Finding Text
Significant Deficiency - Internal Control over Reporting
Program: Medicaid Cluster
Assistance Listing Number: 93.778
Pass-Through Agency: Wisconsin Department of Health Services/CESA 10
Criteria: A system of internal control should be in place and operating effectively to achieve a higher reliability that errors or irregularities in reporting would be discovered the District
Condition: District reports used in preparation of the quarterly financial summary reports were not adequately reviewed prior to sending to CESA 10. The quarterly financial summary reports prepared by CESA 10 are not reviewed by the District prior to submission.
Cause: The District does not have controls in place to review the compiled reports sent to CESA for report preparation or to review the quarterly financial submissions entered by CESA.
Context: For the two quarterly reports tested, there is no evidence of review or approval by the District. Additionally, information compiled by the District and submitted to CESA for report preparation is compiled and submitted by one individual with no additional review documented. The sample was not statistically valid.
Effect: Inaccurate reporting may cause the District to receive more or less funding than they are entitled to.
Questioned Costs: None noted.
Recommendation: We recommend the District implement a system to review the information provided to CESA 10 to ensure it matches supporting documentation. Additionally, we recommend that the quarterly financial submissions be reviewed by the District, and that any errors identified be corrected by CESA 10. Documentation of these reviews should be maintained.
Views of Responsible Officials: Management agrees with finding 2023-006 and will make efforts to implement recommended procedures.