Audit Report - Report Wy State Auditor Statewide Single Audit Compliance Report Fy2021 Federal Awards 2022
Summary
A Compliance Report for the State of Wyoming for June 30, 2021. The table of contents lists the independent auditor's reports, the Schedule of Expenditures of Federal Awards and its notes, the Schedule of Findings and Questioned Costs, the Summary Schedule of Prior Audit Findings and Exhibit I: Corrective Action Plan. The auditor's report states that its report on the State's financial statements is dated May 31, 2022, and that items 2021-001 through 2021-011 are considered material weaknesses and items 2021-012 through 2021-017 significant deficiencies. The corrective action plan entries shown include items 2021-021 and 2021-022, both for DWS, with anticipated completion dates of 12/31/2022.
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STATE OF WYOMING
ENTITY IDENTIFICATION NUMBER 83-0208667
COMPLIANCE REPORT
JUNE 30, 2021
TABLE OF CONTENTS
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS 1-2
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE;
AND REPORT ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY THE UNIFORM GUIDANCE 3-5
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 6-18
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 19-20
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 21-47
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 48-69
EXHIBIT I: CORRECTIVE ACTION PLAN
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Honorable Governor
Members of the Legislature
State of Wyoming
Cheyenne, Wyoming
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major fund,
and the aggregate remaining fund information of the State of Wyoming (the State) as of and for the year
ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the
State’s basic financial statements, and have issued our report thereon dated May 31, 2022. Our report
includes a reference to other auditors who audited the financial statements of the University of Wyoming,
the University of Wyoming Foundation (a component unit of the University of Wyoming), the Wyoming
Community Development Authority, and the Wyoming Retirement System, as described in our report on
the State’s financial statements. The financial statements of the University of Wyoming Foundation were
not audited in accordance with Government Auditing Standards. This report does not include the results of
the other auditors’ testing of internal control over financial reporting or compliance and other matters that
are reported on separately by those auditors.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the State’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the State’s internal control. Accordingly, we do
not express an opinion on the effectiveness of the State’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and
was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies; therefore, material weaknesses or significant deficiencies may exist that have not
been identified. However, as described in the accompanying Schedule of Findings and Questioned Costs,
we did identify certain deficiencies in internal control that we consider to be material weaknesses and
significant deficiencies.
1
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the State’s
financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the
deficiencies described in the accompanying Schedule of Findings and Questioned Costs, identified as items
2021-001 through 2021-011, to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with governance.
We consider the deficiencies described in the accompanying Schedule of Findings and Questioned Costs,
identified as items 2021-012 through 2021-017, to be significant deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the State’s financial statements are free from
material misstatement, we performed tests of its compliance with certain laws, regulations, and provisions
of contracts and grant agreements, noncompliance with which could have a direct and material effect on
the financial statements. However, providing an opinion on compliance with those laws, regulations, and
provisions of contracts and grant agreements was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards and are described in the accompanying
Schedule of Findings and Questioned Costs as items 2021-006 and 2021-015 through 2021-017.
The State’s Responses to Findings
The State’s responses to the findings identified in our audit are described in the accompanying Corrective
Action Plan (Exhibit I). The State’s responses were not subjected to the auditing procedures applied in the
audit of the financial statements, and accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the State’s internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the State’s internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
Cheyenne, Wyoming
May 31, 2022
2
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE
FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON
INTERNAL CONTROL OVER COMPLIANCE; AND REPORT
ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY THE UNIFORM GUIDANCE
Honorable Governor
Members of the Legislature
State of Wyoming
Cheyenne, Wyoming
Report on Compliance for Each Major Federal Program
We have audited the State of Wyoming’s (the State) compliance with the types of compliance requirements
described in the Office of Management and Budget Compliance Supplement that could have a direct and
material effect on each of the State’s major Federal programs for the year ended June 30, 2021. The State’s
major Federal programs are identified in the Summary of Independent Auditor’s Results section of the
accompanying Schedule of Findings and Questioned Costs.
The State of Wyoming’s basic financial statements include the operations of the University of Wyoming,
the Wyoming Business Council, the Wyoming Community Development Authority, the Wyoming
Department of Transportation, and the Wyoming Energy Authority, which expended approximately $1.09
billion in Federal awards that are not included in the State’s Schedule of Expenditures of Federal Awards
during the year ended June 30, 2021. Our audit, described below, did not include the operations of the
Wyoming Business Council, the Wyoming Department of Transportation, or the Wyoming Energy
Authority because these entities had separate audits of compliance performed by us in accordance with Title
2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance). Our audit, described below, also did not
include the operations of the University of Wyoming or the Wyoming Community Development Authority
because these entities engaged other auditors to perform audits of compliance performed in accordance
with the Uniform Guidance.
Management’s Responsibility
Management is responsible for compliance with Federal statutes, regulations, and the terms and conditions
of its Federal awards applicable to its Federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of the State’s major Federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of the Uniform Guidance. Those
standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable
assurance about whether noncompliance with the types of compliance requirements referred to above that
could have a direct and material effect on a major Federal program occurred. An audit includes examining,
on a test basis, evidence about the State’s compliance with those requirements and performing such other
procedures as we considered necessary in the circumstances.
3
We believe that our audit provides a reasonable basis for our opinion on compliance for each major Federal
program. However, our audit does not provide a legal determination of the State’s compliance.
Opinion on Each Major Federal Program
In our opinion, the State complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major Federal programs for the
year ended June 30, 2021.
Other Matters
The results of our auditing procedures disclosed instances of noncompliance that are required to be reported
in accordance with the Uniform Guidance and are described in the accompanying Schedule of Findings and
Questioned Costs as items 2021-018 through 2021-022. Our opinion on each major Federal program is not
modified with respect to these matters.
The State’s responses to the noncompliance findings identified in our audit are described in the
accompanying Corrective Action Plan (Exhibit I). The State’s responses were not subjected to the auditing
procedures applied in the audit of compliance, and accordingly, we express no opinion on the responses.
Report on Internal Control over Compliance
Management of the State is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our
audit of compliance, we considered the State’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major Federal program to determine the
auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major Federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the State’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a Federal program will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a Federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies; therefore, material weaknesses
or significant deficiencies may exist that have not been identified. We did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses. However, we did identify
certain deficiencies in internal control over compliance, described in the accompanying Schedule of
Findings and Questioned Costs as items 2021-018 through 2021-022, that we consider to be significant
deficiencies.
4
The State’s responses to the internal control over compliance findings identified in our audit are described
in the accompanying Corrective Action Plan (Exhibit I). The State’s responses were not subjected to the
auditing procedures applied in the audit of compliance, and accordingly, we express no opinion on the
responses.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the State as of and for the year ended June 30, 2021, and the related notes to the financial
statements, which collectively comprise the State’s basic financial statements. We issued our report thereon
dated May 31, 2022, which contained unmodified opinions on those financial statements. We did not audit
the financial statements of the University of Wyoming, the University of Wyoming Foundation (a
component unit of the University of Wyoming), or the Wyoming Community Development Authority,
which are shown as discretely presented component units. In addition, we did not audit the financial
statements of the Wyoming Retirement System, which is shown as a fiduciary fund. Those financial
statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinion,
insofar as it relates to the amounts included for the University of Wyoming, the University of Wyoming
Foundation, the Wyoming Community Development Authority, and the Wyoming Retirement System, is
based solely on the reports of the other auditors.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards
is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required
part of the basic financial statements. Such information is the responsibility of management and was derived
from, and relates directly to, the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of the
financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion, the Schedule of
Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Cheyenne, Wyoming
September 30, 2022, except for that portion which addresses the Schedule of
Expenditures of Federal Awards, as to which the date is May 31, 2022
5
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Child Nutrition Cluster
U.S. Department of Agriculture:
School Breakfast Program 10.553 $ 16,489 $ 16,489
COVID-19 School Breakfast Program 10.553 191,905 191,905
National School Lunch Program 10.555 109,745 113,572
COVID-19 National School Lunch Program 10.555 622,550 631,310
Special Milk Program for Children 10.556 6,196 6,196
COVID-19 Special Milk Program for Children 10.556 2,673 2,673
Summer Food Service Program for Children 10.559 38,588,471 38,707,307
COVID-19 Summer Food Service Program for Children 10.559 9,437,965 9,437,965
Total Child Nutrition Cluster 48,975,994 49,107,417
SNAP Cluster
U.S. Department of Agriculture:
Supplemental Nutrition Assistance Program (SNAP) 10.551 - 70,601,743
COVID-19 Supplemental Nutrition Assistance Program (SNAP) 10.551 - 7,774,480
State Administrative Matching Grants for SNAP 10.561 2,127,360 8,624,788
COVID State Administrative Matching Grants for SNAP 10.561 - 21,548
Total SNAP Cluster 2,127,360 87,022,559
Food Distribution Cluster
U.S. Department of Agriculture:
Commodity Supplemental Food Program 10.565 9,675 10,136
COVID-19 Commodity Supplemental Food Program 10.565 235,037 235,037
Emergency Food Assistance Program (Administrative Costs) 10.568 133,009 133,009
COVID-19 Emergency Food Assistance Program (Administrative
Costs) 10.568 156,692 156,692
Emergency Food Assistance Program (Food Commodities) 10.569 2,892,566 2,892,566
COVID-19 Emergency Food Assistance Program (Food Commodities) 10.569 735,339 735,339
Total Food Distribution Cluster 4,162,318 4,162,779
Fish and Wildlife Cluster
U.S. Department of the Interior:
Sport Fish Restoration Program 15.605 - 5,939,780
Wildlife Restoration and Basic Hunter Education 15.611 - 12,290,159
Enhanced Hunter Education and Safety Program 15.626 - 80,180
Total Fish and Wildlife Cluster - 18,310,119
Continued
6
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
WIOA Cluster
U.S. Department of Labor:
WIA/WIOA Adult Program 17.258 $ 1,209 $ 3,879,932
WIOA Youth Activities 17.259 5,000 1,792,236
WIA/WIOA Dislocated Worker Formula Grants 17.278 - 1,543,669
Total WIOA Cluster 6,209 7,215,837
Employment Service Cluster
U.S. Department of Labor:
Employment Service/Wagner-Peyser Funded Activities 17.207 - 3,824,126
Disabled Veterans Outreach Program 17.801 - 495,141
Total Employment Service Cluster - 4,319,267
Highway Planning and Construction Cluster
U.S. Department of Transportation:
Recreational Trails Program 20.219 75,328 1,629,104
Total Highway Planning and Construction Cluster 75,328 1,629,104
Highway Safety Cluster
U.S. Department of Transportation:
State and Community Highway Safety 20.600 - 1,499
National Priority Safety Programs 20.616 - 40,671
Total Highway Safety Cluster - 42,170
Clean Water State Revolving Fund Cluster
U.S. Environmental Protection Agency:
Capitalization Grants for Clean Water State Revolving Funds 66.458 3,046,889 4,915,634
Total Clean Water State Revolving Fund Cluster 3,046,889 4,915,634
Drinking Water State Revolving Fund Cluster
U.S. Environmental Protection Agency:
Capitalization Grants for Drinking Water State Revolving Funds 66.468 1,610,526 1,904,080
Total Drinking Water State Revolving Fund Cluster 1,610,526 1,904,080
Special Education Cluster (IDEA)
U.S. Department of Education:
Special Education - Grants to States (IDEA, Part B) 84.027 24,472,298 28,362,273
Special Education - Preschool Grants (IDEA, Preschool) 84.173 209,178 846,835
Total Special Education Cluster (IDEA) 24,681,476 29,209,108
Continued
7
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Aging Cluster
U.S. Department of Health and Human Services:
Special Programs for the Aging - Title III, Part B - Grants for Supportive
Services and Senior Centers 93.044 $ 1,248,134 $ 1,475,610
COVID-19 Special Programs for the Aging - Title III, Part B - Grants
for Supportive Services and Senior Centers 93.044 469,373 469,373
Special Programs for the Aging - Title III, Part C - Nutrition Services 93.045 2,496,757 2,914,041
COVID-19 Special Programs for the Aging - Title III, Part C - Nutrition
Services 93.045 1,183,131 1,183,131
Nutrition Services Incentive Program 93.053 874,640 874,640
Total Aging Cluster 6,272,035 6,916,795
Child Care and Development Fund (CCDF) Cluster
U.S. Department of Health and Human Services:
Child Care and Development Block Grant 93.575 361,833 6,589,031
COVID-19 Child Care and Development Block Grant 93.575 856,167 3,825,885
Child Care Mandatory and Matching Funds of the CCDF 93.596 - 4,433,686
Total CCDF Cluster 1,218,000 14,848,602
Medicaid Cluster
U.S. Department of Health and Human Services:
State Medicaid Fraud Control Units 93.775 - 297,854
State Survey and Certification of Health Care Providers and Suppliers
(Title XVIII) Medicare 93.777 - 1,048,622
Medical Assistance Program 93.778 - 402,721,392
Medicaid 93.U01 - 381,962
Total Medicaid Cluster - 404,449,830
Disability Insurance (DI)/Supplemental Security Income (SSI) Cluster
U.S. Social Security Administration:
Supplemental Security Income 96.006 - 2,922,062
Total DI/SSI Cluster - 2,922,062
Other Programs - Direct
U.S. Department of Agriculture:
Plant and Animal Disease, Pest Control, and Animal Care 10.025 - 475,857
Voluntary Public Access and Habitat Incentive Program 10.093 123,835 520,576
Market Protection and Promotion 10.163 - 9,200
Specialty Crop Block Grant Program - Farm Bill 10.170 181,441 196,009
Trade Mitigation Program Eligible Recipient Agency Operational Funds 10.178 - 130,330
State Mediation Grants 10.435 - 62,121
Continued
8
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of Agriculture, Continued :
Cooperative Agreements with States for Intrastate Meat and Poultry
Inspection 10.475 $ - $ 389,303
CACFP Meal Service Training Grants 10.534 - 66,778
Farmers’ Market Supplemental Nutrition Assistance Program Support
Grants 10.545 - 3,540
Special Supplemental Nutrition Program for Women, Infants, and
Children 10.557 - 5,826,878
COVID-19 Special Supplement Nutrition Program for Women, Infants,
and Children 10.557 - 635,129
Child and Adult Care Food Program 10.558 2,848,913 2,911,771
COVID-19 Child and Adult Care Food Program 10.558 1,076,958 1,076,958
State Administrative Expenses for Child Nutrition 10.560 - 1,514,373
Farm to School Grant Program 10.575 (5,000) 486
Child Nutrition Discretionary Grants Limited Availability 10.579 45,657 45,657
Supplemental Nutrition Assistance Program, Process and Technology
Improvement Grants 10.580 - 144,408
Fresh Fruit and Vegetable Program 10.582 2,171,105 2,212,411
COVID-19 Pandemic EPT Administrative Costs 10.649 - 24,180
Cooperative Forestry Assistance 10.664 1,314,738 1,999,111
Forest Legacy Program 10.676 - 2,874
Forest Health Protection 10.680 291,691 332,406
Good Neighbor Authority 10.691 217,413 423,398
State & Private Forestry Hazardous Fuel Reduction Program 10.697 - 17,551
Herbicide NEPA Environmental Analysis 10.U01 - 267,859
Total U.S. Department of Agriculture 8,266,751 19,289,164
U.S. Department of Defense:
State Memorandum of Agreement Program for the Reimbursement of
Technical Services 12.113 - 151,826
Military Construction, National Guard 12.400 - 1,987,477
National Guard Military Operations and Maintenance Projects 12.401 - 23,880,914
National Guard ChalleNGe Program 12.404 - 3,701,560
Total U.S. Department of Defense - 29,721,777
U.S. Department of Housing and Urban Development:
Emergency Solutions Grant Program 14.231 153,254 201,057
