FAC Explorer

Finding 1235776 (2025-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-21
Audit: 411436
Organization: Manitowoc County (WI)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: Inconsistent allocation of employee payroll costs across programs, leading to potential over-allocation to grant programs.
  • Impacted Requirements: Compliance with CFR 200.430, which mandates accurate documentation of salaries and wages based on actual work performed.
  • Recommended Follow-Up: Review and update the overall account structure; implement a uniform payroll allocation process based on actual hours worked.

Finding Text

Finding No. 2025-004 Federal Agency: U.S. Department of Health Services (DHS) Federal Program Name: All DHS Assistance Listing Number: All DHS Pass Through Entity: Wisconsin Department of Health and Human Services Federal Award Notification Number and Year: All DHS Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement Affected: Reporting Type of Finding: Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement: Allowable Costs/Cost Principles - CFR 200.430 Compensation - Personal Services requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. This documentation must be incorporated into the official records of the recipient. The support must include documentation for the distribution of employee's salary or wages amount for specific activities or cost objectives when the employee works on more than one federal award and when employees work on indirect/direct cost activities and unallowable/direct/indirect cost activities. Condition: During our testing, we noted employee payroll costs are not uniformly allocated to programs, with some allocations not in balance, and other allocations not recorded on the general ledger at all. Also, some payroll costs are directly adjusted out of payroll accounts into programs that have one singular account, making reconciliation difficult. In addition, portions of fiscal and administrative employee payroll costs are not allocated at all. Questioned Costs: None Context: The Human Services Department (the Department) has sixteen cost centers where payroll costs are directly charged through the County's biweekly payroll process, along with payroll allocation accounts in six other cost centers, for a total of twenty-two cost centers. The Department administers more than 40 programs that professional program staff work in. There are also approximately a dozen programs that consist of external vendor payments; these typically have fiscal and administration staff completing clerical, billing, accounting, reporting and contract management tasks. Program counts fluctuate during the year based on funding and grant award periods. Cause: High levels of employee turnover in the Fiscal Division of the Department, coupled with constant changes in funding, programs and regulations have resulted in a piecemeal cost allocation process for payroll costs that varies from program to program. Also, the County as a whole has not updated its accounting system and overall account structure for an extended period of time. Effect: The auditor noted no instances of noncompliance; however, the lack of uniform allocation and uniform account structure could result in the Department over allocation of payroll costs to a grant program. Recommendation: The County should conduct a review of its overall account structure, and the Finance Department should coordinate and assist the Human Services Department in the implementation of a new, uniform account structure. The Human Services Department should develop a uniform payroll allocation process that will allocate all employee costs to each program based on actual hours worked, regardless of funding availability. Views of Responsible Officials: There is no disagreement with the finding.

