Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Health
Federal Compliance Audit

 

Financial Audit Division Report 10-03

Released March 4, 2010

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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 2009. However, the department had several internal control weaknesses, as noted in the five findings presented in this report.

The department resolved three of the six findings included in our prior audit report and partially resolved the other three. The department resolved prior findings related to noncompliance with federal requirements for documenting time charged to federal programs, incompatible access to the state’s accounting system, and monitoring subrecipient activities. However, the department did not identify, analyze, and document its internal controls or accurately report financial activity on the Schedule of Expenditures of Federal Awards. The department also did not always comply with federal suspension and debarment requirements.

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.
• Prior Finding Partially Resolved: The department did not accurately report financial activity on the Schedule of Expenditures of Federal Awards.
• Prior Finding Partially Resolved: The department did not always comply with federal suspension and debarment requirements.
• The department did not comply with state equipment policies and procedures.
• The department did not comply with state procurement requirements related to special expenses.

Audit Scope

We audited these programs, which were material to the State of Minnesota’s federal program compliance for fiscal year 2009:

• Special Nutrition Program for Women, Infants and Children (CFDA 10.557)
• Childhood Immunization Grants (CFDA 93.268)

We also performed certain follow up procedures for these programs, which were previously material federal programs:

• Centers for Disease Control and Prevention – Investigations and Technical Assistance (CFDA 93.283)
• Centers for Disease Control and Prevention – Public Health Emergency Preparedness (CFDA 93.069)