Single Audit Report for 2019

The Legislative Auditor has released the Single Audit Report for 2019. The Single Audit recaps in one report findings related to federal programs, most of which have been reported previously by the auditor. Federal law requires the State to compile the Single Audit every year. Officials use the information to monitor whether the State has complied – or not – with the requirements of federal assistance programs.

The 2019 Single Audit identifies 37 findings involving 13 state entities. Most of these findings already have been detailed in individual agency reports, and 12 were repeat findings from a prior audit. Certain findings resulted in modified opinions on five of the State’s 19 major federal programs because they did not materially comply with certain requirements. Because the auditor could not adequately test eligibility for two of these programs, the auditor could not render an opinion (disclaimer) on the eligibility requirement for these two programs.

The programs given a disclaimer of opinion and/or a qualified opinion were:

· Children’s Health Insurance Program and Medicaid Cluster (Disclaimer of opinion on Eligibility requirements; Qualified opinion on Activities Allowed or Unallowed requirements and Special Tests and Provisions requirements) – For the second consecutive year, the Louisiana Department of Health (LDH) failed to design and maintain adequate controls over modified adjusted gross income-based (MAGI) eligibility determinations in the Children’s Health Insurance Program (LaCHIP) and the Medical Assistance Program (Medicaid). Since LDH did not use income tax data and auditors are restricted by law from using tax data in the audit of eligibility, auditors were unable to obtain sufficient audit evidence to adequately test MAGI-based LaCHIP and Medicaid eligibility.

In addition, LDH made premium payments totaling approximately $4.8 billion to the Healthy Louisiana managed care organizations without first receiving required contract amendment approvals. Also, LDH paid approximately $868 million for service dates outside of the certification period provided by the actuary’s rate certification letter. For the second consecutive year, LDH did not enroll and screen Healthy Louisiana managed care providers and dental managed care providers as required by federal regulations. For the second consecutive year as well, LDH did not perform five-year revalidations; screenings based on categorical risk of fraud, waste or abuse; and monthly checks of the federal excluded party database, as required by federal regulations for all LaCHIP and Medicaid fee-for-service providers.

· Research and Development Cluster (Qualified opinion on Procurement and Suspension and Debarment requirements and Special Tests and Provisions requirements) – Louisiana State University and A&M College (LSU), the LSU Agricultural Center (AgCenter), and the Pennington Biomedical Research Center did not ensure compliance with federal procurement requirements for fiscal year 2019. In addition, LSU, for the second consecutive year, and the AgCenter, for the third consecutive year, did not have adequate controls in place to ensure compliance with special tests and provisions requirements.

· WIOA Cluster (Qualified opinion on Subrecipient Monitoring requirements) – The Louisiana Workforce Commission did not adequately monitor subrecipients under the Workforce Innovation and Opportunity Act (WIOA) Cluster programs. WIOA program expenditures totaled $39 million during fiscal year 2019, with approximately $36 million provided to subrecipients who were not adequately monitored.

· Highway Planning and Construction Cluster (Qualified opinion on Subrecipient Monitoring requirements) – The Louisiana Department of Transportation and Development did not adequately monitor subrecipients of the Highway Planning and Construction Cluster programs.