Finding Text
Assistance Listing Number(s): 21.027
Name of Federal Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Name of Federal Agency: Department of the Treasury
Name of Pass-through Entity: City of Madison, City of Sun Prairie, Wisconsin Department of Workforce
Development
Award Period: January 1, 2022 through December 31, 2022; September 22, 2021 through December 31,
2024; June 20, 2022 through June 30, 2025
Criteria or Specific Requirement: 2 CFR section 200.403(e) requires that costs be determined in
accordance with GAAP to be allowable under federal awards.
Condition: A 30-month contract was fully paid and charged to the federal award while 6 months of the
contract were incurred during the fiscal year.
Cause: The prepaid contract was recorded as an expense in the general ledger. The reviewer did not
consider the contract term for GAAP and compliance requirements.
Effect or Potential Effect: Questioned costs may be disallowed and repayment made.
Questioned Costs: $54,000; 24 months of the prepaid contract not incurred.
Context: A sample of 30 disbursements totaling $275,477 was selected for testing from a population of
147 disbursements totaling $788,841. The testing found 2 disbursements related to the prepaid contract
and were not in compliance.
Repeat Finding: No.
Recommendation: Transactions should be recorded in accordance with GAAP with a review and approval
for financial reporting as well as for compliance with allowability requirements. Training on cost principles
per the Uniform Guidance should be provided to the finance department and program managers.
Views of Responsible Officials: Boys and Girls Club of Dane County, Inc. agrees with the finding and is
receiving training.