Audit 322967

FY End

2023-12-31

Total Expended

$6.85M

Findings

2

Programs

1

Organization: Centro Hispano, Inc. (WI)

Year: 2023 Accepted: 2024-09-30

Auditor: Wegner CPAS LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
500118	2023-002	Material Weakness	-	I
1076560	2023-002	Material Weakness	-	I

ALN	Program	Spent	Major	Findings
21.027	Coronavirus State and Local Fiscal Recovery Funds	$6.85M	Yes	1

Contacts

Name	Title	Type
FCFSKKZVVMG1	Karen Menendez Coller	Auditee
6082553018	Jason Stephens	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1—BASIS OF PRESENTATION Accounting Policies: NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance and Allowable Cost Policy Manual wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Centro Hispano, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Centro Hispano, Inc. under programs of the federal 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 Department of Health Services Audit Guide. Because the Schedule presents only a selected portion of the operations of Centro Hispano, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Centro Hispano, Inc.

Finding Details

Finding 2023-002

Assistance Listing Number(s): 21.027 Name of Federal Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Name of Pass-through Entity: County of Dane Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Section 200.303 requires establishing and maintaining internal controls that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with the Federal statutes, regulations, and terms and conditions of the Federal award. Title 2 CFR Section 200.318(i) requires the maintenance of records sufficient to detail the history of procurement. These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Centro Hispano does not have written procurement procedures, did not document the procurement history, and did not use the proper method of procurement. Cause: Centro Hispano obtained the contractor in 2022 and did not perform any procurement procedures prior to entering into the contract. During 2023, funding was obtained to cover the costs of this contract and nothing was indicated that the contractor was selected without proper procurement procedures for contracts over $250,000. Effect or Potential Effect: Contract costs not supported by adequate documentation of procurement history using the correct procurement method could be disallowed. Questioned Costs: $6,850,000 Repeat Finding: No. Recommendation: Procurements should follow the required methods per Uniform Guidance and document the full procurement history. Procurement procedures should be designed, implemented, and written consistent with Uniform Guidance. Personnel responsible for procurement should be trained on Uniform Guidance requirements and Centro Hispano's written procurement procedures. Views of Responsible Officials: Centro Hispano agrees with the finding and is establishing policies and procedures to provide adequate documentation of review and approval for procurement.

Finding 2023-002

Assistance Listing Number(s): 21.027 Name of Federal Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Name of Pass-through Entity: County of Dane Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Section 200.303 requires establishing and maintaining internal controls that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with the Federal statutes, regulations, and terms and conditions of the Federal award. Title 2 CFR Section 200.318(i) requires the maintenance of records sufficient to detail the history of procurement. These records will include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. Condition: Centro Hispano does not have written procurement procedures, did not document the procurement history, and did not use the proper method of procurement. Cause: Centro Hispano obtained the contractor in 2022 and did not perform any procurement procedures prior to entering into the contract. During 2023, funding was obtained to cover the costs of this contract and nothing was indicated that the contractor was selected without proper procurement procedures for contracts over $250,000. Effect or Potential Effect: Contract costs not supported by adequate documentation of procurement history using the correct procurement method could be disallowed. Questioned Costs: $6,850,000 Repeat Finding: No. Recommendation: Procurements should follow the required methods per Uniform Guidance and document the full procurement history. Procurement procedures should be designed, implemented, and written consistent with Uniform Guidance. Personnel responsible for procurement should be trained on Uniform Guidance requirements and Centro Hispano's written procurement procedures. Views of Responsible Officials: Centro Hispano agrees with the finding and is establishing policies and procedures to provide adequate documentation of review and approval for procurement.