Corrective Action Plan

Recommendation: We recommend the County conduct a review of its overall account structure, and the Finance Department should coordinate and assist the Human Services Department in the implementation of a new, uniform account structure. The Human Services Department should develop a uniform payroll allocation process that will allocate all employee costs to each program based on actual hours worked, regardless of funding availability. Explanation of disagreement with audit finding: There is no disagreement with the finding. Action planned in response to finding: Management has begun a review of the Human Services Department account structure. Name(s) of the contact person(s) responsible for corrective action: Melissa Diener, Assistant Finance Director Planned completion date for corrective action plan: The County immediately has begun evaluating procedures and will implement as soon as possible.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1235746 2025-004
    Material Weakness Repeat
  • 1235747 2025-004
    Material Weakness Repeat
  • 1235748 2025-004
    Material Weakness Repeat
  • 1235749 2025-004
    Material Weakness Repeat
  • 1235750 2025-004
    Material Weakness Repeat
  • 1235751 2025-004
    Material Weakness Repeat
  • 1235752 2025-004
    Material Weakness Repeat
  • 1235753 2025-004
    Material Weakness Repeat
  • 1235754 2025-004
    Material Weakness Repeat
  • 1235755 2025-004
    Material Weakness Repeat
  • 1235756 2025-004
    Material Weakness Repeat
  • 1235757 2025-004
    Material Weakness Repeat
  • 1235758 2025-004
    Material Weakness Repeat
  • 1235759 2025-004
    Material Weakness Repeat
  • 1235760 2025-004
    Material Weakness Repeat
  • 1235761 2025-004
    Material Weakness Repeat
  • 1235762 2025-004
    Material Weakness Repeat
  • 1235763 2025-004
    Material Weakness Repeat
  • 1235764 2025-004
    Material Weakness Repeat
  • 1235765 2025-004
    Material Weakness Repeat
  • 1235766 2025-004
    Material Weakness Repeat
  • 1235767 2025-004
    Material Weakness Repeat
  • 1235768 2025-004
    Material Weakness Repeat
  • 1235769 2025-004
    Material Weakness Repeat
  • 1235770 2025-004
    Material Weakness Repeat
  • 1235771 2025-004
    Material Weakness Repeat
  • 1235772 2025-004
    Material Weakness Repeat
  • 1235773 2025-004
    Material Weakness Repeat
  • 1235774 2025-004
    Material Weakness Repeat
  • 1235775 2025-004
    Material Weakness Repeat
  • 1235777 2025-005
    Material Weakness Repeat
  • 1235778 2025-005
    Material Weakness Repeat
  • 1235779 2025-005
    Material Weakness Repeat
  • 1235780 2025-005
    Material Weakness Repeat
  • 1235781 2025-005
    Material Weakness Repeat
  • 1235782 2025-005
    Material Weakness Repeat
  • 1235783 2025-005
    Material Weakness Repeat
  • 1235784 2025-007
    Material Weakness Repeat
  • 1235785 2025-007
    Material Weakness Repeat
  • 1235786 2025-007
    Material Weakness Repeat
  • 1235787 2025-007
    Material Weakness Repeat
  • 1235788 2025-007
    Material Weakness Repeat
  • 1235789 2025-007
    Material Weakness Repeat
  • 1235790 2025-007
    Material Weakness Repeat
  • 1235791 2025-007
    Material Weakness Repeat
  • 1235792 2025-007
    Material Weakness Repeat
  • 1235793 2025-007
    Material Weakness Repeat
  • 1235794 2025-007
    Material Weakness Repeat
  • 1235795 2025-007
    Material Weakness Repeat
  • 1235796 2025-007
    Material Weakness Repeat
  • 1235797 2025-007
    Material Weakness Repeat
  • 1235798 2025-007
    Material Weakness Repeat
  • 1235799 2025-007
    Material Weakness Repeat
  • 1235800 2025-007
    Material Weakness Repeat
  • 1235801 2025-007
    Material Weakness Repeat
  • 1235802 2025-007
    Material Weakness Repeat
  • 1235803 2025-007
    Material Weakness Repeat
  • 1235804 2025-007
    Material Weakness Repeat
  • 1235805 2025-007
    Material Weakness Repeat
  • 1235806 2025-007
    Material Weakness Repeat
  • 1235807 2025-007
    Material Weakness Repeat
  • 1235808 2025-007
    Material Weakness Repeat
  • 1235809 2025-007
    Material Weakness Repeat
  • 1235810 2025-007
    Material Weakness Repeat
  • 1235811 2025-007
    Material Weakness Repeat
  • 1235812 2025-007
    Material Weakness Repeat
  • 1235813 2025-007
    Material Weakness Repeat
  • 1235814 2025-007
    Material Weakness Repeat
  • 1235815 2025-007
    Material Weakness Repeat
  • 1235816 2025-007
    Material Weakness Repeat
  • 1235817 2025-007
    Material Weakness Repeat
  • 1235818 2025-007
    Material Weakness Repeat
  • 1235819 2025-007
    Material Weakness Repeat
  • 1235820 2025-007
    Material Weakness Repeat
  • 1235821 2025-007
    Material Weakness Repeat
  • 1235822 2025-007
    Material Weakness Repeat
  • 1235823 2025-007
    Material Weakness Repeat
  • 1235824 2025-007
    Material Weakness Repeat
  • 1235825 2025-007
    Material Weakness Repeat
  • 1235826 2025-007
    Material Weakness Repeat
  • 1235827 2025-007
    Material Weakness Repeat
  • 1235828 2025-007
    Material Weakness Repeat
  • 1235829 2025-007
    Material Weakness Repeat
  • 1235830 2025-007
    Material Weakness Repeat
  • 1235831 2025-007
    Material Weakness Repeat
  • 1235832 2025-007
    Material Weakness Repeat
  • 1235833 2025-007
    Material Weakness Repeat
  • 1235834 2025-007
    Material Weakness Repeat
  • 1235835 2025-007
    Material Weakness Repeat
  • 1235836 2025-007
    Material Weakness Repeat
  • 1235837 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 GRANTS TO STATES FOR MEDICAID $1.30M
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $427,702
93.788 OPIOID STR $383,832
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $327,995
93.563 CHILD SUPPORT SERVICES $183,439
93.967 CENTERS FOR DISEASE CONTROL AND PREVENTION COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH $147,464
93.045 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART C, NUTRITION SERVICES $125,480
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $99,477
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $97,225
93.090 GUARDIANSHIP ASSISTANCE $85,743
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $81,443
93.658 FOSTER CARE TITLE IV-E $67,978
20.513 ENHANCED MOBILITY OF SENIORS AND INDIVIDUALS WITH DISABILITIES $60,779
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $53,901
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $48,538
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $35,137
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $25,794
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $25,644
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $25,592
16.540 JUVENILE JUSTICE AND DELINQUENCY PREVENTION $20,538
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $19,324
20.601 ALCOHOL IMPAIRED DRIVING COUNTERMEASURES INCENTIVE GRANTS I $19,201
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $17,981
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $13,308
20.609 SAFETY BELT PERFORMANCE GRANTS $12,390
93.556 MARYLEE ALLEN PROMOTING SAFE AND STABLE FAMILIES PROGRAM $11,696
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $11,082
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $11,029
66.032 STATE AND TRIBAL INDOOR RADON GRANTS $9,729
93.324 STATE HEALTH INSURANCE ASSISTANCE PROGRAM $9,364
93.071 MEDICARE ENROLLMENT ASSISTANCE PROGRAM $8,506
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $8,353
93.268 IMMUNIZATION COOPERATIVE AGREEMENTS $6,946
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $6,890
93.667 SOCIAL SERVICES BLOCK GRANT $4,231
93.758 PREVENTIVE HEALTH AND HEALTH SERVICES BLOCK GRANT FUNDED SOLELY WITH PREVENTION AND PUBLIC HEALTH FUNDS (PPHF) $3,986
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $3,109
16.543 MISSING CHILDREN'S ASSISTANCE $2,807
97.039 HAZARD MITIGATION GRANT $1,669
93.070 ENVIRONMENTAL PUBLIC HEALTH AND EMERGENCY RESPONSE $1,453
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $107