Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Finding 2024-001: Internal Control over Preparation of the Schedule of Expenditures of Federal Awards, Assistance Listing Numbers - All Criteria: Per 2 CFR Part 200.510(b): "The auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee's financial statements". The auditee must maintain underlying accounting records used to prepare the Schedule of Expenditures of Federal Awards (SEFA) that tie to the financial statements or a reconciliation that ties to the financial statements, for each individual award. Condition: The Organization failed to provide a complete, accurate Schedule of Expenditures of Federal Awards that reconciled to the financial statements, on a timely basis. Cause: The Organization did not maintain the appropriate underlying records for each individual award necessary to reconcile the expenditures to the financial statements on a timely basis. Effect: This could result in an inaccurate reporting of expenditures that could have a direct and material effect on the financial statements. Recommendation: We recommend management implement policies and procedures in which the Schedule of Expenditures of Federal Awards and underlying records are maintained and reconciled to the financial statements, on a regular basis. Management Response: Share Food has developed procedures and processes to manage, maintain, and reconcilethe financial statements to the schedule of expenditures of federal awards as part of our year end closing procedures. This was implemented, and it is expected that the June 30, 2025 financial reporting package will be timely and accurate.
Program: Various, including AL 10.542 – COVID-19 Pandemic EBT Food Benefits; AL 10.551 – Supplemental Nutrition Assistance Program; AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Grant Number & Year: Various, including 2401NERCMA, FFY 2024 Federal Grantor Agency: Various, including U.S. Department of Agriculture and U.S. Department of Health and Human Services Criteria: A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is presented properly. Title 45 CFR § 75.510(b) (October 1, 2023) and Title 2 CFR § 200.510(b) (January 1, 2024) state, in part, the following: The auditee must also 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 . . . . At a minimum, the schedule must: * * * * (3) Provide total Federal awards expended for each individual Federal program . . . . (4) Include the total amount provided to subrecipients from each Federal program. Neb. Rev. Stat. § 81-1111(1) (Reissue 2014) states, in part, the following: Subject to the supervision of the Director of Administrative Services, the Accounting Administrator shall have the authority to prescribe the system of accounts and accounting to be maintained by the state and its departments and agencies, develop necessary accounting policies and procedures, coordinate and approve all proposed financial systems, and manage all accounting matters of the state’s central system. EnterpriseOne is the official accounting system of the State. Condition: Several programs did not have expenditures or the amount provided to subrecipients reported accurately on the SEFA. We notified Administrative Services of the errors, and the SEFA was subsequently adjusted. A similar finding was noted in the prior audit. Repeat Finding: 2023-022 Questioned Costs: None Statistical Sample: No Context: Administrative Services is responsible for managing the accounting matters of the State and certifies the data collection form for the Statewide Single Audit. Administrative Services compiles the SEFA from information provided by the individual agencies and submits it to the auditor. During our review, we noted the following: The Department of Health and Human Services (DHHS) did not accurately report expenditures for several programs, including overreporting AL 93.566 by $1,154,638. DHHS also reported $20,605,059 under AL 10.551 that should have been under AL 10.542. If the latter adjustment had not been made, this would have resulted in a major program not being reported on the SEFA. Sixteen programs for various State agencies needed correction. The total expenditures and amounts provided to subrecipients, as both originally reported and per the final SEFA, were as follows: See Schedule of Findings and Questioned Costs for chart/table. Cause: Administrative Services lacked adequate procedures for ensuring the accuracy of amounts not obtained directly from the accounting system. Administrative Services established a specific account code for aid to subrecipients, but not all agencies utilized this account code. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or programs not audited that should be. Recommendation: We recommend Administrative Services improve procedures to ensure the SEFA is complete and accurate. Management Response: We will continue agency training, review of chart of accounts setup, review of object account usage, and working with State employees to help ensure the SEFA is accurate and complete.
