FAC Explorer

Audit 321343

FY End
2023-12-31
Total Expended
$1.22M
Findings
8
Programs
11
Organization: Village of Hales Corners (WI)
Year: 2023 Accepted: 2024-09-26
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498610 2023-002 Material Weakness - I
498611 2023-002 Material Weakness - I
498612 2023-003 Material Weakness - L
498613 2023-003 Material Weakness - L
1075052 2023-002 Material Weakness - I
1075053 2023-002 Material Weakness - I
1075054 2023-003 Material Weakness - L
1075055 2023-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $294,300 Yes 2
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $162,125 - 0
14.218 Community Development Block Grants/entitlement Grants $60,439 - 0
97.044 Assistance to Firefighters Grant $39,505 - 0
93.069 Public Health Emergency Preparedness $28,444 - 0
93.778 Medical Assistance Program $3,290 - 0
93.994 Maternal and Child Health Services Block Grant to the States $2,497 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1,610 - 0
90.404 Hava Election Security Grants $800 - 0
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $800 - 0
93.991 Preventive Health and Health Services Block Grant $47 - 0

Contacts

Name Title Type
W2YWJMEHJBR6 Sandra Kulik Auditee
4145296175 Wendi Unger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Village of Hales Corners has not elected to use the 10% de minimis indirect cost rate The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state grant activity of the Village of Hales Corners under programs of the federal and state government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of the Village of Hales Corners, it is not intended to and does not present the financial position, changes in net position or cash flows of the Village of Hales Corners.
Title: Report Dates Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Village of Hales Corners has not elected to use the 10% de minimis indirect cost rate The schedule of expenditures of federal and state awards includes adjustments through the May 1, 2024 (expected payment date) Grant Enrollment Application and Reporting System (GEARS) reports. Federal/state funding splits for awards passed through the Wisconsin Department of Health Services (DHS) are based on the splits provided by DHS on February 14, 2024, as applicable.
Title: Pass-Through Agencies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual or modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The underlying accounting records for some grant programs are maintained on the modified accrual basis of accounting. Under the modified accrual basis, revenues are recorded when susceptible to accrual, i.e., both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the liability is incurred. The accounting records for other grant programs are maintained on the accrual basis, i.e., when the revenue has been earned and the liability is incurred. De Minimis Rate Used: N Rate Explanation: The Village of Hales Corners has not elected to use the 10% de minimis indirect cost rate The Village of Hales Corners received federal awards from the following pass-through agencies: WI DHS Wisconsin Department of Health Services Milwaukee Co. Milwaukee County, Wisconsin

