Audit 371857

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Aging Cluster & National Family Caregiver Support CFDA Numbers: 93.044, 93.045, 93.053, 93.052 Pass-Through Entity: Wisconsin Department of Health Services Pass-Through Numbers: 560300; 560700 Type of Finding:  Significant Deficiency in Internal Control over Compliance and Other Matter Criteria: According to 2 CFR, Part 200.403(e) of the Office of Management and Budget’s Uniform Grant Guidance, allowable costs should be determined in accordance with generally accepted accounting principles (GAAP). Condition: During our testing of allowable costs, it was noted that certain costs were included in expenditures when paid and not when the expense is incurred. Questioned Costs: Known - $85,021 Context: We sampled thirteen general cash disbursements, noting 2 instances of expenses reported when paid, not incurred. Cause: GWAAR’s current policy is to claim certain expenses when the related invoice is paid, and not over the period of time in which the actual expense is incurred. This is done to help facilitate cash flow for the organization to pay for the related cash outflow. Effect: Expenditures could be claimed during the wrong grant award period. Repeat Finding: No Recommendation: We recommend that GWAAR implement policies that ensure expenses are being recorded and reported in the proper period. Views of Responsible Officials: There is no disagreement with the audit finding.