Audit Requirements The Department of Children and 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. 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 Wisconsin statute §49.34 establish the audit requirements for the Department of Children and Families. Prior to January 1, 2018, s. 49.34 Wis. Stats. requires providers who receive more than $25,000 in funds from the Department of Children and 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. Effective, January 1, 2018, the 2017 Wis. Act 59 changed the audit requirement from $25,000 to $100,000 for providers receiving funding from the department either directly or passed through another agency, unless the audit is waived by the department. DCF guidance on audit funding for agencies receiving DCF funding can be found here. 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 should 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 (prior to 01/01/2018) 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 prior to January 1, 2018, and $100,000 after January 1, 2018. ♦ DCF Audit Guides DCF Appendix to the State Single Audit Guidelines, State Single Audit Guide can be found here Provider Agency Audit Guide Contact Information: Department of Children and Families- http://www.dcf.wisconsin.gov/ Email: DCFAuditors@wisconsin.gov Federal Requirements View the following links for additional information about federal audit standards and resources. Government Auditing Standards Federal Audit Clearinghouse Catalog of Federal Domestic Assistance Electronic Code of Federal Regulations 45 CFR Part 75 UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR HHS AWARDS 2017, 2 CFR Part 200, Appendix XI, Compliance Supplement 2016, 2 CFR Part 200, Appendix XI, Compliance Supplement 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? An audit must be performed by a certified public accounting firm. 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 a Single Audit. Six months from the end of the fiscal period for other providers. Your audit report must be submitted on time to be compliant with the DCF audit requirement. Am I required to submit an audit report if my agency is no longer in operation or if I no longer have a contract with DCF? If you received funds in excess of the audit threshold for the year in question ($25,000 prior to January 1, 2018, and $100,000 after January 1, 2018) you are required to submit a closeout audit report. What needs to be sent to DCF? All auditees receiving DCF funding shall send a copy of the audit report to the department. We must receive a complete audit reporting package (only one copy needed) for the requirement of providing an audit to be complete. For single audits, the department requires reporting packages stated in the State Single Audit Guide. In addition, DCF requires the management letter or other document conveying audit comments and management's responses to the comments. For all other audits, refer to the list of elements referred to the audit guide. Please include an agency contact for potential questions. How and where should I send the audit report? To save on printing and mailing costs, the department recommends sending an electronic .pdf to be sent to DCFAuditors@Wisconsin.gov by the agency’s auditor. Please do not scan a physical copy or change the default security settings in your .pdf creator. If you receive an error stating 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: Department of Children and Families Division of Management Services P.O. Box 8916 Madison, WI 53708-8916 Attn: Fiscal Integrity and Audit Section
