FAC Explorer

Audit 10868

FY End
2023-06-30
Total Expended
$1.03M
Findings
4
Programs
11
Organization: School District of Lomira (WI)
Year: 2023 Accepted: 2024-01-10
Auditor: Vesta

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8236 2023-001 Significant Deficiency Yes P
8237 2023-001 Significant Deficiency Yes P
584678 2023-001 Significant Deficiency Yes P
584679 2023-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $213,905 - 0
84.010 Title I Grants to Local Educational Agencies $120,588 - 0
84.425 Education Stabilization Fund $106,634 Yes 1
93.778 Medical Assistance Program $61,254 - 0
10.553 School Breakfast Program $57,333 - 0
10.555 National School Lunch Program $42,370 - 0
84.367 Improving Teacher Quality State Grants $19,370 - 0
84.424 Student Support and Academic Enrichment Program $10,192 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $8,059 - 0
84.048 Career and Technical Education -- Basic Grants to States $6,518 - 0
84.173 Special Education_preschool Grants $3,476 - 0

Contacts

Name Title Type
H8L9H6ZJMZ45 Jennifer Drost Auditee
9202694369 Lauren Price Auditor
No contacts on file

Notes to SEFA

Title: Special Education and School Age Parents Program Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2023-2024 eligible costs and estimated aid reimbursement under the State Special Education Program are $1,559,584 and $491,269 respectively.
Title: Food Distribution Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at fair market value of the commodities received and disbursed. At June 30, 2023, the District had food commodities totaling $42,370 in expendutires.
Title: Oversight Agencies Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The U.S. Department of Education has been designated the federal oversight agency for the District. The Wisconsin Department of Public Instruction is the state oversight agency for the District.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal and state awards include the federal and state grant award activity of the District under programs of the federal and state government for the year ended June 30, 2023. The information in this schedule is presented 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) and State Single Audit Guidelines. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or changes in net position of the District.

Finding Details

Finding 2023-001
Criteria: The District should segregate accounting duties, at a minimum to separate the asset and the recordkeeping function, to minimize the opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Condition: The District does not have adequate segregation of duties in its accounting functions. Specifically, one individual is responsible for approval of the payroll process and has the ability to cut checks, print the automatic signatures on the checks, and performs the bank reconciliations. Cause: A small number of individuals within the District’s administration perform substantially all accounting functions and have control over both records and assets. Effect or Potential Effect: The lack of segregation of accounting duties could create an opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Recommendation: Due to the size of the District, it is not practical to hire additional individuals in order to adequately segregate accounting duties; therefore, we recommend that the Administrator’s and School Board’s close supervision, review of accounting information and knowledge of matters relating to the District’s financial operations provide an effective means of preventing and detecting errors and irregularities.
Finding 2023-001
Criteria: The District should segregate accounting duties, at a minimum to separate the asset and the recordkeeping function, to minimize the opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Condition: The District does not have adequate segregation of duties in its accounting functions. Specifically, one individual is responsible for approval of the payroll process and has the ability to cut checks, print the automatic signatures on the checks, and performs the bank reconciliations. Cause: A small number of individuals within the District’s administration perform substantially all accounting functions and have control over both records and assets. Effect or Potential Effect: The lack of segregation of accounting duties could create an opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Recommendation: Due to the size of the District, it is not practical to hire additional individuals in order to adequately segregate accounting duties; therefore, we recommend that the Administrator’s and School Board’s close supervision, review of accounting information and knowledge of matters relating to the District’s financial operations provide an effective means of preventing and detecting errors and irregularities.
Finding 2023-001
Criteria: The District should segregate accounting duties, at a minimum to separate the asset and the recordkeeping function, to minimize the opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Condition: The District does not have adequate segregation of duties in its accounting functions. Specifically, one individual is responsible for approval of the payroll process and has the ability to cut checks, print the automatic signatures on the checks, and performs the bank reconciliations. Cause: A small number of individuals within the District’s administration perform substantially all accounting functions and have control over both records and assets. Effect or Potential Effect: The lack of segregation of accounting duties could create an opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Recommendation: Due to the size of the District, it is not practical to hire additional individuals in order to adequately segregate accounting duties; therefore, we recommend that the Administrator’s and School Board’s close supervision, review of accounting information and knowledge of matters relating to the District’s financial operations provide an effective means of preventing and detecting errors and irregularities.
Finding 2023-001
Criteria: The District should segregate accounting duties, at a minimum to separate the asset and the recordkeeping function, to minimize the opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Condition: The District does not have adequate segregation of duties in its accounting functions. Specifically, one individual is responsible for approval of the payroll process and has the ability to cut checks, print the automatic signatures on the checks, and performs the bank reconciliations. Cause: A small number of individuals within the District’s administration perform substantially all accounting functions and have control over both records and assets. Effect or Potential Effect: The lack of segregation of accounting duties could create an opportunity for misstatements caused by error or fraud to occur and go undetected within a timely period by employees in the normal course of performing their assigned functions. Recommendation: Due to the size of the District, it is not practical to hire additional individuals in order to adequately segregate accounting duties; therefore, we recommend that the Administrator’s and School Board’s close supervision, review of accounting information and knowledge of matters relating to the District’s financial operations provide an effective means of preventing and detecting errors and irregularities.