Program: Various, including AL 10.542 – COVID-19 Pandemic EBT Food Benefits; AL 10.551 – Supplemental Nutrition Assistance Program; AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Grant Number & Year: Various, including 2401NERCMA, FFY 2024 Federal Grantor Agency: Various, including U.S. Department of Agriculture and U.S. Department of Health and Human Services Criteria: A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is presented properly. Title 45 CFR § 75.510(b) (October 1, 2023) and Title 2 CFR § 200.510(b) (January 1, 2024) state, in part, the following: The auditee must also 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 . . . . At a minimum, the schedule must: * * * * (3) Provide total Federal awards expended for each individual Federal program . . . . (4) Include the total amount provided to subrecipients from each Federal program. Neb. Rev. Stat. § 81-1111(1) (Reissue 2014) states, in part, the following: Subject to the supervision of the Director of Administrative Services, the Accounting Administrator shall have the authority to prescribe the system of accounts and accounting to be maintained by the state and its departments and agencies, develop necessary accounting policies and procedures, coordinate and approve all proposed financial systems, and manage all accounting matters of the state’s central system. EnterpriseOne is the official accounting system of the State. Condition: Several programs did not have expenditures or the amount provided to subrecipients reported accurately on the SEFA. We notified Administrative Services of the errors, and the SEFA was subsequently adjusted. A similar finding was noted in the prior audit. Repeat Finding: 2023-022 Questioned Costs: None Statistical Sample: No Context: Administrative Services is responsible for managing the accounting matters of the State and certifies the data collection form for the Statewide Single Audit. Administrative Services compiles the SEFA from information provided by the individual agencies and submits it to the auditor. During our review, we noted the following: The Department of Health and Human Services (DHHS) did not accurately report expenditures for several programs, including overreporting AL 93.566 by $1,154,638. DHHS also reported $20,605,059 under AL 10.551 that should have been under AL 10.542. If the latter adjustment had not been made, this would have resulted in a major program not being reported on the SEFA. Sixteen programs for various State agencies needed correction. The total expenditures and amounts provided to subrecipients, as both originally reported and per the final SEFA, were as follows: See Schedule of Findings and Questioned Costs for chart/table. Cause: Administrative Services lacked adequate procedures for ensuring the accuracy of amounts not obtained directly from the accounting system. Administrative Services established a specific account code for aid to subrecipients, but not all agencies utilized this account code. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or programs not audited that should be. Recommendation: We recommend Administrative Services improve procedures to ensure the SEFA is complete and accurate. Management Response: We will continue agency training, review of chart of accounts setup, review of object account usage, and working with State employees to help ensure the SEFA is accurate and complete.
Program: Various, including AL 10.542 – COVID-19 Pandemic EBT Food Benefits; AL 10.551 – Supplemental Nutrition Assistance Program; AL 93.566 – Refugee and Entrant Assistance State/Replacement Designee Administered Programs – Reporting Grant Number & Year: Various, including 2401NERCMA, FFY 2024 Federal Grantor Agency: Various, including U.S. Department of Agriculture and U.S. Department of Health and Human Services Criteria: A good internal control plan requires adequate procedures to ensure the Schedule of Expenditures of Federal Awards (SEFA) is presented properly. Title 45 CFR § 75.510(b) (October 1, 2023) and Title 2 CFR § 200.510(b) (January 1, 2024) state, in part, the following: The auditee must also 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 . . . . At a minimum, the schedule must: * * * * (3) Provide total Federal awards expended for each individual Federal program . . . . (4) Include the total amount provided to subrecipients from each Federal program. Neb. Rev. Stat. § 81-1111(1) (Reissue 2014) states, in part, the following: Subject to the supervision of the Director of Administrative Services, the Accounting Administrator shall have the authority to prescribe the system of accounts and accounting to be maintained by the state and its departments and agencies, develop necessary accounting policies and procedures, coordinate and approve all proposed financial systems, and manage all accounting matters of the state’s central system. EnterpriseOne is the official accounting system of the State. Condition: Several programs did not have expenditures or the amount provided to subrecipients reported accurately on the SEFA. We notified Administrative Services of the errors, and