Audit 334558

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2024-003: Reporting Department of Health and Human Services - AL #93.600 Head Start Cluster Grant Funding Source Grant Award Period Head Start #05CH011859-01 Department of Health and Human Services 11/01/21 - 10/31/22 Questioned costs: None How the questioned costs were computed: N/A Condition: During the audit, Wipfli LLP observed that the SF429A for the 09CH011669-01 grant was due on January 30, 2023 and was not filed for the Chapel Street property. Criteria: Head Start Program Instruction ACF-OHS-IM-24-04 indicates recipients are to complete and submit real property status information SF-429 annually on the same due date as the first SF-425 federal financial report. Cause: Southwestern Wisconsin Community Action Program, Inc. and Subsidiaries did not file the required financial reports for the above grant in a timely manner in part due to transitions in the fiscal department. Effect: As a result of the matters noted above, Southwestern Wisconsin Community Action Program, Inc. and Subsidiaries was not in compliance with the reporting standard due to a significant deficiency in internal controls. Recommendation: We recommend Southwestern Wisconsin Community Action Program, Inc. and Subsidiaries implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines, to be in compliance with reporting requirements and deadlines. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2024-003: Reporting Department of Health and Human Services - AL #93.600 Head Start Cluster Grant Funding Source Grant Award Period Head Start #05CH011859-01 Department of Health and Human Services 11/01/21 - 10/31/22 Questioned costs: None How the questioned costs were computed: N/A Condition: During the audit, Wipfli LLP observed that the SF429A for the 09CH011669-01 grant was due on January 30, 2023 and was not filed for the Chapel Street property. Criteria: Head Start Program Instruction ACF-OHS-IM-24-04 indicates recipients are to complete and submit real property status information SF-429 annually on the same due date as the first SF-425 federal financial report. Cause: Southwestern Wisconsin Community Action Program, Inc. and Subsidiaries did not file the required financial reports for the above grant in a timely manner in part due to transitions in the fiscal department. Effect: As a result of the matters noted above, Southwestern Wisconsin Community Action Program, Inc. and Subsidiaries was not in compliance with the reporting standard due to a significant deficiency in internal controls. Recommendation: We recommend Southwestern Wisconsin Community Action Program, Inc. and Subsidiaries implement additional controls over reporting including, but not limited to, training staff on the Head Start reporting deadlines, to be in compliance with reporting requirements and deadlines. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.

Finding 2023-001: Internal Control Over Financial Reporting Criteria or Specific Requirement: 2 CFR part 200 (Uniform Guidance) requires grantees to have effective control over, and accountability for, all funds, property, and other assets. Condition: During the audit of the December 31, 2023 consolidated financial statements, several matters were identified: -Material adjustments were required for the consolidated financial statements to be reported in accordance with accounting principles generally accepted in the United States (GAAP) - Corrections and revisions to supplementary information were required, including the Schedule of Expenditures of Federal and State Awards. -There was a restatement required to the amounts reported in the December 31, 2022 financial statements. Effect: A material weakness in internal control over financial reporting exists due to the above matters. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm. This left limited time to accurately adjust account balances and properly prepare supplementary schedules. Repeat: No Auditor's Recommendations: We recommend SWCAP implement procedures to ensure accounts are adjusted and that provided supplementary audit information is accurately prepared. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.

Finding 2023-002: Late Audit Submission Questioned Costs: None Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period. Condition: The December 31, 2023 audit and reporting package is being submitted after the required due date. Effect: SWCAP is not in compliance with federal regulations regarding audit timing and represents a significant deficiency in internal control over financial reporting. Cause: During 2023, SWCAP's Finance Director resigned. Due to the difficulties in finding an experienced replacement in the area, SWCAP contracted with an accounting firm to provide financial oversite duties. As part of this transition, SWCAP made a change in accounting software as well. Both of these transitions required a significant time commitment from the contracted accounting firm causing delays in providing financial information in a timely manner for the audit. Further, the audit documentation previously provided by the Finance Director was not provided by or was in a significantly different format from the contracted accountant. For example, Wipfli had to make adjustments to the financial information for a housing subsidiary and had to assist with consolidating housing subsidiaries, along with preparing substantially all of the notes to the consolidated financial statements and substantially preparing supplementary schedules. Finally, Wipfli had some staffing challenges that partially contributed to the delay. Repeat: No Auditor's Recommendations: SWCAP should take steps to ensure that its financial records are available in a timely manner to allow the audit to begin sufficiently before the audit due date. SWCAP also should work with their auditing firm to agree upon information that will and will not be prepared by SWCAP so that a proper audit plan can be developed for timely completion. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.