COVID-19 Emergency Solutions Grant Program 14.231 813,912 836,717
Housing Opportunities for Persons with AIDS 14.241 - 146,451
Continued
9
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of Housing and Urban Development, Continued :
COVID-19 Housing Opportunities for Persons with AIDS 14.241 $ - $ 36,918
Continuum of Care Program 14.267 - 2,675
Total U.S. Department of Housing and Urban Development 967,166 1,223,818
U.S. Department of the Interior:
Experienced Services Program 15.011 - 5,000
Cultural and Paleontological Resources Management 15.224 - 13,722
BLM Wildland Urban Interface Community Fire Assistance 15.228 - 1,103
Fish, Wildlife and Plant Conservation Resource Management 15.231 360,073 547,298
Forest and Woodlands Resource Management 15.233 - 1,506
Environmental Quality and Protection Resource Management 15.236 - 469,074
Challenge Cost Share 15.238 - 174,396
Fisheries and Aquatic Resources Management 15.244 - 17,927
Wildlife Resource Management 15.247 - 92,089
Regulation of Surface Coal Mining and Surface Effects of Underground
Coal Mining 15.250 - 1,980,125
Abandoned Mine Land Reclamation 15.252 4,113,563 71,536,640
Federal Oil and Gas Royalty Management State and Tribal Coordination 15.427 - 2,531,168
Title II, Colorado River Basin Salinity Control 15.509 51,170 51,170
Cultural Resources Management 15.511 - 7,592
Fish and Wildlife Coordination Act 15.517 - 220,493
Recreation Resources Management 15.524 - 136,138
Fish and Wildlife Management Assistance 15.608 64,499 208,961
Cooperative Endangered Species Conservation Fund 15.615 - 110,845
Sportfishing and Boating Safety Act 15.622 - (110,345)
State Wildlife Grants 15.634 436,464 436,464
Endangered Species Conservation - Recovery Implementation Funds 15.657 - 23,360
Endangered Species Conservation - Wolf Livestock Loss Compensation
and Prevention 15.666 - 7,439
Adaptive Science 15.670 67,827 172,883
White-Nose Syndrome National Response Implementation 15.684 - 20,213
U.S. Geological Survey Research and Data Collection 15.808 - 48,116
National Cooperative Geologic Mapping 15.810 - 125,670
National Geological and Geophysical Data Prevention 15.814 - 9,665
Historic Preservation Fund Grants-In-Aid 15.904 61,010 685,637
Outdoor Recreation Acquisition, Development and Planning 15.916 299,536 326,457
Save America’s Treasures 15.929 - 15,580
Total U.S. Department of the Interior 5,454,142 79,866,386
Continued
10
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of Justice:
Sexual Assault Services Formula Program 16.017 $ 385,870 $ 386,273
COVID-19 Strengthening the Medical Examiner - Coroner System 16.037 72,824 95,175
Juvenile Justice and Delinquency Prevention Allocation to States 16.540 - 923
Missing Children’s Assistance 16.543 - 403,540
National Criminal History Improvement Program 16.554 - 189,986
Criminal Justice Block Grants 16.573 - 168,305
Crime Victim Assistance 16.575 4,210,089 4,441,081
Crime Victim Compensation 16.576 - 92,007
Violence Against Women Formula Grants 16.588 734,503 750,366
Residential Substance Abuse Treatment for State Prisoners 16.593 - 253,519
State Criminal Alien Assistance Program 16.606 - 20,842
Edward Byrne Memorial Justice Assistance Grant Program 16.738 - 341,159
DNA Backlog Reduction Program 16.741 - 229,009
Paul Coverdell Forensic Sciences Improvement Grant Program 16.742 - 239,365
Support for Adam Walsh Act Implementation Grant Program 16.750 - 37,198
Total U.S. Department of Justice 5,403,286 7,648,748
U.S. Department of Labor:
Labor Force Statistics 17.002 - 674,245
Compensation and Working Conditions 17.005 - 76,284
Unemployment Insurance 17.225 - 155,101,221
COVID-19 Unemployment Insurance 17.225 - 179,741,312
Senior Community Service Employment Program 17.235 461,828 469,327
Trade Adjustment Assistance 17.245 - 42,692
Work Opportunity Tax Credit Program 17.271 - 107,790
Temporary Labor Certification for Foreign Workers 17.273 - 88,437
WIOA National Dislocated Worker Grants/WIA National Emergency
Grants 17.277 - 373,185
Apprenticeship USA Grants 17.285 - 191,537
Occupational Safety and Health State Program 17.503 - 658,870
Consultation Agreements 17.504 - 494,845
Total U.S. Department of Labor 461,828 338,019,745
U.S. Department of Transportation:
Pipeline Safety Program State Base Grant 20.700 - 267,999
Interagency Hazardous Materials Public Sector Training and Planning
Grants 20.703 - 1,396
PHMSA Pipeline Safety Program One Call Grant 20.721 - 6,758
Total U.S. Department of Transportation - 276,153
Continued
11
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of the Treasury:
COVID-19 Coronavirus Relief Fund 21.019 $ 826,674,483 $ 1,126,223,440
COVID-19 Emergency Rental Assistance Program 21.023 2,978,723 6,329,580
Total U.S. Department of the Treasury 829,653,206 1,132,553,020
U.S. General Services Administration:
Voting System (Punch Card/Lever) Replacement 39.011 - 102,072
Total U.S. General Services Administration - 102,072
National Endowment for the Arts:
Promotion of the Arts Partnership Agreements 45.025 645,695 853,471
Grants to States 45.310 - 1,037,757
COVID-19 Grants to States 45.310 - 480,312
Total National Endowment for the Arts 645,695 2,371,540
U.S. Department of Veterans Affairs:
Grants to States for Construction of State Home Facilities 64.005 - 4,024,315
Veterans Transport Program 64.035 - 28,449
All-Volunteer Force Educational Assistance 64.124 - 102,889
Total U.S. Department of Veterans Affairs - 4,155,653
U.S. Environmental Protection Agency:
State Indoor Radon Grants 66.032 - 16,949
Surveys, Studies, Research, Investigations, Demonstrations, and
Special-Purpose Activities Relating to the Clean Air Act 66.034 - 257,364
State Clean Diesel Grant Program 66.040 433,893 433,893
Water Pollution Control State, Interstate, and Tribal Program Support 66.419 - 100,081
State Underground Water Source Protection 66.433 - 86,891
Lead Testing in School and Child Care Program Drinking Water
(SDWA 1464(d)) 66.444 - 15,624
Water Quality Management Planning 66.454 66,534 119,572
Nonpoint Source Implementation Grants 66.460 873,966 873,966
Regional Wetland Program Development Grants 66.461 5,294 5,294
Performance Partnership Grants 66.605 - 2,368,897
Source Reduction Assistance 66.717 - 9,347
Underground Storage Tank Prevention, Detection and Compliance
Program 66.804 - 275,219
Leaking Underground Storage Tank Trust Fund Corrective Action
Program 66.805 - 517,465
State and Tribal Response Program Grants 66.817 - 657,884
Continued
12
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Environmental Protection Agency, Continued :
Brownsfields Assessment and Cleanup Cooperative Agreements 66.818 $ - $ 67,996
BLM Orphan Well Plugging Program 66.U01 - 297,531
Total U.S. Environmental Protection Agency 1,379,687 6,103,973
U.S. Department of Energy:
Weatherization Assistance for Low-Income Persons 81.042 1,104,798 1,213,114
Transport of Transuranic Wastes to the Waste Isolation Pilot Plant:
States and Tribal Concerns, Proposed Solutions 81.106 - 106,977
Total U.S. Department of Energy 1,104,798 1,320,091
U.S. Department of Education:
Adult Education - Basic Grants to States 84.002 647,840 847,261
Title I Grants to Local Educational Agencies 84.010 34,135,233 34,608,535
Title I State Agency Program for Neglected and Delinquent Children
and Youth 84.013 811,483 815,573
Career and Technical Education - Basic Grants to States 84.048 4,236,794 4,871,452
Career and Technical Education - National Programs 84.051 - 42,537
Rehabilitation Services_Vocational Rehabilitation Grants to States 84.126 - 9,081,023
Rehabilitation Services Independent Living Services for Older Individuals
Who are Blind 84.177 77,653 77,653
Special Education - Grants for Infants and Families 84.181 1,771,826 2,188,334
Supported Employment Services for Individuals with the Most Significant
Disabilities 84.187 - 133,115
Education for Homeless Children and Youth 84.196 150,424 194,692
Twenty-First Century Community Learning Centers 84.287 5,353,090 5,613,784
Special Education Technical Assistance and Dissemination to Improve
Services and Results for Children with Disabilities 84.326 - 65,993
Rural Education 84.358 13,182 13,682
English Language Acquisition State Grants 84.365 237,031 409,362
Supporting Effective Instruction State Grant 84.367 7,880,810 8,248,896
Grants for State Assessments and Related Activities 84.369 - 1,471,449
Comprehensive Literacy Development 84.371 - 43,231
Student Support and Academic Enrichment Program 84.424 4,906,011 5,239,064
COVID-19 Education Stabilization Fund - Governor’s Emergency
Education Relief Fund 84.425C 1,823,406 3,491,149
COVID-19 Education Stabilization Fund - Elementary and Secondary
School Emergency Relief Fund 84.425D 23,294,489 23,400,742
Ed Facts 84.U01 - 27,540
NAEP 84.U02 - 177,107
Total U.S. Department of Education 85,339,272 101,062,174
Continued
13
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
National Archives and Records Administration:
National Historical Publications and Records Grants 89.003 $ 2,493 $ 7,993
Total National Archives and Records Administration 2,493 7,993
Election Assistance Commission:
Help America Vote Act (HAVA) Requirements Payment 90.401 - (400)
HAVA Election Security Grants 90.404 56,853 947,870
COVID-19 HAVA Election Security Grants 90.404 325,893 576,603
Total Election Assistance Commission 382,746 1,524,073
U.S. Department of Health and Human Services:
Special Programs for the Aging Title VII, Chapter 3, Programs for
Prevention of Elder Abuse, Neglect, and Exploitation 93.041 23,995 23,995
Special Programs for the Aging Title VII, Chapter 2, Long-Term Care
Ombudsman Services for Older Individuals 93.042 78,208 78,208
COVID-19 Special Programs for the Aging Title VII, Chapter 2,
Long-Term Care Ombudsman Services for Older Individuals 93.042 - 50,631
Special Programs for the Aging Title III, Part D, Disease Prevention and
Health Promotion Services 93.043 19,814 19,814
National Family Caregiver Support, Title III, Part E 93.052 704,118 890,459
COVID-19 National Family Caregiver Support, Title III, Part E 93.052 205,425 205,425
Public Health Emergency Preparedness 93.069 2,429,623 4,880,070
Medicare Enrollment Assistance Program 93.071 34,007 42,049
Affordable Care Act Personal Responsibility Education Program 93.092 73,400 133,213
Food and Drug Administration Research 93.103 - 203,789
Maternal and Child Health Federal Consolidated Programs 93.110 - 93,487
Project Grants and Cooperative Agreements for Tuberculosis Control
Programs 93.116 - 93,761
Emergency Medical Services for Children 93.127 - 90,370
Cooperative Agreements to States/Territories for the Coordination and
Development of Primary Care Offices 93.130 - 143,613
Injury Prevention and Control Research and State and
Community-Based Programs 93.136 175,158 314,190
Projects for Assistance in Transition from Homelessness 93.150 281,514 281,938
Grants to States for Loan Repayment Program 93.165 56,000 56,000
State Rural Hospital Flexibility Program 93.241 300,995 580,100
Substance Abuse and Mental Health Services Projects of Regional and
National Significance 93.243 2,237,028 3,286,664
Universal Newborn Hearing Screening 93.251 234,300 234,300
Immunization Cooperative Agreements 93.268 - 4,584,896
COVID-19 Immunization Cooperative Agreements 93.268 - 545,100
Continued
14
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of Health and Human Services, Continued :
Adult Viral Hepatitis Prevention and Control 93.270 $ - $ 171,835
Small Rural Hospital Improvement Grant Program 93.301 168,591 181,818
COVID-19 Small Rural Hospital Improvement Grant Program 93.301 84,317 84,317
National State-Based Tobacco Control Programs 93.305 - 164,705
Early Hearing Detection and Intervention Information System
Surveillance Program 93.314 153,727 153,727
Epidemiology and Laboratory Capacity for Infectious Diseases 93.323 - 1,084,368
COVID-19 Epidemiology and Laboratory Capacity for Infectious
Diseases 93.323 1,297,662 14,415,237
State Health Insurance Assistance Program 93.324 237,219 237,219
Behavioral Risk Factor Surveillance System 93.336 - 300,344
COVID-19 Public Health Emergency Response: Cooperative
Agreement for Emergency Response: Public Health Crisis Response 93.354 1,798,127 2,410,794
ACL Independent Living State Grants 93.369 77,653 353,471
National and State Tobacco Control Program 93.387 252,196 859,401
The State Flexibility to Stabilize the Market Grant Program 93.413 16,823 16,823
Improving the Health of Americans through Prevention and Management
of Diabetes and Heart Disease and Stroke 93.426 336,660 1,098,928
Every Student Succeeds Act/Preschool Development Grants 93.434 1,100,549 1,375,686
Title IV, Part E Kinship Navigator Program 93.471 - 165,458
Promoting Safe and Stable Families 93.556 151,850 203,859
COVID-19 Promoting Safe and Stable Families 93.556 - 7,171
Temporary Assistance for Needy Families 93.558 4,935,178 19,453,168
Child Support Enforcement 93.563 - 6,058,546
Child Support Enforcement Research 93.564 - 14,719
Low-Income Home Energy Assistance 93.568 4,816,765 10,077,593
COVID-19 Low-Income Home Energy Assistance 93.568 174,377 1,452,361
Community Services Block Grant 93.569 3,061,451 3,339,159
COVID-19 Community Services Block Grant 93.569 1,444,056 1,485,725
State Court Improvement Program 93.586 - 356,197
Community-Based Child Abuse Prevention Grants 93.590 60,794 205,068
Grants to States for Access and Visitation Programs 93.597 106,837 112,087
Chafee Education and Training Vouchers Program 93.599 - 82,584
COVID-19 Chafee Education and Training Vouchers Program 93.599 - 5,567
Adoption and Legal Guardianship Incentive Payments 93.603 - 80,388
Developmental Disabilities Basic Support and Advocacy Grants 93.630 37,853 297,885
Children’s Justice Grants to States 93.643 - 15,698
Stephanie Tubbs Jones Child Welfare Services Program 93.645 - 298,374
COVID-19 Stephanie Tubbs Jones Child Welfare Services Program 93.645 - 24,477
Foster Care Title IV, Part E 93.658 - 2,805,189
Continued
15
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of Health and Human Services, Continued :
Adoption Assistance 93.659 $ - $ 893,804
COVID-19 Emergency Grants to Address Mental & Substance Use
Disorders During COVID-19 93.665 1,494,589 1,594,051
Social Services Block Grant 93.667 - 2,811,014
Child Abuse and Neglect State Grants 93.669 - 334,425
Family Violence Prevention and Services/Domestic Violence Shelter and
Supportive Services 93.671 659,236 667,300
COVID-19 Family Violence Prevention and Services/Domestic Violence
Shelter and Supportive Services 93.671 49,044 49,044
Chafee Foster Care Independence Program 93.674 473,125 505,500
COVID-19 Chafee Foster Care Independence Program 93.674 - 2,433
Empowering Other Adults and Adults with Disabilities through Chronic
Disease Self-Management Education Programs 93.734 280,978 341,244
COVID-19 Elder Abuse Prevention Interventions Programs 93.747 - 638
Evidence-Based Falls Prevention Programs Financed Solely by
Prevention and Public Health Funds 93.761 - 619
Children’s Health Insurance Program 93.767 - 6,033,494
Opioid STR 93.788 4,513,222 4,662,494
State Survey Certification of Health Care Providers and Suppliers
(Title XIX) Medicaid 93.796 - 710,316
Hospital Preparedness Program (HPP) Ebola Preparedness and
Response Activities 93.817 1,228 16,603
National Bioterrorism HPP 93.889 636,134 1,086,277
COVID-19 National Bioterrorism HPP 93.889 327,582 796,928
Cancer Prevention and Control Programs for State, Territorial and
Tribal Organizations 93.898 134,406 1,579,419
Grants to States for Operation of State Offices of Rural Health 93.913 - 94,949
HIV Care Formula Grants 93.917 - 939,609
COVID-19 HIV Care Formula Grants 93.917 - 20,631
Grants to Provide Outpatient Early Intervention Services with Respect to
HIV Disease 93.918 - 167,862
COVID-19 Grants to Provide Outpatient Early Intervention Services
with Respect to HIV Disease 93.918 - 27,662
HIV Prevention Activities - Health Department Based 93.940 (4,368) 872,440
Cooperative Agreements to Support State-Based Safe Motherhood and
Infant Health Initiative Programs 93.946 - 110,972
Block Grants for Community Mental Health Services 93.958 901,661 972,207
Block Grants for Prevention and Treatment of Substance Abuse 93.959 4,963,298 5,371,312
Continued
16
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
U.S. Department of Health and Human Services, Continued :
Preventive Health Services Sexually Transmitted Diseases Control
Grants 93.977 $ - $ 301,036
Preventive Health and Health Services Block Grant 93.991 12,602 278,146
Maternal and Child Health Services Block Grant to the States 93.994 116,451 903,908
Total U.S. Department of Health and Human Services 41,725,458 118,428,355
Corporation for National and Community Service:
Volunteers in Service to America 94.013 - 71,743
Total Corporation for National and Community Service - 71,743
Executive Office of the President:
High Intensity Drug Trafficking Areas Program 95.001 - 1,084,998
Total Executive Office of the President - 1,084,998
U.S. Department of Homeland Security:
Non-Profit Security Program 97.008 - 156,663
Boating Safety Financial Assistance 97.012 4,214 285,694
Community Assistance Program State Support Services Element 97.023 - 53,298
Disaster Grants - Public Assistance (Presidentially Declared Disasters) 97.036 - 258,815
COVID-19 Disaster Grants - Public Assistance (Presidentially Declared
Disasters) 97.036 - 1,053,822
Hazard Mitigation Grant 97.039 - 649,448
National Dam Safety Program 97.041 - 52,690
COVID-19 Emergency Management Performance Grants 97.042 - 88,849
Emergency Management Performance Grants 97.042 - 2,271,069
Assistance to Firefighters Grant 97.044 - 9,396
Fire Management Assistance Grant 97.046 - 589,824
Pre-Disaster Mitigation 97.047 - 59,119
COVID-19 Presidential Declared Disaster Assistance to Individuals and
Households - Other Needs 97.050 - 16,209,547
Homeland Security Grant Program 97.067 - 3,143,495
Earthquake Consortium 97.082 - 37,269
Total U.S. Department of Homeland Security 4,214 24,918,998
Other Federal financial awards:
Thunder Basin National Grassland Raptor Surveys 99.U01 - 2,158
Bighorn Sheep Monitoring (BSM3) 99.U02 - 4,307
WCFC Aquatic Invasive Species Prev (BCB2) 99.U03 - 10,004
Bighorn Sheep Monitoring (BSM2) 99.U04 13,048 13,048
Soc. Sec. Reimb./Prog. Inc. 99.U05 - 33,323
Continued
17
STATE OF WYOMING
SCHEDULE OF EXPENDITURES OF FEDERAL
AWARDS, Continued
Year Ended June 30, 2021
Federal
Assistance Total
Listing Provided to Federal
Federal Grantor/Pass-Through Grantor/Program or Cluster Title Number Subrecipients Expenditures
Other Programs - Direct, Continued
Other Federal financial awards, Continued :
NAHLN Level III (NAH0) 99.U06 $ - $ 48,665
Head Start Program FPY17 & GFY18 (HS) 99.U07 - 110,795
Med Bow/Thunder Basin 99.U09 - 239,102
Total other Federal financial awards 13,048 461,402
Total direct expenditures of Federal awards 1,072,979,925 2,507,187,239
Total expenditures of Federal awards $ 1,072,979,925 $ 2,507,187,239
The accompanying notes are an integral part of this schedule.
