Finding Text
Item 2023-003: Reporting
[See table in report]
Federal and state agencies:
• 93.231, 93.479, 93.772 – U.S. Department of Health and Human Services
• 435.566 – Wisconsin Department of Health Services
• 445.65859 – Wisconsin Department of Workforce Development
Pass-through entity: None
Criteria: The Organization is required to comply with 2 CFR section 200.303 which requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
Condition: During our testing of reporting requirements, we noted that there was no documentation that reports were reviewed prior to submission to grantor.
Cause: Staffing changes in the finance department. A review is performed, however this review is not documented due to the electronic filing of the reports. Due to these events, management has not documented review of the reports.
Effect: Likelihood of inaccurate reporting is increased when reports are not thoroughly reviewed.
Questioned costs: None
Prevalence: The population of reports subject to reporting requirements included 28 reports. For 13 of the 13 reports tested, the Organization did not have documentation showing the reports were reviewed. The sample size of 13 was determined using guidance in the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide—Government Auditing Standards and Single Audits. Our sample was not a statistical sample.
Repeat finding: No
Recommendation: We recommend that the Organization review their processes to ensure review of all reports required are accurately reviewed and documented.
Views of responsible officials of the auditee: We agree with the above finding and our response is included in the corrective action plan.