Finding Text
Assistance Listing Number(s): 21.027
Name of Federal Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Name of Federal Agency: Department of the Treasury
Name of Pass-through Entity: City of Madison, City of Sun Prairie, Wisconsin Department of Workforce
Development
Award Period: January 1, 2022 through December 31, 2022; September 22, 2021 through December 31,
2024; June 20, 2022 through June 30, 2025
Criteria or Specific Requirement: 2 CFR section 200.302(b)(2) requires the financial management system
of a non-federal entity to provide for accurate, current, and complete disclosure of the financial results of
each federal award or program in accordance with the reporting requirements set forth in 2 CFR sections
200.328 and 200.329.
Condition and Context: A sample of 4 financial and programmatic reports totaling $204,255 was selected
for testing from a population of 20 financial and programmatic reports totaling $900,466. The testing
found no support of a review and approval for completeness and accuracy. 4 out of 18 financial reports
tested had reported amounts that were not supported by the underlying accounting data. 2 of the 4 had
expenses recorded as staffing and repairs and maintenance but were reported as supplies. 1 of the 4
had expenses recorded as supplies but reported as personnel. 1 of the 4 reported other subaward costs
as subrecipient expenditures.
Cause: There are no written procedures for reporting to require internal controls over reporting or
documentation supporting reports to be filed and maintained. Recording expenses in the general ledger
by award began in the fiscal year. Reports were not reconciled to the general ledger, the general ledger
accounts were not structured to match the budgets, and budgets grouped expenses together that should
be reported separately.
Effect or Potential Effect: Costs may be disallowed if not approved in the budget or over budget without
prior approval.
Questioned Costs: $180,975; $4,462 for expenses that were reported greater than budget without prior
approval; $176,157 of reported subrecipient costs that are unsupported in the general ledger; $356 of
reported supplies that were repairs and maintenance and not included in the budget.
Repeat Finding: No.
Recommendation: Internal controls over reporting should be designed, implemented, and documented to
ensure compliance with 2 CFR section 200.302(b)(2), including who is responsible, what they are
reviewing for, when reviews are to take place, and how documentation of the controls will be maintained.
The general ledger should be set up to properly capture and track expenses as well as budgets prepared
and approved with the actual costs expected to be incurred. Reports should be reconciled to the general
ledger. Budgets should be complete and include all line items and not just include all expenses under
supplies.
Views of Responsible Officials: Boys and Girls Club of Dane County, Inc. agrees with the finding and is
implementing a grant budget process.