Finding 1157944 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: Certain federal grants were missed in the Schedule of Expenditures of Federal Awards due to inadequate internal controls.
  • Impacted Requirements: Compliance with Uniform Guidance (2 CFR Part 200, section 510) for reporting total Federal awards expended.
  • Recommended Follow-Up: Implement stronger internal controls to ensure all federal awards are accurately reported in future schedules.

Finding Text

Finding 2024-002: Preparation of the Schedule of Expenditures of Federal Awards Condition: During our audit, Wipfli LLP noted there were certain federal grants received from pass-through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance (2 CFR Part 200, section 510) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended. Cause: The internal controls of Wisconsin Women's Business Initiative Corporation did not identify all federal awards to be included in the Schedule of Expenditures of Federal Awards prior to the audit. Effect: As a result of the financial reporting matters identified in the condition paragraph, a significant deficiency exists in Wisconsin Women's Business Initiative Corporation's internal control over financial reporting. Recommendation: We recommend Wisconsin Women's Business Initiative Corporation continue to implement procedures to provide sufficient internal control over the preparation of the Schedule of Expenditures of Federal Awards. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan. This finding represents a significant deficiency in internal controls over compliance and a non-material non-compliance with the reporting requirement for the major federal programs. Questioned Costs: None Condition: During our audit, Wipfli LLP noted there were certain federal grants received from pass-through entities that were inadvertently excluded from the Schedule of Expenditures of Federal Awards. Criteria: Uniform Guidance (2 CFR Part 200, section 510) states the auditee must prepare a schedule of expenditures of Federal awards for the period covered by the auditee’s financial statements which must include the total Federal awards expended. Cause: The internal controls of Wisconsin Women's Business Initiative Corporation did not identify all federal awards to be included in the Schedule of Expenditures of Federal Awards prior to the audit. Effect: As a result of the financial reporting matters identified in the condition paragraph, a significant deficiency exists in Wisconsin Women's Business Initiative Corporation's internal control over financial reporting. Recommendation: We recommend Wisconsin Women's Business Initiative Corporation continue to implement procedures to provide sufficient internal control over the preparation of the Schedule of Expenditures of Federal Awards. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan.Major Programs: AL #14.218 Community Development Block Grant Cluster, Award Numbers CDBG FY 2024, FD 003 2023, CD5075180249, CDBG MKE RLF, CDBG Racine 2023-2024, CDBG FY 2023, B-23-UC-55-0003, ED 24020, 2024-2025 CDBG - Classic; AL #59.046 Microloan Program, Award Numbers SBAOCAML230534, SBAOCAML2024001568

Corrective Action Plan

A comprehensive Fiscal Policies and Procedures Manual will be developed that incorporates all required written procedures under 2 CFR 200 and defines internal controls and implementation processes. Accounting staff, and members of WWBIC's Compliance and Advancement teams, will receive training on the guidelines and requirements of the Schedule of Expenditures of Federal Awards (SEFA). As Federal and State funding is approved, WWBIC will flag the related accounts during set up to ensure that they are marked to be included in the SEFA. WWBIC will contact our auditors with possible questions before compiling and finalizing the SEFA.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1157934 2024-002
    Material Weakness Repeat
  • 1157935 2024-002
    Material Weakness Repeat
  • 1157936 2024-002
    Material Weakness Repeat
  • 1157937 2024-002
    Material Weakness Repeat
  • 1157938 2024-002
    Material Weakness Repeat
  • 1157939 2024-002
    Material Weakness Repeat
  • 1157940 2024-002
    Material Weakness Repeat
  • 1157941 2024-002
    Material Weakness Repeat
  • 1157942 2024-002
    Material Weakness Repeat
  • 1157943 2024-002
    Material Weakness Repeat
  • 1157945 2024-003
    Material Weakness Repeat
  • 1157946 2024-003
    Material Weakness Repeat
  • 1157947 2024-003
    Material Weakness Repeat
  • 1157948 2024-003
    Material Weakness Repeat
  • 1157949 2024-003
    Material Weakness Repeat
  • 1157950 2024-003
    Material Weakness Repeat
  • 1157951 2024-003
    Material Weakness Repeat
  • 1157952 2024-003
    Material Weakness Repeat
  • 1157953 2024-003
    Material Weakness Repeat
  • 1157954 2024-003
    Material Weakness Repeat
  • 1157955 2024-003
    Material Weakness Repeat
  • 1157956 2024-004
    Material Weakness Repeat
  • 1157957 2024-004
    Material Weakness Repeat
  • 1157958 2024-004
    Material Weakness Repeat
  • 1157959 2024-004
    Material Weakness Repeat
  • 1157960 2024-004
    Material Weakness Repeat
  • 1157961 2024-004
    Material Weakness Repeat
  • 1157962 2024-004
    Material Weakness Repeat
  • 1157963 2024-004
    Material Weakness Repeat
  • 1157964 2024-004
    Material Weakness Repeat
  • 1157965 2024-004
    Material Weakness Repeat
  • 1157966 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
59.046 Microloan Program $2.01M
59.043 Women's Business Ownership Assistance $592,000
10.870 Rural Microentrepreneur Assistance Program $532,872
59.044 Veterans Outreach Program $283,378
21.020 Community Development Financial Institutions Program $245,769
59.050 Prime Technical Assistance $189,396
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $173,895
21.033 Community Development Financial Institutions Fund Equitable Recovery Program (cdfi Erp) $125,000
14.870 Resident Opportunity and Supportive Services - Service Coordinators $120,000
10.351 Rural Business Development Grant $70,030
21.027 Coronavirus State and Local Fiscal Recovery Funds $66,000
21.020 Covid-19 Community Development Financial Institutions Program $18,469
14.218 Community Development Block Grants/entitlement Grants $14,725