18
STATE OF WYOMING
NOTES TO SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS
Note 1. Summary of Significant Accounting Policies
Expenditures reported on the State of Wyoming’s (the State) Schedule of Expenditures of Federal Awards
(the Schedule) are reported on the cash basis of accounting. Such expenditures are recognized following,
as applicable, either the cost principles contained in Office of Management and Budget Circular A-87, Cost
Principles for State, Local, and Indian Tribal Governments, or the cost principles contained in Title 2 U.S.
Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent
adjustments or credits made in the normal course of business to amounts reported as expenditures in prior
years.
Note 2. Indirect Cost Rate
The State has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance
as the State has various Federally negotiated indirect cost rates that are being used for Federal awards or
utilizes the indirect cost rates specified in the Federal awards.
Note 3. Basis of Presentation
The accompanying Schedule includes the Federal award activity of the State under programs of the Federal
government for the year ended June 30, 2021, except as described in Note 4. The information in this
Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule
presents only a selected portion of the operations of the State, it is not intended to, and does not, present the
financial position, changes in net position, or cash flows of the State.
Note 4. Content
In accordance with the provisions of the Uniform Guidance, 2 CFR 200.514(a), the accompanying Schedule
does not include the operations of the Wyoming Business Council, the Wyoming Department of
Transportation, or the Wyoming Energy Authority because these entities had separate audits of compliance
performed by us in accordance with the Uniform Guidance.
In accordance with the provisions of the Uniform Guidance, 2 CFR 200.514(a), the accompanying Schedule
also does not include the operations of the University of Wyoming or the Wyoming Community
Development Authority because these entities engaged other auditors to perform audits of compliance
performed in accordance with the Uniform Guidance.
19
STATE OF WYOMING
NOTES TO SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS
Note 5. Noncash Awards
The Schedule includes the following noncash items as Federal expenditures:
• U.S. Department of Agriculture (USDA) Emergency Food Assistance Program (Food Commodities)
(Assistance Listing #10.569) of $3,627,905
• USDA Supplemental Nutrition Assistance Program (SNAP) Benefits (Assistance Listing #10.551) of
$78,376,223
• U.S. Department of Health and Human Services Immunization Cooperative Agreements Vaccines
(Assistance Listing #93.268) of $3,191,124
The values of the Food Commodities and Vaccines are recorded at the Federally negotiated costs at the date
of issuance. SNAP Benefits are recorded at face value.
Note 6. Unemployment Insurance Compensation
The Schedule includes approximately $139 million of State Unemployment Insurance Compensation
Benefits (SUICB) (Assistance Listing #17.225). The SUICB is included in the Schedule pursuant to a
directive issued by the U.S. Department of Labor.
Note 7. Coronavirus Relief Fund (CRF) Timing of Expenditures
Due to the enabling legislation for the CRF (Assistance Listing #21.019), the State was allowed to claim
expenditures that were incurred any time during the period of performance (March 1, 2020 through
December 31, 2021). During the year under audit, certain non-Federal expenditures incurred in the previous
fiscal year were reclassified to CRF. As a result, the Schedule for the year ended June 30, 2021 includes
expenditures for CRF that were incurred between March 27, 2020 and June 30, 2020.
20
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
I. SUMMARY OF INDEPENDENT AUDITOR’S RESULTS
Financial Statements
Type of report the auditor issued on whether the
financial statements were prepared in accordance with
accounting principles generally accepted in the United
States of America (U.S. GAAP): Unmodified
McGee, Hearne & Paiz, LLP has audited the basic financial statements of the State of Wyoming
(the State) as of and for the year ended June 30, 2021 and has issued its report thereon dated May
31, 2022. We did not audit the financial statements of the University of Wyoming, the University
of Wyoming Foundation (a component unit of the University of Wyoming), or the Wyoming
Community Development Authority, which are shown as discretely presented component units.
We also did not audit the Wyoming Retirement System, which is shown as a fiduciary fund. Those
financial statements were audited by other auditors whose reports have been furnished to us, and
our opinion, insofar as it related to the amounts included for the University of Wyoming, the
University of Wyoming Foundation, the Wyoming Community Development Authority, and the
Wyoming Retirement System, is based solely on the reports of the other auditors.
Internal control over financial reporting:
• Material weakness(es) identified? Yes No
• Significant deficiency(ies) identified? Yes None Reported
Noncompliance material to financial statements noted? Yes No
Federal Awards
Internal control over major Federal programs:
• Material weakness(es) identified? Yes No
• Significant deficiency(ies) identified? Yes None Reported
Type of auditor’s report issued on compliance for major Federal programs: Unmodified
• Any audit findings disclosed that are required
to be reported in accordance with Section 2
Code of Federal Regulations 200.516(a)? Yes No
21
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
I. SUMMARY OF INDEPENDENT AUDITOR’S RESULTS, Continued
Identification of major Federal programs:
Federal
Assistance
Listing
Number Name of Federal Program or Cluster
15.252 Abandoned Mine Land Reclamation
17.225 Unemployment Insurance
21.019 Coronavirus Relief Fund
64.005 Grants to States for Construction of State Home Facilities
84.010 Title I Grants to Local Educational Agencies
84.126 Rehabilitation Services_Vocational Rehabilitation Grants to States
84.367 Supporting Effective Instruction State Grant
84.425C/D Education Stabilization Fund
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases
97.050 Presidential Declared Disaster Assistance to Individuals and Households - Other Needs
Cluster Employment Service Cluster
Cluster Medicaid Cluster
Cluster Special Education Cluster (IDEA)
Dollar threshold used to distinguish between Type A and Type B programs: $7,521,561
Auditee qualified as low-risk auditee? Yes No
22
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS
2021-001: State Auditor’s Office (SAO) - Internal Controls and Audit Adjustments
(Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed as follows:
• To revise the entity-wide elimination entry that increased general government expenses by
approximately $142 million and increased revenue from others by approximately $142 million.
• To decrease the other postemployment benefits liability by approximately $19.1 million,
decrease the deferred inflows by approximately $3.1 million, decrease the deferred outflows
by approximately $17.4 million and decrease expenses by approximately $4.8 million on the
entity-wide level.
• To decrease pension deferred outflows by approximately $4.7 million, increase pension
deferred inflows by approximately $1.9 million, and increase expenses by approximately $6.6
million on the entity-wide level.
• To decrease due to component unit in the General Fund by approximately $5.6 million.
• To increase deferred revenue and decrease charges for services by approximately $28.4 million
within the Group Insurance Fund.
• To revise mineral severance tax accrual entries by approximately $12.2 million within the Non-
Major Funds and General Fund.
• To reclassify charges for sales and service revenue and rental, supplies and services expense
by approximately $5.2 million in the Worker’s Compensation Fund.
• To decrease charges for sales and service and increase fund balance by approximately $1.1
million in the General Fund.
• To reclassify business regulation and recreation and resource development expenses by
approximately $4.4 million in a Non-Major Fund.
• To reclassify recreation and resource development expenses and Federal revenue by
approximately $22.3 million in the COVID Fund.
• To increase transfers in by approximately $16.9 million, charges for sales and service revenue
by $1.2 million, expenses by $837,000, and transfers out by $17.3 million in the General Fund.
• To reclassify approximately $2.7 million from unassigned fund balance to restricted fund
balance and $112.5 million from assigned fund balance to unassigned fund balance within the
General Fund.
• To reclassify approximately $534,000 from committed fund balance to unassigned fund
balance within Non-Major Funds.
• To decrease due from other governments and Federal mineral royalties by approximately $29.8
million in the General Fund.
• To decrease due from other governments and Federal mineral royalties by approximately $14.9
million in the School Foundation Fund.
• To decrease due from other governments and Federal mineral royalties by approximately $40.6
million in the General Fund.
23
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-001: State Auditor’s Office (SAO) - Internal Controls and Audit Adjustments
(Material Weakness), Continued
• To increase cash and pooled investments and investment income by approximately $8.4 million
in the Permanent Mineral Trust Fund.
• To decrease cash and pooled investments and investment income by approximately $8.4
million in the General Fund.
• To increase unassigned fund balance and decrease investment income by approximately $2.6
million in the General Fund.
• To decrease unassigned fund balance and increase investment income by approximately $2.6
million in the Foundation Program Fund.
• To reclassify investment income and operating transfers by approximately $5.3 million in the
General Fund, $3 million in the Foundation Program Fund and $2.3 million in Non-Major
Funds.
In addition, deficiencies in both the design and operating effectiveness of the SAO’s internal control
system were identified as budget statements were not completed accurately, and the errors were not
identified during review.
Finally, within the report, the Statements of Cash Flows were reclassified for proper presentation
and adjustments were made to ensure proper reconciliation between the direct and indirect method.
Cause: Each project’s adjustment was caused by human error (utilizing the incorrect allocation
percentage, posting entries backwards, spreadsheet not appropriately updated for the current year,
not utilizing check figures) and the errors were not caught in the review process.
Effect: Prior to the proposed audit adjustments, the fund-level and government-wide financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: Yes. See prior-year findings 2020-001 and 2020-018.
Recommendation: We recommend that the SAO continue to refine its internal review process to
determine the propriety of the journal entries posted during the preparation of the State’s financial
statements. In addition, the SAO may also want to consider performing a high-level analytical
review of the adjusted financial statement balances, as well as completed projects, to assist in
identifying unusual or inconsistent relationships.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
24
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-002: SAO and State Treasurer’s Office (STO) - Internal Controls and Audit
Adjustments to Cash and Pooled Investments (Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed as follows:
• To increase (decrease) cash and pooled investments and investment income by approximately
$14.1 million in the Worker’s Compensation Fund, $54.1 million in the General Fund, $31.8
million in the Foundation Program Fund, ($582,000) in the COVID Fund and $8.1 million in
Non-Major Funds.
• To increase due from other governments and Federal mineral royalty revenues by
approximately $29 million within the General Fund and $14.5 million within the School
Foundation Program Fund.
Cause: Each adjusting journal entry proposed was initially not recorded properly due to the lack of
a standard and consistent process by which journal entries are communicated between the STO and
the SAO.
Effect: Prior to the proposed audit adjustment, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: No.
Recommendation: We recommend that the STO and the SAO develop a standard process by which
required journal entries are communicated between the respective agencies.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-003: SAO - Internal Controls and Audit Adjustment to Revenue (Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed as follows:
• To decrease revenue from others and cash and pooled investments by $40 million in the
Permanent Mineral Trust Fund.
• To decrease cash and pooled investments and general government expenses by approximately
$4.3 million in the General Fund.
• To decrease revenue from others and education expense by $8 million in the General Fund.
25
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-003: SAO - Internal Controls and Audit Adjustment to Revenue (Material Weakness),
Continued
Cause: Certain repayments related to loans receivable or appropriation reversions were not
identified in converting the cash basis information into the accrual financial statements.
Effect: Prior to the proposed audit adjustment, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: No.
Recommendation: We recommend that the SAO continue its efforts in incorporating improvements
in its year-end projects to ensure all unique transactions are properly identified and evaluated. In
addition, we recommend increased training and communication with agencies to ensure such
transactions are communicated to the SAO.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-004: SAO - Internal Controls and Audit Adjustments to Accounts Payable (Material
Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed within the COVID Fund, as follows:
• To increase accounts payable and the corresponding expenses by approximately $1.6 million.
• To increase Federal revenue and deferred revenue by approximately $1.6 million.
Cause: The SAO did not evaluate its historical accounting practices and procedures for the
economic impact of COVID-19. Specifically, the historical cut-off date for calculating the year-
end warrants payable liability was not re-evaluated and extended for the increased risk and
utilization. Due to the nature of the COVID major fund, the estimation process could not be utilized
and the cut-off was not extended.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: No.
Recommendation: We recommend that the SAO continue its efforts to enhance its current internal
control structure to provide for re-evaluation of historical accounting practices and procedures on
an annual basis for propriety.
26
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-004: SAO - Internal Controls and Audit Adjustments to Accounts Payable (Material
Weakness), Continued
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-005: SAO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
and Bonds Payable Related Balances (Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed as follows:
• To decrease general government expenditures and transfers in by approximately $13.6 million
in the Foundation Program Fund.
• To decrease interest income by approximately $17 million, general government expenditures
by $3.4 million, and transfers out by $13.6 million in the Common School Land Fund.
• To increase cash and pooled investments and fund balance by approximately $2.4 million in
the General Fund.
• To increase cash and pooled investments and fund balance by approximately $351,000 in the
Foundation Program Fund.
• To increase cash and pooled investments and fund balance by approximately $82,000 in the
Common School Land Fund.
• To decrease cash and pooled investments and fund balance by approximately $560,000 in the
Permanent Mineral Trust Fund.
• To decrease cash and pooled investments and fund balance by approximately $250,000 in the
Unemployment Insurance (UI) Fund.
• To decrease cash and pooled investments and fund balance by approximately $2 million in
Non-Major Funds.
Cause: The SAO failed to account for the specific portions of the cash and pooled investments and
bonds payable projects appropriately due to the complexities and unique nature of the transactions
associated with the projects.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: Yes. See prior-year finding 2020-008.
27
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-005: SAO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
and Bonds Payable Related Balances (Material Weakness), Continued
Recommendation: We recommend that the SAO continue to develop institutional knowledge
related to the complex transactions unique to the State. Additionally, we recommend that the SAO
expand its internal documentation and project instructions related to cash and pooled investments
and bonds payable.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-006: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
(Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP. In
addition, internal controls are designed to safeguard assets, help prevent loss from employee
dishonesty or error, and improve the accuracy and timeliness of financial reporting. Fundamental
concepts in an adequate system of internal control are the identification and prevention or detection
of errors on a timely basis.
In addition, Wyoming State Statute (WSS) 9-1-403(a)(v) requires the State Auditor’s Office to
provide an annual financial report of the fiscal affairs of the State to specified parties on or before
December 31 of each year. The report shall include financial statements that shall be prepared,
insofar as practical, in conformance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed as follows:
• To increase cash and pooled investments by approximately $874,000, increase fund balance by
approximately $3.2 million and decrease investment income by approximately $2.4 million in
the General Fund.
• To decrease cash and pooled investments by approximately $158,000, increase fund balance
by approximately $1.3 million and decrease investment income by approximately $1.5 million
in the Foundation Program Fund.
In addition, deficiencies in both the design and operating effectiveness of the STO’s internal control
system were identified as follows:
• Reconciliations of the State’s year-end cash and pooled investments balances were not
completed and reviewed on a timely basis. Additionally, the reconciliations failed to identify
material reconciling items.
• Reconciliations of the State’s year-end investment income balances, while completed in a
manner that identified material reconciling items, were not completed and reviewed on a timely
basis.
28
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-006: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
(Material Weakness), Continued
Cause: The STO had an established internal control system in place; however, due to resource
constraints and the complexity of the reconciling variances, the STO was unable to timely research
and correct misstatements identified in the State’s cash and pooled investments and investment
income balances.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP. The lack of accurate and timely
reconciliations increases the risks of fraud and error and could also result in misstatements of the
cash and pooled investments balances and related disclosures. Additionally, improper reporting and
allocations of cash and pooled investments balances could impact the accuracy and reliability of
the financial information used by State personnel as they make programmatic, operational, and
budgeting decisions.
As the cash and pooled investment information was not able to be incorporated into the State’s
financial statements on a timely basis, the financial report provided per WSS 9-1-403(a)(v) on
December 30, 2021 was not prepared in accordance with U.S. GAAP and the completion of the
audit was delayed by several months.
Identification as a repeat finding: Yes. See prior-year finding 2020-015.
Recommendation: We recommend that the STO revise its existing reconciliations to ensure all
pertinent systems (i.e., JP Morgan Chase (the State’s investment custodian), QED (the State’s
investment accounting software) and WOLFS (the State’s general ledger)) reconcile in terms of the
cash and investment balances, as well as the related investment activity. We recommend that these
reconciliations be performed at least quarterly and be completed in a timely manner.
