Audit 369970

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards Condition: During our audit, Wipfli LLP noted there were certain federal grants received from pass-through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance (2 CFR Part 200, section 510) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended. Cause: The internal controls of Wisconsin Women's Business Initiative Corporation did not identify all federal awards to be included in the Schedule of Expenditures of Federal Awards prior to the audit. Effect: As a result of the financial reporting matters identified in the condition paragraph, a significant deficiency exists in Wisconsin Women's Business Initiative Corporation's internal control over financial reporting. Recommendation: We recommend Wisconsin Women's Business Initiative Corporation continue to implement procedures to provide sufficient internal control over the preparation of the Schedule of Expenditures of Federal Awards. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan. This finding represents a significant deficiency in internal controls over compliance and a non-material non-compliance with the reporting requirement for the major federal programs. Questioned Costs: None Condition: During our audit, Wipfli LLP noted there were certain federal grants received from pass-through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance (2 CFR Part 200, section 510) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended. Cause: The internal controls of Wisconsin Women's Business Initiative Corporation did not identify all federal awards to be included in the Schedule of Expenditures of Federal Awards prior to the audit. Effect: As a result of the financial reporting matters identified in the condition paragraph, a significant deficiency exists in Wisconsin Women's Business Initiative Corporation's internal control over financial reporting. Recommendation: We recommend Wisconsin Women's Business Initiative Corporation continue to implement procedures to provide sufficient internal control over the preparation of the Schedule of Expenditures of Federal Awards. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.Major Programs: AL #14.218 Community Development Block Grant Cluster, Award Numbers CDBG FY 2024, FD 003 2023, CD5075180249, CDBG MKE RLF, CDBG Racine 2023-2024, CDBG FY 2023, B-23-UC-55-0003, ED 24020, 2024-2025 CDBG - Classic; AL #59.046 Microloan Program, Award Numbers SBAOCAML230534, SBAOCAML2024001568

Finding 2024-003: Loan Receivable Reconciliation Condition: During our audit, Wipfli LLP noted the software used to track loan activity was not fully reconciled to the loan receivable general ledger account detail for the years ended December 31, 2024 and 2023. The Ventures software did not reconcile to the general ledger for the years ended December 31, 2024 and 2023 primarily due to receipt and disbursement information not being entered to Ventures in a timely manner. Through testing of loan balances by confirmation and alternative procedures, several loans reviewed did not reconcile to the balance noted in Ventures due to delay in reconciliation of payment information after year end and additional charge-offs noted through subsequent review by management. Management was not able to produce a schedule of future maturities and accrued interest on loans receivable through the Ventures software due to software limitations. Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect account misstatements prior to the audit. Cause: Wisconsin Women's Business Initiative Corporation transitioned to a new loan management software during the year and there were challenges in reconciling the activity to the general ledger. Effect: As a result of the financial reporting matters identified in the condition paragraph, a material weakness exists in Wisconsin Women's Business Initiative Corporation's internal control over financial reporting. Recommendation: We recommend Wisconsin Women's Business Initiative Corporation continue to implement perform Reconciliations between the loan software and the general ledger on a monthly basis to address any reconciling items in a more timely manner. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan. This finding represents a material weakness in internal controls over compliance and a non-material non-compliance with the reporting requirement for the major federal programs. Questioned Costs: None Major Programs: AL #14.218 Community Development Block Grant Cluster, Award Numbers CDBG FY 2024, FD 003 2023, CD5075180249, CDBG MKE RLF, CDBG Racine 2023-2024, CDBG FY 2023, B-23-UC-55-0003, ED 24020, 2024-2025 CDBG - Classic; AL #59.046 Microloan Program, Award Numbers SBAOCAML230534, SBAOCAML2024001568

Finding 2024-004: Cost Allocation Methodology Condition: As a result of audit procedures, it was determined that Wisconsin Women's Business Initiative Corporation's cost allocation methodology was not properly updated based on a recent time study or other means to verify the accuracy of the allocations. For some awards, the de minimis rate was used but it was not applied consistently to all programs, where a method of direct allocation was done based on a prior time study conducted in 2020. Criteria: Per 2 CFR §200.405(d), if a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit. Cause: Wisconsin Women's Business Initiative Corporation continued to use a legacy cost allocation model without periodic review or revision. There was no formal process to evaluate whether the methodology remained appropriate given changes in program structure, staffing, or funding sources. Effect: As a result of the financial reporting matter identified in the condition paragraph, a significant deficiency exists in Wisconsin Women's Business Initiative Corporation's internal controls over financial reporting. Recommendation: We recommend Wisconsin Women's Business Initiative Corporation conduct a comprehensive review of its cost allocation methodology, update policies to reflect current program operations and federal requirements. Wisconsin Women's Business Initiative Corporation should also implement controls to ensure allocations are based on actual benefit and supported by documentation and provide staff training on time-and-effort reporting and allocation principles. View of responsible officials: Management agrees with the finding and has developed a written corrective action plan. This finding represents a significant deficiency in internal controls over compliance and a non-material non-compliance with the reporting requirement for the major federal programs. Questioned Costs: None Major Programs: AL #14.218 Community Development Block Grant Cluster, Award Numbers CDBG FY 2024, FD 003 2023, CD5075180249, CDBG MKE RLF, CDBG Racine 2023-2024, CDBG FY 2023, B-23-UC-55-0003, ED 24020, 2024-2025 CDBG - Classic; AL #59.046 Microloan Program, Award Numbers SBAOCAML230534, SBAOCAML2024001568