Noncompliance and Material Weakness 2 CFR ? 400.1 gives regulatory effect for the U. S. Department of Agriculture to the Office of Management and Budget guidance in subparts A through F of 2 CFR part 200, as supplemented by this part, as USDA policies and procedures for uniform administrative requirements, cost principles, and audit requirement for Federal awards. 2 CFR ? 200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain effective internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR ? 200.514(c) requires auditors to obtain an understanding of the non-Federal entity?s internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs, and, unless internal control is likely to be ineffective in preventing or detecting noncompliance, plan the testing of internal control over compliance for major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program and perform testing of internal control as planned. 7 CFR ? 210.7(c) states, in part, to be entitled to reimbursement under this part, each school food authority shall ensure that the Claims for Reimbursement . . . accurately reflects the number of lunches and meal supplements served to eligible children, and the school food authority shall, at a minimum: (iii) Base Claims for Reimbursement on lunch counts, taken daily at the point of service, which correctly identify the number of free, reduced price and paid lunches served to eligible children; (iv) Correctly record, consolidate and report those lunch and supplement counts on the Claim for Reimbursement; and (v) Ensure that Claims for Reimbursement do not request payment for any excess lunches produced, as prohibited in ? 210.10(a)(2), or non-Program lunches (i.e., a la carte or adult lunches) or for more than one meal supplement per child per day. 7 CFR ? 210.8(c) states the Claim for Reimbursement shall include data in sufficient detail to justify the reimbursement claimed and to enable the State agency to provide the Report of School Program Operations required under ?210.5(d) of this part. Such data shall include, at a minimum, the number of free, reduced price and paid lunches and meal supplements served to eligible children. The claim shall be signed by a school food authority official. Six out of twenty (30%) site claim forms submitted by the District to the Ohio Department of Education were inaccurate, since the District claimed more meals served than what was actually distributed. These errors occurred due to a weakness in internal controls, which failed to ensure site claim forms for reimbursable meals served at each building and submitted by the District to the Ohio Department of Education were entered correctly. Failure to properly report the number of eligible meals resulted in the District receiving unsubstantiated reimbursements totaling $4,823. The District should implement policies and procedures to help ensure that monthly site claim forms for all District buildings are reviewed and submitted to reflect actual counts for reimbursable meals served.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA State Controller?s Office (SCO) is responsible for coordinating with the 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, 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 that it administers. For federal programs administered by DOA, the DOA Bureau of Financial Management (BFM) prepares the SEFA and provides this SEFA to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Finally, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Generally accepted accounting principles require that the correction of prior-period amounts in the financial statements should be reported as an adjustment to the opening fund balance and not be reported as an adjustment to the current-year activity. Further, the adjustment and its effects should be disclosed in the footnotes. These concepts are similarly applied to the preparation of the SEFA. Condition: During FY 2021-22, DOA BFM transferred FY 2020-21 expenditures from the CSLFRF grant to the Coronavirus Relief Fund (CRF) (Assistance Listing number 21.019). In addition, during FY 2021-22 DOA BFM transferred FY 2019-20 and FY 2020-21 expenditures from the CRF to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant (Assistance Listing number 97.036). In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the CSLFRF and CRF grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DOA BFM did not make a subsequent adjustment to remove the expenditure adjustments from the CSLFRF and CRF grants. