Office of the Legislative Auditor - Financial Audit Division

Report Summary
MNsure
Federal Compliance Audit

 

Financial Audit Division Report 16-08

Released March 24, 2016

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Conclusion

MNsure generally complied with and had controls to ensure compliance with certain provisions of laws, regulations, contracts, and grants applicable to its major federal program for fiscal year 2015. However, the board had some noncompliance, as noted in the findings presented in this report.

Audit Findings

• MNsure incorrectly used federal money to pay approximately $98,000 for software maintenance fees not allowable under the grant.
• MNsure did not maintain complete and accurate inventory records of equipment purchased. This is a repeat finding.¹
• MNsure did not have adequate controls to ensure its employees or direct supervisors certified the accuracy of employee payroll time reporting. This is a repeat finding.²

Audit Scope

Our scope included one federal program administered by MNsure, the State Planning and Establishment Grants for the Affordable Care Act’s Exchanges Program. The federal government describes the purpose of this program to “provide assistance for activities related to establishing a health insurance exchange that facilitates the purchase of qualified health plans, provides for the establishment of a Small Business Health Options Program . . . .” The fiscal year 2015 federal expenditures for this program totaled about $48 million.³

 

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¹ Office of the Legislative Auditor, Financial Audit Division Report 14-21, Minnesota Health Insurance Exchange: MNsure (Finding 4) issued October 28, 2014.

² Office of the Legislative Auditor, Financial Audit Division Report 14-21, Minnesota Health Insurance Exchange: MNsure (Finding 5) issued October 28, 2014.

³ Federal grant award numbers for the State Planning and Establishment Grants for the Affordable Care Act’s Exchanges Program: 4 HBEIE120176-01-10, 4 HBEIE120177-01-11, 4 HBEIE130163-01-18, and 4 HBEIE140181-01-12.