Audit 20778

FY End
2022-06-30
Total Expended
$5.49M
Findings
28
Programs
15
Year: 2022 Accepted: 2023-01-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
26158 2022-001 Significant Deficiency Yes P
26159 2022-002 Significant Deficiency Yes P
26160 2022-001 Significant Deficiency Yes P
26161 2022-002 Significant Deficiency Yes P
26162 2022-001 Significant Deficiency Yes P
26163 2022-002 Significant Deficiency Yes P
26164 2022-001 Significant Deficiency Yes P
26165 2022-002 Significant Deficiency Yes P
26166 2022-001 Significant Deficiency Yes P
26167 2022-002 Significant Deficiency Yes P
26168 2022-001 Significant Deficiency Yes P
26169 2022-002 Significant Deficiency Yes P
26170 2022-001 Significant Deficiency Yes P
26171 2022-002 Significant Deficiency Yes P
602600 2022-001 Significant Deficiency Yes P
602601 2022-002 Significant Deficiency Yes P
602602 2022-001 Significant Deficiency Yes P
602603 2022-002 Significant Deficiency Yes P
602604 2022-001 Significant Deficiency Yes P
602605 2022-002 Significant Deficiency Yes P
602606 2022-001 Significant Deficiency Yes P
602607 2022-002 Significant Deficiency Yes P
602608 2022-001 Significant Deficiency Yes P
602609 2022-002 Significant Deficiency Yes P
602610 2022-001 Significant Deficiency Yes P
602611 2022-002 Significant Deficiency Yes P
602612 2022-001 Significant Deficiency Yes P
602613 2022-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.37M Yes 2
10.555 National School Lunch Program $888,844 Yes 2
84.041 Impact Aid $834,706 - 0
84.010 Title I Grants to Local Educational Agencies $671,331 - 0
84.027 Special Education_grants to States $539,785 Yes 2
10.553 School Breakfast Program $331,000 Yes 2
93.778 Medical Assistance Program $324,991 - 0
84.060 Indian Education_grants to Local Educational Agencies $114,207 - 0
84.367 Improving Teacher Quality State Grants $84,331 - 0
10.665 Schools and Roads - Grants to States $68,551 - 0
84.424 Student Support and Academic Enrichment Program $49,560 - 0
84.358 Rural Education $46,233 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $33,120 - 0
84.173 Special Education_preschool Grants $23,344 Yes 2
84.048 Career and Technical Education -- Basic Grants to States $22,417 - 0

Contacts

Name Title Type
WAMFG9LYK1F1 Jenifer Frank Auditee
7156342619 Eric Davidson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal grant activity of the Hayward Community School District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is 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). 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, changes in fund balances/net position, or cash flows of the District.
Title: NONCASH ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Included in the receipts and expenditures totals for the National School Lunch Program, CFDA #10.555, are the value of federal donated commodities totaling $87,034. This value was provided to the District by the Wisconsin Department of Public Instruction in its Commodity Allocation and Receipt Report for the 2021-2022 program year. Since these donated commodities are used primarily in the lunch program, they are reported with this CFDA in the schedule.

Finding Details

Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.
Significant Deficiency ? Limited Segregation of Duties Criteria: Internal controls should be in place to provide reasonable assurance that individuals have access to only one phase of the accounting process. Condition: The size of the office staff precludes segregation of accounting functions complete to assure adequate internal control. The Business Manager prepares bank reconciliations and posts cash receipts and disbursements to the District?s general ledger. Effect: Because of the lack of segregation of duties, there is a risk that the accounting records may be misstated or reports may be completed improperly and may not be prevented or detected and corrected on a timely basis. Recommendation: To address the control deficiency relative to the cash receipts and cash disbursement cycles, we recommend that an employee other than the District Account review the monthly bank reconciliation.
Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.