Additionally, we recommend that the STO (1) continually review its staffing needs to ensure its
resources and level of expertise are growing proportionately with the volume, complexity, and
diversity of the investment portfolio and number of investment managers, (2) increase the cross-
training of STO staff, while at the same time determining if staff should be assigned to investment
managers with similar investment strategies to provide for more specialized knowledge and
awareness of the accounting and reporting intricacies, and (3) increase the communication between
the Financial Accounting and Investments Divisions of the STO.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
29
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-007: SAO - Internal Controls and Audit Adjustments to Fiduciary Funds (Material
Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: An adjusting journal entry was proposed to decrease distributions and
collections to local governments by approximately $326.7 million in custodial funds.
Cause: The SAO did not properly eliminate the income and expense gross-up caused by its own
source revenue collected by, and disbursed through, custodial funds. This gross-up did not impact
financial reporting prior to the implementation of Governmental Accounting Standards Board
Statement No. 84.
Effect: Prior to the proposed audit adjustments, the fund-level financial statements were not
properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: No.
Recommendation: We recommend that the SAO review the implementation procedures
surrounding new accounting standards to identify all potential financial reporting implications.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-008: SAO - Internal Controls and Audit Adjustments to Federal Revenues (Material
Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
The Governmental Accounting, Auditing, and Financial Reporting states “Commodities should be
recognized as revenue, at acquisition value, when received. Commodities may be reported in the
governmental funds using either the consumption method or the purchases method.”
Condition/context: An adjusting journal entry was proposed within the General Fund to increase
Federal revenue and expenses by approximately $85.2 million to account for noncash Federal
commodities.
Cause: The receipt of noncash Federal commodities were not reflected as Federal revenues and
expenses.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
30
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-008: SAO - Internal Controls and Audit Adjustments to Federal Revenues (Material
Weakness), Continued
Identification as a repeat finding: Yes. See prior-year finding 2020-011.
Recommendation: We recommend that the SAO continue to collaborate and communicate with
agencies to ensure the accuracy and completeness of agency Schedule of Expenditures of Federal
Awards (SEFA), including all financial implications.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-009: Department of Workforce Services (DWS) - Internal Controls and Audit
Adjustments to Taxes Receivable and Due to/from Other Funds (Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
In addition, per WSS 27-3-211, Employer Support Fund (ESF) collections are to be credited to the
ESF special revenue fund by the department.
Condition/context: Adjusting journal entries to the UI Fund were proposed to decrease taxes
receivable by approximately $5.6 million, due to other funds by approximately $248,000, and
charges for sales and services by approximately $5.9 million.
In addition, an adjusting journal entry was proposed to increase taxes receivable by approximately
$524,000.
Cause: The initial reports utilized to calculate the taxes receivable balance and ESF income were
incorrect. The financial reporting module of the UI Division’s new information technology system
(WYUI) was implemented in a prior year, and adequate testing had still not been performed to
ensure the accuracy of the financial reports produced by the system. In addition, adequate review
was not performed to ensure the adequacy of journal entries provided.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: Yes. See prior-year finding 2020-013.
Recommendation: We recommend that the UI Division implement a control system to validate the
accuracy of all financial information generated and reported from the WYUI system.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
31
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-010: DWS - Internal Controls and Audit Adjustments (Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed in the UI Fund, as follows:
• To increase due from other funds and general government expense by approximately $460,000.
• To decrease benefits payable and claims and benefits expense by approximately $629,000.
• To increase taxes receivable and the corresponding charges for services by approximately $1.5
million.
• To increase the allowance for doubtful accounts for taxes receivable by $860,000.
• To decrease change in fair value of investments and claims and benefits expense by
approximately $1.3 million.
• To decrease Federal revenue and cash and pooled investments by approximately $1.8 million.
• To decrease amounts on deposit with the U.S. Treasury and increase claims and benefits
expense by approximately $1.5 million.
• To reclassify amounts on deposits with the U.S. Treasury to noncurrent amounts on deposit
with the U.S. Treasury by approximately $7.7 million.
• To reduce the allowance for doubtful accounts on taxes receivable by approximately $1.2
million.
Cause: The DWS does not maintain internal financial records in accordance with U.S. GAAP
throughout the year. Instead, the DWS prepares several year-end spreadsheets and journal entries
to convert its financial information to U.S. GAAP. As the DWS does not operate in a full accrual
environment for the majority of the year, it is unable to properly and consistently identify instances
in which new accrual adjustments (or modifications to recurring accrual adjustments) are necessary.
Effect: Prior to the proposed audit adjustments, the fund-level and government-wide financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: Yes. See prior-year findings 2020-009 and 2020-010.
Recommendation: We recommend that the DWS continue to refine its internal review process in
order to determine the propriety of the journal entries posted during the preparation of the State’s
financial statements. In addition, the DWS should consider performing a high-level analytical
review of the financial statement balances after adjustment to assist in identifying unusual changes
in account balances. We further recommend that the DWS continue efforts to improve
communication with the SAO to resolve any uncertainties, specifically regarding accrual
accounting, and attend additional training to improve its skill in preparing U.S. GAAP financial
reports. Finally, the DWS should consider engaging professional accounting consultants in aiding
and reviewing the preparation of financial statement information.
32
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-010: DWS - Internal Controls and Audit Adjustments (Material Weakness), Continued
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-011: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
(Material Weakness)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed in the following funds, as follows:
• To increase cash and pooled investments and investment income (specifically, the change in
fair value of investments) by approximately $5.1 million in the Worker’s Compensation Fund,
$104.2 million in the General Fund, $5.5 million in the Foundation Program Fund, and $71.4
million in Non-Major Funds.
• To reclassify approximately $959.5 million from cash and pooled investments to noncurrent
cash and pooled investments in the Worker’s Compensation Fund.
Cause: Each adjusting journal entry proposed was caused by human error (utilizing inaccurate or
incomplete data and not appropriately updating spreadsheets for the current year), and the errors
were not caught in the review process.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: No.
Recommendation: In addition to the reconciliation recommendations cited in item 2021-009 above,
we recommend that the STO continue to refine its internal review process in order to determine the
propriety of the information provided to the SAO for preparation of the State’s financial statements.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-012: Department of Revenue Liquor Commission (the Commission) - Internal
Controls to Inventory (Significant Deficiency)
Criteria: An internal control structure should be designed to safeguard assets, help prevent loss
from employee dishonesty or error, and improve the accuracy and timeliness of financial reporting.
Fundamental concepts in an adequate system of internal control is the identification and prevention
or detection of errors on a timely basis.
33
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-012: Department of Revenue Liquor Commission (the Commission) - Internal
Controls to Inventory (Significant Deficiency), Continued
Condition/context: Upon physical observation and count at the State Liquor Department (SLD), it
was discovered that the SLD’s new accounting inventory system (EnCompass) was not accurately
reporting inventory levels within the warehouse. The inventory as of the count date per the provided
EnCompass report indicated that the Commission’s inventory was approximately $24.1 million, as
opposed to the balance reported in the warehouse system of approximately $21.0 million, for a
difference of $4.1 million.
Cause: The EnCompass system was implemented during the year and adequate testing had not
been performed to ensure the accuracy of the financial reports produced by the system prior to full
migration of the system.
Effect: The SLD’s accounting system was unable to produce accurate reports over the current
inventory levels.
Identification as a repeat finding: No.
Recommendation: We recommend that the SLD implement a control system to validate the
accuracy of all financial information generated and reported from the EnCompass system. In
addition, testing should occur over any new IT system to ensure accurate and complete reporting
is accessible prior to a full migration of data.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-013: STO - Internal Controls and Audit Adjustment to Investment Income
(Significant Deficiency)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: An adjusting journal entry was proposed to increase cash and pooled
investments and investment income (specifically, the change in fair value of investments) by
approximately $1.2 million in the General Fund, $10.8 million in the Common School Land Fund,
$10 million in the Permanent Mineral Trust Fund, and $1.9 million in Non-Major Funds.
Cause: A return of capital transaction was improperly reported by JP Morgan Chase (the State’s
investment custodian). The redemption was reported with a zero-cost basis, resulting in a
significant (and improper) realized gain.
Effect: Prior to the proposed audit adjustment, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
34
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-013: STO - Internal Controls and Audit Adjustment to Investment Income
(Significant Deficiency), Continued
Identification as a repeat finding: No.
Recommendation: In addition to the reconciliation recommendations cited in item 2021-009 above,
we recommend that the STO implement additional control procedures to review the information
provided to JP Morgan Chase for propriety and the statements received from JP Morgan Chase for
reasonableness.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-014: SAO - Internal Controls and Audit Adjustment to Fiduciary Funds (Significant
Deficiency)
Criteria: An internal control structure should be designed to identify adjusting journal entries that
are significant to the State’s financial statements prepared in accordance with U.S. GAAP.
Condition/context: Adjusting journal entries were proposed as follows:
• To decrease cash and pooled investments and sales, use, and excise taxes by approximately
$6.5 million in Fiduciary Funds.
• To increase cash and pooled investments and sales, use, and excise taxes by approximately
$6.5 million in Non-Major Special Revenue Funds.
Cause: In the current year, a new source of legislatively created taxes was set up within the
accounting software as a Fiduciary Fund rather than a Special Revenue Fund.
Effect: Prior to the proposed audit adjustments, the government-wide and fund-level financial
statements were not properly stated in accordance with U.S. GAAP.
Identification as a repeat finding: No.
Recommendation: We recommend that the SAO continue its efforts in improving its internal
control structure and review over new funds.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
35
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-015: DWS - SEFA (Significant Deficiency)
Criteria: Per 2 CFR 200.510, the auditee must prepare a SEFA for the period covered by the
auditee’s financial statements, which must include toward Federal awards expended, as determined
in accordance with §200.502, the basis for determining Federal awards expended.
Condition/context: The DWS did not provide a SEFA that accurately identified Federal funds
expended. During the course of testing performed on the initial SEFA provided for audit,
$4,961,119 in Federal expenditures for Assistance Listing #17.225, Unemployment Insurance,
were improperly reported twice within the SEFA.
Cause: The UI Program operates out of two fund classes: G01 and T25. General administrative
expenditures occur in G01, while benefit payments occur in T25. During the year under audit,
administrative expenditures for the UI Program occurred in fund class G01 but were reimbursed
by T25. During the SEFA preparation process, DWS personnel included the transfer of funds from
T25 to G01 as “expenditures,” thereby overstating the SEFA.
Effect: An inaccurate or incomplete SEFA could result in the improper identification and/or
exclusion of major programs and the related audit requirements. In the instance noted above, major
program determination was not impacted.
Identification as a repeat finding: Yes. See prior-year finding 2020-019.
Recommendation: We recommend that the DWS implement additional procedures to ensure
accurate reporting within the SEFA.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-016: Governor’s Office - SEFA (Significant Deficiency)
Criteria: Per 2 CFR 200.510 (b), the auditee must prepare a SEFA for the period covered by the
auditee’s financial statements, which must include toward Federal awards expended, as determined
in accordance with §200.502, the basis for determining Federal awards expended.
Condition/context: The Governor’s office did not provide a SEFA that properly identified all
Federal funds expended. Specifically, the expenditures reported for Assistance Listing #84.425C,
Education Stabilization Fund - Governor’s Emergency Education Relief Fund, were overstated by
$1,209,788.
36
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-016: Governor’s Office - SEFA (Significant Deficiency), Continued
Cause: While the Governor’s office initially received the Federal funds from the U.S. Department
of Education, the Governor’s office assigned spending authority to other State agencies through the
B-11 process. However, the Governor’s office retained the responsibility to prepare the Statewide
SEFA for these funds. Rather than using actual expenditures made during the fiscal year, the
Governor’s office improperly used the amount of spending authority assigned to each State agency.
While some State agencies had utilized their full spending authority by the fiscal year-end, three
State agencies had not, which resulted in an overstatement of expenditures reported on the SEFA.
This error was ultimately caused by inconsistent and confusing guidance from the U.S. Department
of Education on the treatment of subrecipients when there was no delegation of authority by the
Governor’s office to another State agency.
Effect: An inaccurate or incomplete SEFA could result in the improper identification and/or
exclusion of major programs and the related audit requirements. Further, an inaccurate SEFA could
also impact Federal accounts receivable or Federal deferred revenue at year-end. In the instance
noted above, major program determination was not impacted; however, an adjustment was required
to properly state Federal deferred revenue at year-end.
Identification as a repeat finding: No.
Recommendation: We recommend the Governor’s office implement procedures to ensure actual
Federal expenditures are reported within the SEFA.
Views of responsible officials and planned corrective actions: Management concurs with the
Finding. See Exhibit I.
2021-017: Wyoming Department of Health (WDH) and State Construction Department
(SCD) - SEFA (Significant Deficiency)
Criteria: Per 2 CFR 200.510, the auditee must prepare a SEFA for the period covered by the
auditee’s financial statements, which must include toward Federal awards expended, as determined
in accordance with §200.502, the basis for determining Federal awards expended.
Condition/context: The WDH, in conjunction with the SCD, did not provide a SEFA that properly
identified all Federal funds expended. During the course of testing performed on the initial SEFA
provided for audit, we noted that $1,106,385 in Federal expenditures related to Assistance Listing
#64.005, State Veterans Home Construction Grant Program, were improperly excluded from the
SEFA.
37
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
II. FINANCIAL STATEMENT FINDINGS, Continued
2021-017: Wyoming Department of Health (WDH) and State Construction Department
(SCD) - SEFA (Significant Deficiency), Continued
Cause: The program is facilitated/managed by the SCD. Expenditures are incurred by the SCD and
recorded in the State’s General Ledger within the SCD chart of accounts. Federal drawdowns for
this grant are performed by the WDH and are recorded as grant revenue within the WDH’s chart
of accounts. Once the cash is received by the WDH, it is then transferred to the SCD. On the June
30, 2021 SEFA, the WDH only included the expenditures of which it was aware. More specifically,
on the SEFA, the WDH reported the expenditures that were requested on the drawdowns that
occurred during the fiscal year, rather than the total underlying expenditures incurred. Additional
expenditures outside of the drawdowns were incurred by the SCD for this grant but were not
communicated to the WDH. This gap in communication resulted in an understatement of
expenditures on the SEFA for June 30, 2021.
Effect: An inaccurate or incomplete SEFA could result in the improper identification and/or
exclusion of major programs and the related audit requirements. In the instance noted above, the
major program determination for June 30, 2021 was not impacted.
Identification as a repeat finding: No.
Recommendation: We recommend that the WDH and the SCD implement additional procedures
near the fiscal year-end to ensure that the SEFA is accurate and complete. Specifically, we
recommend that a process be implemented to ensure any expenditures incurred by the SCD during
the fiscal year are presented within the SEFA.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
38
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
2021-018: Office of State Lands and Investments (OSLI) - Reporting (Significant
Deficiency)
Assistance Listing Numbers and Titles:
1. #10.664, Cooperative Forestry Assistance
2. #10.676, Forest Legacy Program
Federal Agency Names:
1. U.S. Department of Agriculture
2. U.S. Department of Agriculture
Award Numbers:
1. 15-DG-11020000-039
2. 16-DG-11020000-028
Award Years:
1. June 26, 2015 - March 31, 2021
2. July 5, 2016 - March 31, 2021
Criteria: Per 2 CFR 200.327 - Financial Reporting, and the laws, regulations, and provisions of
contract or grant agreements pertaining to the specific programs, reports are required to be
complete, accurate, and supported by accounting records (if applicable), and submitted in
compliance with the appropriate deadlines.
Condition/context: As a part of the follow-up on the status of prior-year findings, as discussed in
item 2020-025 in the Summary Schedule of Prior Audit Findings, a report filed during the current
year under audit was tested. The results of those tests identified the following:
1. In the final report tested for the Cooperative Forestry Assistance Program, the amount reported
in the Total Recipient Share of Required was improperly reported and did not agree to
supporting records.
2. In the final report tested for the Forest Legacy Program, the amounts reported in the Total
Recipient Share of Required and Recipient Share of Expenditures were improperly reported
and did not agree to supporting records.
Questioned costs: None.
Cause: These reports were completed prior to new procedures being implemented by the OSLI and
the review process failed to catch the inaccuracies.
39
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-018: Office of State Lands and Investments (OSLI) - Reporting (Significant
Deficiency), Continued
Effect: If a non-Federal entity fails to comply with Federal statutes, regulations, or the terms and
conditions of a Federal award, the Federal awarding agency may impose additional conditions,
which include requiring payments as reimbursements rather than advance payments; withholding
authority to proceed to the next phase until receipt of evidence of acceptable performance within a
given period of performance; requiring additional, more detailed financial reports; requiring
additional project monitoring; requiring the non-Federal entity to obtain technical or management
assistance; and establishing additional prior approvals. If the Federal awarding agency determines
that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding
agency may take one or more of the following actions, as appropriate in the circumstances:
(a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal
entity or more severe enforcement action by the Federal awarding agency.
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of
the cost of the activity or action not in compliance.
(c) Wholly or partly suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and Federal
awarding agency regulations (or in the case of a pass-through entity, recommend such a
proceeding be initiated by a Federal awarding agency).
(e) Withhold further Federal awards for the project or program.
(f) Take other remedies that may be legally available.
Identification as a repeat finding: Yes. See prior-year finding 2020-025.
Recommendation: We recommend that the OSLI strengthen controls surrounding the preparation
and review process of the financial reports to ensure that accurate information is being submitted.
