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 200.303(a) requires a non-federal entity to establish and
maintain effective internal control over federal awards that provides reasonable assurance that the nonfederal
entity is managing federal awards in compliance with federal statutes, regulations, and the terms
and conditions of the federal award.
Condition: 8 out of 30 disbursements charged to the federal award were not documented as reviewed and
approved. 3 of the 8 were modified or entered by journal entry and reviewed by the same individual. 5
out of 8 were the result of the accounts payable bills module not configured to set up controls to review
and approve transactions.
Cause: Edits and journal entries by accounting personnel were not subject to review. The accounts
payable bills module was not configured for a review and approval process.
Effect or Potential Effect: Noncompliance with federal statutes, regulations, and the terms and conditions
of the federal award may not be prevented or detected and corrected.
Questioned Costs: None.
Context: 30 disbursement items out of 149 were tested.
Repeat Finding: No.
Recommendation: Additional procedures should be designed, implemented, and documented for
allowable costs to ensure documentation of review and approval of allowable costs to be charged to the
federal award. The accounting system configurations should be modified to require segregation of duties
for all transactions. For journal entries, a documented review and approval should be performed by a
finance committee member on a monthly basis.
Views of Responsible Officials: Boys and Girls Club of Dane County, Inc. agrees with the finding and is
implementing a review process over accounts payable and journal entries.