(From State Auditor Scott Fitzpatrick)Missouri State Auditor Scott Fitzpatrick today released his office's review of how Missouri state agencies managed and spent more than $18.4 billion in federal funds during fiscal year 2022. This year's Statewide Single Audit reviewed 19 major federal programs administered by seven state agencies.
"Missouri sees billions of dollars in federal funds allocated to our state agencies each year, and it is imperative that we ensure these agencies are transparent and accountable with how they use these dollars," said Auditor Fitzpatrick.
"When I took office I made a commitment to closely scrutinize the massive amount of federal dollars flowing into our state. The Statewide Single Audit is an annual process for my office that gives taxpayers a closer look at where federal funds are being spent and how state government can be more efficient and responsible with the way it uses our tax dollars."
The audit of the state's expenditures of federal awards for the fiscal year ended June 30, 2022 contains nine findings, which represents a significant decrease from the prior year's 22 findings. Six of the findings are repeat findings from previous audits.
One significant new finding could save the state approximately $10 million annually in state taxpayer funds. The audit found the Department of Social Services (DSS) did not have sufficient procedures and controls to prevent and/or detect errors with the allocation of some administrative costs to federal programs. In total, for Fiscal Year 2022, costs totaling approximately $38.5 million were incorrectly allocated to six programs. The identification of this issue will allow DSS to pay for these services with federal funds rather than state funds - saving the state more than $10 million every year.
The audit also found the controls the DSS has in place over the Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) program were insufficient to prevent improper benefit issuances on behalf of school children. The audit sample of payments for 60 school children noted the department issued benefits on behalf of one ineligible child and made overpayments on behalf of another child. During the year ended June 30, 2022, the department issued P-EBT program benefits totaling approximately $75 million on behalf of approximately 78,000 school children and approximately $144 million on behalf of approximately 163,000 children in child care.
A significant finding that has appeared in two previous audits notes the DSS - MOHealthNet Division (MHD) has not fully implemented the Medicaid National Correct Coding Initiative (NCCI) edits in the Medicaid Management Information System (MMIS) as required. The failure to fully implement the NCCI edits increases the risk that coding errors or irregularities will go undetected, and improper payments will be made.
Additionally, the audit notes DSS did not perform eligibility determinations within required timeframes for participants of the Medical Assistance Program (Medicaid) and the Children's Health Insurance Program (CHIP). To test compliance with eligibility requirements, the audit randomly selected 115 new enrollments. The audit found the department did not meet timeliness requirements for 40 (35 percent) of the newly-enrolled participants. The determinations on average were 68 days late.
The audit also found the Department of Health and Senior Services (DHSS) did not perform facility survey procedures within required timeframes; the Division of Community and Public Health (DCPH) within the DHSS did not adequately monitor Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program subrecipient contracts; and both the DSS and the Department of Elementary and Secondary Education (DESE) need to strengthen internal controls related to Federal Funding Accountability and Transparency Act (FFATA) reporting.
A complete copy of the Statewide Single Audit for fiscal year 2022 is available here.
The audit of the state's expenditures of federal awards for the fiscal year ended June 30, 2022 contains nine findings, which represents a significant decrease from the prior year's 22 findings. Six of the findings are repeat findings from previous audits.
One significant new finding could save the state approximately $10 million annually in state taxpayer funds. The audit found the Department of Social Services (DSS) did not have sufficient procedures and controls to prevent and/or detect errors with the allocation of some administrative costs to federal programs. In total, for Fiscal Year 2022, costs totaling approximately $38.5 million were incorrectly allocated to six programs. The identification of this issue will allow DSS to pay for these services with federal funds rather than state funds - saving the state more than $10 million every year.
The audit also found the controls the DSS has in place over the Pandemic Electronic Benefit Transfer Food Benefits (P-EBT) program were insufficient to prevent improper benefit issuances on behalf of school children. The audit sample of payments for 60 school children noted the department issued benefits on behalf of one ineligible child and made overpayments on behalf of another child. During the year ended June 30, 2022, the department issued P-EBT program benefits totaling approximately $75 million on behalf of approximately 78,000 school children and approximately $144 million on behalf of approximately 163,000 children in child care.
A significant finding that has appeared in two previous audits notes the DSS - MOHealthNet Division (MHD) has not fully implemented the Medicaid National Correct Coding Initiative (NCCI) edits in the Medicaid Management Information System (MMIS) as required. The failure to fully implement the NCCI edits increases the risk that coding errors or irregularities will go undetected, and improper payments will be made.
Additionally, the audit notes DSS did not perform eligibility determinations within required timeframes for participants of the Medical Assistance Program (Medicaid) and the Children's Health Insurance Program (CHIP). To test compliance with eligibility requirements, the audit randomly selected 115 new enrollments. The audit found the department did not meet timeliness requirements for 40 (35 percent) of the newly-enrolled participants. The determinations on average were 68 days late.
The audit also found the Department of Health and Senior Services (DHSS) did not perform facility survey procedures within required timeframes; the Division of Community and Public Health (DCPH) within the DHSS did not adequately monitor Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) program subrecipient contracts; and both the DSS and the Department of Elementary and Secondary Education (DESE) need to strengthen internal controls related to Federal Funding Accountability and Transparency Act (FFATA) reporting.
A complete copy of the Statewide Single Audit for fiscal year 2022 is available here.
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