Further, we recommend that the inaccurate reports be corrected and resubmitted to the Federal
agency.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-019: Governor’s Office - Reporting (Significant Deficiency)
Assistance Listing Number and Title: #84.425C - Governor’s Emergency Education Relief Fund
(GEER)
Federal Agency Name: U.S. Department of Education
Award Number/Name: S425C200041/GEER
Award Year: June 26, 2020 - June 30, 2021
40
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-019: Governor’s Office - Reporting (Significant Deficiency), Continued
Criteria: 2 CFR 200.328 and 329(a) and (b) require the non-Federal entity report financial and
performance information as required by the terms and conditions of the Federal award.
Specific to this program, the Coronavirus Aid, Relief, and Economic Security Act (Public Law
116-136) authorized funding for the GEER Program. This program required an annual report filed
by February 1, 2021, covering the period of March 13, 2020 through September 30, 2020.
Within Requirement L of the compliance supplement for GEER, the supplement identifies the
following required reporting elements:
• The types of entities within the state that were awarded GEER funds;
• Funding conditions or requirements on GEER awards for local educational agencies (LEA) and
institutions of higher education (IHE) to ensure that the finds were spent on specific purposes
or activities;
• Amounts expended and the purposes from which the funds were expended by an LEA;
• For each IHE awarded GEER funds from the State, the amount expended and additional
information if GEER funds were used by the IHE to provide financial aid to students and the
IHE;
• The amount awarded and expended by each education-related entity, including;
– Which populations of students were or will be served by the entity?
– Did the funding awarded to the entity support distance-learning and remote education or
provide financial support to students?
• Full-time-equivalent positions for LEAs, IHEs, or education-related entities; and
• The number of K-12 schools (public and nonpublic) that received GEER funds or received
services paid for with GEER funds.
2 CFR 200.329, Monitoring and Reporting Program Performance, requires that the non-Federal
entity is responsible for oversight of the operations of the Federal award supported activities. The
non-Federal entity must monitor its activities under Federal awards to ensure compliance with
applicable Federal requirements and achievement of performance expectations. Monitoring by the
non-Federal entity must cover each program, function, or activity.
Condition/context: The Governor’s office did not file an accurate Year One annual performance
report (APR). Specifically, the Governor’s office reported spending authority transfers to other
State agencies as incurred expenditures. Within the State’s fiscal policies and procedures, a
spending authority transfer creates a budget against which an agency can incur expenditures but
does not represent actual expenditures. Instead, the Governor’s office should have reported the
actual expenditures incurred by these other State agencies during the reporting period. This error
resulted in an overstatement of expenditures on the Year One APR of $820,274. Further, the
Governor’s office treated the other State agencies as subrecipients. As a result of this classification,
the Governor’s office did not disclose amounts expended and the purposes for which the funds
were expended by the LEAs, IHEs, or education-related entities.
41
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-019: Governor’s Office - Reporting (Significant Deficiency), Continued
In addition, there was no formal review process prior to submission of the APR or the Federal
Funding Accountability and Transparency Act (FFATA) reports.
Questioned costs: None.
Cause: In preparing the Year One APR, the Governor’s office relied upon a question/answer
document provided by the U.S. Department of Education on its Educations Stabilization Fund -
GEER webpage. This document provided guidance for how the Governor’s office should report
another State agency within the FFATA Sub-Award Reporting System, specifically when there is
no formal delegation of authority by the Governor’s office. The guidance indicated that without
formal delegation of authority by the Governor’s office to another State agency, the Governor’s
office would treat the State agency as a subrecipient and would not be required to report any further
sub-awards made by the State agency. The Governor’s office analogized the subrecipient treatment
noted above to the treatment of subrecipients within the APR.
Effect: Per 2 CFR 200.339, Remedies for Noncompliance, if a non-Federal entity fails to comply
with the U.S. Constitution or Federal statutes, regulations, or the terms and conditions of a Federal
award, the Federal awarding agency or pass-through entity may impose additional conditions, as
described in § 200.208. If the Federal awarding agency or pass-through entity determines that
noncompliance cannot be remedied by imposing additional conditions, the Federal awarding
agency or pass-through entity may take one or more of the following actions, as appropriate in the
circumstances:
(a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal
entity or more severe enforcement action by the Federal awarding agency or pass-through
entity.
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of
the cost of the activity or action not in compliance.
(c) Wholly or partly suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and Federal
awarding agency regulations (or in the case of a pass-through entity, recommend such a
proceeding be initiated by a Federal awarding agency).
(e) Withhold further Federal awards for the project or program.
(f) Take other remedies that may be legally available.
Identification as a repeat finding: No.
Recommendation: We recommend that the Governor’s office work with the U.S. Department of
Education to correct the reporting of the information within the Year One APR to its satisfaction.
We also recommend that the Governor’s office develop a formal review and approval process over
reports before they are submitted.
42
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-019: Governor’s Office - Reporting (Significant Deficiency), Continued
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-020: DWS - Special Test N: UI Benefit Payments (Significant Deficiency)
Assistance Listing Number and Title: #17.225, Unemployment Insurance
Federal Agency Name: U.S. Department of Labor
Award Numbers/Names: UI-34095-20-55-A-56; UI-35685-21-55-A-56
Award Years: October 1, 2019 - December 31, 2022; October 1, 2020 - December 31, 2023
Criteria: 20 CFR 602.21(d) establishes the requirement for the State to operate and maintain a
quality control system. 20 CFR 602.30 directs the U.S. Department of Labor to establish
requirements, methods and procedures for the quality control process. This has been promulgated
through Employment and Training Handbook No. 395.
Condition/context: The UI Program is required to select several paid claims and denied claims
throughout a 12-month period to assess the accuracy of the UI Program’s benefit paid payments
and denied claims. The Benefits Accuracy Measurement (BAM) investigator team is required to
draw a weekly sample of claims (paid and denied) and complete prompt and in-depth investigations
to determine the degree of accuracy in the administration of the UI Program. The BAM
investigators properly completed the correct number of paid claims. However, they did not properly
select and complete the proper number of denied claims. Of the required 339 denied claims, 113 of
each denied type were required to be selected (Monetary, Separation and Nonseparation). The
BAM investigators only completed a total of 331 denied claims: 107 Monetary, 111 Separation and
113 Nonseparation.
In addition, the BAM reviews did not meet established timeliness metrics. For paid claims, the
Federal BAM State Operations Handbook as well as additional Federal guidance provided to UI
through Program Letters throughout the fiscal year require 70% of the testing to be completed
within 60 days of the week-ending batch date, 95% within 90 days and 98% by October 28, 2021.
Of the 360 completed paid claims tested by the BAM investigators, only 242 (67%) were completed
within 60 days and only 272 (76%) were completed within 90 days. The requirement of all paid
cases being completed by October 28, 2021 was met. For denied claims, 60% of the testing is to be
completed within 60 days, 85% within 90 days and 98% by October 28, 2021. Of the 331 completed
denied claims tested by the BAM investigators, the UI Program met the requirements for the 60-
day window, 90-day window and October 28, 2021.
Questioned costs: None.
43
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-020: DWS - Special Test N: UI Benefit Payments (Significant Deficiency), Continued
Cause: The UI Program went live with a new system (WYUI) in June 2018, which changed the
processing of BAM cases to be all entirely electronic. Due to this change, BAM case reviews take
three times longer to complete and the BAM investigators had a hard time adjusting to the new
processes. In addition, during fiscal year 2020, the BAM investigator team had one team member
who was perpetually behind on her reviews and ultimately resigned. These cases were reassigned
to the BAM supervisor who began finishing the cases in March 2020, prior to COVID-19.
However, progress was once again stalled when the BAM program was temporarily suspended as
a result of COVID-19. While the BAM supervisor was ultimately able to catch up by October 2020,
the BAM investigator team has been indefinitely short-staffed and unable to complete cases timely.
However, there were still unfilled BAM case reviewer positions, which caused additional issues
with completing the required reviews timely.
Effect: If a non-Federal entity fails to comply with Federal statutes, regulations, or the terms and
conditions of a Federal award, the Federal awarding agency may impose additional conditions,
which include requiring payments as reimbursements rather than advance payments; withholding
authority to proceed to the next phase until receipt of evidence of acceptable performance within a
given period of performance; requiring additional, more detailed financial reports; requiring
additional project monitoring; requiring the non-Federal entity to obtain technical or management
assistance; and establishing additional prior approvals. If the Federal awarding agency determines
that noncompliance cannot be remedied by imposing additional conditions, the Federal awarding
agency may take one or more of the following actions, as appropriate in the circumstances:
(a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal
entity or more severe enforcement action by the Federal awarding agency.
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of
the cost of the activity or action not in compliance.
(c) Wholly or partly suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and Federal
awarding agency regulations (or in the case of a pass-through entity, recommend such a
proceeding be initiated by a Federal awarding agency).
(e) Withhold further Federal awards for the project or program.
(f) Take other remedies that may be legally available.
Identification as a repeat finding: Yes. See prior-year finding 2020-028.
Recommendation: We recommend that the DWS implement additional procedures to ensure the
BAM case metrics are being met.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
44
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-021: DWS - Special Test N: UI Program Integrity - Overpayments (Significant
Deficiency)
Assistance Listing Number and Title: #17.225, Unemployment Insurance
Federal Agency Name: U.S. Department of Labor
Award Numbers/Names: UI-3400-55-A-56; UI-35685-21-55-A-56
Award Years: October 1, 2019 - December 31, 2022; October 1, 2020 - December 31, 2023
Criteria: Publication L No. 112-40, enacted on October 21, 2011 and effective October 1, 2013,
amended Sections 303(a) and 453A of the Social Security Act and Sections 3303, 3304, and 3309
of the Federal Unemployment Tax Act, which were enacted to improve program integrity and
reduce overpayments. WSS 27-3-506(e) indicates that an employer’s account shall not be relieved
of charges relating to a payment that was made erroneously from the Unemployment Compensation
Fund after July 1, 2013 if the DWS determines that (1) the erroneous payment was made because
the employer, or the agent of the employer, was at fault for failing to respond timely or adequately
to a written request…which resulted in the erroneous payment, and (2) the employer or agent has
established a pattern of failing to respond timely or adequately to requests similar to those identified
in the previous subsection.
Condition/context: The UI Program is prohibited from providing relief from charges to an
employer’s UI account when overpayments are the result of the employer’s failure to respond
timely or adequately to a request for such information. In determining employer relief due to failure
to respond timely, the UI Program has established a five-time “pattern” rule, meaning the employer
can be delinquent in their response five times and still obtain relief. However, on the sixth and
subsequent instances, the UI Program would deny relief and require the employer to reimburse the
UI Program for the overpayment. In monitoring this compliance requirement, the UI Program relies
on data tracked within WYUI, the State’s benefit system. However, as noted in the Cause below,
the module within WYUI that tracks this data was turned off during the year under audit. The UI
Program did not have additional processes, procedures, or mitigating controls in place to monitor
the collection of overpayments due to prohibited employer relief.
Questioned costs: None.
Cause: The UI Program went live with a new system (WYUI) in June 2018, which included a
module to track employer responses related to overpayments. However, there were coding issues
and the resulting data was inaccurate, so the UI Program disabled this module of WYUI until the
coding could be corrected. For the year under audit, this module had not yet been corrected.
Effect: Some employers may have improperly received provider relief, even if they were ineligible.
As a result, the UI Program was unable to collect on any potential overpayments.
45
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-021: DWS - Special Test N: UI Program Integrity - Overpayments (Significant
Deficiency), Continued
If a non-Federal entity fails to comply with Federal statutes, regulations, or the terms and conditions
of a Federal award, the Federal awarding agency may impose additional conditions, which include
requiring payments as reimbursements rather than advance payments; withholding authority to
proceed to the next phase until receipt of evidence of acceptable performance within a given period
of performance; requiring additional, more detailed financial reports; requiring additional project
monitoring; requiring the non-Federal entity to obtain technical or management assistance; and
establishing additional prior approvals. If the Federal awarding agency determines that
noncompliance cannot be remedied by imposing additional conditions, the Federal awarding
agency may take one or more of the following actions, as appropriate in the circumstances:
(a) Temporarily withhold cash payments pending correction of the deficiency by the non-Federal
entity or more severe enforcement action by the Federal awarding agency.
(b) Disallow (that is, deny both use of funds and any applicable matching credit for) all or part of
the cost of the activity or action not in compliance.
(c) Wholly or partly suspend or terminate the Federal award.
(d) Initiate suspension or debarment proceedings as authorized under 2 CFR Part 180 and Federal
awarding agency regulations (or in the case of a pass-through entity, recommend such a
proceeding be initiated by a Federal awarding agency).
(e) Withhold further Federal awards for the project or program.
(f) Take other remedies that may be legally available.
Identification as a repeat finding: Yes. See prior-year finding 2020-029.
Recommendation: We recommend the UI Program correct the coding issues within WYUI or
implement additional policies and procedures to properly track employer response rates.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
2021-022: DWS - Special Test N: Employer Experience Rating (Significant Deficiency)
Assistance Listing Number and Title: #17.225, Unemployment Insurance
Federal Agency Name: U.S. Department of Labor
Award Numbers/Names: UI-3400-55-A-56; UI-35685-21-55-A-56
Award Years: October 1, 2019 - December 31, 2022; October 1, 2020 - December 31, 2023
Criteria: Title 26 USC Section 3303 and WSS 27-3-501 establish the requirement for the State to
calculate the annual State UI employer experience tax rate.
46
STATE OF WYOMING
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
Year Ended June 30, 2021
III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued
2021-022: DWS - Special Test N: Employer Experience Rating (Significant Deficiency),
Continued
Condition/context: The UI Program is required to calculate the employer experience tax rating to
determine the tax rate each employer is charged in the succeeding year. This rate is computed based
on the taxable wages for the preceding three years, excluding taxable wages for which contributions
have not been remitted prior to the computation period.
Of the 40 employers selected for testing compliance with the employer experience rating
calculations, we noted two instances in which the UI Program improperly excluded taxable wages
for contributions that were timely remitted. This resulted in overstated tax rates for the employers’
experience ratings.
Questioned costs: None.
Cause: When the WYUI system calculated the rate batch in 2020, the WYUI system was not
properly updated with a rule to ensure that employers with contribution balances of $4.99 or less
that were properly remitted to the UI Program were included in the experience rating calculation.
Effect: Some employers’ 2020 employer experience ratings were not properly calculated, which
resulted in an overstatement of their experience rating rates. As a result, the UI Program could be
overcollecting UI taxes.
Identification as a repeat finding: No.
Recommendation: We recommend that the UI Program correct the coding issues within WYUI,
review the 2020 employer experience rating calculations to identify all incorrectly calculated
ratings and issue credits to employers impacted.
Views of responsible officials and planned corrective actions: Management concurs with the
finding. See Exhibit I.
47
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS
2020-001: State Auditor’s Office (SAO) - Internal Controls and Audit Adjustments
(Material Weakness)
Condition/context: Adjusting journal entries were proposed as follows:
• To increase accounts receivable and revenues by approximately $1.4 million within the
Worker’s Compensation Fund.
• To increase net pension liability by approximately $9.5 million, increase expenses by
approximately $2.1 million, increase deferred outflows by approximately $5 million and
decrease deferred inflows by approximately $2.4 million on the entity-wide level.
• To revise the current and noncurrent bonds payable allocation by approximately $1.84 million
on the entity-wide level.
• To increase interest income and cash by approximately $26.3 million across various fund
classes.
• To revise the entity-wide elimination entry, which decreased general government expenses and
general government charges for services by approximately $569 million.
• To decrease the other postemployment benefits (OPEB) liability by approximately $14.1
million, decrease deferred outflows by approximately $17.5 million and increase expenses by
approximately $3.4 million on the entity-wide level.
Finally, within the report, the Statement of Cash Flows was reclassified for proper presentation.
Status: This is a work in progress. The SAO did include the step of reviewing the balances for
appropriateness. Additionally, the SAO has been having training sessions to increase all
Accounting Division staff’s knowledge of the reasons behind adjustments made for the annual
comprehensive financial report (ACFR). The Accounting Division is working toward leadsheets
for all major projects during the fiscal year 2022 ACFR.
Auditor’s comment: The SAO continues to work on fully implementing its correction action plan
at June 30, 2021. This finding remains open; see current-year finding at 2021-001.
2020-002: SAO - Internal Controls and Audit Adjustments to Due to Component Units
(Significant Deficiency)
Condition/context: Adjusting journal entries were proposed as follows:
• To reclassify approximately $3.9 million from the General Fund due to component units to
General Fund accounts payable.
• To reclassify approximately $3.9 million from accounts payable to due to component units in
the COVID Fund.
Status: The SAO implemented a new procedure of breaking down the payables by fund class for
the fiscal year 2021 ACFR.
48
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-002: SAO - Internal Controls and Audit Adjustments to Due to Component Units
(Significant Deficiency), Continued
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-003: Administration and Information (A&I) - Internal Controls (Significant
Deficiency)
Condition/context: The State and other participating employers were initially unable to properly
account for and disclose activity related to the OPEB plan based on the information included in the
State of Wyoming Employee Group Insurance Retiree Health Plan’s actuarial valuation report.
