EIN: 416005924
UEI: JK6HMLT9UF85
Data as of August 24, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 16, 2026. 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 January 16, 2027 (144 days from today).
What is a management decision? →The County did not maintain adequate support for the reported payroll amounts on LCTS Public Health Cost Schedule DHS-3220.3 reports tested. The reports also had no documentation of review. Questioned Costs: $329,183; known questioned costs were determined based on the payroll costs from each of the four LCTS Public Health Cost Schedule DHS-3220.3 reports. Context: Minnesota DHS relies on accurate submission of program costs to ensure that resulting grant funds paid to Wilkin County are for applicable federal program activities/costs. Total expenditures reported on the Schedule of Expenditures of Federal Awards are $416,193. Amounts reported on the DHS-2550, DHS-2556, and LCTS Public Health Cost Schedule DHS-3220.3 reports were $759,694, $1,879,054, and $379,254, respectively. The State of Minnesota determines the reimbursement of reported expenditures. The reporting population consisted of four quarterly DHS-2550, DHS-2556, and LCTS Public Health Cost Schedule DHS-3220.3 reports; and originally a sample of two of each report type was selected for report testing. Additionally, a sample of 40 expenditures were selected for testing, which included five LCTS Public Health Cost Schedule DHS-3220.3 expenditures for testing. Payroll reported expenditure testing relating to the LCTS Public Health Cost Schedule DHS-3220.3 was expanded to cover payroll expenditures of all four quarters.The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits, and subsequently expanded. Effect: Errors in the identification and reporting of costs on the quarterly reports can impair DHS’ ability to provide required oversight over federal programs and result in the County receiving either more or less federal funds than justified based on the actual underlying activity. Cause: The employee who prepared the reports and the supporting documentation left the County in 2025. The supporting documentation could not be located. Recommendation: We recommend the County implement controls to ensure activities allowed and allowable costs are appropriately identified and accurately reported to DHS in accordance with federal program guidance and DHS instructions, including that reports are reviewed by someone other than the preparer. We also recommend the County correct and resubmit reports submitted with unallowable activities or costs, costs allocated incorrectly, or activity reporting incorrectly. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2024-006 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Prior Year Finding Number: N/A Year of Finding Origination: 2024 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 Grants to States for Medicaid 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 award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Title 2 U.S. Code of Federal Regulations §§ 200.403(a) and 200.403(g) require costs to be necessary and reasonable, and be adequately documented. For federal awards received from the Minnesota Department of Human Services (DHS), internal controls should be established and maintained to provide assurance that program reports submitted to DHS are completed and documented in accordance with DHS reporting instructions. As part of Wilkin County’s reporting requirements, the Public Health Department submits the Local Collaborative Time Study (LCTS) Public Health Cost Schedule DHS-3220.3 on a quarterly basis. Condition: The County did not maintain adequate support for the reported payroll amounts on LCTS Public Health Cost Schedule DHS-3220.3 reports tested. The reports also had no documentation of review. Questioned Costs: $329,183; known questioned costs were determined based on the payroll costs from each of the four LCTS Public Health Cost Schedule DHS-3220.3 reports. Context: Minnesota DHS relies on accurate submission of program costs to ensure that resulting grant funds paid to Wilkin County are for applicable federal program activities/costs. Total expenditures reported on the Schedule of Expenditures of Federal Awards are $416,193. Amounts reported on the DHS-2550, DHS-2556, and LCTS Public Health Cost Schedule DHS-3220.3 reports were $759,694, $1,879,054, and $379,254, respectively. The State of Minnesota determines the reimbursement of reported expenditures. The reporting population consisted of four quarterly DHS-2550, DHS-2556, and LCTS Public Health Cost Schedule DHS-3220.3 reports; and originally a sample of two of each report type was selected for report testing. Additionally, a sample of 40 expenditures were selected for testing, which included five LCTS Public Health Cost Schedule DHS-3220.3 expenditures for testing. Payroll reported expenditure testing relating to the LCTS Public Health Cost Schedule DHS-3220.3 was expanded to cover payroll expenditures of all four quarters.The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits, and subsequently expanded. Effect: Errors in the identification and reporting of costs on the quarterly reports can impair DHS’ ability to provide required oversight over federal programs and result in the County receiving either more or less federal funds than justified based on the actual underlying activity. Cause: The employee who prepared the reports and the supporting documentation left the County in 2025. The supporting documentation could not be located. Recommendation: We recommend the County implement controls to ensure activities allowed and allowable costs are appropriately identified and accurately reported to DHS in accordance with federal program guidance and DHS instructions, including that reports are reviewed by someone other than the preparer. We also recommend the County correct and resubmit reports submitted with unallowable activities or costs, costs allocated incorrectly, or activity reporting incorrectly. View of Responsible Official: Concur
Finding Number: 2024-006 Finding Title: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: LaRae Kuhfal, Fiscal Officer and Deb Sjostrom, Director. Corrective Action Planned: LaRae has taken over the report starting with quarter 4 of 2025 and is keeping all records used for the LCTS report. We plan to make sure that the quarterly reports are reviewed and approved by the director. Anticipated Completion Date: Completed as of quarter 4, 2025 and continuing.