the SEFA was subsequently adjusted. A similar finding was noted in the prior audit. Repeat Finding: 2023-022 Questioned Costs: None Statistical Sample: No Context: Administrative Services is responsible for managing the accounting matters of the State and certifies the data collection form for the Statewide Single Audit. Administrative Services compiles the SEFA from information provided by the individual agencies and submits it to the auditor. During our review, we noted the following: The Department of Health and Human Services (DHHS) did not accurately report expenditures for several programs, including overreporting AL 93.566 by $1,154,638. DHHS also reported $20,605,059 under AL 10.551 that should have been under AL 10.542. If the latter adjustment had not been made, this would have resulted in a major program not being reported on the SEFA. Sixteen programs for various State agencies needed correction. The total expenditures and amounts provided to subrecipients, as both originally reported and per the final SEFA, were as follows: See Schedule of Findings and Questioned Costs for chart/table. Cause: Administrative Services lacked adequate procedures for ensuring the accuracy of amounts not obtained directly from the accounting system. Administrative Services established a specific account code for aid to subrecipients, but not all agencies utilized this account code. Effect: Increased risk for the SEFA to be inaccurate, which could lead to Federal sanctions or programs not audited that should be. Recommendation: We recommend Administrative Services improve procedures to ensure the SEFA is complete and accurate. Management Response: We will continue agency training, review of chart of accounts setup, review of object account usage, and working with State employees to help ensure the SEFA is accurate and complete.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
2024–002 – PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Funding Agency: All (see Schedule of Expenditures of Federal Awards) Title: All (see Schedule of Expenditures of Federal Awards) AL #: All (see Schedule of Expenditures of Federal Awards) Award #: All (see Schedule of Expenditures of Federal Awards) Award Period: All (see Schedule of Expenditures of Federal Awards) Questioned Costs: None Type of Finding: (E) Significant Deficiency in Internal Control Over Compliance of Federal Awards & (F) Instance of Non-Compliance Related to Federal Awards Statement of Condition The SEFA was not prepared timely and required adjustments to correctly present federal expenditures. Criteria 2 CFR 200.510(b) requires that the auditee prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee’s financial statements. Effect The SEFA was not prepared in accordance with Uniform Guidance resulting in noncompliance. Additionally, this could have resulted in an incorrect selection of the major federal program. Cause There was turnover in management which caused the preparation of the SEFA to be delayed and requiring adjustments. Recommendation Design and implement internal controls to ensure accurate and timely preparation of the SEFA as required by the Uniform Guidance. The SEFA should include the federal portion of expenditures, the name of the grant, name of grantor, the Assistance Listing number, and pass-through entity information as applicable. The SEFA must also be reconciled to federal revenues and expenditures per the general ledger. Additionally, we recommend the QuickBooks job categories are reviewed regularly against the grant trackers to ensure proper coding in QuickBooks.
Finding 2024-002 – Schedule of Expenditures of Federal Awards – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agency: All Title: All Assistance Listing Number: All Award year and number: All Criteria: The Uniform Guidance 2 CFR 200.510(b) requires the auditee to prepare a schedule of expenditures of federal awards for the period covered by the auditee’s financial statements. The schedule must include the total Federal awards expended as determined in accordance with 2 CFR 500.502. Condition/Context: Phoenix Indian Center’s schedule of expenditures of federal awards did not include Federal awards expended in accordance with 2 CFR 500.502. Questioned Costs: None. Cause and Effect: Phoenix Indian Center experienced significant turnover in key positions that generally ensure accounting records and financial statements were reconciled timely. As a result, the prepared schedule did not include federal awards expended in accordance with 2 CFR 500.502. Auditors’ Recommendations: To ensure compliance with the Uniform Guidance, Phoenix Indian Center should prepare accurate, complete and timely financial statements and ensure the prepared schedule of expenditures of federal awards is prepared in accordance with 2 CFR 200.510(b). Management’s Response: Agreed, management began even before completion of prior year’s audit to address issues of control and system weaknesses. The process just beginning did not address all things quickly. However, the following correction plan is in effect and systems are now in place.
