Finding 1152900 (2023-009)

Finding 2023-009 AL No.: 93.658 Program Title: Foster Care – Title IV-E Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Wisconsin Department of Children and Families Award Number/Year 3413, 3561, 3681, 3645 / 2023 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 of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: There were 13 reports for submission for the County. Three reports were selected for testing. There was no documentation of a review control by someone independent of the preparer for all three reports tested. Our sample was not statistically valid. Cause: The County did not have procedures in place requiring an independent person to review the reports before submission. Questioned Costs: None noted. Effect: Reports that contain errors could be submitted. Recommendation: We recommend that an employee other than the preparer review all reports before they are submitted to grantors. Management's Response: The finance department staff will work with departmental management and fiscal staff to review current documented and/or undocumented procedures, adopting and/or updating written procedures as necessary to ensure: • All assembled reports (typically prepared by fiscal staff) are reviewed for completeness and accuracy by independent personnel (typically a department head.) • Reports be submitted on a timely basis. • Reconciliation of data on each submitted reports to the financial statements. • Reconciliation of grant period-to-date cumulative data totals to the financial statements. Additionally, the county finance team will assemble and maintain a centralized file for all county grants, requiring grant administrators (fiscal staff or department heads) to report completion dates for mandated report filings. The county finance team will also maintain a centralized data file for all county grant filings and grant documents.