Audit 321663

FY End
2023-12-31
Total Expended
$10.21M
Findings
10
Programs
10
Year: 2023 Accepted: 2024-09-27
Auditor: Ritz Holman LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
498876 2023-003 Significant Deficiency - A
498877 2023-003 Significant Deficiency - A
498878 2023-003 Significant Deficiency - A
498879 2023-003 Significant Deficiency - A
498880 2023-003 Significant Deficiency - A
1075318 2023-003 Significant Deficiency - A
1075319 2023-003 Significant Deficiency - A
1075320 2023-003 Significant Deficiency - A
1075321 2023-003 Significant Deficiency - A
1075322 2023-003 Significant Deficiency - A

Contacts

Name Title Type
JAATMXL4V115 Jon Gaines Auditee
4143954531 Renee Messing Auditor
No contacts on file

Notes to SEFA

Title: Loans Outstanding Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Wisconsin Women’s Business Initiative Corporation and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: Y Rate Explanation: WWBIC has elected to use the 10% de minimis cost rate where funding is available for indirect costs. All indirect costs are allocated to programs based on allowable indirect cost allocation. Loans outstanding at the end of the year included $160,539 under the Rural Microentrepreneur Program (CFDA #10.870), $1,624,569 under the Small Business Administration Microloan Program (CFDA #59.046), $947,935 under the Community Development Financial Institutions Program (CFDA #21.020), $5,660 under the Community Development Financial Institutions Program ERP (CFDA #21.033), and $628,093 under the Community Development Financial Institutions Program RRP (CFDA #21.024)

Finding Details

Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.
Criteria: The Organization utilizes a subsidiary system to maintain and monitor loan account balances. The subsidiary system should be reconciled on a regular basis to the general ledger control accounts. Condition: The loan receivable balances in the general ledger were not fully reconciled to the subsidiary system during the year. Cause: The Organization experienced a personnel turnover during the year which resulted in certain account reconciliations to be partially completed, and certain accounting processes and reconciliations were behind schedule. Reconciling items and differences were not identified and resolved in a timely manner. Effect: Without timely reconciliation procedures, loans receivable could be incorrectly reported in the financial statements. Questioned costs: No questioned costs were identified. Prevalence or consequence: Partial reconciliation of loan balances was performed, however the full reconciliation was completed during the audit process. Repeated audit finding: This is not a repeat finding. Recommendation: We recommend that reconciliations of loans receivable be completed on a monthly basis including identifying and correcting all reconciling items. The reconciliations should be reviewed and approved by management.