Condition: 2 CFR 200.510(b) requires the auditee to prepare a schedule of federal awards (SEFA) that must contain federal awards expended during the period. Cause: The inaccurate reporting of these federal awards appears to be due to lack of communication and oversight in data collection. Effect: SEFA was inaccurate Recommendation: We recommend that management put controls in place over the preparation and review of the schedule of expenditures of federal awards to ensure that only (and all) federal expenditures are included. Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
2024-001 Internal Controls over Preparation of the Schedule of Expenditures of Federal Awards and Reporting for Maine DHHS 93.667 Social Services Block Grant (SSBG) and Maine DHHS 21.027 COVID-19 - Coronavirus State and Local Fiscal Recovery Funds (Significant Deficiency in Internal Controls over Compliance and Noncompliance) Criteria: 2 CFR 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards, £200.508(b) The auditee must prepare appropriate statements including an accurate Schedule of Expenditures of Federal Awards (SEFA) in accordance with £200.510, Financial Statements. Federal reporting standards require the timely and accurate filing of reports as required by pass-through grantor agreements. Condition and Context: Agreement Closeout Report filed for the Agreement ADS-23-3351D (Social Services Block Grant) for the component period ended 6/30/24 was filed late by 27 days. In addition, the report contained inaccuracies including use of fee-for-service rates that were not specified by the Fee For Service Rider. Reporting for the period ended 6/30/24 contained inaccuracies resulting from budgeted income and expenses sourced from an outdated contract amendment, budgeted percentage of expenses reimbursable by state and federal agreement funds, and the total component amount received by the provider for service months in the reporting period. In addition, to the conditions noted above, the following errors were noted and corrected as a result of auditing procedures on the SEFA: • Social Services Block Grant expenditures were overstated by $159,088 due to errors in accounting for expenditures of the grant which were based on outdated calculations. • Federal expenditures were understated for the State of Maine DHHS Agreement ADS-23-3004B (93.044 Special Programs for the Aging – Title III, Part B, Grants for Supportive Services and Senior Centers) by $27,492 due to errors in reconciling grant reports to the SEFA. • Federal expenditures were overstated for the State of Maine DHHS Agreement ADS-24-3004B (Coronavirus State and Local Fiscal Recovery Funds) by $25,500 due to errors reconciling grant reports to the SEFA. Cause: There is a gap in training and understanding of the instructions for the Maine DHHS Agreement Closeout Report and Quarterly Financial Report. There are insufficient internal controls over the preparation, review, and documentation process for the SEFA and supporting documents. Effect: The Agreement Closeout Report was filed 27 days late. The Agreement Closeout Report was filed using incorrect reporting forms. Due to errors in entering federal funds available for cost sharing and calculating department funds not utilized, Agreement Cost Sharing percentages were incorrectly calculated by the reporting form. Incorrect component agreement funds and budgeted income and expenses were referenced, as key information was omitted which prevented the quarterly reports from calculating the amounts due to or from the Agency. Errors in reporting can lead to issues in reconciling and tracking of awards earned and recognized in the financial statements. They could also lead to findings and corrective action with funders. Recommendation: Management should review their processes and procedures over review and approval of reporting, and for tracking of reporting deadlines. Both the preparer and reviewer should have a clear understanding of the required minimum elements and instructions. As part of the review, all required minimum elements should be vouched to original source documents including copies of awards, grant reporting, and the trial balance profit and loss reports. Any inconsistencies should be resolved before submission. Management should strengthen their controls for the tracking of required report filings and their due dates. Management should consider training for staff tasked with completing, reviewing, and filing these reports. Views of Responsible Officials and Planned Corrective Actions: Management will review and update processes and procedures over reporting and additional training will be provided as needed to prevent future findings.
AL number: n/a AL title: Federal award identification number and year: n/a Name of federal agency: n/a Name of pass through entity: n/a Repeat finding: No Criteria:In accordance with 2 CFR §200.510(b), Organizations are required to prepare an accurate schedule of sources and uses of federal awards on the schedule of expenditures of federal awards. Condition:The schedule of expenditures of federal awards prepared by Catholic Charities was incorrectly compiled resulting in a significant amount of non governmental funds being included on the schedule. Cause: Catholic Charities SEFA includes all of its government funding sources and is broken down by source e.g federal, state and local. During preparation, management reconciled the total SEFA to total government revenue. The error occurred because management did not reconcile the schedule by funding source total. Effect or potential effect:The schedule of expenditures of federal awards prepared by Catholic Charities management improperly included $1,005,710 in expenditures of non federal awards. Questioned cost:No questioned costs identified. Recommendation:Catholic Charities management should add a step to the SEFA preparation process for reconciling the SEFA to government funding source total per the general ledger. Views of responsible officials:Going forward Catholic Charities will add a schedule that reconciles the SEFA by funding source to the general ledger accounts.
