.

2022-002 DOCUMENTATION OF REPORT REVIEW Finding Number: 2022-002 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Foster Care Title IV-E Assistance Listing Number: 93.658 Pass-Through Agency: Minnesota Department of Health and Human Services Pass-Through Numbers: 2201MNFOST Award Period: Year-Ended December 31, 2022 Compliance Requirement Section: Reporting Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria: Uniform Guidance requires that the County maintain records sufficient to support the reports and document the review and approval of the reports by someone other than the preparer. Condition and Context: During our testing, 4 out of 4 reports tested for reporting, the County did not have documentation of a reviewer other than the preparer for the quarterly reports. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits and was statistically valid. Cause: The County?s internal review process has limited number of personnel. Possible Effect: Improper reimbursements could be requested and paid to the County. Repeat Finding: No. Questioned Costs: None noted. Recommendation: We recommend the County retain documentation related to the applicable federal requirements to ensure compliance with said federal requirements. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding. A training with staff will be scheduled to identify areas and best practices to fully implement County policy.

DOCUMENTATION OF PROCUREMENT, SUSPENSION, AND DEBARMENT Finding Number: 2021-001 Federal Agency: U.S. Department of Agriculture Federal Program Title: State Administrative Matching Grants for Supplemental Nutrition Assistance Program Assistance Listing Number: 10.561 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 212MN101S2514, 212MN101S2520, 212MN101S2520, and 212MN127Q7503 Award Period: Year-Ended December 31, 2021 Compliance Requirement Section: Procurement/Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria: Uniform Guidance requires that the entity maintain records sufficient to detail the history of procurement, procurement transactions are conducted in a manner providing full and open competition, and that entity verify that the vendor is not suspended or debarred or otherwise excluded from participating in the transaction. Condition and Context: During our testing, 2 out of 5 transactions tested (all of which were under $25,000) for SNAP, the County did not have documentation on methods of procurement used nor any historical documentation on how each service provider was chosen and what means were used to procure those services. It was noted during testing 1 of 2 transactions that suspension and debarment requirements are not being followed (none of the vendors were found to be suspended or debarred). The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits and was statistically valid. Cause: The County?s internal review process has limited number of personnel. Possible Effect: Improper benefits could be paid to clients. Repeat Finding: No. Questioned Costs: None noted. Recommendation: We recommend the County retain documentation related to the applicable federal requirements to ensure compliance with said federal requirements. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding. A training with staff will be scheduled to identify areas and best practices to fully implement County policy.

2020-002 TIMELY REPORTING Federal Agency: U.S. Department of Treasury Federal Program Title: COVID-19 Coronavirus Relief Fund CFDA Numbers: 21.019 Pass-Through Agency: Minnesota Department of Revenue Pass-Through Numbers: STL0016 Compliance Requirement Affected: Reporting Award Period: Year-Ended December 31, 2020 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria: Per the October 22, 2020 FAQs for Local Governments receiving Coronavirus Relief Funds (CRF) guidance from the state of Minnesota, ?Reports must be filed by the 7th business day of the month.? Condition and Context: During the testing of our statistically valid sample, two of the five Coronavirus Relief Fund reports tested, and three of the five Local Public Health Invoice Cash Investigation/Contract Tracing (CICT) reports tested were submitted after the reporting deadline. Possible Effect: A report was not submitted timely could be refused or disqualified. Cause: Complex program new to the County. Repeat Finding: Not applicable. Questioned Costs: Not applicable. Recommendation: We recommend the County implement policies and procedures to ensure reports are submitted timely. Views of Responsible Officials: There is no disagreement with the audit finding.

2020-003 CASEFILE REVIEW Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Temporary Assistance for Needy Families CFDA Numbers: 93.558 Pass-Through Agency: Minnesota Department of Health and Human Services and Minnesota Department of Health Pass-Through Numbers: 2001MNTANF Compliance Requirement Affected: Eligibility Award Period: Year-Ended December 31, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Federal guidelines require recipients of federal awards to implement internal control procedures to ensure compliance with applicable compliance requirements. Condition and Context: During our eligibility testing, we noted via inquiry that the County is performing the periodic reviews of case files to ensure compliance with eligibility requirements however the county does not have a formal process for documenting the review as it relates to public health Temporary Assistance for Needy Families cases. Possible Effect: Corrective action, based on the periodic review, may not be corrected and an individual could receive benefits when not eligible. Cause: Lack of management oversight. Repeat Finding: Not applicable. Questioned Costs: Not applicable. Recommendation: We recommend the County develop and implement a formal policy for documenting the case file review internal control process. Views of Responsible Officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Health and Human Services Federal Program Titles: Medical Assistance Program (Medicaid Cluster) CFDA Numbers: 93.778 Pass-Through Agency: Minnesota Department of Human Services Pass-Through Numbers: 1905MN5ADM Compliance Requirement Affected: Eligibility Award Period: Year-Ended December 31, 2019 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: According to Uniform Guidance 2 CFR Part 200, Appendix XI Compliance Supplement for CFDA 93.778 and 42 CFR section 431.10, the federal eligibility compliance requirements for Non-MAGI and MAGI Medical Assistance include verification of specific assets owned by applicants. In order for benefit amounts to be calculated correctly, it?s necessary for the asset information to be entered into the state eligibility system, MAXIS, accurately. Condition and Context: During the testing of a statistically valid sample of casefiles, it was noted that on 1 of 60 tested, there was no bank statement balance entered into MAXIS within 30 days. Cause: Human error and lack of verification, amounts missing did not affect eligibility by case manager oversight and were not updated in MAXIS due to the small nature of the change from the previous amount entered by County staff. Possible Effect: If asset values are not properly entered into the state MAXIS system, benefit amounts maybe incorrect or paid to ineligible clients. Repeat Finding: Finding was a repeat finding from the prior year identified as Finding 2018- 002 Questioned Costs: None noted, no change in eligibility or benefits. Recommendation: We recommend the County review its policies and procedures to ensure that the amounts entered into MAXIS are updated to match the most recent verification documentation, regardless of the change in the amount from the previous verification on file. Views of Responsible Officials: There is no disagreement with the audit finding.

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