Wisconsin Department of Children and Families

Protecting Children, Strengthening Families, Building Communities

Audit Requirements

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The Department of Children & Families (DCF) establishes grant contracts with counties, tribes, school districts, boards, and a number of non-profit organizations for the implementation of the Department's programs. These grant contracts require agencies to follow the Department's administration and auditing requirements in the Financial Management Manual. Audits of these agencies and Department programs are to be conducted by certified public accountants and accounting firms in accordance with federal and state audit requirements.

State Audit Requirements

Wis. Stat. 49.34 requires providers who receive more than $25,000 in funds from the Department of Children & Families (DCF), either directly or passed through another agency to have an audit that meets department standards, unless the audit is waived by the department.  DCF guidance on audit funding for agencies receiving DCF funding can be found here.pen on open book

 

Waiving Department Audit Requirements

Case-by-case Waivers 

Wis. Stat. 49.34 allows the department to waive audits on a case-by-case basis. Audits may be waived under certain circumstances, such as when the contract is relatively small, when the audit cost is a disproportionate share of the contract amount, and when there are alternate means of monitoring available. All requests for such waivers need to be referred to the granting agency, which needs to obtain approval from the department's regional office.

Mandate Relief Waivers of Audit Threshold

Wis. Stat. 66.0143 authorizes local governments to file requests for waivers of statutory mandates with the Department of Revenue. Several counties have used this provision to receive waivers increasing the $25,000 Wis. Stat. 49.34 threshold for providers to $75,000 or, in a few instances, $100,000. These waivers are effective for four years.  The Department may renew the waivers for additional four-year periods.

  

♦  No audits are required for providers that receive less than $25,000 in funding  ♦

 

DCF Audit Guides

DCF Appendix, an appendix to the State Single Audit Guidelines (link is external)

Provider Agency Audit Guide

 

Contact Information:

Department of Children & Families- http://www.dcf.wisconsin.gov/

Email: dcfauditors@wisconsin.gov

 

Federal Requirements

On December 26, 2013, the Office of Management and Budget released "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards", which supersedes and streamlines OMB Circulars A-21, A-87, A-102, A-110, A-122, and A-133. This guidance will be effective on December 26, 2014.

 

View the following links for additional information about federal audit standards and resources.

Frequently Asked Questions

Can I do my own audit? Can my accountant do the audit? Does the audit have to be done by a CPA?

Neither your agency or an agency affiliate can do the audit. The audit must be performed by a certified public accountant who is independent of your agency.

 

When is the audit report due?

Audit reports are due by the earlier occurring date:

  • The date specified in the contract or grant agreement.
  • The federal government's due date for Single Audits, if the auditee is a local government that has an Single Audit.
  • Six months from the end of the fiscal period for all other audits.

Your audit report must be submitted on time to be compliant with the DCF audit requirement.

 

What needs to be sent to DCF?

All auditees receiving DCF funding must send a copy of the audit report to DCF. We must receive one complete audit reporting package (only one copy needed) for the requirement of providing an audit to be complete. For single audits, we require the same items as the federal reporting packages.  In addition, we require the management letter or other document conveying audit comments and management's responses to the comments we deem significant. For all other audits, refer to the list of elements referred to the audit guide.

Including an agency contact for potential questions is helpful.

 

How and where should I send the audit report?

To save on printing and mailing costs, we prefer audit reports be sent to us electronically in a pdf document. All audit reports are to be sent to DCFAuditors@Wisconsin.gov by the agency or by the auditor. The audit reports need to be pdf files that are text searchable, unlocked, and unencrypted.  To ensure this, do not scan a physical copy or change the default security settings in your pdf creator.

If you receive an error telling you that our system cannot accept your message because it is too large, please contact us.

If an electronic copy is not available, paper copies may be sent to:

Attention: DCF Auditors
Department of Children & Families
P.O. Box 8916
Madison, WI  53708-8916