Audit 368105

Reporting Federal Agency: U.S. Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers: SLFRP0135-2024 Pass-Through Agency: Wisconsin Department of Workforce Development Pass-Through Number: 7471 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Reporting Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or specific requirement: Financial Status Reports filed for the Organization did not agree to supporting documentation and were not prepared on accrual basis as required by GAAP. Condition: The Organization was originally reporting the subawards based on the timing of when the subgrantee incurred expenses versus on the timing of the agreed contract payout timing. The Organization reached out to their grant contract and verified the requirements and updated their filing starting in May 2025. The amounts filed from that point on still did not agree and there was no updates to the previous reporting to ensure that the cumulative amount of grant expenses were supported by the audit reports and internal reporting in QuickBooks. Questioned Costs: None Context: All monthly reports were reviewed in 2024 and only two of the months agreed without exception. The remaining months had variances and were prepared on cash basis. The cumulative amount tested at the beginning of the year did not agree to the previous audit report. Cause: The Organization is new to grant reporting and was not aware of the reporting requirements until May 2024 when they first met with CliftonLarsonAllen LLP (CLA). The Organization is not aware of how to update old reports to get the cumulative total to agree to supporting records. Repeat Finding: No Effect: The Organization is new to grant reporting and was not aware of the reporting requirements until May 2024 when they first met with CLA. The Organization is not aware of how to update old reports to get the cumulative total to agree to supporting records. Recommendation: We recommend that management and governance review the financial status reports to supporting documentation and ensure it agrees. We recommend management reaches out to their grant contact to ensure cumulative amounts are adjusted through 12/31/2024 to ensure future reports are accurate. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.

Procurement Policy Federal Agency: U.S. Department of Treasury Federal Program Title: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Award Identification Numbers: SLFRP0135-2024 Pass-Through Agency: Wisconsin Department of Workforce Development Pass-Through Number: 7471 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Procurement Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or specific requirement: The Organization should have formal procurement policy to guide the Organization when entering into covered transactions. The policy needs to include all components identified in 2 CFR 200.318. The Organization had 3 out of 5 procurements that adequate documentation was not retained to support reaching out to adequate sources. Condition: The Organization had expenses applied to the grant in excess of the $10k required micro-purchase threshold. The Organization also did not have a formal procurement policy in place that follows UG and did not retain supporting documentation to support 3 out of 5 procurement transactions. Questioned Costs: Unknown Context: The Organization entered into transactions in excess of the $10k required micro purchase threshold for which an adequate number of price or rate quotes were not documented. Cause: Management Oversight Repeat Finding: No Effect: The effect of not having a procurement policy with all the required components would be noncompliance with 2 CFR 200.318. Recommendation: It is recommended that the Organization review Uniform Guidance procurement requirements and create a procurement policy to ensure compliance with Uniform Guidance. The Organization should retain supporting documentation for any vendors in excess of the micro purchase level. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.