Finding Text
Finding 2023–003
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Name of Federal Agency: Department of Health and Human Services
Name of Pass-Through Entities: Wisconsin Department of Health Services and Dane County Department
of Human Services
Criteria or Specific Requirement: Audits under Uniform Guidance are required to be submitted in the
Federal Audit Clearinghouse within nine months of the fiscal year end.
Condition and Context: Given the timing of the implementation of improvements and the performance of
consecutive audits, the planning for audit of the year ending June 30, 2023 could not be started until January 2024. Consequently, ARC could not support the planning, performance and completion of the audit before 9-month period had passed.
Cause: The 2023 audit started late due to the 2022 audit being completed in November of 2023.
Management needed time to correct 2023 financial information that was inaccurate, caused by the turnover in accounting positions. ARC’s previous internal control system prior to recent hires did not ensure audits were routinely performed and completed.
Effect or Potential Effect: The reporting requirement of Uniform Guidance is not met.
Repeat Finding: Yes
Recommendation: We recommend management continue to make the improvements in staffing and
resources to ensure timely financial statement close and audit support. Due to the completion of the June
30, 2022 audit late calendar 2023, the audit of the year ending June 30, 2023 wasn’t able to be started with sufficient time to be issued before the 9-month requirement.
Views of Responsible Officials: We concur with the recommendation. ARC has made significant
enhancements to its accounting team in both experience and depth of knowledge Additionally processes
and procedures to support planning, performing and completing the audit on time are utilized and have
been in effect since January 1, 2023.