Status: The Wyoming Department of A&I contracted with a new actuary for the fiscal year 2021
actuarial valuation report and ensured the above recommendations were incorporated into the
report.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-004: State Treasurer’s Office (STO) - Internal Controls and Audit Adjustments to
Cash and Pooled Investments (Material Weakness)
Condition/context: Adjusting journal entries were proposed to reallocate cash and pooled
investments from the COVID Fund to the various participating funds in the State agency pool for
(i) the liability under securities lending of approximately $544.5 million, (ii) interest income of
approximately $13.3 million, (iii) interest receivable of approximately $3.3 million, (iv) accounts
payable of approximately $69.1 million, (v) accounts receivable of approximately $46.9 million,
and (vi) unrealized gains of approximately $54,000.
Status: The STO has implemented a new process to ensure the allocations of distributed earnings
to the COVID funds is appropriate based on the cash balance in those funds retained in the cash
account with its custodian.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
49
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-005: SAO - Technology and Fiscal Divisions - Internal Controls and Audit
Adjustments to Due to Component Units (Material Weakness)
Condition/context: An adjusting journal entry was proposed within the COVID Fund to increase
due to component units and expenditures in the COVID Fund by approximately $22.3 million.
Status: The SAO implemented a new process requiring agencies to “attest” to various requirements,
including information about service dates. This was completed prior to June 30, 2021.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-006: SAO - Internal Controls and Audit Adjustments to Loans Receivable (Material
Weakness)
Condition/context: The loans receivable project prepared by the SAO does not provide for
consistent and accurate treatment of loans receivable. As a result, adjusting journal entries were
proposed as follows:
• To decrease revenue and expenses by $151 million in the General Fund, and to decrease
revenue and increase notes payable by $151 million in the Foundation Program Fund.
• To decrease revenue and expenses by $1.5 million in the General Fund.
• To decrease revenue by approximately $28.8 million, expenses by approximately $26.1
million, and loans receivable by approximately $2.7 million in Non-Major Funds.
• To decrease revenue by approximately $5.9 million, expenses by approximately $5.1 million,
and loans receivable by approximately $822,000 in the General Fund.
• To decrease the allowance for loans and increase the change in fair value of investments by
approximately $676,000 in the General Fund.
• To increase loans receivable and decrease expenses by approximately $15.4 million in Non-
Major Funds.
• To increase loans receivable by approximately $12.7 million, decrease revenue by
approximately $4.4 million, increase accounts payable by approximately $1.1 million, and
decrease expenses by approximately $16 million in the General Fund.
• To decrease accounts payable by approximately $869,000, increase the allowance for loans by
approximately $676,000 and increase the change in fair value of investments by approximately
$193,000 in the Permanent Mineral Trust Fund.
• To increase expenses and decrease loans receivable by approximately $12.7 million in Non-
Major Funds.
Status: The SAO split out journal entries for the fiscal year 2021 ACFR for visibility by loan instead
of by fund class. Additionally, the SAO made notes of loans that tied to other projects in an effort
to not double up on any eliminations.
50
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-006: SAO - Internal Controls and Audit Adjustments to Loans Receivable (Material
Weakness), Continued
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-007: STO - Internal Controls and Audit Adjustments Related to Cash and Pooled
Investments (Material Weakness)
Condition/context: An adjusting journal entry was proposed to increase (decrease) cash and pooled
investments and change in fair value of investments by approximately $10.8 million in the General
Fund, ($11.3 million) in the Worker’s Compensation Fund, ($26.2 million) in the Common School
Land Fund, $5.1 million in the Permanent Mineral Trust Fund, $907,000 in the Foundation Program
Fund, $307,000 in the Unemployment Insurance (UI) Fund, ($24.7 million) in the Coronavirus Aid,
Relief, and Economic Security Act Coronavirus Relief Fund and $8 million in Non-Major Funds.
Status: STO has instituted additional training opportunities as well as process documentation to
eliminate this type of error in the future.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-008: SAO - Internal Controls and Audit Adjustments to Cash with Fiscal Agent,
Bonds Payable, and Cash and Pooled Investments (Material Weakness)
Condition/context: Adjusting journal entries were proposed as follows:
• To decrease expenditures and increase transfers out of the Common School Land Fund by
approximately $16.1 million, and to increase expenditures and transfers in to the Foundation
Program Fund by approximately $16.1 million.
• To increase interest income and cash with fiscal agent in the Debt Service Fund and the
Common School Land Fund by approximately $103,000 and $1.2 million, respectively.
• To increase expense, change in fair value of investments, cash and investments with trustee,
interest receivable, accounts receivable, cash and interest income in the General Fund by
approximately $21 million, $30.8 million, $44,000, $23.3 million, $176,000, $17.2 million and
$31 million, respectively.
• To increase expense, cash and investments with trustee, interest receivable, accounts
receivable, cash and interest income in the Foundation Program Fund by approximately $10.1
million, $2,300, $13.3 million, $84,000, $146,000 and $23.3 million, respectively, and to
decrease change in fair value of investments in the Foundation Program Fund by approximately
$405,000.
51
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-008: SAO - Internal Controls and Audit Adjustments to Cash with Fiscal Agent,
Bonds Payable, and Cash and Pooled Investments (Material Weakness), Continued
• To increase change in fair value of investments, cash and investments with trustee, and cash in
the Common School Land Fund by approximately $228 million, $60,000 and $228 million,
respectively.
• To increase expense, change in fair value of investments, cash and investments with trustee,
interest receivable, accounts receivable, cash and interest income in the Worker’s
Compensation Fund by approximately $3.4 million, $138.9 million, $23,000, $12 million,
$62,000, $133.4 million and $10 million, respectively.
• To increase expense, change in fair value of investments, cash and investments with trustee,
interest receivable, accounts receivable, cash and interest income in Non-Major Funds by
approximately $4.1 million, $52.5 million, $37,000, $4.5 million, $31,000, $44.7 million and
$987,000, respectively.
• To decrease change in fair value of investments and cash in the UI Fund by approximately
$120,000.
• To increase change in fair value of investments, cash and investments with trustee, and cash in
the Permanent Mineral Trust Fund by approximately $534.6 million, $91,000 and $534.5
million, respectively.
Status: The SAO held meetings with the applicable agencies prior to starting on these projects to
gain an understanding of any changes in procedure. The SAO continues to work on enhancing these
projects to ensure accuracy, including the creation of leadsheets.
Auditor’s comment: The SAO continues to work on fully implementing its corrective action plan
at June 30, 2021. While not all of these specific adjustments occurred again, the systemic cause of
the finding resulted in current-year adjustments. This finding remains open; see current-year
finding 2021-005.
2020-009: Department of Workforce Services (DWS) - Internal Controls and Audit
Adjustments to Claims Payable and Due from Other Governments (Material Weakness)
Condition/context: Adjusting journal entries were proposed within the UI Fund, as follows:
• To increase claims and benefits payable and the corresponding claims and benefits expense by
approximately $3.2 million.
• To increase due from other governments and the corresponding Federal revenues by
approximately $19.3 million for accrual basis claims.
• To increase due from other governments and the corresponding Federal revenues by
approximately $13.7 million for cash basis claims.
• To reduce the current portion and increase the noncurrent portion of amounts on deposits with
the U.S. Treasury by approximately $64 million.
52
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-009: Department of Workforce Services (DWS) - Internal Controls and Audit
Adjustments to Claims Payable and Due from Other Governments (Material Weakness),
Continued
In addition, an adjusting journal entry was proposed within the General Fund to reduce revenue
and due from other governments by approximately $13.7 million.
Status: The DWS continues to work on its internal accounting practices to ensure accuracy. The
DWS is continuing to look for additional actions that will ensure accuracy of all financial
information provided during the course of the audit.
Auditor’s comment: The DWS continues to work on fully implementing its correction action plan
at June 30, 2021. While not all of these specific adjustments occurred again, the systemic cause of
the finding resulted in a current-year adjustment. This finding remains open; see current-year
finding 2021-010.
2020-010: DWS - Internal Controls and Audit Adjustments to Federal Revenues (Material
Weakness)
Condition/context: An adjusting journal entry was proposed within the General Fund to increase
Federal revenue by approximately $2.7 million, decrease the Federal receivables by $12.8 million,
and decrease the Federal unearned revenue by approximately $15.5 million.
An adjusting journal entry was proposed within the General Fund related to an overstatement of
Federal receivables of approximately $17.9 million at June 30, 2019.
Status: The DWS implemented additional review processes over the preparation of its Schedule of
Expenditures of Federal Awards (SEFA) to ensure the accuracy of information reported.
Auditor’s comment: The DWS continues to work on fully implementing its corrective action plan
at June 30, 2021. This finding remains open; see current-year findings 2021-010 and 2021-015.
2020-011: SAO - Internal Controls and Audit Adjustments to Federal Revenues (Material
Weakness)
Condition/context: An adjusting journal entry was proposed within the General Fund to increase
Federal revenue and expenses by approximately $50.7 million to account for noncash Federal
commodities.
Status: The SAO continues to work on noncash commodity reporting. The SAO created a new
folder for the project as a reminder that it needs to be asking agencies for this information going
forward.
53
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-011: SAO - Internal Controls and Audit Adjustments to Federal Revenues (Material
Weakness), Continued
Auditor’s comment: The SAO continues to work on fully implementing its correction action plan
at June 30, 2021. This finding remains open; see current-year finding at 2021-008.
2020-012: SAO - Internal Controls and Audit Adjustments to Federal Revenues (Material
Weakness)
Condition/context: An adjusting journal entry was proposed within the UI Fund to increase Federal
revenues and Federal receivables by approximately $13.7 million. In addition, the General Fund
Federal revenues and Federal receivables were decreased by approximately $13.7 million.
Status: The SAO reviews all SEFA reports for completeness. If a report is not complete, the agency
is contacted and asked to complete the report.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-013: DWS - Internal Controls and Audit Adjustments to Taxes Receivable and Due
to/from Other Funds (Material Weakness)
Condition/context: Adjusting journal entries to the UI Fund were proposed as follows:
• To increase net position and decrease charges for services by approximately $4.5 million.
• To decrease taxes receivable and the corresponding charges for services by approximately $2.7
million.
• To increase taxes receivable and the corresponding charges for services by approximately $1.7
million.
• To increase due to other funds and decrease charges for services by approximately $1.4 million.
In addition, an adjusting journal entry was proposed within Non-Major Funds to increase due from
other funds and the corresponding charges for services by approximately $1.4 million.
Status: The DWS continues to work with its internal Information Technology staff to program
necessary reports and have its fiscal staff validate all reports. The DWS is continuing to look for
additional actions that will ensure accuracy of all financial information provided during the course
of the audit.
Auditor’s comment: The DWS continues to work on fully implementing its correction action plan
at June 30, 2021. While not all of these specific adjustments occurred again, the systemic cause of
the finding resulted in a current-year adjustment. This finding remains open; see current-year
finding 2021-009.
54
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-014: SAO and DWS - Internal Controls and Audit Adjustments to Cash and Pooled
Investments, Accounts Payable and Benefits Payable (Significant Deficiency)
Condition/context: Adjusting journal entries to the UI Fund were proposed as follows:
• To reduce cash and benefits payable by approximately $3.9 million.
• To reclassify approximately $13.7 million from accounts payable to benefits payable.
• To reclassify approximately $2.5 million from current cash and pooled investments to
noncurrent cash and pooled investments.
Status: The SAO and the DWS held monthly meetings during the ACFR season to discuss the
project. Additionally, the DWS has hired an outside contractor to assist with the UI reporting for
fiscal year 2022.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-015: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
(Material Weakness)
Condition/context: Adjusting journal entries were proposed as follows:
• To reduce accounts receivable and increase cash and pooled investments by approximately
$6.1 million in the Worker’s Compensation Fund, $3.4 million in the Common School Land
Fund, $11.5 million in the Permanent Mineral Trust Fund and $1.7 million in Non-Major
Funds.
• To adjust interest income and cash and pooled investments by approximately $2.7 million in
the Worker’s Compensation Fund, $16.7 million in the General Fund, $1.7 million in the
Foundation Program Fund and $607,000 in Non-Major Funds.
• To increase cash and pooled investments and interest income by approximately $127,000 in
the Worker’s Compensation Fund, $7.2 million in the General Fund, $770,000 in the
Foundation Program Fund and $5.1 million in Non-Major Funds. In addition, a journal entry
was proposed to reduce interest income against fund balance for the same.
In addition, deficiencies in both the design and operating effectiveness of the STO’s internal control
system were identified as follows:
• Reconciliations of the State’s year-end cash and pooled investments balances were not
completed and reviewed on a timely basis.
• Reconciliations of the State’s year-end cash and pooled investments balances failed to identify
material reconciling items.
55
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-015: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
(Material Weakness), Continued
Status: The STO has revised reconciliations to encompass additional ways to ensure JP Morgan
Chase, WOLFS, and QED balance continually. In addition, the STO is upgrading its investment
accounting software to facilitate automations in its reconciliation processes and eliminate manual
errors.
Auditor’s comment: The STO continues to work on fully implementing its correction action plan
at June 30, 2021. This finding remains open; see current-year finding at 2021-006.
2020-016: DWS - Internal Controls and Audit Adjustments to Expenditures (Significant
Deficiency)
Condition/context: An adjusting journal entry was proposed to increase expenditures and increase
fund balance by approximately $4.1 million in the General Fund.
Status: The SAO and the DWS held monthly meetings during the ACFR season to discuss the
project.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-017: SAO - Internal Controls and Audit Adjustments to Accrued Payroll (Significant
Deficiency)
Condition/context: An adjusting journal entry was proposed to increase cash and accrued liabilities
by approximately $8.2 million in the General Fund.
Status: The SAO implemented a process change where payroll taxes are dated for the last working
day of the month. This was completed by December 31, 2020.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-018: SAO - Internal Controls and Audit Adjustments to Fund Balance (Material
Weakness)
Condition/context: Adjusting journal entries were proposed as follows:
• To reclassify approximately $5.4 million from unassigned fund balance to assigned fund
balance within the General Fund.
56
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-018: SAO - Internal Controls and Audit Adjustments to Fund Balance (Material
Weakness), Continued
• To reclassify approximately $660,000 from unassigned fund balance to restricted fund balance
within the Endowment Fund.
• To reclassify approximately $332,000 from committed fund balance to nonspendable fund
balance within Non-Major Funds.
Status: The SAO implemented a new procedure to identify the appropriate fund balance
classification at the time of creation. This was implemented by June 30, 2021.
Auditor’s comment: The SAO continues to work on fully implementing its correction action plan
at June 30, 2021. This finding remains open; see current-year finding at 2021-001.
2020-019: SEFA (Significant Deficiency)
Condition/context:
1. The DWS did not provide a SEFA that properly identified all Federal funds expended. During
the course of testing performed on the initial SEFA provided for audit, we noted $910,827 in
Federal expenditures that were improperly excluded from the SEFA.
2. The Department of Family Services (DFS) did not provide a SEFA that properly identified all
Federal funds expended. Specifically, the amount initially provided for noncash commodities
was on a calendar year-end instead of the fiscal year-end. This resulted in a reduction of
noncash expenditures of $1,130,733.
3. The Office of State Lands and Investments (OSLI) did not provide a SEFA that properly
identified all Federal funds expended. Specifically, three awards, for a total of $355,423, were
improperly identified as Assistance Listing #10.664 when those awards should have been
identified as Assistance Listing #10.697.
Status:
1. The DWS implemented a review process as part of its update to the Financial Management
Manual and added training for staff who compile the SEFA.
2. The DFS implemented procedures to request the noncash commodities value from its Federal
oversight agency to ensure the noncash commodities are reported on a fiscal year basis rather
than a calendar year basis.
3. The OSLI implemented an additional review process to ensure Assistance Listing numbers are
properly identified during the preparation of the SEFA.
57
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
I. FINANCIAL STATEMENT PRIOR AUDIT FINDINGS, Continued
2020-019: SEFA (Significant Deficiency), Continued
Auditor’s comments:
1. As noted in current-year finding 2021-015, the DWS is still working to provide an accurate
SEFA. This finding remains open.
2. The corrective action plan was implemented by the DFS. This finding is considered resolved.
3. The corrective action plan was implemented by the OSLI. This finding is considered resolved.
II. FEDERAL AWARD PRIOR AUDIT FINDINGS
2017-009: Subrecipient Monitoring (Significant Deficiency)
Assistance Listing Number and Title: #66.460, Non-Point Source Implementation Grants
Federal Agency Name: U.S. Environmental Protection Agency
Award Numbers: C9-000863015-0; C9-00863016-0
Award Years: April 15, 2015 - April 14, 2020; May 15, 2016 - May 14, 2021
Department: Wyoming Department of Environmental Quality (DEQ)
Condition/context: There are various components of subrecipient monitoring, which include award
identification (providing complete and accurate information to the subrecipient); during-the-award
monitoring (monitoring the subrecipient’s use of Federal awards through reporting, regular contact,
or other means to provide reasonable assurance that the subrecipient administers Federal awards in
compliance with laws, regulations, and provisions of contracts or grant agreements, and that sub-
award performance goals are achieved); and audit requirement (verifying that every subrecipient is
audited as required).
In addition, the Uniform Grant Guidance (UGG) went into effect for all awards made on or after
December 26, 2014. This significantly expanded the award identification elements that need to be
included with each sub-award. As a part of during-the-award monitoring, the UGG also established
a requirement that pass-through entities must perform formal risk assessments of each subrecipient.
These risk assessments are then used to drive how and to what extent the pass-through entity
monitors each subrecipient.
