Minnesota Office of the Legislative Auditor
Financial Audit Division

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Report Summary
Department of Human Services
Federal Compliance Audit

 

Financial Audit Division Report 11-13 Released May 6, 2011

Conclusion

We were unable to conclude on the Department of Human Services’ compliance with certain federal requirements for the Medical Assistance, Child Care Cluster, and Temporary Assistance to Needy Families programs because the department lacked an adequate control structure to ensure it paid benefits only for eligible recipients. In addition, as reported in our November 4, 2010, report on the department’s controls over healthcare provider payments, the department did not have adequate controls to ensure it only paid eligible providers through the Medical Assistance Program. We consider these issues to be material weaknesses in the department’s internal controls.

Except as noted above, the Department of Human Services generally complied with and had controls to ensure compliance with certain provisions of laws, regulations, contracts, and grants applicable to its major federal programs for fiscal year 2010. However, the department had some weaknesses, as noted in findings 2 through 9 in the following Findings and Recommendations section (including four repeat findings from last year’s audit that it did not fully resolve), and in our November 4, 2010, report on the department’s controls over healthcare provider payments.

Key Findings

  • Prior Finding Not Resolved: The Department of Human Services did not adequately address its responsibility to monitor and ensure accurate recipient eligibility determination for three major federal programs.
  • Prior Finding Partially Resolved: The Department of Human Services did not fully identify, analyze, and document its internal controls related to compliance with federal single audit requirements.

Audit Scope

Our scope included programs determined to be major federal programs for the State of Minnesota for fiscal year 2010, including Medicaid Cluster, Child Support Enforcement, Child Care Cluster, Social Services Block Grant, Foster Care, Temporary Assistance for Needy Families, Food and Nutrition Services Cluster, and State Fiscal Stabilization Funds.

More Information

Office of the Legislative Auditor ♦ Room 140, 658 Cedar St., St. Paul, MN 55155