The Minnesota Department of Human Services maintains the computer system, MAXIS, which is used by Wilkin County to support the eligibility determination process. In the participant 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 participant files tested: • three participants’ citizenship information did not have the birth certificate in the file; and • one participant’s asset information did not match the documentation in the file, and three participant files did not have supporting asset 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, Wilkin County performs the “intake function” needed for this program, while the State maintains the MAXIS systems, which supports the eligibility determination process. Participants receive benefit payments from the State. The population consisted of 336 active MAXIS participant cases enrolled in Grants to States for Medicaid in 2024; the sample size was 40 participant 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 into MAXIS and the lack of verification or follow-up of eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case file information into MAXIS did not ensure all required information was input or updated correctly, supported, and retained. Recommendation: We recommend Wilkin 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, Wilkin County should consider providing further training to program personnel. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2024-007 Eligibility – MAXIS Prior Year Finding Number: N/A Year of Finding Origination: 2024 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 Grants to States for Medicaid Award Number and Year: 2405MN5ADM; 2024 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Title 42 U.S. Code of Federal Regulations §§ 435.911 and 435.945 require the state Medicaid agency to determine and verify eligibility of enrollees in Medicaid. The Minnesota Department of Human Services provides the Minnesota Health Care Programs Eligibility Policy Manual. The manual contains the Minnesota Department of Human Services eligibility policies for the Minnesota Health Care Programs, including the eligibility requirements of Medical Assistance. Specific eligibility requirements are included for participants’ citizenship verification and 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 Wilkin County to support the eligibility determination process. In the participant 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 participant files tested: • three participants’ citizenship information did not have the birth certificate in the file; and • one participant’s asset information did not match the documentation in the file, and three participant files did not have supporting asset 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, Wilkin County performs the “intake function” needed for this program, while the State maintains the MAXIS systems, which supports the eligibility determination process. Participants receive benefit payments from the State. The population consisted of 336 active MAXIS participant cases enrolled in Grants to States for Medicaid in 2024; the sample size was 40 participant 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 into MAXIS and the lack of verification or follow-up of eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible. Cause: Program personnel entering case file information into MAXIS did not ensure all required information was input or updated correctly, supported, and retained. Recommendation: We recommend Wilkin 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, Wilkin County should consider providing further training to program personnel. View of Responsible Official: Concur
Finding Number: 2024-007 Finding Title: Eligibility – MAXIS Program: 93.778 Grants to States for Medicaid Name of Contact Person Responsible for Corrective Action: Cindy Noetzelman Corrective Action Planned: Cases have been corrected and there was a discussion with staff on the process and the need for correct entries. We will continue to review at monthly staffing meetings to ensure correct procedures continue to be followed. Anticipated Completion Date: Cases have been corrected as of Dec 31, 2025
For the two covered transactions tested, the County did not maintain documentation of verification that the vendors were not suspended or debarred prior to entering into the covered transactions. Questioned Costs: $187,679; known questioned costs were determined based on payments to the two vendors tested. Context: During the year, the County entered into three covered transactions using COVID-19 – Coronavirus State and Local Fiscal Recovery Funds. The covered transactions totaled $222,953. The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Failure to verify vendors are not suspended, debarred, or otherwise excluded prior to entering into a covered transaction may result in the County entering into a transaction with a vendor that is not authorized to provide goods and services under the grant. Cause: The County indicated significant staff turnover in key positions. The previous staff were not available to locate the documentation. Recommendation: We recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; the County should complete this documentation prior to entering into a covered transaction. