Finding 43926 (2022-002)

Finding 2022-002 Assistance Listing and 93.563, 437.7502, 435.000377, 435.000561/435.000681, State ID Numbers: 435.000471/435.000877, and 437.3410 Program Titles: Child Support Enforcement, CS State GPR/PR Funding Allocation, Children's COP, Basic County Allocation/State/County Match, CLTS Autism GPR/CLTS Waiver CWA Admin GPR, and JJ Community Intervention Program Award Numbers / Year: See State ID Numbers / 2022 Pass-Through Entity: Wisconsin Department of Children and Families Criteria: The Uniform Guidance and State Single Audit Guidelines require that local entities receiving federal and state awards establish and maintain internal control designed to reasonably ensure compliance with laws, regulations, and program compliance requirements. The Uniform Guidance and State Single Audit Guidelines further require auditors to obtain an understanding of the local entity's internal control over federal and state programs. To minimize the risk of errors, internal controls should be in place for all program compliance requirements, including the preparation and submission reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: We selected three monthly submissions of CARS and SPARC reports across multiple programs received by the Wisconsin Department of Human Services and the Wisconsin Department of Children and Families. All three of the CARS and SPARC reports tested were not reviewed by an independent person before submission for reimbursement. Our sample was not statistically valid. Cause: The County did not have internal control procedures in place requiring an independent person to review the reports before submission to ensure the reports were accurately and timely submitted. Effect: Reports submitted could contain errors. Questioned Costs: None noted. Recommendation: The County should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports in place before submissions to state agencies are completed. Management's Response: A review process will be implemented with September 2023 reports.