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DOA administered $990.5 million in federal financial assistance in FY 2021-22. We reviewed DOA?s SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: In preparing its FY 2021-22 SEFA, DOA BFM underreported expenditures for CSLFRF by $192.1 million and for the CRF by $241.3 million. Further, because the transfer of prior-year expenditures in the current year changed the prior-year total federal expenditures, there is a potential effect on the prior-year single audit results that could result in the need to re-issue the prior-year single audit report. However, we assessed the revised total federal expenditures in FY 2019-20 and in FY 2020-21 and we determined that the audit results for FY 2019-20 and FY 2020-21 did not require an update. Cause: DOA BFM sought to reflect the expenditures for DOA?s grant programs based on the amounts recorded in the STAR General Ledger. However, DOA BFM did not consider that the negative expenditures, resulting from the transfers of FY 2019-20 and FY 2020-21 expenditures led to underreporting of the grant expenditures in the SEFA. Recommendation: We recommend the Wisconsin Department of Administration: -further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is adjusting expenditures for all prior-year transfers of expenditures in the current year; and -carefully assess the transfer of prior-year expenditures in the current year to determine any potential effects on the total federal expenditures for the prior-year and the effect on the major program expenditures. Finding 2022-103: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards COVID-19?Coronavirus Relief Fund (Assistance Listing number 21.019) Award Number Award Year None 2020 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 Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Administration: The Wisconsin Department of Administration agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards Background: The DOA, State Controller?s Office (SCO) is responsible for coordinating with the 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, includes the total expenditures for the reporting period, and identifies any amounts provided to subrecipients for each federal program. Each state agency, including DHS, prepares a SEFA for the federal programs that it administers and provides this to DOA SCO. DOA SCO compiles the agency-level SEFAs into the statewide SEFA. DOA SCO performs desk reviews of the agency-level SEFAs to ensure the expenditures reconcile to the accounting records in STAR, which is the State?s accounting system. Criteria: Under 2 CFR 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. Under 2 CFR 200.502, the determination of when a federal award is expended must be based on when the activity related to the federal award occurs. Further, 2 CFR 200.514 indicates that the financial statements and SEFA must be for the same audit period. Finally, in accordance with Office of Management and Budget (OMB) Compliance Supplement, recipients and subrecipients of federal funding provided under the COVID-19 Emergency Acts, which includes funding the State received under the American Rescue Plan Act (ARPA), must separately identify the COVID-19 expenditures in the SEFA. Further, in its instructions to state agencies, DOA identified that separate reporting of COVID-19 Emergency Acts expenditures was required. Condition: We identified four concerns in our review of the DHS FY 2021-22 SEFA. First, we found DHS did not separately identify $329.2 million in FY 2021-22 expenditures as COVID-19 MA Program expenditures related to the enhanced federal medical assistance percentage for home and community-based services authorized under ARPA. Second, during FY 2021-22 DHS transferred $55.9 million in FY 2020-21 expenditures from the Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) grant (Assistance Listing number 93.323) to the Disaster Grants?Public Assistance (Presidentially Declared Disasters) grant. In the STAR General Ledger, the prior-year transferred expenditures resulted in a reduction in the ELC grant expenditures. In reporting these amounts in the FY 2021-22 SEFA, DHS did not make a subsequent adjustment to remove the expenditure adjustment from the total expenditures reported for the ELC grant. Third, DHS did not report all CSLFRF expenditures it incurred in FY 2021-22. DHS requested reimbursement from DOA as it incurred expenditures under the CSLFRF grant. In its FY 2021-22 SEFA, DHS reported $161.9 million in CSLFRF expenditures, which was the total expenditures for which it had received reimbursement from DOA. However, DHS had actually incurred $173.6 million in CSLFRF expenditures in FY 2021-22. Finally, DHS included a $2.6 million repayment of a prior-year overpayment as an expenditure for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant. This should have been excluded from total expenditures because it did not relate to FY 2021-22 program expenditures. Context: The State administered and reported in its SEFA $20.2 billion in federal financial assistance in FY 2021-22. DHS administered $11.9 billion in federal financial assistance in FY 2021-22. We reviewed the DHS SEFA to assess the reported expenditures, particularly for major programs. Questioned Costs: None. Effect: Although total expenditures for the MA Program were accurately reported, DHS did not accurately report $329.2 million as COVID-19 expenditures separately in the SEFA. Further, DHS underreported expenditures by $55.9 million for the ELC grant, underreported expenditures by $11.7 million for CSLFRF, and overreported expenditure by $2.6 