Office of the Legislative Auditor - Financial Audit Division

Report Summary
Department of Human Services
Federal Compliance Audit

 

Financial Audit Division Report 12-07

Released March 29, 2012

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Conclusion

The Department of Human Services generally complied with and had internal controls to ensure compliance with certain provisions of laws, regulations, contracts, and grants applicable to its major federal programs for fiscal year 2011. However, as noted in Finding 2, the department did not comply with (and did not have adequate internal controls to comply with) federal eligibility requirements for the Temporary Assistance for Needy Families Program. In addition, the department had other weaknesses, as noted in findings 1 through 11 in the following Findings and Recommendations section (including eight repeat findings from last year’s audit that were not fully resolved¹ ).

Key Findings

• 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.
• Prior Finding Partially Resolved: The Department of Human Services did not fully implement controls to ensure it complied with eligibility requirements for two federal programs and did not monitor system overrides for three major programs.
• The Department of Human Services allocated some costs to federal programs that may not have been allowable for federal reimbursement.

Audit Scope

Our scope included programs determined to be major federal programs for the State of Minnesota for fiscal year 2011, including Medicaid Cluster, Child Support Enforcement, Child Care Cluster, Social Services Block Grant, Foster Care, Temporary Assistance for Needy Families, and Food and Nutrition Services Cluster.

 

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¹ Office of the Legislative Auditor’s Financial Audit Division Report 11-13, Department of Human Services, issued May 6, 2011.