Audit 23165

FY End
2022-06-30
Total Expended
$1.75M
Findings
18
Programs
10
Year: 2022 Accepted: 2023-01-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
26252 2022-001 Significant Deficiency Yes P
26253 2022-003 Significant Deficiency Yes P
26254 2022-004 Significant Deficiency - P
26255 2022-001 Significant Deficiency Yes P
26256 2022-003 Significant Deficiency Yes P
26257 2022-004 Significant Deficiency - P
26258 2022-001 Significant Deficiency Yes P
26259 2022-003 Significant Deficiency Yes P
26260 2022-004 Significant Deficiency - P
602694 2022-001 Significant Deficiency Yes P
602695 2022-003 Significant Deficiency Yes P
602696 2022-004 Significant Deficiency - P
602697 2022-001 Significant Deficiency Yes P
602698 2022-003 Significant Deficiency Yes P
602699 2022-004 Significant Deficiency - P
602700 2022-001 Significant Deficiency Yes P
602701 2022-003 Significant Deficiency Yes P
602702 2022-004 Significant Deficiency - P

Contacts

Name Title Type
Q9HJDPJX9NE6 Kim Sommers Auditee
6087292153 Craig Corning Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedules of expenditures of federal and state awards include thefederal and state grant activity of the Pardeeville Area School District and arepresented on the modified accrual basis of accounting. The information in theseschedules is presented in accordance with the requirements of the Uniform Guidance andthe State Single Audit Guidelines. Therefore, some amounts presented in theseschedules may differ from amounts presented in, or used in the preparation of, thebasic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate.

