Wisconsin Department of Workforce Development

NEW DWD SECRETARY PUTS W-2 AGENCIES ON ALERT
Requiring stringent financial monitoring and spending practices

MADISON– Department of Workforce Development Secretary Jennifer Reinert today sent a memo to all W-2 agency directors outlining strict financial monitoring and oversight policies that will take effect immediately. The memo also outlines steps the department will take to ensure good financial practices are in place.

"This is a necessary step to ensure spending on the W-2 program is not only allowable but appropriate, and to send a strong message to the local agencies that sloppy financial practices will not be tolerated," said Secretary Reinert.

Secretary Reinert praised the local agencies for doing a tremendous job helping W-2 participants find work, improve their self-esteem and reach self-sufficiency, but stressed that a strong emphasis must also be placed on good bookkeeping.

Specifically, the department is requiring local agencies to:

	Launch an immediate and thorough review of financial and accounting systems to ensure they conform completely to the highest standards required by the state.
	If appropriate, retain the services of an outside, independent, professional accounting firm to review contract related policies in the agency to ensure an error-free system.
	If an annual audit is currently underway or being scheduled, expand the scope of the audit to include a review of any and all records to ensure no improper financial transactions have occurred.

The department is taking the following actions:

	Conducting a thorough review of it’s internal auditing and accounting practices to ensure the department has sufficient capability to look through agency financial information with a fine tooth comb.
	Establishing an auditing capability that will allow the department to conduct outside reviews of local agency expenditures with or without prior notice to the agency.
	Exploring the possibility of further defining standards and acceptable practices of expense reporting.
	And investigating the possibility of creating a technical assistance unit for the department to help contractors establish tighter financial controls.

"W-2 is a highly visible public program. It has been very successful in helping thousands of individuals find jobs and secure their futures. We will simply not allow this program to be jeopardized by sloppy accounting practices, or improper expenditures," Secretary Reinert said.

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