Finding Text
Finding 2024-003: Loan Receivable Reconciliation Condition: During our audit, Wipfli LLP noted the software used to track loan activity was not fully reconciled to the loan receivable general ledger account detail for the years ended December 31, 2024 and 2023. The Ventures software did not reconcile to the general ledger for the years ended December 31, 2024 and 2023 primarily due to receipt and disbursement information not being entered to Ventures in a timely manner. Through testing of loan balances by confirmation and alternative procedures, several loans reviewed did not reconcile to the balance noted in Ventures due to delay in reconciliation of payment information after year end and additional charge-offs noted through subsequent review by management. Management was not able to produce a schedule of future maturities and accrued interest on loans receivable through the Ventures software due to software limitations. Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect account misstatements prior to the audit. Cause: Wisconsin Women's Business Initiative Corporation transitioned to a new loan management software during the year and there were challenges in reconciling the activity to the general ledger. Effect: As a result of the financial reporting matters identified in the condition paragraph, a material weakness 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 perform Reconciliations between the loan software and the general ledger on a monthly basis to address any reconciling items in a more timely manner. View of Responsible Officials: Management agrees with the finding and has developed a written corrective action plan. This finding represents a material weakness in internal controls over compliance and a non-material non-compliance with the reporting requirement for the major federal programs. Questioned Costs: None 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