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Audit Requirements

• State Audit Requirements
  
  Wis. Stat. s.49.34(4)(c) requires agencies which receive more than $25,000 from the Department of Children and Families for the purchase of care and services to have an audit, unless the audit is waived by the Department. The audit needs to be in accordance with standards prescribed by the Department. These standards are:
  
  
  • All agencies that receive more than $25,000 in department funds need to have audits in accordance with the State Single Audit Guidelines (SAAG), Main Document (2012 Revision) including the yearly Appendix, unless required by contract to follow the Provider Agency Audit Guide (PAAG). Local governmental units must use the State Single Audit Guidelines.
    
    
  • Certain private agencies are required by contract to have audits in accordance with the Provider Agency Audit Guide (PAAG).
    
    
  No audits are required for providers that receive less than $25,000 in funding.
  
  
• Federal Audit Requirements
  
  Under federal law, governments and non-profit organizations are required to have audits in accordance with OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations if they expend $500,000 or more in federal awards. The audit may be a program audit if the agency received funding from only one federal program or cluster of programs, and if the federal program does not require a financial statement audit. Otherwise, the audit needs to be a single audit covering the entire operations of the provider.