Finding Details

Finding 2023-002
Finding 2023-002: Material Weakness - Internal Control Over Procurement, Suspension and Debarment Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: For federal awards after January 1, 2018, guidance provided in 2 CFR part 200.318 requires nonfederal entities to establish and follow their own documented procurement procedures that conform to applicable federal law and standards. 2 CFR part 200.320 includes different allowable methods of procurement. There are also requirements to verify the vendors are not suspended or debarred. Condition/Context: During our testing for this program, we noted that the Village did not have a written procurement policy to conform with Uniform Guidance requirements. There was not a system in place to track and document the procurement process and support the contracting decisions made. As a result, we were unable to verify if the Village followed the necessary federal procurement standards. Cause: The Village was not aware that a written policy was required to be in place outside of the terms and condition in the grant agreement. Effect: Without an adequate policy in place, procurement procedures may not adhere to requirements of federal awards. Questioned Costs: None noted. Recommendation: Program personnel should become familiar with the procurement, suspension and debarment rules for Federal programs and implement a formal written policy to conform with Uniform Guidance requirements. The Village should also create a system to track projects that were procured during the year to ensure they are in compliance with their policy. Management response and Corrective Action Plan: Management agrees with the finding. A tracking procedure has been developed and a written procurement policy will be approved prior to the end of fiscal 2024 to further define procurement processes to align with Federal program standards and Village ordinance to address this deficiency.
Finding 2023-002
Finding 2023-002: Material Weakness - Internal Control Over Procurement, Suspension and Debarment Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: For federal awards after January 1, 2018, guidance provided in 2 CFR part 200.318 requires nonfederal entities to establish and follow their own documented procurement procedures that conform to applicable federal law and standards. 2 CFR part 200.320 includes different allowable methods of procurement. There are also requirements to verify the vendors are not suspended or debarred. Condition/Context: During our testing for this program, we noted that the Village did not have a written procurement policy to conform with Uniform Guidance requirements. There was not a system in place to track and document the procurement process and support the contracting decisions made. As a result, we were unable to verify if the Village followed the necessary federal procurement standards. Cause: The Village was not aware that a written policy was required to be in place outside of the terms and condition in the grant agreement. Effect: Without an adequate policy in place, procurement procedures may not adhere to requirements of federal awards. Questioned Costs: None noted. Recommendation: Program personnel should become familiar with the procurement, suspension and debarment rules for Federal programs and implement a formal written policy to conform with Uniform Guidance requirements. The Village should also create a system to track projects that were procured during the year to ensure they are in compliance with their policy. Management response and Corrective Action Plan: Management agrees with the finding. A tracking procedure has been developed and a written procurement policy will be approved prior to the end of fiscal 2024 to further define procurement processes to align with Federal program standards and Village ordinance to address this deficiency.
Finding 2023-003
Finding 2023-003: Material Weakness - Internal Control Over Reporting Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: All required reporting should be reviewed with proper detail to ensure they are completed accurately and properly approved prior to submission. Condition/Context: Of the three reports selected for testing, none included documentation of proper review. Additionally, the two reports tested related to the funding passed through DHS were not completed with accuracy or on a timely basis. As a result of this, both reports erroneously included expenditures incurred after the reporting period. Overall, the expenditures do agree to the amount awarded by DHS despite these discrepancies of when the expenditures were reported. Cause: The Village was not aware of the requirement to complete and retain documentation of review prior to submitting these reports. There also was not proper review to identify and correct these reporting errors prior to submission. Effect: The reports could contain inaccurate information leading to an impact on future grant funding. Questioned Costs: None noted. Recommendation: We recommend the Village implement procedures to review reporting prior to submission. This should include verification that the report is accurate as compared to the underlying data, mathematically correct and submitted timely. Documentation of this review should be retained on file. Management response and Corrective Action Plan: Management agrees with the finding. Village Management staff will prepare the support document, the Village Administrator will review the support and submit to the appropriate approving Department for their submittals to the programs on a month end basis.
Finding 2023-003
Finding 2023-003: Material Weakness - Internal Control Over Reporting Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: All required reporting should be reviewed with proper detail to ensure they are completed accurately and properly approved prior to submission. Condition/Context: Of the three reports selected for testing, none included documentation of proper review. Additionally, the two reports tested related to the funding passed through DHS were not completed with accuracy or on a timely basis. As a result of this, both reports erroneously included expenditures incurred after the reporting period. Overall, the expenditures do agree to the amount awarded by DHS despite these discrepancies of when the expenditures were reported. Cause: The Village was not aware of the requirement to complete and retain documentation of review prior to submitting these reports. There also was not proper review to identify and correct these reporting errors prior to submission. Effect: The reports could contain inaccurate information leading to an impact on future grant funding. Questioned Costs: None noted. Recommendation: We recommend the Village implement procedures to review reporting prior to submission. This should include verification that the report is accurate as compared to the underlying data, mathematically correct and submitted timely. Documentation of this review should be retained on file. Management response and Corrective Action Plan: Management agrees with the finding. Village Management staff will prepare the support document, the Village Administrator will review the support and submit to the appropriate approving Department for their submittals to the programs on a month end basis.
Finding 2023-002