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2024-008 Suspension and Debarment Prior Year Finding Number: 2023-002 Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP2411; 2021 Pass-Through Agency: N/A – Direct 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. Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. Condition: For the two covered transactions tested, the County did not maintain documentation of verification that the vendors were not suspended or debarred prior to entering into the covered transactions. Questioned Costs: $187,679; known questioned costs were determined based on payments to the two vendors tested. Context: During the year, the County entered into three covered transactions using COVID-19 – Coronavirus State and Local Fiscal Recovery Funds. The covered transactions totaled $222,953. The sample size was based on the guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Failure to verify vendors are not suspended, debarred, or otherwise excluded prior to entering into a covered transaction may result in the County entering into a transaction with a vendor that is not authorized to provide goods and services under the grant. Cause: The County indicated significant staff turnover in key positions. The previous staff were not available to locate the documentation. Recommendation: We recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; the County should complete this documentation prior to entering into a covered transaction. View of Responsible Official: Concur
Finding Number: 2024-008 Finding Title: Suspension and Debarment Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Tarah Yaggie Corrective Action Planned: We understand we need to look at sam.gov and will do so going forward. Anticipated Completion Date: 6/12/2026
2023-002
The County understated current period expenditures reported, and cumulative expenditures reported on the annual Project and Expenditure Report submitted to the U.S. Department of the Treasury by $182,285. Also, the County did not submit the annual Project and Expenditure Report by the federal deadline of April 30, 2024. Questioned Costs: None. Context: The County opted to spend the COVID-19 – Coronavirus State and Local Fiscal Recovery Funds award under the Revenue Replacement category, which allows spending on broader types of government services. The annual Project and Expenditure Report required to be submitted to the U.S. Department of the Treasury by April 30 of each year for the reporting period ending March 31 was submitted August 14, 2024. Effect: The County is not in compliance with federal reporting requirements. Cause: The County indicated difficulty tracking project expenditures due to staff turnover. Recommendation: We recommend the County review the U.S. Department of the Treasury’s guidance and form instructions to ensure accurate reporting of COVID-19 – Coronavirus State and Local Fiscal Recovery Funds activity. We also recommend the County submit future Project and Expenditure Reports by the federal deadline. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2024-009 Reporting Prior Year Finding Number: N/A Year of Finding Origination: 2024 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP2411; 2021 Pass-Through Agency: N/A – Direct 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. The U.S. Department of the Treasury requires recipients of funds to submit Project and Expenditure Reports that include, by project, current period obligations, cumulative obligations, current period expenditures, and cumulative expenditures. The frequency of reporting is dependent on the size of the entity and amount of funding received. Condition: The County understated current period expenditures reported, and cumulative expenditures reported on the annual Project and Expenditure Report submitted to the U.S. Department of the Treasury by $182,285. Also, the County did not submit the annual Project and Expenditure Report by the federal deadline of April 30, 2024. Questioned Costs: None. Context: The County opted to spend the COVID-19 – Coronavirus State and Local Fiscal Recovery Funds award under the Revenue Replacement category, which allows spending on broader types of government services. The annual Project and Expenditure Report required to be submitted to the U.S. Department of the Treasury by April 30 of each year for the reporting period ending March 31 was submitted August 14, 2024. Effect: The County is not in compliance with federal reporting requirements. Cause: The County indicated difficulty tracking project expenditures due to staff turnover. Recommendation: We recommend the County review the U.S. Department of the Treasury’s guidance and form instructions to ensure accurate reporting of COVID-19 – Coronavirus State and Local Fiscal Recovery Funds activity. We also recommend the County submit future Project and Expenditure Reports by the federal deadline. View of Responsible Official: Concur
Finding Number: 2024-009 Finding Title: Reporting Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Tarah Yaggie Corrective Action Planned: I was hired on 4/17/2024 and didn’t know about Covid 19 recovery funds. I reached out to ABDO for assistance going forward. Anticipated Completion Date: 6/12/2026
FAC accepted this audit on June 2, 2025 — management decision was due December 2, 2025.
