FAC Explorer

Audit 28121

FY End
2022-06-30
Total Expended
$315.63M
Findings
2
Programs
36
Organization: Milwaukee Public Schools (WI)
Year: 2022 Accepted: 2023-03-29
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36894 2022-004 Significant Deficiency - N
613336 2022-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $83.66M - 0
10.555 National School Lunch Program $38.11M Yes 0
84.027 Special Education_grants to States $18.77M Yes 0
84.367 Supporting Effective Instruction State Grants $10.17M - 0
10.553 School Breakfast Program $9.60M Yes 0
93.778 Medical Assistance Program $9.42M Yes 1
84.424 Student Support and Academic Enrichment Program $6.95M - 0
84.287 Twenty-First Century Community Learning Centers $4.07M Yes 0
84.377 School Improvement Grants $1.79M - 0
10.582 Fresh Fruit and Vegetable Program $1.22M Yes 0
84.048 Career and Technical Education -- Basic Grants to States $1.18M - 0
84.206 Javits Gifted and Talented Students Education $956,517 - 0
84.173 Special Education_preschool Grants $659,335 Yes 0
15.662 Great Lakes Restoration $612,670 - 0
10.558 Child and Adult Care Food Program $580,825 - 0
84.299 Indian Education -- Special Programs for Indian Children $492,669 - 0
15.916 Outdoor Recreation_acquisition, Development and Planning $399,225 - 0
84.351 Arts in Education $376,559 - 0
32.009 Emergency Connectivity Fund Program $329,595 - 0
84.282 Charter Schools $186,859 - 0
20.205 Highway Planning and Construction $154,536 - 0
66.469 Geographic Programs - Great Lakes Restoration Initiative $148,408 - 0
84.196 Education for Homeless Children and Youth $143,243 - 0
93.600 Head Start $116,271 - 0
10.559 Summer Food Service Program for Children $71,157 Yes 0
93.566 Refugee and Entrant Assistance_state Administered Programs $49,303 - 0
11.419 Coastal Zone Management Administration Awards $43,969 - 0
84.411 Education Innovation and Research $40,092 - 0
84.060 Indian Education_grants to Local Educational Agencies $38,837 - 0
93.500 Pregnancy Assistance Fund Program $20,760 - 0
84.365 English Language Acquisition State Grants $17,059 - 0
84.425 Education Stabilization Fund $5,249 Yes 0
10.664 Cooperative Forestry Assistance $3,792 - 0
10.575 Farm to School Grant Program $2,815 - 0
84.184 School Safety National Activities $698 - 0
81.041 State Energy Program $-4,767 - 0

