Audit 51160

FY End
2022-12-31
Total Expended
$2.17M
Findings
16
Programs
39
Organization: Vilas County (WI)
Year: 2022 Accepted: 2023-09-25

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
45514 2022-001 Significant Deficiency Yes L
45515 2022-002 Significant Deficiency Yes L
45516 2022-001 Significant Deficiency Yes L
45517 2022-002 Significant Deficiency Yes L
45518 2022-001 Significant Deficiency Yes L
45519 2022-002 Significant Deficiency Yes L
45520 2022-001 Significant Deficiency Yes L
45521 2022-002 Significant Deficiency Yes L
621956 2022-001 Significant Deficiency Yes L
621957 2022-002 Significant Deficiency Yes L
621958 2022-001 Significant Deficiency Yes L
621959 2022-002 Significant Deficiency Yes L
621960 2022-001 Significant Deficiency Yes L
621961 2022-002 Significant Deficiency Yes L
621962 2022-001 Significant Deficiency Yes L
621963 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.788 Opioid Str $192,294 - 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $90,643 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,584 - 0
93.778 Medical Assistance Program $72,218 - 0
97.042 Emergency Management Performance Grants $49,697 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $43,408 - 0
16.835 Body Worn Camera Policy and Implementation $42,890 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $41,559 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $34,990 - 0
93.090 Guardianship Assistance $34,398 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $19,515 - 0
20.219 Recreational Trails Program $18,773 - 0
93.323 Flexible Alternatives for State Transformation Model $15,825 - 0
93.069 Public Health Emergency Preparedness $14,099 - 0
93.053 Nutrition Services Incentive Program $12,615 - 0
93.658 Foster Care_title IV-E $12,158 - 0
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $11,094 - 0
93.994 Maternal and Child Health Services Block Grant to the States $8,439 - 0
93.667 Social Services Block Grant $8,242 - 0
93.958 Block Grants for Community Mental Health Services $8,068 - 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $7,234 - 0
16.710 Public Safety Partnership and Community Policing Grants $6,850 - 0
93.991 Preventive Health and Health Services Block Grant $6,059 - 0
93.767 Children's Health Insurance Program $5,792 - 0
93.558 Temporary Assistance for Needy Families $4,866 - 0
93.556 Promoting Safe and Stable Families $3,801 - 0
93.747 Elder Abuse Prevention Interventions Program $3,768 - 0
93.324 State Health Insurance Assistance Program $3,500 - 0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $2,335 - 0
93.268 Immunization Cooperative Agreements $2,186 - 0
93.071 Medicare Enrollment Assistance Program $2,078 - 0
16.551 Cooperative Law Enforcement Operating Plan $1,350 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,309 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $1,293 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $1,273 - 0
93.645 Stephanie Tubbs Jones Child Welfare Services Program $740 - 0
93.575 Child Care and Development Block Grant $160 Yes 2
93.659 Adoption Assistance $58 - 0
93.563 Child Support Enforcement $-19,721 - 0

Contacts

Name Title Type
XH19DQCMGBK1 Darcy Smith Auditee
7154793674 Jon Trautman, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Countys 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedules of Expenditures of Federal and State Awards for the County are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration.The Schedules of Expenditures of Federal and State Awards include all federal and state awards of the County. Because the schedules present only a selected portion of the operations of the County, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County.
Title: OVERSIGHT AGENCIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Countys 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal and state oversight agencies for the County are as follows:Federal - U.S. Department of Health and Human ServicesState - Wisconsin Department of Natural Resources
Title: PASS-THROUGH ENTITIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Countys 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal awards have been passed through the following entities:GWAAR - Greater Wisconsin Agency on Aging ResourcesWI DOA - Wisconsin Department of AdministrationWI DCF - Wisconsin Department of Children and FamiliesWI DHS - Wisconsin Department of Health ServicesWI DMA - Wisconsin Department of Military AffairsWI DNR - Wisconsin Department of Natural Resources
Title: STATE DIRECT PAYMENTS Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Countys 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Payments made directly to recipients and vendors by the state of Wisconsin under the FoodShare Wisconsin program on behalf of the County are not included the Schedules of Expenditures of Federal and State Awards.
Title: STATE OF WISCONSIN COMMUNITY AIDS REPORTING SYSTEM Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Countys 2022 fund financial statements. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the County in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded County expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Wisconsin Departments of Health Services (DHS) and Children and Families (DCF) utilize the Community Aids Reporting System (CARS) and the System for Payments and Reports of Contracts (SPARC) for reimbursing the County for various federal and state program expenditures. The expenditures reported on the Schedules of Expenditures of Federal and State Awards for various DHS & DCF programs agree with the expenditures reported on the April 2023 CARS for the Human Services and Public Health Departments, and the December 2022 SPARC for Child Support and Child Care programs.

Finding Details

2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.
2022 ? 001 Preparation of Annual Financial Report Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Condition: Current County staff maintains accounting records which reflect the County?s financial transactions; however, preparing the County?s annual financial report, including note disclosures, involves the selection and application of accounting principles which would require additional experience and knowledge. The County contracts with us and our knowledge of applicable accounting principles, financial statement format, and note disclosures to assist in the preparation of the annual financial report in an efficient manner. However, as independent auditors, CLA cannot be considered part of the County?s internal control system. As part of its internal control over preparation of its financial statements, including disclosures, the County had implemented a comprehensive review procedure to ensure that the financial statements, including note disclosures, are complete and accurate. Criteria or Specific Requirement: The preparation and review of the annual financial report by staff with expertise in financial reporting is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or notes or other required state financial reports. Effect: Without our involvement, the County may not be able to completely prepare an annual financial report in accordance with accounting principles generally accepted in the United States of America. Cause: County management has determined that the additional costs associated with training staff to become experienced in applicable accounting principles and note disclosures outweigh the derived benefits. Repeat Finding: Repeat of finding 2021-001 Recommendation: We recommend the County continue reviewing the annual financial report. Such review procedures should be performed by an individual possessing a thorough understanding of accounting principles generally accepted in the United States of America and knowledge of the County?s activities and operations. While it may not be cost beneficial to train additional staff to completely prepare the report, a thorough review of this information by the finance director is necessary to ensure the basic financial statements and all accompanying information is accurate and complete. Views of Responsible Officials: Refer to the management response per the corrective action plan.
2022 ? 002 Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Child Care and Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: Wisconsin Department of Children and Families Pass-Through Numbers: 0831, 0840, 0852, 0875 Award Period: 1/1/2022 ? 12/31/2022 State ID?s ? Various programs passed through the Wisconsin Department of Children and Families and Wisconsin Department of Health Services. Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Condition: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: The County did not include documentation of review and approval by someone other than the preparer on the claims tested during the audit. Cause: The Departments responsible for grant claiming have limited personnel, as such this does not always allow for a review performed by an individual other than the preparer. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: Repeat of finding 2021-003 Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with audit finding.