58
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2017-009: Subrecipient Monitoring, Continued
One DEQ program failed to perform or provide documentation for one or more of the components
of subrecipient monitoring, including the new UGG requirements. During the course of testing
performed, the following items were noted:
• Of the four subrecipients subjected to testing for the Non-Point Source program, two
subrecipients were tested against the UGG requirements. For both subrecipients tested, the sub-
awards failed to contain all required award information. In addition, the program was required
to perform risk assessment procedures on both subrecipients in conjunction with the UGG, and
in both instances tested, the program failed to perform and document the required risk
assessment procedures. Of the six awards tested against the audit requirement, there was one
instance where the program failed to obtain the audit report.
Status: The DEQ notified each subrecipient of the required information via a letter. Similar letters
accompany any new agreements and this letter has been added as a required item on the DEQ’s
internal contract route slip. The corrective action plan to ensure subrecipients certify and provide a
copy of their audit has not been implemented.
Auditor’s comments: The DEQ has indicated that the Federal agency’s lack of response to the
DEQ’s acknowledgement of the noncompliance indicates the Federal agency’s acceptance. The
DEQ has met all of the criteria specified in CFR 200.511(b)(3), specifically that two years have
passed since the audit report in which the finding occurred was submitted to the Federal Audit
Clearinghouse, the Federal agency is not currently following up with the DEQ on the audit finding,
and a management decision was not issued. We believe that this finding has been resolved.
2020-020: Allowable Costs/Cost Principles (Significant Deficiency)
Assistance Listing Number and Title: #16.575, Crime Victim Assistance
Federal Agency Name: U.S. Department of Justice
Award Numbers/Names: 2016-VA-GX-0051; 2017-VA-GX-0075; 2018-V2-GX-0016
Award Years: October 1, 2015 - September 30, 2019; October 1, 2016 - September 30, 2020;
October 1, 2017 - September 30, 2021
Department: Wyoming Attorney General’s Office
Condition/context: Of the 40 items selected for testing in conjunction with Allowable Costs/Cost
Principles, there were 15 instances for reimbursement of subrecipient payroll expenditures where
the Crime Victim Assistance program did not adequately review the payroll reimbursement support
for proper allocation between Federal and non-Federal sources. As a result, the program improperly
reimbursed $8,574 in unsupported payroll expenditures; however, the program under-reimbursed
an additional $2,686, for a net error of $5,888.
59
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-020: Allowable Costs/Cost Principles (Significant Deficiency), Continued
Status: The Division of Victim Services (DVS) recognizes that the time and effort documentation
(T&E logs) submitted by funding recipients was not always clear or accurate in justifying the
program’s Victims of Crime Act (VOCA) charged payroll expenses. As a result, the DVS
immediately implemented the following course of action intended to rectify the oversight:
1. The DVS adopted a policy that requires all T&E logs submitted by subrecipients accurately
and clearly justify the portion of VOCA dollars requested for all payroll expenses. It is the
responsibility of DVS staff to review these documents as part of their monthly request review.
2. DVS leadership has met with all DVS regional program managers (RPM) responsible for such
documentation review to ensure they understand which information a T&E log should have, as
well as how to verify the appropriate amount of grant funding justified by the document. Any
inaccurate or incomplete information submitted would prompt the RPM to reject the request
and delay processing until corrections are made by the subrecipient.
3. DVS RPMs have reviewed T&E documentation for all programs under their purview to assess
whether they currently meet the T&E documentation expectation, or whether one-on-one
training with the subrecipient’s staff is necessary in order to bring them into compliance with
the new T&E log expectations.
4. In order to facilitate the proper submission of T&E information, the DVS has developed a
standardized T&E log that became mandatory for all subrecipients beginning on July 1, 2021.
The new form assists both the submitting agency and the reviewing RPM in assessing accuracy.
The form also automatically calculates the hours worked credited to each supporting fund, as
well as calculates the maximum allowable amount that can be charged to a particular fund
based on hours indicated and hourly wage (or monthly salary). Furthermore, the form calculates
percentages across all supporting funds relative to total hours worked and provides for an easy
comparison of the amount requested versus the amount justified by allowable hours.
5. DVS staff provided training for all subrecipients on the proper use and submission of the new
T&E log before its implementation on July 1, 2021.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-021: Eligibility (Significant Deficiency)
Assistance Listing Number and Title: #93.767, Children’s Health Insurance Program
Federal Agency Name: U.S. Department of Health and Human Services
Award Numbers: 805WY5021; 1905WY5021
Award Years: October 1, 2017 - September 30, 2019; October 1, 2018 - September 30, 2020
Department: Wyoming Department of Health
60
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-021: Eligibility (Significant Deficiency), Continued
Condition/context: Of the 60 participants selected for testing compliance with the eligibility
requirements of the Children’s Health Insurance Program (CHIP), we noted four instances in which
the Department of Health allowed ineligible participants to participate in CHIP. The following
instances were noted:
1. In three instances, the participants were eligible for Medicaid, but instead were improperly
enrolled in CHIP for at least one month. As a result, there was a total overpayment of benefits
(Federal and state) during fiscal year 2020 in the following amounts:
a. Instance one: For two months and a total of $561.
b. Instance two: For one month and a total of $269.
c. Instance three: For one month and a total of $276.
2. In instance four, CHIP improperly approved the participant’s eligibility, when the participant
was actually ineligible due to income restrictions. Program controls did not identify the
ineligible participant and benefits never ceased during the fiscal year, in part due to the Public
Health Emergency. As a result, there was a total overpayment of benefits (Federal and state)
for 12 months during fiscal year 2020 of $3,225.
Additionally, of the 60 participants selected for testing, we noted two instances in which the
Department of Health assigned eligible participants to incorrect Copay Plans. The following
instances were noted:
3. In both instances, during the application process, the participants were correctly determined to
be eligible, but CHIP improperly placed the participants on Copay Plan B instead of Copay
Plan C based on family size and income levels. As Copay Plan B allows for a higher amount
of benefits to be paid by CHIP than Copay Plan C, the errors resulted in a total overpayment
of benefits (Federal and state) during fiscal year 2020 in the following amounts:
a. Instance one: For four months and a total of $29.
b. Instance two: For two months and a total of $14.
Status:
• 1a: The WES system fix needed to correctly exclude grandparent income in this situation was
effectively updated in May 2022. Further, the contract with the customer service vendor that
was in use at the time of the error was not renewed. The worker who made the error has been
coached on countable income and the appropriate workaround that should have been used in
this situation. Lastly, the current customer service vendor has been provided with a CHIP
PowerPoint discussing the exclusion of grandparents caretaker relative income, and an
extensive three-month training period for representatives currently employed at the customer
service center has been implemented. The State is confident this helps reduce this type of error.
61
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-021: Eligibility (Significant Deficiency), Continued
• 1b and 1c: The contract with the customer service vendor that was in use at the time of the error
was not renewed. The worker who made the error is no longer employed in the customer service
center. Lastly, the current customer service vendor has been provided with a CHIP PowerPoint
discussing the exceptions to 12 continuous months of CHIP coverage, and an extensive three-
month training period for representatives currently employed at the customer service center has
been implemented. The State is confident this helps reduce this type of error.
• 2: The contract with the customer service vendor that was in use at the time of the error was
not renewed and the worker who made the error is no longer employed; therefore, follow-up
coaching is not an option. However, the current customer service vendor has been provided
with a CHIP PowerPoint, and an extensive three-month training period for representatives
currently employed at the customer service center has been implemented. The State is confident
this helps reduce this type of error.
• 3a and 3b: The contract with the customer service vendor that was in use at the time of the error
was not renewed and the worker who made the error is no longer employed; therefore, follow-
up coaching is not an option. However, the current customer service vendor has been provided
with a CHIP PowerPoint, and an extensive three-month training period for representatives
currently employed at the customer service center has been implemented. Further, Copay Plan
B and Copay Plan C now have the same copay amounts, which further minimizes the fiscal
impact of future errors related to CHIP Copay Plans. The State is confident this helps reduce
this type of error.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-022: Special Test N - Medicaid National Correct Coding Initiative (NCCI) (Significant
Deficiency)
Assistance Listing Number and Title: #93.778, Medical Assistance Program
Federal Agency Name: U.S. Department of Health and Human Services
Award Number/Name: Various
Award Year(s): Various
Department: Wyoming Department of Health
Condition/context: During testing of compliance with the Medicaid NCCI requirements, we noted
that the State Medicaid agency does not have a confidentiality agreement in place with the Medicaid
Management Information System (MMIS) provider as required by the Medicaid NCCI Technical
Guidance Manual, Sections 7.1.1 and 7.1.2.
Status: The finding has been resolved. The elements of the confidentiality agreement required by
the Medicaid NCCI Technical Guidance Manual, Sections 7.1.1 and 7.1.2 were included in the
amended contract with Conduent covering the period from July 1, 2021 through October 31, 2021
as well as the fiscal year 2022 CNSI agreement.
62
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-022: Special Test N - Medicaid National Correct Coding Initiative (NCCI) (Significant
Deficiency), Continued
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-023: Subrecipient Monitoring - Award Information (Significant Deficiency)
Assistance Listing Number and Title: #21.019, Coronavirus Relief Fund
Federal Agency Name: U.S. Department of the Treasury
Award Number: N/A
Award Year: March 1, 2020 - December 31, 2021
Department: Wyoming Governor’s Office
Condition/context: There are various components of subrecipient monitoring, which include award
identification (providing complete and accurate information to the subrecipient). The Governor’s
office did not provide all required award identification information to its subrecipients, nor did it
have processes in place to ensure the required information was compiled and communicated.
Status: The Governor’s office has created a Grant and Sub-Award Template, which was submitted
and reviewed by MHP to ensure all required sections were appropriately included. This form was
retroactively sent out to those entities identified as subrecipients of the Coronavirus Relief Funds.
The entities identified by the SAO as subrecipients include the Wyoming Business Council, the
University of Wyoming, the Wyoming Community Development Authority, the Wyoming
Department of Transportation, and counties. The template will be used for future awards.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-024: Subrecipient Monitoring - Audit Reports (Significant Deficiency)
Assistance Listing Number and Title: #10.664, Cooperative Forestry Assistance
Federal Agency Name: U.S. Department of Agriculture
Award Numbers: 14-DG-11020000-039; 15-DG-11020000-039; 16-DG-11020000-015; 17-
DG-11020000-040; 18-DG-11020000-050
Award Years: July 9, 2014 - June 30, 2019; June 26, 2015 - March 31, 2021; July 8, 2016 -
May 31, 2021; June 12, 2017 - May 31, 2022; July 12, 2018 - June 23, 2023
Department: Wyoming OSLI
63
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-024: Subrecipient Monitoring - Audit Reports (Significant Deficiency), Continued
Condition/context: Of the program’s 72 subrecipients in State fiscal year 2019, eight subrecipients
were selected for testing against the subrecipient monitoring single audit requirement. For six of
the eight subrecipients tested, the program did not receive a copy of the subrecipient’s 2019 audit
report or certification that the subrecipient was not required to obtain an audit.
Status: During the course of 2021, the Forestry Division implemented the corrective action plan.
To date, the Forestry Division works with the subrecipients annually, around the audit time, to
ensure they are aware that they need to provide a copy of their audit or official reasoning as to why
they were exempt that year related to an audit. Staff often follows up via email regarding the status
if an audit has not been received or is delayed, as many have been recently. These audits documents
are now stored electronically on a shared network drive and accessible to applicable staff. Due to
the multiple grant programs working with different subrecipients, the availability for staff to check
the status of audits electronically has been very beneficial. Before a grant award is finalized, the
pre-award requires Forestry Division staff to review that all requisites are in place. Additionally,
during the 2022 legislative session, House Bill No. HB0060 was enacted, which may also assist
with subrecipient monitoring related to audit reports going forward.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-025: Reporting (Significant Deficiency)
Assistance Listing Numbers and Titles:
1. #10.664, Cooperative Forestry Assistance
2. #10.676, Forest Legacy Program
Federal Agency Names:
1. U.S. Department of Agriculture
2. U.S. Department of Agriculture
Award Numbers:
1. 14-DG-11020000-039; 17-DG-11020000-040
2. 18-DG-11020000-061
Award Years:
1. July 9, 2014 - June 30, 2019; June 12, 2017 - May 31, 2022
2. July 24, 2018 - July 30, 2020
Departments:
1. Wyoming OSLI
2. Wyoming OSLI
64
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-025: Reporting (Significant Deficiency), Continued
Condition/context:
1. Of the six SF-425 financial reports filed during the year under audit for the Cooperative
Forestry Assistance program, two reports were selected for testing. In both reports, the amounts
in the Total Recipient Share of Required and Recipient Share of Expenditures lines were
improperly reported and did not agree to supporting records. Specifically, the errors occurred
in the final 14-DG-11020000-039 report for the period ended June 30, 2019, submitted on
September 27, 2019, and the 17-DG-11020000-040 report for the period ended September 30,
2019, submitted on October 18, 2019.
2. Two reports were filed for the Forest Legacy Program during the year under audit. One report
was a no-activity report. The final SF-425 report, submitted on June 22, 2020, was subjected
to testing. The amounts in the Total Recipient Share of Required and Recipient Share of
Expenditures lines were improperly reported and did not agree to supporting records. No
amount was reported, when in actuality, there was a match requirement and match made by the
program.
Status: During fiscal year 2021, the OSLI implemented the corrective action plan by implementing
changes to the completion and review of required reports. The information necessary for the reports
is compiled via the WOLFS system, InfoAdvantage Reports for both grant expenditures and
revenues, and a monthly pivot table. The reports are completed by the Accounting Analyst and then
reviewed by the Financial Reporting Manager before being further reviewed by the Assistant State
Forester. The Assistant State Forester or Fiscal can sign and submit the report. The Accounting
Analyst has attended grant training through the National Grants Management Association and
Grant Management USA as well as various training classes offered by the SAO. In addition, the
OSLI maintained a yearly membership to the National Grants Management Association and Grant
Management USA, which allows for participation in various monthly webinars.
Auditor’s comment: During our testing of the status, errors were identified in the reports submitted
during fiscal year 2021. As such, there continue to be issues with the accuracy of the reports
submitted. This finding is not considered resolved; see current-year finding 2021-018.
2020-026: Earmarking (Material Weakness)
Assistance Listing Number and Title: #84.126, Rehabilitation Services_Vocational
Rehabilitation Grants to States
Federal Agency Name: U.S. Department of Education
Award Number/Name: H126A180075
Award Year: October 1, 2017 - September 30, 2019
Department: Wyoming DWS
65
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-026: Earmarking (Material Weakness), Continued
Condition/context: Program guidelines require 15% of each grant award to be earmarked for pre-
employment transition services for students with disabilities. For the 2018 grant award, the program
only earmarked $1,171,782 for pre-employment transition services, which was 11.0% of the 2018
award amount ($10,616,162).
Status: The Wyoming Department of Vocational Rehabilitation (DVR) did implement the
corrective action as described for earmarking pre-employment transition services. A separate
accounting budget was set up to track and manage the pre-employment transition service activities
and expenditures. It is important to note that in fiscal year 2021, which was a carryforward grant
and has not yet closed, the DVR is on track to meet 15% required for pre-employment transition
services.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
2020-027: Reporting (Significant Deficiency)
Assistance Listing Number and Title: #84.126, Rehabilitation Services_Vocational
Rehabilitation Grants to States
Federal Agency Name: U.S. Department of Education
Award Numbers/Names: H126A180075; H126A190075
Award Years: October 1, 2017 - September 30, 2018; October 1, 2018 - September 30, 2019
Department: Wyoming DWS
Condition/context: Four SF-425 reports were filed by the program during the year under audit, of
which two were selected for testing. In the 2018 closeout report, submitted on January 23, 2020,
the amounts reported in the Cash Disbursements, Federal Share of Expenditures, Total Recipient
Share Required, and Recipient Share of Expenditures lines were not supported by the general
ledger. In the March 31, 2020 report, submitted on May 1, 2020, the amounts reported in the Cash
Disbursements, Total Recipient Share Required, and Recipient Share of Expenditures lines were
not supported by the general ledger.
Status: The DWS initiated a deep review of vocational rehabilitation expenditures and identified
corrections that needed to be made in several SF-425s. The DWS also initiated a standard practice
of pulling data for its reports, which should enable consistency and accurate reporting in the future.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
66
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-028: Special Test N - Benefit Payments (Significant Deficiency)
Assistance Listing Number and Title: #17.225, Unemployment Insurance
Federal Agency Name: U.S. Department of Labor
Award Numbers/Names: UI-32636-19-55-A-56; UI-34095-20-55-A-56; UI-34751-20-55-A-56
Award Years: October 1, 2018 - December 31, 2022; October 1, 2018 - December 31, 2022;
April 1, 2020 - June 30, 2021
Department: Wyoming DWS
Condition/context: The UI Program is required to select several paid claims and denied claims
throughout a 12-month period to assess the accuracy of the UI Program’s benefit paid claims and
denied claims. The Benefits Accuracy Management (BAM) investigator team is required to draw
a weekly sample of claims (paid and denied) and complete prompt and in-depth investigations to
determine the degree of accuracy in the administration of the UI Program. The BAM investigators
properly selected the correct number of claims paid and denied. However, the BAM reviews did
not meet established timeliness metrics. The Federal BAM State Operations Handbook requires
70% of the testing to be completed within 60 days of the week-ending batch date, 95% completed
within 90 days, and 98% within 120 days. Of the 270 completed paid claims tested by the BAM
team, only 175 (65%) were completed within 60 days and only 197 (73%) were completed within
90 days. The UI Program met the requirement for the 120-day window. Of the 308 denied claims
selections, the UI Program met the requirements for the 60-day and 120-day windows. However,
only 257 (83%) were completed within 90 days.
