Audit 321245

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.

Finding 2023-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Number and Title: 435.283 IMAA State Share Award Number: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agency: Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: After the Human Services Manager left the County in June of 2023, the County did not replace the position with another individual to continue performing the control of reviewing GEARS reports prior to submission for reimbursement. Two of the three GEARS reports tested in each program were not reviewed prior to submission as required by the state. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: Efforts to fill the Human Services Financial Manager position were being actively pursued during the vacancy. The position was re-filled January 29, 2024. Discussion about a backup plan should this position be vacant again are occurring between human services and county administration.

Finding 2023-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster State ID Numbers and Titles: 435.283 IMAA State Share 395.168 Elderly and Handicapped County Aids Award Numbers: Unknown Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services State Agencies: Wisconsin Department of Health Services Wisconsin Department of Transportation Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of expenditures in each program: • 93.778: 4 out of 7 of the expenditures tested. • 395.168: 15 out of 40 of the expenditures tested. • 435.283: 3 out of 6 of the expenditures tested. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: The County is aware that there is a lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, because of its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these tasks in-house at this point in time and will rely on an outside audit firm to review financial statements, disclosures and schedules. County administration and financial staff review the adjustments and reports prepared by the auditors to ensure the accuracy of the information.