Audit 413169

Finding 2025-005 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: Unknown Criteria: The Uniform Guidance requires non-federal entities receiving federal awards to establish and maintain effective internal control designed to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of reports. Reports should be reviewed and approved by a responsible party other than the original preparer, with documentation maintained to evidence the review and approval. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval and review of reports prior to submission. For the current year single audit, the March and August monthly GEARS reports were selected for testing. For both reports tested, the County was unable to provide documentation evidencing review and approval by an individual other than the preparer prior to submission. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to document their review of the reports before submission. Effect: Reports could contain errors due to the lack of review and/or funding could be reduced as a result. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there is a process for documentation of review and approval over completeness and accuracy of reports before submissions to state agencies. Management's Response: The County is reviewing and updating its internal controls to put processes in place to ensure that there is documentation of the review process prior to submittal of reports. The anticipated completion date is beginning with reports dated 1/1/2026 and later.

Finding 2025-004 Repeat of Finding 2024-004 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: 62. 284, 878, 560152, 560155 State Program ID Number and Title: 437.356100/368100 CW Children and Families State Agency: Wisconsin Department of Children and Families State Program ID Numbers and Titles: 435.560100 ADRC 435.000561/000681 Basic County Allocation State Agency: Wisconsin Department of Health Services State Program ID Number and Title: 395.168 Specialized Transit County Operating Aids (Elderly & Disabled) State Agency: Wisconsin Department of Transportation State Program ID Number and Title: 435.000283 IMAA State Share State Agency: Wisconsin Department of Health Services Criteria: 2 CRF 200.303 Internal Controls requires that non-federal entities receiving federal awards establish and maintain internal control designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements. The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including appropriate review and approval of expenditures. Condition/Context: During our testing, we were unable to view approval for the following number of payroll expenditures in each program: • 93.778: 9 out of 19 expenditures tested. • 435.000561/000681, 437.3561/3681: 12 out of 40 expenditures tested. • 435.560100: 9 out of 19 expenditures tested. For programs 395.168 and 435.000283, these are carried over from the prior year as controls have not changed within the system. These samples were not statistically valid. Cause: While review controls are in place, the County's system does not currently allow access to view the documentation of approval of payroll expenses beyond 365 days. Effect: Record retention requirements are not currently being met, which prevents outside reviewers from verifying whether or not effective controls over payroll exist for transactions older than 365 days. Questioned Costs: None noted. Recommendation: The County should work with its software provider and IT personnel to enhance documentation retention surrounding payroll approval support. Management Response: In response to Finding 2025-004 regarding Internal Control Over Financial Reporting, note that the County is aware that there is lack of controls over its year-end financial reporting process. The County will endeavor to evaluate the need to increase additional staff to meet the deficiencies noted in the finding. However, due to its size, the County does not feel it is cost-effective to hire the number of employees needed to complete these task in house at this point in time and will rely on an outside audit firm. Administration is aware the current payroll and financial system allows to only go back to view payroll approvals within one year.

Finding 2025-002 Repeat of Finding 2024-002 Program Federal Assistance Listing and Title: 93.778 Medicaid Cluster, Grants to States for Medicaid Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Health Services Award Numbers: 62, 284, 878, 560152, 560155 Criteria: The State Single Audit Guidelines (SSAG) require that local entities receiving State awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission of reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: The County does not have controls in place to ensure there is documentation of the approval/review of reports prior to submission. The annual WIMCR report tested did not have documentation of approval. The sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to document their review of the report before submission and to ensure the report was submitted timely. Effect: Reports could contain errors due to the lack of review and/or funding could be reduced as a result of not submitting reports by the due dates. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there is a process for documentation of review and approval over completeness and accuracy of reports before submissions to state agencies. Management Response: The County is reviewing and updating its internal controls to put processes in place to ensure that there is documentation of the review process prior to submittal of reports. The anticipated completion date is beginning with reports dated 1/1/2026 and later.