Finding 1073905 (2023-002)

Finding 2023-002 Repeat of Finding 2022-002 Assistance Listing and State ID Numbers: 93.658, 93.667, 435.000561/435.000681, 435.560100, 437.3561 / 437.3681 Program Titles: Foster Care - Title IV-E, Social Services Block Grant, Basic County Allocation/State/County Match, ADRC Base GPR Reimbursement, CW Children and Families Allocation Award Numbers / Year: See State ID Numbers / 2023 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entities: Wisconsin Department of Children and Families Wisconsin Department of Health Services Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: We selected three monthly submissions of GEARS and SPARC reports across multiple programs received by the Wisconsin Department of Human Services and the Wisconsin Department of Children and Families. One of the three GEARS and SPARC monthly reports tested was not reviewed by an independent person before submission for reimbursement. Our sample was not statistically valid. Cause: The County did not have internal control procedures in place during the period of January 2023 to September 2023 that required an independent person to review the reports before submission to ensure the reports were accurately and timely submitted. Effect: Reports submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should continue the internal control review process that was implemented in September 2023 to ensure that reports are complete and accurate before submissions to state agencies are completed. Management's Response: In September 2023, a review process was established and implemented starting with the August Claim to ensure that required reports are reviewed by someone other than the preparer of the reports prior to submission.