Finding Text
Federal Agency: United State of Department of Health and Human Services Federal Program Name: Medicaid Cluster Assistance Listing Number: 93.778 Federal Award Identification Number and Year: 2405WI5MAP-2024, 2505WI5MAP-2025 Pass-Through Agency: Wisconsin Department of Health Services Pass-Through Number(s): Not Available Award Period: July 1, 2024, through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: In accordance with 2 CFR 200.303(a), the District must establish and maintain effective internal control over the federal award that provides reasonable assurance that the District is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award In accordance with Wisconsin Department of Public Instruction guidance, each school district’s salary and benefit information of direct medical service providers are required to be reported through quarterly financial submissions. These submissions automatically aggregate into the annual cost report and are utilized to calculate the Medicaid Administrative Claims (MAC) amounts. The salary and fringe benefits included in these reports are required to be supported by District payroll records and financial ledgers and be appropriately classified and identified. Condition: Three (3) of the 40 individuals selected for testing were reported on the Quarterly Report tested in Job Categories that are inconsistent with the role or duties that employee filled during the reporting period. In addition, the District’s reconciliation of the District’s payroll summary reports to the Quarterly Report for the period July 1, 2024 to September 30, 2024 was not documented and available for review during audit testing. Questioned costs: None Context: The three (3) reported in in Job Categories that are inconsistent with the role or duties, fulfilled role that would be eligible for reporting in the Quarterly Report, but were classified into incorrect Job Categories. The District generates a series of reports from internal payroll systems, general ledger and subledger systems, and third party claim systems to support each Quarterly Report. These reports are reviewed and reconciled to support the final Quarterly Reports submission. For the quarter covering July 1, 2024 through September 30, 2024, the District generated the reports and prepared the Quarterly Report, however, the reconciliations were not retained documenting the standard process of the District. Cause: The District did not design and implement controls to ensure amounts reported were supported by internal records of employees roles or positions at the time of the reporting and that all supporting records and reconciliations are maintained. Effect: Amounts reported as eligible expenditures utilized in calculations of award did not agree to available supporting District payroll and financial records. This could result in calculations of award being inaccurate. Repeat Finding: No. Recommendation: We recommend the District design and implement controls to ensure amounts reported are supported by employees current roles and positions. Views of responsible officials: There is no disagreement with the audit finding.