Finding 2023-002: Material Weakness - Internal Control Over Procurement, Suspension and Debarment Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: For federal awards after January 1, 2018, guidance provided in 2 CFR part 200.318 requires nonfederal entities to establish and follow their own documented procurement procedures that conform to applicable federal law and standards. 2 CFR part 200.320 includes different allowable methods of procurement. There are also requirements to verify the vendors are not suspended or debarred. Condition/Context: During our testing for this program, we noted that the Village did not have a written procurement policy to conform with Uniform Guidance requirements. There was not a system in place to track and document the procurement process and support the contracting decisions made. As a result, we were unable to verify if the Village followed the necessary federal procurement standards. Cause: The Village was not aware that a written policy was required to be in place outside of the terms and condition in the grant agreement. Effect: Without an adequate policy in place, procurement procedures may not adhere to requirements of federal awards. Questioned Costs: None noted. Recommendation: Program personnel should become familiar with the procurement, suspension and debarment rules for Federal programs and implement a formal written policy to conform with Uniform Guidance requirements. The Village should also create a system to track projects that were procured during the year to ensure they are in compliance with their policy. Management response and Corrective Action Plan: Management agrees with the finding. A tracking procedure has been developed and a written procurement policy will be approved prior to the end of fiscal 2024 to further define procurement processes to align with Federal program standards and Village ordinance to address this deficiency.
Finding 2023-002
Finding 2023-002: Material Weakness - Internal Control Over Procurement, Suspension and Debarment Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: For federal awards after January 1, 2018, guidance provided in 2 CFR part 200.318 requires nonfederal entities to establish and follow their own documented procurement procedures that conform to applicable federal law and standards. 2 CFR part 200.320 includes different allowable methods of procurement. There are also requirements to verify the vendors are not suspended or debarred. Condition/Context: During our testing for this program, we noted that the Village did not have a written procurement policy to conform with Uniform Guidance requirements. There was not a system in place to track and document the procurement process and support the contracting decisions made. As a result, we were unable to verify if the Village followed the necessary federal procurement standards. Cause: The Village was not aware that a written policy was required to be in place outside of the terms and condition in the grant agreement. Effect: Without an adequate policy in place, procurement procedures may not adhere to requirements of federal awards. Questioned Costs: None noted. Recommendation: Program personnel should become familiar with the procurement, suspension and debarment rules for Federal programs and implement a formal written policy to conform with Uniform Guidance requirements. The Village should also create a system to track projects that were procured during the year to ensure they are in compliance with their policy. Management response and Corrective Action Plan: Management agrees with the finding. A tracking procedure has been developed and a written procurement policy will be approved prior to the end of fiscal 2024 to further define procurement processes to align with Federal program standards and Village ordinance to address this deficiency.
Finding 2023-003
Finding 2023-003: Material Weakness - Internal Control Over Reporting Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: All required reporting should be reviewed with proper detail to ensure they are completed accurately and properly approved prior to submission. Condition/Context: Of the three reports selected for testing, none included documentation of proper review. Additionally, the two reports tested related to the funding passed through DHS were not completed with accuracy or on a timely basis. As a result of this, both reports erroneously included expenditures incurred after the reporting period. Overall, the expenditures do agree to the amount awarded by DHS despite these discrepancies of when the expenditures were reported. Cause: The Village was not aware of the requirement to complete and retain documentation of review prior to submitting these reports. There also was not proper review to identify and correct these reporting errors prior to submission. Effect: The reports could contain inaccurate information leading to an impact on future grant funding. Questioned Costs: None noted. Recommendation: We recommend the Village implement procedures to review reporting prior to submission. This should include verification that the report is accurate as compared to the underlying data, mathematically correct and submitted timely. Documentation of this review should be retained on file. Management response and Corrective Action Plan: Management agrees with the finding. Village Management staff will prepare the support document, the Village Administrator will review the support and submit to the appropriate approving Department for their submittals to the programs on a month end basis.
Finding 2023-003
Finding 2023-003: Material Weakness - Internal Control Over Reporting Program: COVID-19 State & Local Fiscal Recovery Funds Grantor Agencies: U.S. Department of Treasury & WI Department of Health Services Assistance Listing Number: 21.027 Criteria: All required reporting should be reviewed with proper detail to ensure they are completed accurately and properly approved prior to submission. Condition/Context: Of the three reports selected for testing, none included documentation of proper review. Additionally, the two reports tested related to the funding passed through DHS were not completed with accuracy or on a timely basis. As a result of this, both reports erroneously included expenditures incurred after the reporting period. Overall, the expenditures do agree to the amount awarded by DHS despite these discrepancies of when the expenditures were reported. Cause: The Village was not aware of the requirement to complete and retain documentation of review prior to submitting these reports. There also was not proper review to identify and correct these reporting errors prior to submission. Effect: The reports could contain inaccurate information leading to an impact on future grant funding. Questioned Costs: None noted. Recommendation: We recommend the Village implement procedures to review reporting prior to submission. This should include verification that the report is accurate as compared to the underlying data, mathematically correct and submitted timely. Documentation of this review should be retained on file. Management response and Corrective Action Plan: Management agrees with the finding. Village Management staff will prepare the support document, the Village Administrator will review the support and submit to the appropriate approving Department for their submittals to the programs on a month end basis.