Report 20-3 | March 2020
As a condition of receiving federal funds, state agencies must meet the audit requirements of the federal Office of Management and Budget Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and the Single Audit Act of 1984, as amended. The Single Audit Act requires there to be one comprehensive audit of federal programs. This single audit also incorporates our annual audit of the State’s financial statements, which were included in the Comprehensive Annual Financial Report (CAFR) issued by the Department of Administration (DOA).
During FY 2018-19, 95.4 percent of the State of Wisconsin’s federal financial assistance was administered by six state agencies.
Our recommendations addressed the following:
- DHS and DPI did not always minimize the time between when federal funds were requested and received and when the agencies disbursed funds for program purposes.
- DHS did not fully comply with federal regulations and state policies and procedures to ensure the security of information technology systems for the Medical Assistance Program.
- DMA could not demonstrate that extension requests were submitted for the National Guard Military Operations and Maintenance Projects program. As a result, we questioned a total of $271,198 in expenditures.
- DOA and DMA did not have sufficient internal controls related to the preparation of certain federal reports.
In addition, we made five recommendations related to internal controls over financial reporting from our audit of the State’s FY 2018-19 financial statements (report 19-30). Agency responses and corrective action plans are included in the report, and the federal government will work with state agencies to resolve the concerns we identified.