For both covered transactions tested, the County did not maintain documentation of verification that the vendors were not suspended or debarred prior to entering into the covered transactions. Questioned Costs: None. Context: Covered transactions are transactions involving federal awards that exceed $25,000. During the year, two County purchases using Coronavirus State and Local Fiscal Recovery Funds exceeded this threshold. Effect: Failure to verify vendors are not suspended, debarred, or otherwise excluded prior to entering into a covered transaction may result in the County entering into a transaction with a vendor that is not authorized to provide goods and services under the grant. Cause: The County had significant staff turnover in key positions. The previous staff were not available to locate the documentation. Recommendation: We recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; the County should complete this documentation prior to entering into a covered transaction. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴2023-002 Suspension and Debarment Prior Year Finding Number: N/A Year of Finding Origination: 2023 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of the Treasury Program: 21.027 COVID-19 – Coronavirus State and Local Fiscal Recovery Funds Award Number and Year: SLFRP2411; 2021 Pass-Through Agency: N/A – Direct 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. Federal requirements prohibit non-federal entities from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Title 2 U.S. Code of Federal Regulations § 180.300 describes a required verification process. Prior to entering into the transaction, one of the following must be performed: (1) checking SAM.gov exclusions, (2) collecting a certification, or (3) adding a clause or condition to the covered transaction. Condition: For both covered transactions tested, the County did not maintain documentation of verification that the vendors were not suspended or debarred prior to entering into the covered transactions. Questioned Costs: None. Context: Covered transactions are transactions involving federal awards that exceed $25,000. During the year, two County purchases using Coronavirus State and Local Fiscal Recovery Funds exceeded this threshold. Effect: Failure to verify vendors are not suspended, debarred, or otherwise excluded prior to entering into a covered transaction may result in the County entering into a transaction with a vendor that is not authorized to provide goods and services under the grant. Cause: The County had significant staff turnover in key positions. The previous staff were not available to locate the documentation. Recommendation: We recommend the County maintain documentation to demonstrate that vendors were not debarred, suspended, or otherwise excluded from conducting business with the County; the County should complete this documentation prior to entering into a covered transaction. View of Responsible Official: Concur
Finding Number: 2023-002 Finding Title: Suspension and Debarment Program: 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds Name of Contact Person Responsible for Corrective Action: Matthew Walberg and Tarah Yaggie Corrective Action Planned: We now have access to sam.gov and we will access the website and search for the vendor to ensure that they are not listed on the suspension list. We will then store the printout in the F-DRIVE and will also keep a paper copy. Anticipated Completion Date: 1/1/2026
FAC accepted this audit on July 14, 2022 — management decision was due January 14, 2023.
Instead of reporting a percentage of LCTS administrative, supervisory, and clerical support payroll expenditures and maintaining the support for the percentage reported, the Public Health Department reported 25 percent of direct labor and benefits payroll expenditures of LCTS participants and did not maintain support for the rationale of 25 percent. Questioned Costs: $68,344 Context: The Wilkin County Public Health Department had staff turnover in 2021 that affected who was filling out the DHS-3220.3 quarterly reports. Minnesota DHS relies on accurate submission of program costs to ensure that resulting grant funds paid to Wilkin County are for applicable federal program activities/costs. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County did not comply with the reporting requirements in accordance with DHS Bulletin 16-32-04. Errors in the submission of costs on the quarterly reports can result in Wilkin County receiving either more or less federal funding than can be justified based on the actual underlying activity. Cause: The new Public Health Director misunderstood the reporting guidance provided in DHS Bulletin 16-32-04. Recommendation: We recommend the quarterly DHS-3220.3 reports be completed in accordance with the Minnesota DHS? guidance as provided in DHS Bulletin 16-32-04. View of Responsible Official: Concur.
