FAC Explorer

Audit 12412

FY End
2023-06-30
Total Expended
$889,888
Findings
12
Programs
13
Organization: Edgar School District (WI)
Year: 2023 Accepted: 2024-01-19
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
9062 2023-004 Significant Deficiency - I
9063 2023-004 Significant Deficiency - I
9064 2023-004 Significant Deficiency - I
9065 2023-003 Significant Deficiency - L
9066 2023-003 Significant Deficiency - L
9067 2023-003 Significant Deficiency - L
585504 2023-004 Significant Deficiency - I
585505 2023-004 Significant Deficiency - I
585506 2023-004 Significant Deficiency - I
585507 2023-003 Significant Deficiency - L
585508 2023-003 Significant Deficiency - L
585509 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $198,898 Yes 1
84.027 Special Education_grants to States $150,928 - 0
84.010 Title I Grants to Local Educational Agencies $89,364 - 0
10.553 School Breakfast Program $54,327 Yes 1
93.778 Medical Assistance Program $50,680 - 0
84.358 Rural Education $38,882 - 0
10.555 National School Lunch Program $37,325 Yes 1
84.367 Improving Teacher Quality State Grants $16,789 - 0
84.424 Student Support and Academic Enrichment Program $8,424 - 0
84.173 Special Education_preschool Grants $6,372 - 0
32.009 Emergency Connectivity Fund Program $6,000 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $5,929 - 0
84.048 Career and Technical Education -- Basic Grants to States $4,092 - 0

Contacts

Name Title Type
MDAMMJK6AV45 Morgan Mueller Auditee
7153522352 Jon Trautman, 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 2022 fund financial statements. 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. Expenditures on the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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: 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 2022 fund financial statements. 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. Expenditures on the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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
Title: PASS-THROUGH ENTITIES 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 2022 fund financial statements. 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. Expenditures on the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. Federal awards have been passed through the following entities: WI DHS - Wisconsin Department of Health Services WI DPI - Wisconsin Department of Public Instruction CESA #9 - Cooperative Educational Services Agency #9
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 2022 fund financial statements. 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. Expenditures on the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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.

Finding Details

Finding 2023-004
2023-004 Child Nutrition Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547 Award Period: 7/1/2022-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 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. Compliance Requirements: Suspension and Debarment. Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements. Questioned Costs: None. Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified. Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No. Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 Child Nutrition Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547 Award Period: 7/1/2022-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 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. Compliance Requirements: Suspension and Debarment. Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements. Questioned Costs: None. Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified. Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No. Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 Child Nutrition Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547 Award Period: 7/1/2022-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 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. Compliance Requirements: Suspension and Debarment. Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements. Questioned Costs: None. Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified. Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No. Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 ESSER Segregation of Duties Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Assistance Listing Number: 84.425D, 84.425U Federal Award Identification Number and Year: S425U210044 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165 Award Period: 3/13/2020-9/30/2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Repeat Finding: No. Recommendation: We recommend that the District implement a formal review process over the reporting requirement relating to ESSER annual reports. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 ESSER Segregation of Duties Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Assistance Listing Number: 84.425D, 84.425U Federal Award Identification Number and Year: S425U210044 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165 Award Period: 3/13/2020-9/30/2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Repeat Finding: No. Recommendation: We recommend that the District implement a formal review process over the reporting requirement relating to ESSER annual reports. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 ESSER Segregation of Duties Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Assistance Listing Number: 84.425D, 84.425U Federal Award Identification Number and Year: S425U210044 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165 Award Period: 3/13/2020-9/30/2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Repeat Finding: No. Recommendation: We recommend that the District implement a formal review process over the reporting requirement relating to ESSER annual reports. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 Child Nutrition Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547 Award Period: 7/1/2022-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 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. Compliance Requirements: Suspension and Debarment. Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements. Questioned Costs: None. Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified. Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No. Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 Child Nutrition Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547 Award Period: 7/1/2022-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 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. Compliance Requirements: Suspension and Debarment. Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements. Questioned Costs: None. Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified. Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No. Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 Child Nutrition Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Federal Award Identification Number and Year: Unknown Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-SB-546, 2023-371561-DPI-NSL-547 Award Period: 7/1/2022-6/30/23 Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 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. Compliance Requirements: Suspension and Debarment. Condition: The District's search for suspension and debarment was focused on common vendors that the District used often and consistently rather than all vendors that met the covered transaction requirements. Questioned Costs: None. Context: One out of the two vendors in our sample did not have any review completed by the District to ensure they were not suspended or debarred when initiating covered transactions in the current year. Cause: The District was unclear on when exactly certain transactions and vendors needed to be verified. Effect: District could contract with a vendor that has been suspended or debarred from receiving federal funds. Repeat Finding: No. Recommendation: We recommend the District review and update policies and procedures over review of certain transactions to ensure that all federal grants with covered transactions have vendors reviewed for suspension and debarment status. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 ESSER Segregation of Duties Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Assistance Listing Number: 84.425D, 84.425U Federal Award Identification Number and Year: S425U210044 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165 Award Period: 3/13/2020-9/30/2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Repeat Finding: No. Recommendation: We recommend that the District implement a formal review process over the reporting requirement relating to ESSER annual reports. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 ESSER Segregation of Duties Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Assistance Listing Number: 84.425D, 84.425U Federal Award Identification Number and Year: S425U210044 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165 Award Period: 3/13/2020-9/30/2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Repeat Finding: No. Recommendation: We recommend that the District implement a formal review process over the reporting requirement relating to ESSER annual reports. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 ESSER Segregation of Duties Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Assistance Listing Number: 84.425D, 84.425U Federal Award Identification Number and Year: S425U210044 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165 Award Period: 3/13/2020-9/30/2024 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Repeat Finding: No. Recommendation: We recommend that the District implement a formal review process over the reporting requirement relating to ESSER annual reports. Views of Responsible Officials: There is no disagreement with the audit finding.