million for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Cause: DHS did not consider the new enhanced federal funding it received for home and community-based services as amounts that should be identified as COVID-19 expenditures when compiling the SEFA. DHS sought to reflect the expenditures for the grant programs based on the amounts recorded in the STAR General Ledger. However, DHS did not consider that the negative expenditures resulting from the transfers of FY 2020-21 expenditures led to the underreporting of the ELC grant expenditures in the DHS SEFA. Further, for the CSLFRF grant, DHS indicated that it thought it was appropriate to report only what had been reimbursed by DOA. Finally, DHS overlooked the inclusion of a repayment of a prior-year overpayment when reporting its expenditures for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children grant program. Recommendation: We recommend the Wisconsin Department of Health Services further evaluate federal grant expenditures reported in the STAR General Ledger as it prepares its schedule of expenditures of federal awards and ensure it is: -properly identifying applicable COVID-19 expenditures; -adjusting expenditures for prior-year transfers of expenditures in the current year; -reporting all federal expenditures for each federal grant program, regardless of whether the agency has received reimbursement from the pass-through entity; and -removing repayments of prior-year overpayments of expenditures from current-year expenditures. Finding 2022-302: Multiple Grants?Reporting in the Schedule of Expenditures of Federal Awards WIC Special Supplemental Nutrition Program for Women, Infants, and Children (Assistance Listing number 10.557) Award Number Award Year 16W1006 2016 COVID-19?Coronavirus State and Local Fiscal Recovery Funds (Assistance Listing number 21.027) Award Number Award Year None 2021 COVID-19?Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-06 2020 6 NU50CK000534-01-07 2020 6 NU50CK000534-01-08 2020 6 NU50CK000534-01-09 2021 6 NU50CK000534-02-00 2021 6 NU50CK000534-02-01 2021 6 NU50CK000534-02-05 2021 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (Assistance Listing number 93.323) Award Numbers Award Years 6 NU50CK000534-01-00 2020 6 NU50CK000534-01-01 2020 6 NU50CK000534-02-00 2021 COVID-19?Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Medical Assistance Program (Assistance Listing number 93.778) Award Numbers Award Years 2105WI5MAP 2021 2205WI5MAP 2022 Questioned Costs: None Type of Finding: Significant Deficiency, Noncompliance Response from the Wisconsin Department of Health Services: The Wisconsin Department of Health Services agrees with the audit finding and recommendations.
Finding 2022-002: Internal Controls (Material Weakness) Criteria A-102 Common Rule, OMB Circular A-110 and 2 CFR section 200.303 require that non-Federal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR section 200.514 requires auditors to obtain an understanding of the non-Federal entity's internal control over Federal programs sufficient to plan the audit to support a low assessed level of control risk of noncompliance for major programs, and, unless internal control is likely to be ineffective, plan the testing of internal control over major programs to support a low assessed level of control risk for the assertions relevant to the compliance requirements for each major program and perform testing of internal control as planned. Condition As noted in finding 2022-001, we noted a lack of evidence to support the operation of internal controls for the fiscal year. Cause The Organization has experienced growth over the past couple of years, however has not evaluated and updated internal controls. Effect The Organization lacked internal controls to support a low assessed level of control risk for the assertions relevant to compliance requirements for the major program tested. Recommendation We recommend that the Organization institute a program to methodically identify and document its significant operational and accounting processes as they relate to Federal grants and compliance. Documenting a process involves identifying and gaining an understanding of the required compliance requirements, the automated or manual procedures used in performing the required process, the person(s) or position(s) responsible for performing the procedures, the source documents used or generated, the procedures for approval and review and correction of any errors detected, and the financial or operational entries or reports summarizing the result of the process. Views of Responsible Officials The Organization agrees with the auditor's findings. We have already begun to make adjustments to record all grants ahead of time in Quickbooks and deduct funding as we spend from these areas to directly show grant balances and that the restricted funding is spent in compliance with the funding received. We will also provide these findings to a certified public accountant to make sure they are adhered to correctly and meet the requirements of both state and federal funding.