Status: Due to the nature of the requirement, the specific instances could not be corrected. However,
all required cases were correctly completed by October 22, 2020.
Auditor’s comment: While the specific instances of noncompliance were corrected to the best of
the UI Program’s ability, we did identify a repeat finding for this compliance requirement, which
indicates room for improvement on internal control processes. As such, this finding has not been
resolved; see current-year finding 2021-020.
2020-029: Special Test N - Program Integrity - Overpayments (Significant Deficiency)
Assistance Listing Number and Title: #17.225, Unemployment Insurance
Federal Agency Name: U.S. Department of Labor
Award Numbers/Names: UI-32636-19-55-A-56; UI-34095-20-55-A-56; UI-34751-20-55-A-56
Award Years: October 1, 2018 - December 31, 2022; October 1, 2018 - December 31, 2022;
April 1, 2020 - June 30, 2021
Department: Wyoming DWS
67
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-029: Special Test N - Program Integrity - Overpayments (Significant Deficiency),
Continued
Condition/context: The UI Program is prohibited from providing relief from charges to an
employer’s UI account when overpayments are the result of the employer’s failure to respond
timely or adequately to a request for such information. In determining employer relief due to failure
to respond timely, the UI Program has established a five-time “pattern” rule, meaning the employer
can be delinquent in its response five times and still obtain relief. However, on the sixth and
subsequent instances, the UI Program would deny relief and require the employer to reimburse the
UI Program for the overpayment. In monitoring this compliance requirement, the UI Program relies
on data tracked within WYUI, the State’s benefit system. However, the module within WYUI that
tracks this data was turned off during the year under audit. The UI Program did not have additional
processes, procedures, or mitigating controls in place to monitor the collection of overpayments
due to prohibited employer relief.
Status: The UI Program started additional processes to monitor employers who failed to respond
timely in November 2021. The Appeals division reports all overpayments caused by this employer
failure, and the BAM unit recently began reporting these failures as well. A spreadsheet is
maintained to keep track of the number of failures for each employer. The UI Program continues
to work with a contractor to correct the coding issues, but until the coding is completed, the new
manual processes are monitoring and tracking employer failure to respond adequately.
Auditor’s comment: The program continues to work on fully implementing its corrective action
plan at June 30, 2021. This finding remains open; see current-year finding 2021-021.
2020-030: Allowable Costs/Cost Principles (Significant Deficiency)
Assistance Listing Number and Title: #17.225, Unemployment Insurance
Federal Agency Name: U.S. Department of Labor
Award Number/Name: EUISAA 2020 Admin
Award Year: April 23, 2020 - December 31, 2020
Department: Wyoming DWS
Condition/context: This finding was initially identified during an audit by the U.S. Department of
Labor’s Employment and Training Administration during an enhanced desk monitoring review of
the UI Program.
The UI Program entered into a temporary worker contract with a vendor, wherein the vendor would
supply the UI Program with general clerical support at a set rate of $16.61 per hour. In actuality,
the program paid rates between $16.61 and $34.56. Further, the UI Program could not provide time
and attendance records needed to verify that the temporary workers actually performed the services
they were contracted to perform.
68
STATE OF WYOMING
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
Year Ended June 30, 2021
II. FEDERAL AWARD PRIOR AUDIT FINDINGS, Continued
2020-030: Allowable Costs/Cost Principles (Significant Deficiency), Continued
Status: The UI Program was able to provide the Department of Labor with time and attendance
records for the temporary staff on January 13, 2021 to support the questioned costs resulting from
an invoice dated July 13, 2020. Additionally, the contract amendment correcting the increased pay
range has been fully executed and a copy was sent to the Department of Labor on January 28, 2021.
The DWS has created an internal weekly timesheet for all temporary staff that will transparently
capture time and effort for all future expenditures. Supervisors are now required to review and sign
these internal timesheets weekly and submit them to Fiscal as documentation to be attached to the
invoice for payment.
Auditor’s comment: The corrective action plan was implemented. This finding is considered
resolved.
69
EXHIBIT I
CORRECTIVE ACTION PLAN
Mark Gordon
STATE OF WYOMING Governor
DEPARTMENT OF AUDIT Justin Chavez
Interim Director
OFFICE OF THE DIRECTOR
(307) 777-6605 / jusin.chavez@wyo.gov
CORRECTIVE ACTION PLAN
Year Ended June 30, 2021
The following is the corrective action plan for the Schedule of Findings and Questioned Costs reported in
the June 30, 2021 Compliance Report for the State of Wyoming:
I. Financial Statement Findings
2021-001: State Auditor’s Office (SAO) - Internal Controls and Audit Adjustments
Corrective actions: The SAO continues to work on the journal entry review process. All projects
will now require a review of the trial balance in Engagement, the SAO’s annual comprehensive
financial report (ACFR) software, before they are submitted for review. This high-level analytical
review of the adjusted financial statements will help identify errors or inconsistencies. The SAO
Accounting Division has also been holding informational sessions about all ACFR projects in an
effort to provide the entire team with a better understanding of why we complete projects and
how they tie together. The SAO will also be utilizing leadsheets during the fiscal year 2022 ACFR
to monitor trends and assist in the identification of incorrect journal entries.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
2021-002: SAO and State Treasurer’s Office (STO) - Internal Controls and Audit Adjustments to
Cash and Pooled Investments
Corrective actions: The SAO and the STO will schedule weekly meetings to gain a mutual
understanding on the workpapers and journal entries required for the ACFR regarding cash and
investments. During these meetings, the SAO and the STO will concur on the journal entries before
they are finalized.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager, SAO
Katie Smith, Administrator of Financial Accounting, STO
1
I. Financial Statement Findings, Continued
2021-003: SAO - Internal Controls and Audit Adjustment to Revenue
Corrective actions: The SAO held CFO trainings during the month of June. All agency fiscal staff
were invited to these trainings. During the training, all ACFR-related reports required to be
submitted to the SAO were discussed in detail. The SAO will continue to offer year-end CFO
training consistently each June. Additionally, the Accounting Division at the SAO continues to
encourage all agencies to reach out and discuss any new business practices and/or projects. The
SAO is also creating a new revenue project for fiscal year 2022, including a comparison to prior-
year revenue balances and a trend analysis in an effort to identify any additional journal entries
that need to be made as well as any incorrect entries made to revenue accounts.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
2021-004: SAO - Internal Controls and Audit Adjustments to Accounts Payable
Corrective actions: The SAO Accounting Division began holding regular internal meetings to
discuss all aspects of the ACFR. Additionally, throughout the year, the SAO will be evaluating any
new procedures noted by other State agencies and the impact those projects have on the ACFR.
As part of the year-end process, the Accounting Division will hold a team meeting to evaluate
accounting practices and procedures and identify any areas that may need to be adjusted.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
2021-005: SAO - Internal Controls and Audit Adjustments to Cash and Pooled Investments and
Bonds Payable Related Balances
Corrective actions: The SAO is completely revamping both the Cash and Investments project and
the Bonds Payable project, which will include more detailed instructions for both projects. The
Accounting Division Manager will be having meetings with the STO regarding both of these areas
to ensure items are correctly reported within the ACFR. The SAO plans to have several meetings
with the STO starting in September 2022 to make sure there is a good understanding of these
projects.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
2
I. Financial Statement Findings, Continued
2021-006: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
Corrective actions: The STO’s request for additional resources was granted by the legislature with
five new positions in the 2022 Budget Session. While the State fills these positions, trains new
staff, and onboards the new accounting system, the STO has contracted with KPMG to assist with
its current resource deficit and facilitate more timely resolution of discrepancies. In addition, the
STO has implemented additional continuous accounting practices with monthly and quarterly
reconciliations.
Anticipated completion date: 06/30/2023
Contact person: Katie Smith, Administrator of Financial Accounting
2021-007: SAO - Internal Controls and Audit Adjustments to Fiduciary Funds
Corrective actions: The SAO will continue to review all materials related to new Governmental
Accounting Standards Board (GASB) standards in an effort to properly implement them. This will
include attending and offering trainings on new GASB standards as well as reviewing of all
applicable implementation guides.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
2021-008: SAO - Internal Controls and Audit Adjustments to Federal Revenues
Corrective actions: The SAO continues to hold Schedule of Expenditures of Federal Awards (SEFA)
trainings for State agencies on at least a quarterly basis in an effort to collaborate with them on
the accuracy of SEFA reports. The SAO has also added a reminder to the SEFA instructions for
agencies to report any noncash commodities and will make sure this information is included in
trainings and on training materials.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
3
I. Financial Statement Findings, Continued
2021-009: Department of Workforce Services (DWS) - Internal Controls and Audit Adjustments
to Taxes Receivable and Due to/from Other Funds
Corrective actions: The DWS continues to investigate and correct the WYUI reports. It currently
has internal Information Technology (IT) staff and its IT contractor programming investigating
report changes. Once the reports have been corrected, Fiscal and Unemployment Insurance (UI)
Tax will test the reports and validate that they are accurate prior to submitting the UI financial
statements to the SAO. The DWS will also continue to work with the UI Program team to better
understand and be able to verify and/or correct the information extracted from the WYUI system.
Anticipated completion date: 10/31/2022
Contact person: Robin Martin, CFO
2021-010: DWS - Internal Controls and Audit Adjustments
Corrective actions: The DWS is working on an internal review process that includes UI Tax and
Benefits to confirm accurate account balances. The DWS will set up meetings with the SAO to
discuss uncertainties in accrual accounting. The DWS is also moving forward with a CPA firm that
will be operating as a consultant to identify better processes to account for the balance sheet and
adjustments made.
Anticipated completion date: 10/31/2022
Contact person: Robin Martin, CFO
2021-011: STO - Internal Controls and Audit Adjustments to Cash and Pooled Investments
Corrective actions: The STO is in the process of eliminating excessive manual entries currently
required for all accounting procedures through the onboarding of a new accounting system with
a robust reporting tool. The STO will continue to cross-train on procedures and review
requirements.
Anticipated completion date: 06/30/2023
Contact person: Katie Smith, Administrator of Financial Accounting
2021-012: Department of Revenue Liquor Commission - Internal Controls to Inventory
Corrective actions: The Wyoming Liquor Division is validating the accuracy of the financial
information in EnCompass and is in communication with EnCompass whenever any discrepancies
are found by logging a task to resolve the issue.
4
I. Financial Statement Findings, Continued
2021-012: Department of Revenue Liquor Commission - Internal Controls to Inventory,
Continued
The Liquor Division signed a contract with Accenture, formerly Blue Horseshoe Solutions, as of
July 29, 2022. The new ERP and online ordering system is Microsoft Dynamics 365. The Liquor
Division has hired a Project Manager to oversee the implementation of the new system. The
Project Manager will work with the Accenture implementation team and the Liquor Division staff
to conduct thorough testing and ensure accurate and complete reporting. Data mapping and
migration will begin this fall to ensure all data uploaded into the new system is accurate.
Anticipated completion date: 03/31/2023
Contact person: Thomas Montoya, Administrator
Arlis Bauer, Accounting Manager
2021-013: STO - Internal Controls and Audit Adjustment to Investment Income
Corrective actions: The STO has added additional language identifying the reporting requirements
on the State’s investments in the custodial contract and the Investment Policy Statement. In
addition, a future phase of the accounting system will complete an automatic third-party
verification on all custodial reports. Until the third-party verification portion of the system is
available, the STO will continue to review, question, and kick back all discrepancies found
manually to the custodian.
Anticipated completion date: 06/30/2023
Contact person: Katie Smith, Administrator of Financial Accounting
2021-014: SAO - Internal Controls and Audit Adjustment to Fiduciary Funds
Corrective actions: The SAO has established a new fund form and a current fund listing, and both
must be updated before a new fund is set up in the State’s accounting system. Two SAO
employees must concur on the classification of the fund, and the Accounting Division Manager
must have the final sign-off on the new fund before it can be established in the accounting system.
Anticipated completion date: 12/31/2022
Contact person: Erin Benskin, Accounting Division Manager
5
I. Financial Statement Findings, Continued
2021-015: DWS - SEFA
Corrective actions: The DWS has worked with the SAO in rearranging the SEFA to make it easier
for the SAO to identify G01 and T25 expenditures. This will ensure that the T25 expenditures are
not reported twice within the SEFA for fiscal year 2022.
Anticipated completion date: June 30, 2022
Contact person: Robin Martin, CFO
2021-016: Governor’s Office - SEFA
Corrective actions: The Federal guidance changed in the middle of the reporting period in regards
to how primary expenditures should be calculated. Amounts are now calculated based upon when
the primary recipient expends them and not when the spending authority is delegated to another
State agency.
Anticipated completion date: This has already been completed, June 3, 2022. Fiscal year 2022
SEFA was corrected to properly adjust fiscal year 2021 carry forward numbers accurately and
according to the new guidance. Future SEFAs will continue to be reported on the current guidance
in place.
Contact person: Rory Horsley, CFO, Department of A&I
2021-017: Wyoming Department of Health (WDH) and State Construction Department (SCD) -
SEFA
Corrective actions: The SCD will provide a WOLFS expenditure listing for the Skilled Nursing Facility
to the WDH on a monthly basis so the Federal funds expended can be recorded on the WDH SEFA
accurately. The WDH will also provide an expenditure listing to the SCD if the WDH records
expenditures.
Anticipated completion date: 08/31/2022
Contact person: Ryan Scranton
Debbie Vizina
6
II. Federal Award Findings
2021-018: Office of State Lands and Investments - Reporting
Corrective actions: There were unknown issues with the prior Accounting Analyst; however, the
position has been refilled and the new Accounting Analyst has attended several training courses
with Grant Management USA, National Grants Management Association, and the SAO, as well as
internal trainings. Meetings with the USDA Forest Service and State grant program managers take
place periodically and continued training will take place monthly and annually. The process to
verify reported amounts on the SF-425 has been updated to include cross-referencing the WOLFS
InfoAdvantage Budget Structure 120 Expense Budget Summary report, Budget Structure 121
Revenue report, and the Detailed Transaction Listing report for each grant and period to show
collected revenues and expenditures reported for the reporting period. The Detailed Transaction
Listing reports are compiled and saved for each reporting period for reconciliation. The
InfoAdvantage Reports (Excel) documents are utilized as a cross-check when compiling the
Federal reports for the grants. The process for the completion and review has been adjusted as
follows: (1) the Accounting Analyst completes the SF-425, (2) the financial reporting manager
reviews for accuracy and completeness, and (3) the assistant state forester reviews, and (4) the
state forester reviews and signs prior to submitting to the appropriate Federal agency contact.
Anticipated completion date: September 30, 2022 reporting period
Contact person: Amanda Sewell, Assistant Director
Kim Dumas, Financial Reporting Manager
2021-019: Governor’s Office - Reporting
Corrective actions: The Governor’s office received guidance from the U.S. Department of
Education to include the Year One corrections in the Year Two annual performance report (APR).
This was done and the APR was submitted on June 10, 2022. The APR and the Federal Funding
Accountability and Transparency Act report will be reviewed by another Accounting Office staff
member prior to their submission.
Anticipated completion date: This was completed in June 2022.
Contact person: Rory Horsley, CFO, Department of A&I
2021-020: DWS - Special Test N: UI Benefit Payments
Corrective actions: The Wyoming Benefits Accuracy Measurement (BAM) program is tasked to
meet all Federal case completion requirements to include the 60-day paid timeliness Acceptable
Level of Performance (ALP), the 90-day paid timeliness ALP, and a total paid case completion ALP
of 98%. BAM staff have been authorized overtime with the objective to meet case completion ALP
in compliance with BAM regulations, Employment and Training Handbook 395, Benefits Accuracy
Measurement State operations handbook, 5th edition. Additionally, Wyoming BAM staff has an
internal performance goal to meet Federal timeliness requirements.
7
II. Federal Award Findings, Continued
2021-020: DWS - Special Test N: UI Benefit Payments, Continued
Anticipated completion date: 04/20/2023
Contact person: Robin Martin, CFO
2021-021: DWS - Special Test N: UI Program Integrity - Overpayments
Corrective actions: The DWS is still working with its vendor and its own IT to get the coding issues
within WYUI fixed. In the meantime, the DWS implemented a manual process in November 2021
to track employer responses. The DWS started additional processes to monitor employers who
failed to respond. The Appeals Division reports all overpayments caused by failure to respond or
employer failure, and the BAM unit recently began reporting these failures as well. A spreadsheet
is monitored to keep track of the number of failures for each employer. The DWS is continuing
work with its contractor to correct the coding issues, but until the coding is completed, the new
manual processes are monitoring and tracking employers’ failure to respond adequately.
Anticipated completion date: 12/31/2022
Contact person: Robin Martin, CFO
2021-022: DWS - Special Test N: Employer Experience Rating
Corrective actions: The DWS has logged a defect with the vendor for this issue. The UI Tax Division
also has requested a query of all accounts with this issue to better understand the defect, fix any
accounts that may be impacted, and adjust the rate if needed. The UI Tax Division will start the
rating process in November 2022; at that time, we will begin fixing any rate defects.
Anticipated completion date: 12/31/2022
Contact person: Robin Martin, CFO
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