YWCA Madison, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024. Name and address of independent public accounting firm: Wegner CPAs
2921 Landmark Place Suite 300
Madison, Wisconsin 53713 Audit period: January 1, 2024 – December 31, 2024
The findings from the December 31, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule.
FINANCIAL STATEMENT FINDINGS
SIGNIFICANT DEFICIENCY 2024-001
Recommendation: Management should implement procedures to ensure continuity of key financial controls during periods of personnel transition. This includes assigning interim reviewers, establishing clear handover protocols, and enforcing timely documentation of reviews to maintain financial oversight.
Action Taken: Under the leadership of our new fractional CFO and outsourced accounting firm, we have implemented an accounting close and financial reporting management system using ClickUp. Each task impacting key financial controls now has both a designated preparer and reviewer. The system automatically tracks and displays the completion status of each control. Further review of financial schedules is documented through Google Drive approvals.
Transitioning from manual to system-driven documentation ensures that, during staffing changes, task reassignments are more visible to all responsible team members. It is important to note that, due to capacity constraints during the transition, immediate reassignment of responsibilities was not feasible. However, once new team members were onboarded, a cumulative review of the period was conducted to ensure the completeness and accuracy of the financial information—ultimately reflected in an unmodified financial audit opinion. MATERIAL WEAKNESS 2024-002
Recommendation: Assign clear responsibility for maintaining and reviewing the monitoring checklist. Management should establish a recurring schedule (e.g., monthly or quarterly) for checklist reviews and ensure the results are documented and retained for accountability and audit purposes.
Action Taken: The new fractional CFO, Grants & Compliance Director, and CEO have revised the monitoring checklist to separate financial and compliance controls, as these operate on different schedules. Financial controls have been integrated into the financial management project system in ClickUp. Compliance controls will be maintained within the grant management system and embedded into the grant management and reporting processes. FEDERAL AWARD FINDINGS
DEPARTMENT OF TRANSPORTATION
STATE OF WISCONSIN DEPARTMENT OF TRANSPORTATION 2024-003
Formula Grants for Rural Areas and Tribal Transit Program — Assistance Listing No. 20.509
Recommendation: Management should conduct a review of depreciation charges for the current and future years to ensure that federally funded assets are excluded from depreciation allocations to federal programs.
Action Taken: We have added a new depreciation expense account to distinguish between allowable and non-allowable depreciation expenses in grant expenditure allocations. If there are questions regarding this plan, please call Tania Ibarra, CPA, at 608.347.6747. Sincerely, Geraldine Paredes Vásquez CEO
gpvasquez@ywcamadison.org