Audit Waivers

To obtain a waiver of the audit requirement for an agency, the purchaser must apply with their DCF Regional Office. Requests for waivers should be submitted to the DCF Regional Office on the Purchase of Service Audit Waiver Request Form. The waiver requests should be submitted to the Regional Office by either email or regular mail, and should include the Waiver Request Form and the Risk Identification and Assessment Worksheet.

• If the agency is low risk, as determined by the risk assessment, and the cost of the audit exceeds 5% of the total contract, an alternate year audit schedule that covers both years may be approved.
• It is determined that the audit would not be cost effective or would place an undue hardship on the provider, the audit requirement may be waived. The special circumstances that support the granting of the waiver should be documented, as well as the alternative financial monitoring that will be substituted for the audit.

It is important to remember that granting an audit waiver does not relieve the purchaser of their responsibility to monitor the agencies it funds.

Wis. Stat. s. 66.0143 permits a local municipality (city, village, town or county) to request a waiver from state laws that do not impact safety or health. Under this statute, counties may request a waiver from the $100,000 audit threshold for their subcontractors.

The Department of Revenue (DOR) serves as a clearinghouse for these mandate relief requests. The DOR conveys the requests to the affected state department(s), which will then approve or deny them. Waivers are effective for four years and are renewable.

This waiver does not relieve the provider of their responsibility to monitor subcontracts falling under these amounts. Providers are expected to continue monitoring efforts in other areas and to document those efforts.

• Renewal: When seeking a renewal of a waiver, agencies will have to apply to both DCF and DHS. This can be done in the same letter to the DOR by citing both the DHS and DCF statutes, Wis. Stat. § 46.036 and Wis. Stat. § 49.34(4)(c), respectively.
• First-time Waivers: Counties or agencies requesting first-time waivers or an increase in the threshold limit from $100,00 should apply to DCF through the DOR. Counties will want to consider applying to all affected state agencies on one application to minimize costs and time. This can be accomplished by simply listing all applicable state statutes on the waiver application form.
• Request for a Threshold Increase: A request for an increase in the threshold limit from $100,000 is treated like a first-time waiver request, and requires the completion of a new waiver application, a new governing body authorization, and all required documentation. A new waiver request is also required if a waiver renewal request is not received within 60 days after the waiver expiration date.

When the waiver or renewal request is received by the DOR, it will be referred to DCF. Written confirmation or denial will be sent to the county or agency within 60 days.