Audit 24809

FY End
2022-06-30
Total Expended
$782,652
Findings
18
Programs
12
Organization: School District of Sevastopol (WI)
Year: 2022 Accepted: 2023-02-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
35089 2022-003 Material Weakness Yes L
35090 2022-004 Material Weakness - N
35091 2022-005 Significant Deficiency - I
35092 2022-003 Material Weakness Yes L
35093 2022-004 Material Weakness - N
35094 2022-005 Significant Deficiency - I
35095 2022-003 Material Weakness Yes L
35096 2022-004 Material Weakness - N
35097 2022-005 Significant Deficiency - I
611531 2022-003 Material Weakness Yes L
611532 2022-004 Material Weakness - N
611533 2022-005 Significant Deficiency - I
611534 2022-003 Material Weakness Yes L
611535 2022-004 Material Weakness - N
611536 2022-005 Significant Deficiency - I
611537 2022-003 Material Weakness Yes L
611538 2022-004 Material Weakness - N
611539 2022-005 Significant Deficiency - I

Contacts

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

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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: Special Education and School Age Parents Program 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 Districts 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2021 - 2022 eligible costs under the State Special Education Program as reported by the District are $1,473,449. Compiled information required by compliance requirement 1 1 of the Special Education Audit Program was reported to the Wisconsin Department of Public Instruction.
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 Districts 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule of expenditures of federal awards at the fair market value of the commodities received and disbursed.
Title: Oversight Agencies Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal and state oversight agencies for the District are as follows: Federal U.S. Department of Education and State Wisconsin Department of Public Instruction.

Finding Details

2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. 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 procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.
2022-004 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Special Tests and Provisions ? Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2021-006 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.
2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. 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 procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.
2022-004 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Special Tests and Provisions ? Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2021-006 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.
2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. 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 procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.
2022-004 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Special Tests and Provisions ? Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2021-006 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.
2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. 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 procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.
2022-004 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Special Tests and Provisions ? Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2021-006 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.
2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. 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 procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.
2022-004 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Special Tests and Provisions ? Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2021-006 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.
2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. 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 procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.
2022-004 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Special Tests and Provisions ? Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2021-006 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.
2022-005 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement Type of Finding Significant deficiency in internal control over compliance Condition During our testing of procurement transactions of the program we noted that 4 of 4 vendors selected were not supported by any price or rate quotations to ensure the District is prudent with the monies used towards the program. Criteria 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2) and that the procurement is vendor aggregate, not single item. Proposals must be solicited from an adequate number of qualified offerors. Context The District's procurement did not conform to Uniform Guidance for 4 of 4 vendors tested in our sample. Cause The District did not follow Federal Funds Procurement policy. Effect Obtaining price or rate quotations from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Repeat Finding No Section III ? Federal and State Award Findings and Questioned Costs (Continued) 2022-005 (Continued) Recommendation We recommend the District update their purchasing policy related to small purchases to not refer to single items as small purchase procurement is required to be followed on aggregate purchases by one vendor. Views of Responsible Officials There is no disagreement with the audit finding.