Show full finding ▾Hide full finding ▴2021-001 Local Collaborative Time Study (LCTS) Reporting and Expenditures 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: Award 2105MN5ADM, 2021 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. For federal awards received from the Minnesota Department of Human Services (DHS), internal controls should be established and maintained to provide assurance that program reports submitted to Minnesota DHS are completed in accordance with Minnesota DHS reporting instructions. As part of Wilkin County?s reporting requirements, the Public Health Department submits the Local Collaborative Time Study (LCTS) Public Health Cost Schedules DHS 3220.3 on a quarterly basis. Minnesota DHS Bulletin 16-32-04 requires Line 2 of the report to include administrative, supervisory, and clerical salary and benefits and only the amount of time actually spent. The method for determining the time spent is required to be documented and retained. Condition: Instead of reporting a percentage of LCTS administrative, supervisory, and clerical support payroll expenditures and maintaining the support for the percentage reported, the Public Health Department reported 25 percent of direct labor and benefits payroll expenditures of LCTS participants and did not maintain support for the rationale of 25 percent. Questioned Costs: $68,344 Context: The Wilkin County Public Health Department had staff turnover in 2021 that affected who was filling out the DHS-3220.3 quarterly reports. Minnesota DHS relies on accurate submission of program costs to ensure that resulting grant funds paid to Wilkin County are for applicable federal program activities/costs. The sample size was based on the guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: The County did not comply with the reporting requirements in accordance with DHS Bulletin 16-32-04. Errors in the submission of costs on the quarterly reports can result in Wilkin County receiving either more or less federal funding than can be justified based on the actual underlying activity. Cause: The new Public Health Director misunderstood the reporting guidance provided in DHS Bulletin 16-32-04. Recommendation: We recommend the quarterly DHS-3220.3 reports be completed in accordance with the Minnesota DHS? guidance as provided in DHS Bulletin 16-32-04. View of Responsible Official: Concur.
Finding Number: 2021-001 Finding Title: Local Collaborative Time Study (LCTS) Reporting and Expenditures (DHS 3220.3 Report) Program: Medical Assistance Program, (AL No. 93.778) Name of Contact person Responsible for Corrective Action: Janelle Krump Corrective Action Planned: The quarterly DHS-3220.3 reports will be completed in accordance with Minnesota Department of Human Services' guidance as provided in DHS Bulletin 16-32-04 Anticipated Completion Date: May 31, 2022
FAC accepted this audit on September 6, 2021 — management decision was due March 6, 2022.
The County reported costs in the amount of $96,982 for the first phase of the CaseWorks software implementation project, which was budgeted by the County to be purchased in 2020, $4,400 of which were incurred prior to the period of performance. The County also reported prepaid costs in the amount of $27,844 for CaseWorks services provided in 2021, also outside the period of performance. Questioned Costs: There were $124,826 in CaseWorks software costs either previously budgeted for or outside the period of availability. Context: The County expended a total of $861,765 in COVID-19 ? Coronavirus Relief Funds, and incurred other expenditures which were not reported. The County was able to substitute incurred but not reported costs after the questioned costs were identified by the external auditor, and the County has submitted a revised report to Minnesota Management and Budget. Effect: The County reported expenditures relating to the Coronavirus Relief Fund program which were not in compliance with the activities allowed or unallowed, allowable costs/cost principles, and period of performance compliance requirements. Cause: The County implemented the CaseWorks software project in its entirety in 2020 to allow its Human Services employees to access case files while working remotely as a result of the public health emergency. The County reported all of the project expenditures, not realizing that the first phase of the project costs would not be allowable since they were included in the 2020 budget or that some of the project costs were outside the period of performance. Recommendation: We recommend the County implement procedures to ensure the compliance requirements are met for future relief funds received in relation to the public health emergency. View of Responsible Official: Acknowledged
Show full finding ▾Hide full finding ▴Finding Number: 2020-002 Prior Year Finding Number: N/A Repeat Finding Since: N/A Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance 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 award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Section 5001(d) of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provided the eligible purposes for which COVID-19 ? Coronavirus Relief Fund payments may be used. Payments must have been used to cover costs that were necessary expenditures incurred due to the public health emergency, not accounted for in the County?s budget approved as of March 27, 2020, and incurred during the covered period. The State of Minnesota provided requirements, as the pass-through entity, that the covered period for Minnesota counties began on March 1, 2020, and ended on December 1, 2020, (period of performance). Condition: The County reported costs in the amount of $96,982 for the first phase of the CaseWorks software implementation project, which was budgeted by the County to be purchased in 2020, $4,400 of which were incurred prior to the period of performance. The