FAC Explorer

Audit 11536

FY End
2023-06-30
Total Expended
$824,122
Findings
12
Programs
14
Organization: School District of Sevastopol (WI)
Year: 2023 Accepted: 2024-01-15
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8537 2023-003 Material Weakness Yes N
8538 2023-003 Material Weakness Yes N
8539 2023-004 Significant Deficiency Yes I
8540 2023-004 Significant Deficiency Yes I
8541 2023-005 Significant Deficiency - I
8542 2023-005 Significant Deficiency - I
584979 2023-003 Material Weakness Yes N
584980 2023-003 Material Weakness Yes N
584981 2023-004 Significant Deficiency Yes I
584982 2023-004 Significant Deficiency Yes I
584983 2023-005 Significant Deficiency - I
584984 2023-005 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $243,216 Yes 0
84.027 Special Education_grants to States $147,310 - 0
10.555 National School Lunch Program $146,752 Yes 3
84.010 Title I Grants to Local Educational Agencies $69,277 - 0
93.778 Medical Assistance Program $53,337 - 0
84.358 Rural Education $43,468 - 0
10.553 School Breakfast Program $15,013 Yes 3
84.367 Improving Teacher Quality State Grants $13,001 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $12,035 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.173 Special Education_preschool Grants $7,334 - 0
10.559 Summer Food Service Program for Children $6,152 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $3,800 - 0
84.060 Indian Education_grants to Local Educational Agencies $847 - 0

Contacts

Name Title Type
NARJAT9TD4N5 Karl Volkmann Auditee
9207436282 Leah Lasecki, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. The accompanying schedules of expenditures of federal and state awards for the District are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration. The schedules of expenditures of federal and state awards include all federal and state awards of the District. Because the schedules present only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Food Distribution Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. Nonmonetary assistance is reported in the schedule of expenditures of federal awards at the fair market value of the commodities received and disbursed.
Title: Oversight Agencies Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. The federal and state oversight agencies for the District are as follows: Federal – U.S. Department of Education State – Wisconsin Department of Public Instruction

Finding Details

Finding 2023-003
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Special Tests and Provisions – Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2022-004 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Special Tests and Provisions – Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2022-004 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-004
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-004
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-005
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Suspension and Debarment Type of Finding Significant deficiency in internal control over compliance Condition District did not document procedures for verification of suspension and debarment of vendors. Questioned Costs None. Criteria 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Context The District did not review 1 of 2 vendors tested in our sample to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause The District does not have a policy or procedure in place to check if a vendor is debarred or suspended. Effect The District could contract with a vendor that has been suspended or debarred from receiving federal funds.Repeat Finding No Recommendation We recommend the District use sam.gov listing to review clients at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-005
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Suspension and Debarment Type of Finding Significant deficiency in internal control over compliance Condition District did not document procedures for verification of suspension and debarment of vendors. Questioned Costs None. Criteria 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Context The District did not review 1 of 2 vendors tested in our sample to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause The District does not have a policy or procedure in place to check if a vendor is debarred or suspended. Effect The District could contract with a vendor that has been suspended or debarred from receiving federal funds.Repeat Finding No Recommendation We recommend the District use sam.gov listing to review clients at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Special Tests and Provisions – Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2022-004 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-003
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Special Tests and Provisions – Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2022-004 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-004
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-004
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Condition During our testing of procurement transactions of the program we noted that 2 of 3 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Questioned Costs None. Context The District's procurement did not conform to Uniform Guidance for 2 of 3 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding Yes – 2022-005Recommendation We recommend the District review procurement policies and establish a procurement process in order to ensure this policy is being followed. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-005
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Suspension and Debarment Type of Finding Significant deficiency in internal control over compliance Condition District did not document procedures for verification of suspension and debarment of vendors. Questioned Costs None. Criteria 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Context The District did not review 1 of 2 vendors tested in our sample to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause The District does not have a policy or procedure in place to check if a vendor is debarred or suspended. Effect The District could contract with a vendor that has been suspended or debarred from receiving federal funds.Repeat Finding No Recommendation We recommend the District use sam.gov listing to review clients at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements. Views of Responsible Officials There is no disagreement with the audit finding.
Finding 2023-005
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Suspension and Debarment Type of Finding Significant deficiency in internal control over compliance Condition District did not document procedures for verification of suspension and debarment of vendors. Questioned Costs None. Criteria 2 CFR Section 200.214 requires non-federal entities to follow suspension and debarment regulations outlined in 2 CFR part 180. When a nonfederal entity enters into a covered transaction with an entity at a lower tier, the nonfederal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Context The District did not review 1 of 2 vendors tested in our sample to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause The District does not have a policy or procedure in place to check if a vendor is debarred or suspended. Effect The District could contract with a vendor that has been suspended or debarred from receiving federal funds.Repeat Finding No Recommendation We recommend the District use sam.gov listing to review clients at the beginning of the year or before a transaction is incurred in accordance with Uniform Guidance requirements. Views of Responsible Officials There is no disagreement with the audit finding.