Single Audit Report for 2018

The Legislative Auditor has released the Single Audit Report for 2018. 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 2018 Single Audit identifies 30 findings involving 10 state entities. Most of these findings already have been detailed in individual agency reports, and 13 were repeat findings from a prior audit. Certain findings resulted in modified opinions on four of the State’s 16 major federal programs because they did not 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 – The Louisiana Department of Health (LDH) failed to design and maintain adequate internal control over eligibility determinations based on modified adjusted gross income (MAGI) in the Children’s Health Insurance Program (LaCHIP). Since LDH did not use tax data and auditors are restricted by law from using tax data in the audit of LaCHIP eligibility, auditors were unable to obtain sufficient audit evidence to adequately test MAGI-based LaCHIP eligibility.

· Medicaid Cluster – LDH failed to design and maintain adequate internal control over eligibility determinations based on MAGI in the Medical Assistance Program (Medicaid). Since LDH did not use tax data and auditors are restricted by law from using tax data in the audit of Medicaid eligibility, auditors were unable to obtain sufficient audit evidence to adequately test MAGI-based Medicaid eligibility. In addition, LDH failed to meet federal requirements to enroll and screen all Medicaid providers through a single system operated by the state Medicaid agency by specific deadlines. LDH is in violation of federal law and will continue to be in violation until a new provider enrollment system is procured, designed, and implemented, and all providers are enrolled in the new system.
· Research and Development Cluster – For the third consecutive fiscal year, the LSU Agricultural Center (AgCenter) did not have adequate controls in place to ensure its financial reports were accurate before they were submitted to the federal agency for the AgCenter’s federal appropriations awards. In addition, the Pennington Biomedical Research Center (PBRC) did not maintain supporting documentation for its financial reports or evidence of its review of the financial reports. This is the second consecutive year PBRC has had a finding related to reporting. The AgCenter, for the second consecutive year, and Louisiana State University and A&M College did not ensure compliance with special tests and provisions requirements. Finally, for the second consecutive year, PBRC did not comply with federal equipment management regulations.
· Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii – The Office of Community Development (OCD), Disaster Recovery Unit identified $7.5 million in non-compliant awards for 287 homeowners participating in the Homeowner Assistance Program. In addition, OCD assigned 583 property owners with Small Rental Property Program loans totaling more than $55.6 million to loan recovery status for non-compliance with loan requirements.