Finding Details

2022-001 Segregation of Duties Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education?s and management?s knowledge of matters relating to the District?s operations. Management Views and Corrective Action Plan: See corrective action plan 2022-001.
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.
2022-004 Child Nutrition Free and Reduced Price Applications and Verification Condition:The list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications were not available for the 2021-2022 school to perform the compliance testing due to the food service director retiring at year end and the documents could not be found. Therefore, we were unable to test the eligibility of the free and reduced students. Criteria: The District must keep on file the free and reduced applications for all households. The District must also keep the verifications of the current free and reduced price eligibility of the households selected for verification. Cause: The new food service director could not find the retired food service director?s list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications. The new food service director also reached out to the retired food service director to help find the required documentation, but could not get a response. Effect: Since the documents were not found we were unable to perform the necessary testing of the program. Recommendations: The District should discuss the importance of these documents with the appropriate employees. There should also be a policy in place to keep all important documents and to scan any documents. Management Views and Corrective Action Plan: See corrective action plan 2022-004.
2022-001 Segregation of Duties Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education?s and management?s knowledge of matters relating to the District?s operations. Management Views and Corrective Action Plan: See corrective action plan 2022-001.
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.
2022-004 Child Nutrition Free and Reduced Price Applications and Verification Condition:The list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications were not available for the 2021-2022 school to perform the compliance testing due to the food service director retiring at year end and the documents could not be found. Therefore, we were unable to test the eligibility of the free and reduced students. Criteria: The District must keep on file the free and reduced applications for all households. The District must also keep the verifications of the current free and reduced price eligibility of the households selected for verification. Cause: The new food service director could not find the retired food service director?s list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications. The new food service director also reached out to the retired food service director to help find the required documentation, but could not get a response. Effect: Since the documents were not found we were unable to perform the necessary testing of the program. Recommendations: The District should discuss the importance of these documents with the appropriate employees. There should also be a policy in place to keep all important documents and to scan any documents. Management Views and Corrective Action Plan: See corrective action plan 2022-004.
2022-001 Segregation of Duties Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education?s and management?s knowledge of matters relating to the District?s operations. Management Views and Corrective Action Plan: See corrective action plan 2022-001.
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.
2022-004 Child Nutrition Free and Reduced Price Applications and Verification Condition:The list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications were not available for the 2021-2022 school to perform the compliance testing due to the food service director retiring at year end and the documents could not be found. Therefore, we were unable to test the eligibility of the free and reduced students. Criteria: The District must keep on file the free and reduced applications for all households. The District must also keep the verifications of the current free and reduced price eligibility of the households selected for verification. Cause: The new food service director could not find the retired food service director?s list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications. The new food service director also reached out to the retired food service director to help find the required documentation, but could not get a response. Effect: Since the documents were not found we were unable to perform the necessary testing of the program. Recommendations: The District should discuss the importance of these documents with the appropriate employees. There should also be a policy in place to keep all important documents and to scan any documents. Management Views and Corrective Action Plan: See corrective action plan 2022-004.
2022-001 Segregation of Duties Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education?s and management?s knowledge of matters relating to the District?s operations. Management Views and Corrective Action Plan: See corrective action plan 2022-001.
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.
2022-004 Child Nutrition Free and Reduced Price Applications and Verification Condition:The list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications were not available for the 2021-2022 school to perform the compliance testing due to the food service director retiring at year end and the documents could not be found. Therefore, we were unable to test the eligibility of the free and reduced students. Criteria: The District must keep on file the free and reduced applications for all households. The District must also keep the verifications of the current free and reduced price eligibility of the households selected for verification. Cause: The new food service director could not find the retired food service director?s list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications. The new food service director also reached out to the retired food service director to help find the required documentation, but could not get a response. Effect: Since the documents were not found we were unable to perform the necessary testing of the program. Recommendations: The District should discuss the importance of these documents with the appropriate employees. There should also be a policy in place to keep all important documents and to scan any documents. Management Views and Corrective Action Plan: See corrective action plan 2022-004.
2022-001 Segregation of Duties Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education?s and management?s knowledge of matters relating to the District?s operations. Management Views and Corrective Action Plan: See corrective action plan 2022-001.
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.
2022-004 Child Nutrition Free and Reduced Price Applications and Verification Condition:The list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications were not available for the 2021-2022 school to perform the compliance testing due to the food service director retiring at year end and the documents could not be found. Therefore, we were unable to test the eligibility of the free and reduced students. Criteria: The District must keep on file the free and reduced applications for all households. The District must also keep the verifications of the current free and reduced price eligibility of the households selected for verification. Cause: The new food service director could not find the retired food service director?s list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications. The new food service director also reached out to the retired food service director to help find the required documentation, but could not get a response. Effect: Since the documents were not found we were unable to perform the necessary testing of the program. Recommendations: The District should discuss the importance of these documents with the appropriate employees. There should also be a policy in place to keep all important documents and to scan any documents. Management Views and Corrective Action Plan: See corrective action plan 2022-004.
2022-001 Segregation of Duties Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control. Criteria: Lack of segregation of duties. Cause: The limited number of office staff results in incompatible functions being performed by the same individuals. Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded. Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education?s and management?s knowledge of matters relating to the District?s operations. Management Views and Corrective Action Plan: See corrective action plan 2022-001.
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.
2022-004 Child Nutrition Free and Reduced Price Applications and Verification Condition:The list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications were not available for the 2021-2022 school to perform the compliance testing due to the food service director retiring at year end and the documents could not be found. Therefore, we were unable to test the eligibility of the free and reduced students. Criteria: The District must keep on file the free and reduced applications for all households. The District must also keep the verifications of the current free and reduced price eligibility of the households selected for verification. Cause: The new food service director could not find the retired food service director?s list of eligible free and reduced students, child nutrition free and reduced price applications and the verifications. The new food service director also reached out to the retired food service director to help find the required documentation, but could not get a response. Effect: Since the documents were not found we were unable to perform the necessary testing of the program. Recommendations: The District should discuss the importance of these documents with the appropriate employees. There should also be a policy in place to keep all important documents and to scan any documents. Management Views and Corrective Action Plan: See corrective action plan 2022-004.