(2024-016) Title: Internal control over Unemployment Insurance financial reporting needs improvement Prior Year Findings: None State Department: Labor Administrative and Financial Services State Bureau: Unemployment Compensation Security and Employment Service Center Office of the State Controller Federal Agency: U.S. Department of Labor Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Assistance Listing Number: 17.225 Federal Award Identification Number: See E-77 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510; Governmental Accounting, Auditing, and Financial Reporting (GAAFR), Part 5, Section A: Internal Control; State Administrative and Accounting Manual (SAAM) Chapter 80 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program. The GAAFR states that a comprehensive framework of internal control is required to obtain reasonable assurance over financial reporting. The Office of the State Controller (OSC) has the responsibility to develop and maintain a system of internal controls and procedures to check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies for accounting and financial controls. Condition: The Security and Employment Service Center (SESC) is responsible for recording accounting transactions and reconciling balances between Federal funds and the State-funded Unemployment Insurance (UI) program under the Employment Security Fund (ESF). SESC is required to periodically record transfers of revenues and expenditures between Federal and State funds, which are separately presented in the State’s financial statements, but combined for SEFA reporting purposes. OSC compiles information collected from SESC in year-end closing packages for financial and SEFA reporting purposes. The Office of the State Auditor’s (OSA) audit of year-end account balances and related SEFA reporting identified a deposit of $11.6 million, representing a transfer between Federal and State UI funds, that was not accurately recorded. This resulted in the following errors: • ESF Cash & Short-Term Investments was overstated by $11.6 million, and Restricted Deposits & Investments was understated by $11.6 million on the State’s financial statements. • SEFA expenditures were overstated by $11.6 million. OSA proposed an audit adjustment to reclassify and correct the balances on the State’s financial statements and SEFA. The adjustment was recorded by OSC. Context: Before OSA’s proposed audit adjustment: • ESF Cash & Short-Term Investments and Restricted Deposits & Investments totaled $13 million and $735.2 million, respectively. • SEFA expenditures for the UI program totaled $150.7 million. Cause: Lack of supervisory oversight Effect: Before OSC corrected year-end account balances and related SEFA reporting: • ESF asset balances on the State’s financial statements were misclassified. • total expenditures reported on the SEFA were inaccurate. The SEFA is submitted to the Federal government, and errors in reporting may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that SESC and OSC enhance supervisory oversight to ensure that balances reported on the State’s financial statements and SEFA are accurate. Corrective Action Plan: See F-11 Management’s Response: The Department agrees with this finding. The department will further expand the procedures used to prepare and review the SEFA. Contact: Marilyn Leimbach, Director, Security and Employment Service Center, DFPS, DAFS, 207-248-2556 (State Number: 24-0308-02)
(2024-016) Title: Internal control over Unemployment Insurance financial reporting needs improvement Prior Year Findings: None State Department: Labor Administrative and Financial Services State Bureau: Unemployment Compensation Security and Employment Service Center Office of the State Controller Federal Agency: U.S. Department of Labor Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Assistance Listing Number: 17.225 Federal Award Identification Number: See E-77 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510; Governmental Accounting, Auditing, and Financial Reporting (GAAFR), Part 5, Section A: Internal Control; State Administrative and Accounting Manual (SAAM) Chapter 80 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program. The GAAFR states that a comprehensive framework of internal control is required to obtain reasonable assurance over financial reporting. The Office of the State Controller (OSC) has the responsibility to develop and maintain a system of internal controls and procedures to check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies for accounting and financial controls. Condition: The Security and Employment Service Center (SESC) is responsible for recording accounting transactions and reconciling balances between Federal funds and the State-funded Unemployment Insurance (UI) program under the Employment Security Fund (ESF). SESC is required to periodically record transfers of revenues and expenditures between Federal and State funds, which are separately presented in the State’s financial statements, but combined for SEFA reporting purposes. OSC compiles information collected from SESC in year-end closing packages for financial and SEFA reporting purposes. The Office of the State Auditor’s (OSA) audit of year-end account balances and related SEFA reporting identified a deposit of $11.6 million, representing a transfer between Federal and State UI funds, that was not accurately recorded. This resulted in the following errors: • ESF Cash & Short-Term Investments was overstated by $11.6 million, and Restricted Deposits & Investments was understated by $11.6 million on the State’s financial statements. • SEFA expenditures were overstated by $11.6 million. OSA proposed an audit adjustment to reclassify and correct the balances on the State’s financial statements and SEFA. The adjustment was recorded by