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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary

Management Letter

Department of Human Services

Fiscal Year Ended June 30, 1999

Key Findings and Recommendations:

  • The department did not complete the federally required MMIS II system security risk analysis in a timely manner. The department should establish and maintain a program of system risk analyses and security reviews over the MMIS II system. (Finding 1, page 3)
  • The department did not adequately monitor its federal cash management procedures. The department should implement procedures to ensure that it complies with the state's cash management agreement with the federal government and related state policies. (Finding 2, page 3)
  • The department did not have an adequate system of accounting for the Drug Rebate Program during fiscal year 1999. The department should continue to implement an appropriate accounting system that allows for periodic verification of billings, collections, and outstanding receivables. In addition, the department should bill drug labelers for past due balances and should charge interest on overdue amounts. (Finding 3, page 4)
  • The department did not accurately allocate MAXIS computer system costs to the participating programs for a six-month period. One federal program was overcharged nearly $1 million. Two other federal programs were undercharged. The department needs to correct the misallocation of costs. (Finding 4, page 5)
  • The department's reporting on two federal food stamp reports needs to be improved. The department should make the necessary computer programming changes to ensure that it has complete and accurate information when reporting to the federal government. (Finding 5, page 5)

Management letters address internal control weaknesses and noncompliance issues found during our annual audit of the state's financial statements and federally funded programs. The scope of work in individual agencies is limited. During the fiscal year 1999 audit, our work at the Department of Human Services focused on major public assistance programs, including medical assistance, temporary assistance for needy families, and food stamps, and on other grant programs, including federal social services, community social services, and chemical dependency treatment. We reviewed cost of care revenues for the department's residential treatment centers and group homes. We also reviewed child support collections and disbursements. Finally, we performed procedures on ten federally funded programs administered by the department to determine whether the department complied with certain federal requirements. The department's response is included in the report.

Office of the Legislative Auditor, Room 140, 658 Cedar St., St. Paul, MN 55155 : or 651‑296‑4708