FAC Explorer

Finding 49857 (2022-002)

Significant Deficiency
Requirement
CL
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 42592
Organization: City of South Milwaukee (WI)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: Reports submitted for federal assistance lacked independent review, risking inaccuracies.
  • Impacted Requirements: Internal controls mandated by the Uniform Guidance and State Single Audit Guidelines were not followed.
  • Recommended Follow-Up: The City should enhance internal control procedures to ensure all reports are reviewed and approved by someone other than the preparer before submission.

Finding Text

Finding 2022-002 Program Federal Assistance Listing Number and Title: 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Award Number: 47746-2 Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Human Services 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 of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition/Context: All three of the CARS reports tested were not reviewed by an independent person before submission for reimbursement. Both of the special quarterly reports tested were also not reviewed by an independent person as required by the state. The sample was not statistically valid sample. Cause: The City did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management Response: An individual other than the preparer will review the grant reports prior to submittal.

Corrective Action Plan

FINDING NO. 2022-002: Program Federal Assistance Listing Number and Title: 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) Award Number: 47746-2 Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Wisconsin Department of Human Services 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 of monthly reports, which should be reviewed and approved by a responsible party other than the original preparer. Condition: All three of the CARS reports tested were not reviewed by an independent person before submission for reimbursement. Both of the special quarterly reports tested were also not reviewed by an independent person as required by the state. The sample was not statistically valid sample Cause: The City did not have internal control procedures in place requiring an independent person to review the reports before submission and ensure the reports were accurately and timely submitted. Effect: Reports were not submitted and those that were submitted could contain errors. Questioned Costs: None noted. Recommendation: The City should review its internal control procedures to ensure there are proper review and approval processes over completeness and accuracy of reports are in place before submissions to state agencies are completed. Management's Response: An individual other than the preparer will review the grant reports prior to submittal. Person responsible for report ? Karen Skowronski, Treasurer/Comptroller, 414.768.8048

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 626299 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $301,519
14.872 Public Housing Capital Fund $176,687
14.850 Public and Indian Housing $75,398
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $62,224
14.218 Community Development Block Grants/entitlement Grants $55,500
21.027 Coronavirus State and Local Fiscal Recovery Funds $54,883
93.268 Immunization Cooperative Agreements $26,973
93.994 Maternal and Child Health Services Block Grant to the States $13,734
93.069 Public Health Emergency Preparedness $12,746
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $12,701
20.616 National Priority Safety Programs $10,470
93.991 Preventive Health and Health Services Block Grant $8,978
16.610 Regional Information Sharing Systems $4,598
93.788 Opioid Str $2,475
16.607 Bulletproof Vest Partnership Program $1,437
93.103 Food and Drug Administration_research $1,056
45.310 Grants to States $884
20.600 State and Community Highway Safety $467