Center for Independent Living for Western WisconsinNon-Profit

2022-003 ? No Documentation of Approval on Timesheets Federal agency: U.S. Department of Health and Human Services Federal program title: Centers for Independent Living Assistance Listing Number: 93.432 Award Period: April 1, 2020-September 31, 2022 Questioned costs: None Type of Finding: ? Material Weakness in Internal Control Over Financial Reporting ? Material Weakness in Internal Control Over Compliance Condition: The auditors noted no supervisor approval was documented on employee timesheets. Criteria or specific requirement: The Organization should have controls in place for approving timesheets. Context: The finance manager reviews employee timesheets before paying but we noted no supervisor approval. The supervisors may have reviewed the timesheets but there was no documentation of approval on the timesheets. Effect: The lack of controls in place over the financial reporting function increases the risk of improper payroll costs charged to organization or federal grants. Cause: The finance manager reviews employee timesheets before paying but we noted no supervisor approval. The supervisors may have reviewed the timesheets but there was no documentation of approval on the timesheets. Repeat Finding: No Recommendation: We recommend the Organization develop and implement processes for supervisors to document their approval on timesheets. Views of responsible officials and planned corrective actions: The Organization will review the processes and implement procedures.

2022-004 ? Funds Spent After Grant Period Federal agency: U.S. Department of Health and Human Services Federal program title: Centers for Independent Living Assistance Listing Number: 93.432 Award Period: Varies Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Federal grant funds must be spent during grant period and organization should be tracking specific expenditures that are charged to the grants for allowable costs/compliance purposes. Condition: During testing we noted issues with cutoff of expenses charged to grants relating to payroll and other costs being charged to expense accounts when paid versus period the expense was for. We also noted funds charged to credit card for $10,000 to purchase gift cards after end of grant period were charged to grant accounts. Questioned costs: $10,000 Context: The organization has plenty of costs to cover regular Center for Independent Living Grant. Received one-time Cares funds for various additional expenses due to COVID which are not part of normal CIL grant funds and organization was trying to use up remaining funds on the grant and didn't realize grant period had ended. Cause: Since the Organization has plenty of costs to cover the grant, specific expenses are not charged to the grant. Gift cards were purchased after grant period ended. Effect: Unallowable costs of $10,000 charged to the grant Repeat Finding: No Recommendation: The organization should work to identify specific costs that are charged to the grant. We also recommend a review of grant funds being done prior to the end of the grant period to make sure funds can be spent prior to end of grant period. Views of responsible officials: There is no disagreement with the audit finding.

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