Office of the Legislative Auditor - Financial Audit Division

Key Audit Findings:

• The department did not have a process to verify that it received accurate supplemental drug rebates.
• The department did not adequately document certain eligibility criteria for two federal programs.
• The department did not accurately report federal spending in the state’s financial reports.
• The department has not reevaluated the monthly adoption assistance maintenance subsidy amounts since 1990.
• The department did not have adequate controls over some aspects of its indirect cost allocations.

Key Audit Finding – Selected County Human Services Offices:

• The counties did not adequately monitor high-risk eligibility override transactions (Hennepin, Ramsey, and Saint Louis counties).

• Programs material to the State of Minnesota’s fiscal year 2005 financial statements, including payments to counties for the administration of various programs, payments made through the department’s eligibility system for family support programs, medical program expenses, and Medical Assistance drug rebates.
• Internal control and federal compliance over 15 federally funded programs, such as Medical Assistance, State Children’s Health Insurance Program, Temporary Assistance to Needy Families, Food Stamps, Child Support Enforcement, and Child Care.
• Testing of recipient eligibility for the Medical Assistance, Temporary Assistance for Needy Families, and Food Stamp programs at selected county human services offices.

The Department of Human Services is responsible for administering many public assistance and social service programs. County human services offices determine eligibility for the state’s public assistance programs.