OSC. Context: Before OSA’s proposed audit adjustment: • ESF Cash & Short-Term Investments and Restricted Deposits & Investments totaled $13 million and $735.2 million, respectively. • SEFA expenditures for the UI program totaled $150.7 million. Cause: Lack of supervisory oversight Effect: Before OSC corrected year-end account balances and related SEFA reporting: • ESF asset balances on the State’s financial statements were misclassified. • total expenditures reported on the SEFA were inaccurate. The SEFA is submitted to the Federal government, and errors in reporting may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that SESC and OSC enhance supervisory oversight to ensure that balances reported on the State’s financial statements and SEFA are accurate. Corrective Action Plan: See F-11 Management’s Response: The Department agrees with this finding. The department will further expand the procedures used to prepare and review the SEFA. Contact: Marilyn Leimbach, Director, Security and Employment Service Center, DFPS, DAFS, 207-248-2556 (State Number: 24-0308-02)
(2024-044) Title: Internal control over CSLFRF reporting needs improvement Prior Year Findings: See schedule of Findings and Questioned Costs for chart/table State Department: Administrative and Financial Services State Bureau: Security and Employment Service Center Federal Agency: U.S. Department of the Treasury Assistance Listing Title: Coronavirus State and Local Fiscal Recovery Funds (COVID-19) Assistance Listing Number: 21.027 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.332(b); 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must maintain accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with reporting requirements. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must provide total Federal awards expended for each individual Federal program and the Assistance Listing Number (ALN) and include the total amount provided to subrecipients from each Federal program. Condition: The Department of Administrative and Financial Services’ Security and Employment Service Center (SESC) is responsible for accurately recording information needed to report on the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Quarterly Project and Expenditure Reports. Information from these CSLFRF reports is used by the Office of the State Controller for SEFA preparation. The Office of the State Auditor reviewed amounts reported on the SEFA and identified $9.7 million of Federal expenditures incorrectly reported as amounts provided to subrecipients that should have been reported as direct expenditures. SESC inaccurately identified vendors as subrecipients. As a result, vendor payments were incorrectly classified as subrecipient payments on the CSLFRF Quarterly Project and Expenditure Reports and were incorrectly included in the initial amount reported on the SEFA as amounts provided to subrecipients. Context: Payments to the providers totaled $9.7 million of the $209.6 million in fiscal year 2024 CSLFRF expenditures. Cause: • Lack of adequate policies and procedures • Lack of supervisory oversight Effect: • Incomplete or inaccurate reporting of expenditures on the CSLFRF reports and SEFA, which are submitted to the Federal government, may result in incorrect information used for programmatic, policy or statistical purposes. • Noncompliance with Federal regulations Recommendation: We recommend that the Department implement policies and procedures to ensure contractors and subrecipients are appropriately classified and reported on the CSLFRF Quarterly Project and Expenditure Reports and SEFA. Corrective Action Plan: See F-20 Management’s Response: The Department agrees with this finding. The Security and Employment Service will continue to work with our partner agencies to help ensure the sub-recipient/vendor classification is appropriately determined when the initial contracts are written. In this case, the contracts ended in July 2023 and the contracting agency did not amend the contracts to change the classification. Contact: Marilyn Leimbach, Director, SESC, DAFS, 207-248-2556 (State Number: 24-1699-03)
(2024-076) Title: Internal control over the submission of DG – PA program Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Defense, Veterans and Emergency Management State Bureau: Maine Emergency Management Agency Federal Agency: U.S. Department of Homeland Security Assistance Listing Title: Disaster Grants – Public Assistance (Presidentially Declared Disasters) (COVID-19) Assistance Listing Number: 97.036 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must include the total amount provided to subrecipients from each Federal program. Condition: The Maine Emergency Management Agency (MEMA) must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. MEMA submitted schedules to OSC that incorrectly reported $91,471 of expenditures under ALN 97.050 Presidential Declared Disaster Assistance to Individuals and Households – Other Needs that should have been reported under ALN 97.036 Disaster Grants – Public Assistance (DG – PA) (Presidentially Declared Disasters). MEMA procedures do not require review of schedules prior to submission to OSC. Context: In fiscal year 2024, DG – PA expenditures totaled approximately $68 million. Cause: • Lack of adequate policies and procedures • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that MEMA implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. Corrective Action Plan: See F-30 Management’s Response: The Department agrees with this finding. MEMA will work with Defense, Veterans and Emergency Management staff to develop an agency-specific procedure for comprehensive review of the agency’s Federal expenditures at an appropriate point in the department’s annual SEFA reporting process. Contact: Sunny Cyr, Business Office Director, MEMA, DVEM, 207-707-2507 (State Number: 24-1502-01)
