Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Health
Federal Compliance Audit

 

Financial Audit Division Report 11-09

Released April 22, 2011

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Conclusion

The Department of Health generally complied with and had controls to ensure compliance with provisions of laws, regulations, contracts, and grants applicable to the major federal programs we audited for fiscal year 2010. However, the department had some internal control weaknesses, as noted in the four findings presented in this report.

The department made some progress toward developing a comprehensive internal control structure, by identifying, analyzing, and documenting some internal controls, finalizing a self-assessment tool provided by the Department of Management and Budget, and hiring an internal audit director. The department, however, needs to continue to develop and broaden this work within the department.

The department fully resolved four of the five findings included in our prior audit report and partially resolved one finding.

Findings

• Prior Finding Partially Resolved: The Department of Health did not identify, analyze, and document its internal controls related to business operations and the schedule of federal expenditures.
• The Department of Health did not accurately report American Recovery and Reinvestment Act (ARRA) funds to the federal government and did not communicate necessary requirements to subrecipients receiving ARRA funds.
• The Department of Health inappropriately charged some federal program costs to a prior grant award period.
• The Department of Health did not accurately record the liability date for certain transactions in the state’s accounting system.

Audit Scope

We audited the following programs, which were material to the State of Minnesota’s federal program compliance for fiscal year 2010:

• Special Nutrition Program for Women, Infants and Children (CFDA 10.557)
• Public Health Emergency Preparedness and Response (CFDA 93.069)
• Immunization Grants (CFDA 93.268 and 93.712)