County also reported prepaid costs in the amount of $27,844 for CaseWorks services provided in 2021, also outside the period of performance. Questioned Costs: There were $124,826 in CaseWorks software costs either previously budgeted for or outside the period of availability. Context: The County expended a total of $861,765 in COVID-19 ? Coronavirus Relief Funds, and incurred other expenditures which were not reported. The County was able to substitute incurred but not reported costs after the questioned costs were identified by the external auditor, and the County has submitted a revised report to Minnesota Management and Budget. Effect: The County reported expenditures relating to the Coronavirus Relief Fund program which were not in compliance with the activities allowed or unallowed, allowable costs/cost principles, and period of performance compliance requirements. Cause: The County implemented the CaseWorks software project in its entirety in 2020 to allow its Human Services employees to access case files while working remotely as a result of the public health emergency. The County reported all of the project expenditures, not realizing that the first phase of the project costs would not be allowable since they were included in the 2020 budget or that some of the project costs were outside the period of performance. Recommendation: We recommend the County implement procedures to ensure the compliance requirements are met for future relief funds received in relation to the public health emergency. View of Responsible Official: Acknowledged
Finding Number: 2020-002 Finding Title: Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Period of Performance Program: Coronavirus Relief Fund (CFDA No. 21.019) Name of Contact Person Responsible for Corrective Action: Janelle Krump Corrective Action Planned: Wilkin County will establish and implement procedures to follow guidance related to the Coronavirus Relief Fund, CFDA 21.019, and claim the actual costs incurred under the grant and within the covered period. Anticipated Completion Date: June 30, 2021
The signed subrecipient agreements provided some award information; however, the federal award identification number, federal awarding agency, CFDA number, subrecipient?s unique entity identifier, and the County?s role as a pass-through entity were not provided. The County does not have documented policies and procedures for subrecipient monitoring in place, however the County documented the subrecipients were school districts and the County verified that funding did not exceed $500 per student. Questioned Costs: None. Context: Wilkin County passed funds to local school districts after reviewing the school district?s application. The applications included a detailed listing of expenditures to be funded with Coronavirus Relief Funds. The U.S. Treasury provided in its Frequently Asked Questions, as an administrative convenience, that it will presume that expenses of up to $500 per elementary and secondary school student are eligible expenditures. Effect: The County is not meeting federal regulations pertaining to subrecipient monitoring. Cause: Wilkin 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 the County review the requirements for pass-through entities as identified in Title 2 U.S. Code of Federal Regulations ? 200.332, and identify responsibilities such as monitoring procedures over federal programs, as well as creating and maintaining proper documentation to meet the requirements of federal programs. Additionally, we recommend the County include all applicable requirements in communications regarding the program to its subrecipients. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴Finding Number: 2020-003 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 information 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 signed subrecipient agreements provided some award information; however, the federal award identification number, federal awarding agency, CFDA number, subrecipient?s unique entity identifier, and the County?s role as a pass-through entity were not provided. The County does not have documented policies and procedures for subrecipient monitoring in place, however the County documented the subrecipients were school districts and the County verified that funding did not exceed $500 per student. Questioned Costs: None. Context: Wilkin County passed funds to local school districts after reviewing the school district?s application. The applications included a detailed listing of expenditures to be funded with Coronavirus Relief Funds. The U.S. Treasury provided in its Frequently Asked Questions, as an administrative convenience, that it will presume that expenses of up to $500 per elementary and secondary school student are eligible expenditures. Effect: The County is not meeting federal regulations pertaining to subrecipient monitoring. Cause: Wilkin 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 the County review the requirements for pass-through entities as identified in Title 2 U.S. Code of Federal Regulations ? 200.332, and identify responsibilities such as monitoring procedures over federal programs, as well as creating and maintaining proper documentation to meet the requirements of federal programs. Additionally, we recommend the County include all applicable requirements in communications regarding the program to its subrecipients. View of Responsible Official: Concur
Finding Number: 2020-003 Finding Title: Subrecipient Monitoring Program: Coronavirus Relief Fund (CFDA No. 21.019) Name of Contact Person Responsible for Corrective Action: Janelle Krump Corrective Action Planned: Wilkin County will establish and implement documented risk assessment procedures over its subrecipients. Anticipated Completion Date: June 30, 2021
FAC accepted this audit on September 22, 2020 — management decision was due March 22, 2021.
