FAC Explorer

Finding 627734 (2022-004)

Significant Deficiency
Requirement
CL
Questioned Costs
-
Year
2022
Accepted
2023-09-19
Audit: 41230
Organization: Forest County (WI)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Lack of review for grant reports by someone other than the preparer, leading to inadequate segregation of duties.
  • Impacted Requirements: Compliance with Cash Management & Reporting standards is compromised, increasing the risk of errors or fraud.
  • Recommended Follow-Up: The County should assign a separate individual to review and approve grant claims to strengthen internal controls.

Finding Text

Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Foster Care Federal Assistance Listing Number: 93.658 Federal Award Identification Number: 75-1545-0-1-609 Year: 2022 Pass-Through Agency: Wisconsin Department of Health Services Pass-Through Numbers: 3413, 3561, 3645, 3681 Award Period: January 1, 2022 - December 31, 2022 Type of Finding: Significant deficiency in internal control over compliance Compliance Requirement: Cash Management & Reporting Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Criteria: Grant claims filed by the County to the various granting agencies must be accurate, reconcile to the County?s general ledger system, and for cost-reimbursement grants, represent costs incurred. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None Cause: Due to the segregated department structure and limited amount of staffing with the County, the County was not able to designate a position during the year who would have been able to perform an effective review over the grant reports. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Recommendation: We recommend that the County review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Cash Management Internal Control / Segregation of Duties HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 51291 2022-003
    Significant Deficiency
  • 51292 2022-004
    Significant Deficiency
  • 51293 2022-003
    Significant Deficiency
  • 51294 2022-004
    Significant Deficiency
  • 51295 2022-003
    Significant Deficiency
  • 51296 2022-004
    Significant Deficiency
  • 51297 2022-003
    Significant Deficiency
  • 51298 2022-004
    Significant Deficiency
  • 627733 2022-003
    Significant Deficiency
  • 627735 2022-003
    Significant Deficiency
  • 627736 2022-004
    Significant Deficiency
  • 627737 2022-003
    Significant Deficiency
  • 627738 2022-004
    Significant Deficiency
  • 627739 2022-003
    Significant Deficiency
  • 627740 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $133,357
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $99,644
93.778 Medical Assistance Program $52,342
97.042 Emergency Management Performance Grants $45,433
10.665 Schools and Roads - Grants to States $33,523
21.027 Coronavirus State and Local Fiscal Recovery Funds $14,715
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $14,209
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $13,727
93.658 Foster Care_title IV-E $12,302
93.556 Promoting Safe and Stable Families $11,972
93.069 Public Health Emergency Preparedness $11,919
93.053 Nutrition Services Incentive Program $11,689
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $10,833
93.667 Social Services Block Grant $8,626
93.994 Maternal and Child Health Services Block Grant to the States $8,453
10.912 Environmental Quality Incentives Program $7,695
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $7,388
93.558 Temporary Assistance for Needy Families $4,963
93.991 Preventive Health and Health Services Block Grant $4,890
93.767 Children's Health Insurance Program $4,198
93.958 Block Grants for Community Mental Health Services $3,656
93.052 National Family Caregiver Support, Title Iii, Part E $2,914
93.575 Child Care and Development Block Grant $2,538
93.747 Elder Abuse Prevention Interventions Program $2,234
93.269 Complex Humanitarian Emergency and War-Related Injury Public Health Activities $1,821
93.563 Child Support Enforcement $1,372
93.090 Guardianship Assistance $1,367
93.645 Stephanie Tubbs Jones Child Welfare Services Program $749
93.959 Block Grants for Prevention and Treatment of Substance Abuse $593
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $0
10.902 Soil and Water Conservation $0
10.924 Conservation Stewardship Program $0
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $-104