(2024-076) Title: Internal control over the submission of DG – PA program Schedule of Expenditures of Federal Awards information needs improvement Prior Year Findings: None State Department: Defense, Veterans and Emergency Management State Bureau: Maine Emergency Management Agency Federal Agency: U.S. Department of Homeland Security Assistance Listing Title: Disaster Grants – Public Assistance (Presidentially Declared Disasters) (COVID-19) Assistance Listing Number: 97.036 Federal Award Identification Number: See E-77 to E-78 Compliance Area: Reporting Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.510 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. The Department must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the State’s financial statements which must include the total Federal awards expended. At a minimum, the SEFA must include the total amount provided to subrecipients from each Federal program. Condition: The Maine Emergency Management Agency (MEMA) must complete and submit exhibits and related schedules to the Office of the State Controller (OSC) at the close of each fiscal year to report Federal award information for inclusion on the State’s SEFA. OSC is responsible for compiling this information on behalf of the State. MEMA submitted schedules to OSC that incorrectly reported $91,471 of expenditures under ALN 97.050 Presidential Declared Disaster Assistance to Individuals and Households – Other Needs that should have been reported under ALN 97.036 Disaster Grants – Public Assistance (DG – PA) (Presidentially Declared Disasters). MEMA procedures do not require review of schedules prior to submission to OSC. Context: In fiscal year 2024, DG – PA expenditures totaled approximately $68 million. Cause: • Lack of adequate policies and procedures • Lack of supervisory oversight Effect: Inaccurate reporting of expenditure amounts on the SEFA, which is submitted to the Federal government, may result in incorrect information used for programmatic, policy, or statistical purposes. Recommendation: We recommend that MEMA implement policies and procedures that require a comprehensive review of SEFA schedules prior to submission to OSC. Corrective Action Plan: See F-30 Management’s Response: The Department agrees with this finding. MEMA will work with Defense, Veterans and Emergency Management staff to develop an agency-specific procedure for comprehensive review of the agency’s Federal expenditures at an appropriate point in the department’s annual SEFA reporting process. Contact: Sunny Cyr, Business Office Director, MEMA, DVEM, 207-707-2507 (State Number: 24-1502-01)
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.
Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller’s Office (SCO) is responsible for coordinating with other state agencies to prepare the State of Wisconsin Schedule of Expenditures of Federal Awards (SEFA). The SEFA, which is required to be published in the State of Wisconsin single audit report, is a listing of all federal programs administered by an entity. The SEFA includes the total expenditures for the reporting period and identifies any amounts provided to subrecipients for each federal program. Each state agency prepares a SEFA for the federal programs it administers. For federal programs administered by UW System Administration and UW institutions, UW System Administration staff work with UW institution staff to compile the UW SEFA. The UW SEFA is provided to DOA, which compiles the agency-level SEFAs into the statewide SEFA. Criteria: Under 2 CFR s. 200.510 (b), the State is required to prepare a SEFA for the period covered by the State’s financial statements and the SEFA must include the total federal awards expended and include the total amount provided to subrecipients from each federal program. In addition, for federal awards received as a subrecipient, the name of the pass-through entity is required to be identified in the SEFA. Condition: We identified multiple errors in the presentation of federal expenditures in the SEFA prepared by UW System Administration. First, we found UW System Administration reported only $2.0 million in federal expenditures for the ELC grant, based on ELC funding UW-Madison received from DHS. However, DHS reported reimbursing UW-Madison $18.2 million in expenditures under the ELC grant. UW System Administration was not able to fully reconcile these amounts. Second, we found UW System Administration incorrectly reported a disallowance of $10.1 million to the Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) and did not remove the disallowance before reporting total expenditures for the Perkins Loan program. As a result, UW-Madison underreported Perkins Loan federal financial assistance by $10.1 million in its SEFA. After we identified this error, UW System Administration corrected the amount reported in the final SEFA. Third, we found UW System Administration reported $330,476 in federal expenditures for the Immunization Cooperative Agreements grant (Assistance Listing number 93.268). However, UW-Madison staff administering the program indicated the expenditures were for the Health Disparities grant. Fourth, we found that $3.1 million in expenditures for a UW-Eau Claire award under the CSLFRF grant was incorrectly reported as a subgrant from the Wisconsin Economic Development Corporation. However, this funding related to an agreement between UW-Eau Claire and the Wisconsin Department of Workforce Development (DWD), and should have been reported as a direct award on the SEFA. Fifth, we found that UW System Administration incorrectly included non-research grants in the Research and Development Cluster in the SEFA. After we inquired and suggested changes, UW System Administration identified that $28.8 million in federal expenditures