The Minnesota Department of Human Services (DHS) maintains the computer system, MAXIS, which is used by the County to support the eligibility determination process. While periodic supervisory case reviews are performed to provide reasonable assurance of compliance with grant requirements for eligibility, not all information was verified or entered into MAXIS to support participant eligibility. The following exceptions were detected in the sample of 25 cases tested: ? Citizenship was not verified in one casefile. ? Assets were not verified in three casefiles. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. The State of Minnesota contracts with the County?s Social Services Department to perform the ?intake function? (meeting with the social services client to determine income and categorical eligibility), while the Minnesota DHS maintains MAXIS, which supports the eligibility determination process and actually pays the benefits to the participants. Effect: The lack of documented verification of information input into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel responsible for entering case information into MAXIS did not ensure all required information was verified or updated properly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is properly obtained and input into MAXIS. In addition, consideration should be given to providing additional training to program personnel. View of Responsible Official: Concur
Show full finding ▾Hide full finding ▴Finding Number: 2019-003 Prior Year Finding Number: 2016-002 Repeat Finding Since: 2016 Eligibility ? Intake Function Program: U.S. Department of Health and Human Services? Medical Assistance Program (CFDA No. 93.778), Award Nos. 1905MN5ADM and 1905MN5MAP, 2019 Pass-Through Agency: Minnesota Department of Human Services Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the 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 the County to support the eligibility determination process. While periodic supervisory case reviews are performed to provide reasonable assurance of compliance with grant requirements for eligibility, not all information was verified or entered into MAXIS to support participant eligibility. The following exceptions were detected in the sample of 25 cases tested: ? Citizenship was not verified in one casefile. ? Assets were not verified in three casefiles. Questioned Costs: Not applicable. The County administers the program, but benefits to participants in this program are paid by the State of Minnesota. Context: The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. The State of Minnesota contracts with the County?s Social Services Department to perform the ?intake function? (meeting with the social services client to determine income and categorical eligibility), while the Minnesota DHS maintains MAXIS, which supports the eligibility determination process and actually pays the benefits to the participants. Effect: The lack of documented verification of information input into MAXIS increases the risk that a program participant will receive benefits when they are not eligible. Cause: County program personnel responsible for entering case information into MAXIS did not ensure all required information was verified or updated properly. Recommendation: We recommend the County implement additional procedures to provide reasonable assurance that all necessary documentation to support eligibility determinations is properly obtained and input into MAXIS. In addition, consideration should be given to providing additional training to program personnel. View of Responsible Official: Concur
Finding Number: 2019-003 Finding Title: Eligibility - Intake Function Program: Medicaid Cluster (CFDA No. 93.778) Name of Contact Person Responsible for Corrective Action: Cindy Noetzelman Corrective Action Planned: The Financial Assistance Supervisor will continue to review one SNAP and one Healthcare case per month. In addition, the agency will continue to provide training to the Financial Workers. Anticipated Completion Date: December 31, 2020
2018-002
FAC accepted this audit on August 28, 2019 — management decision was due February 28, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2016-002
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on September 9, 2018 — management decision was due March 9, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2016-002
FAC accepted this audit on August 10, 2017 — management decision was due February 10, 2018.
GSA_MIGRATION
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