Local Government Mandated Relief Waivers

Audits cannot be waived for rate-based providers for residential care centers, child placing agencies, or group homes licensed under Wis. Admin. Code DCF 52, DCF 54 and DCF 57. Annual audits for these providers are required as a condition of licensing and the rate setting process. In addition, waivers cannot be granted for audits that are required under 2 CFR Part 200, "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards."

Obtaining a Waiver

Waiving an audit is appropriate under certain circumstances. However, a purchaser or granting agency may waive an audit in relation to its own funding or programs.

The purchaser/granting agency may decide at the time of the contract that it will waive the audit and include provisions stating such in the contract. Alternately, the purchaser/granting agency may decide later to waive the audit, perhaps based on additional information received throughout the contract period or its monitoring of its own contracted programs and providers.

The process for waiving an audit depends on whether or not the purchaser/granting agency is the department itself:

  • When the purchaser/granting agency is not the department (DCF), for example, if the purchaser/granting agency is a county that subgrants department funds:
    • If the request for the waiver of the audit report originates with the provider, the provider should send each purchaser/granting agency a written request for a waiver of the audit requirement, including an explanation of the reasons for requesting the waiver.
    • The purchaser/granting agencies decides whether they approve the waiver.
    • The purchaser/granting agency notify the provider on its decision
  • When the granting agency is the department, the process is similar:
    • If the request for the waiver of the audit report originates with a DCF contracted provider, the provider sends the appropriate DCF program divisions a written request for a waiver of the audit requirement, including an explanation of the reasons for requesting the waiver.
    • The DCF program division must receive the bureau of finance audit section’s approval to waive any statutorily required audit.
    • The program division relays the decision on the waiver to the provider.

When a granting agency waives an audit, the granting agency must document what other monitoring efforts it is using, what it finds through these other monitoring efforts, and what actions it takes on these findings.

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

Mandate Relief Waivers

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.