for 20 grant programs were incorrectly reported as part of the Research and Development Cluster. For example, UW System Administration reported $9.0 million in expenditures for the DBII grant, $6.3 million for the State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561), and $2.2 million in expenditures under the CSLFRF grant as expenditures in the Research and Development Cluster, but none of these programs relate to research. Context: UW System Administration reported $1.9 billion in federal financial assistance in FY 2023-24. We reviewed UW System’s SEFA to assess the reported expenditures, particularly for major programs. We inquired of UW System Administration regarding its procedures for preparation of the SEFA, and of UW institution staff as needed to understand the recording of federal grant expenditures. Questioned Costs: None. Effect: UW System Administration is not assured that its reporting in the SEFA accurately reflects its expenditure of federal assistance. Errors such as those we identified are noncompliant with federal requirements. Cause: Although UW System Administration had queries to document the steps in its SEFA preparation process, it did not have formal written procedures for the process. Overall, UW System Administration’s procedures for preparing the SEFA were insufficient to detect and correct potential errors in recording transactions when grant funds are transferred between UW institutions and state agencies. For the ELC grant, the expenditures were coded to a non-federal account in UW-Madison’s records, and thus were not included in the compilation of the SEFA. UW-Madison staff indicated that the relationship with DHS for the ELC grant was a contractual relationship and therefore UW-Madison did not establish the original ELC project as a federal grant in its accounting records. Further, UW System Administration did not have sufficient processes in place to verify with DHS that the ELC expenditures were appropriately reflected in the UW System SEFA. For the Perkins Loan Program, UW System Administration did not have sufficient procedures in place to identify disallowances and other types of credits that require adjustment when preparing the federal expenditures in the SEFA. For the Health Disparities grant, there was a lack of communication between UW-Madison department-level accounting staff and DHS to ensure agreement on which federal program the federal expenditures should be recorded. For the UW-Eau Claire CSLFRF award, UW staff relied on how the award was named in UW System’s accounting records, rather than reviewing the award agreement to determine that the award was from DWD, rather than WEDC. Finally, UW System Administration did not have sufficient procedures in place to ensure only research grant expenditures were included in the Research and Development Cluster. Recommendation: We recommend the University of Wisconsin System Administration: -revise and document its procedures for preparing the Schedule of Expenditures of Federal Awards (SEFA) to include steps to correctly identify grant activity between UW institutions and grant activity between UW institutions and other state agencies; -revise and document its procedures for identifying grants as research to ensure correct reporting in the Research and Development Cluster; -work with all UW institutions and state agencies to ensure federal expenditures are recorded correctly in its SEFA; and -provide training and guidance to UW institutions on the revised and documented SEFA preparation procedures. Finding 2024-712: Multiple Grants—Reporting in the Schedule of Expenditures of Federal Awards Dairy Business Innovation Initiatives (Assistance Listing number 10.176) Award Numbers Award Years AM200100XXXXG001 2020 21DBIWI1006 2021 AM21DBIWI1010 2022 AM22DBIWI1014 2022 23DBIWI1019 2023 Questioned Costs: None State Administrative Matching Grants for the Supplemental Nutrition Assistance Program (Assistance Listing number 10.561) Award Numbers Award Years 2WI400115 2023 2WI400115 2024 Questioned Costs: None COVID-19—Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 Questioned Costs: None Drinking Water State Revolving Fund (Assistance Listing number 66.468) Award Numbers Award Years 98597721 2021 98597722 2022 98597723 2023 Questioned Costs: None Geographic Programs - Great Lakes Restoration Initiative (Assistance Listing number 66.469) Award Numbers Award Years 00E02456 2019 00E02490 2019 00E02975 2021 00E03149 2022 00E03187 2022 00E03188 2022 001E0301 2022 03E00712 2022 00E03404 2023 Questioned Costs: None Federal Perkins Loan Program—Federal Capital Contributions (Assistance Listing number 84.038) Award Numbers Award Years Various Various Questioned Costs: None English Language Acquisition State Grants (Assistance Listing number 84.365) Award Number Award Year T365Z210124 2021 Questioned Costs: None Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Covid-19—Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Number Award Year NU50CK000534 2024 Questioned Costs: None Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Numbers Award Years 1B08TI084677-01 2021-2024 1B08TI085839-01 2022-2024 1B08TI087071-01 2023-2025 Questioned Costs: None Children's Health Insurance Program (Assistance Listing number 93.767) Award Numbers Award Years 2305WI15CHIP 2023 2405WI15CHIP 2024 Questioned Costs: None Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2305WI5MAP 2023 2405WI5MAP 2024 Questioned Costs: None Covid-19—Block Grants for Prevention and Treatment of Substance Abuse (Assistance Listing number 93.959) Award Number Award Years 1B08TI083973-01 2021-2025 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the University of Wisconsin System Administration: The University of Wisconsin System Administration agrees with the audit finding and recommendations.