Contacts

Name Title Type
JNR9Q7M4LXQ5 Martha Kreitzman Auditee
4144758440 Wendi Unger Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: Revenues and ExpendituresRevenues and expenditures in the Schedules of Expenditures of Federal and State Awards are presented in accordance with the modified accrual basis of accounting and have been reconciled to the District's fiscal 2022 basic financial statements. Grantor reimbursements reflect amounts received from the various funding agencies during the year. Receivables at year-end consist of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while deferred revenues represent advances for federal and state programs that exceed recorded District expenditures.SubgranteesCertain program funds are passed through the District to subgrantee organizations. The Schedules of Expenditures of Federal and State Awards do not contain separate schedules disclosing how the subgrantees outside of the District's control utilized the funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Milwaukee Public Schools (the District) was established on February 3, 1846 and operates under Chapter 119 of the Wisconsin Statutes. All significant operations of the District are included in the scope of the Single Audit 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.All financial assistance programs of the District which involve awards from the federal government or federal awards passed through the State of Wisconsin and certain state assistance programs, as required by the State Single Audit Guidelines, are included in the Schedules of Expenditures of Federal and State Awards. The Schedules of Expenditures of Federal and State Awards present only a selected portion of the operations of the District, they are not intended to and do not present the financial position or changes in net position of the District.Programs subject to the Single Audit all federal and state program awards received by the District have been included in the Schedules of Expenditures of Federal and State Awards. Federal and state programs are defined as major through a risk-based approach.
Title: 3. Contingency Accounting Policies: Revenues and ExpendituresRevenues and expenditures in the Schedules of Expenditures of Federal and State Awards are presented in accordance with the modified accrual basis of accounting and have been reconciled to the District's fiscal 2022 basic financial statements. Grantor reimbursements reflect amounts received from the various funding agencies during the year. Receivables at year-end consist of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while deferred revenues represent advances for federal and state programs that exceed recorded District expenditures.SubgranteesCertain program funds are passed through the District to subgrantee organizations. The Schedules of Expenditures of Federal and State Awards do not contain separate schedules disclosing how the subgrantees outside of the District's control utilized the funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. All federal and state award programs are subject to review and audit by the grantor agencies. Such audits could lead to requests for reimbursement to the grantor agencies for costs disallowed under the terms of the programs. It is the opinion of management that all costs charged against those federal and state programs are allowable under the regulations of those programs.
Title: 4. Program Disclosures Accounting Policies: Revenues and ExpendituresRevenues and expenditures in the Schedules of Expenditures of Federal and State Awards are presented in accordance with the modified accrual basis of accounting and have been reconciled to the District's fiscal 2022 basic financial statements. Grantor reimbursements reflect amounts received from the various funding agencies during the year. Receivables at year-end consist of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while deferred revenues represent advances for federal and state programs that exceed recorded District expenditures.SubgranteesCertain program funds are passed through the District to subgrantee organizations. The Schedules of Expenditures of Federal and State Awards do not contain separate schedules disclosing how the subgrantees outside of the District's control utilized the funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedules of Expenditures of Federal and State Awards are organized by awarding agency.
Title: 5. Cognizant Agencies Accounting Policies: Revenues and ExpendituresRevenues and expenditures in the Schedules of Expenditures of Federal and State Awards are presented in accordance with the modified accrual basis of accounting and have been reconciled to the District's fiscal 2022 basic financial statements. Grantor reimbursements reflect amounts received from the various funding agencies during the year. Receivables at year-end consist of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while deferred revenues represent advances for federal and state programs that exceed recorded District expenditures.SubgranteesCertain program funds are passed through the District to subgrantee organizations. The Schedules of Expenditures of Federal and State Awards do not contain separate schedules disclosing how the subgrantees outside of the District's control utilized the funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The U.S. Department of Education and the Wisconsin Department of Public Instruction have been designated as federal and state cognizant agencies, respectively, for the District.
Title: 6. Special Education Costs Accounting Policies: Revenues and ExpendituresRevenues and expenditures in the Schedules of Expenditures of Federal and State Awards are presented in accordance with the modified accrual basis of accounting and have been reconciled to the District's fiscal 2022 basic financial statements. Grantor reimbursements reflect amounts received from the various funding agencies during the year. Receivables at year-end consist of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while deferred revenues represent advances for federal and state programs that exceed recorded District expenditures.SubgranteesCertain program funds are passed through the District to subgrantee organizations. The Schedules of Expenditures of Federal and State Awards do not contain separate schedules disclosing how the subgrantees outside of the District's control utilized the funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Eligible costs for special education under project 011 were $185,985,222 for the year ended June 30, 2022.
Title: 7. Pass-Through Entities Accounting Policies: Revenues and ExpendituresRevenues and expenditures in the Schedules of Expenditures of Federal and State Awards are presented in accordance with the modified accrual basis of accounting and have been reconciled to the District's fiscal 2022 basic financial statements. Grantor reimbursements reflect amounts received from the various funding agencies during the year. Receivables at year-end consist of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while deferred revenues represent advances for federal and state programs that exceed recorded District expenditures.SubgranteesCertain program funds are passed through the District to subgrantee organizations. The Schedules of Expenditures of Federal and State Awards do not contain separate schedules disclosing how the subgrantees outside of the District's control utilized the funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District received federal awards from the following pass-through entities:WI DPI Wisconsin Department of Public InstructionWI DHSWisconsin Department of Health ServicesWI DOTWisconsin Department of TransportationWI DCFWisconsin Department of Children and FamiliesWI DMAWisconsin Department of Military AffairsWI DOAWisconsin Department of AdministrationCESA 11Cooperative Educational Service Agency #11UWUniversity of Wisconsin SystemNFWFNational Fish and Wildlife FoundationPSCWPublic Service Commission of WisconsinMUMarquette UniversityBGCBoys and Girls ClubWI DNRWisconsin Department of Natural ResourcesPass through entity identifying numbers are presented when available.

Finding Details

Finding 2022-004
Federal ID Number and Program Name: 93.778 Medical Assistance Program Federal Agency: U.S. Department of Health and Human Services Award Amount: $9,422,655 Award Number: N/A Criteria: According to the Wisconsin School-Based Services Medicaid Cost Report and Cost Settlement Training Guide, the IEP ratio is reported within the General and Statistical Information section of the online annual cost report and is used to apportion Medicaid allowable costs versus total special education costs for direct medical services. The IEP ratio is made up of the ?Number of Unique Medicaid Eligible with a prescribed Medical Service in the IEP? (numerator) and the ?Number of Unique SPED Students with a prescribed Medical Service in the IEP.? Condition: The numerator of the IEP ratio reported in the FY21 annual cost report was not supported by the list of Medicaid-eligible students and was overstated by 42 students. The ratio reported in the annual cost report was 33.21% and the ratio calculated based on the number of Medicaid-eligible students should have been 32.68%. Cause: The numerator was not based on a list of Medicaid-eligible students. Questioned Costs: Could not be determined. Context: The numerator and denominator of the IEP ratio were compared to the student listing. No sampling occurred for this test. Effect: Since the IEP Ratio is used to apportion Medicaid allowable costs versus total special education costs for direct medical services, the Medicaid apportionment could be incorrect. Recommendation: We recommend the IEP ratio be supported by a list of Medicaid-eligible students and a list of the total number of IEP students that receive a medical service. Views of Responsible Official: Management concurs with the finding.
Finding 2022-004
Federal ID Number and Program Name: 93.778 Medical Assistance Program Federal Agency: U.S. Department of Health and Human Services Award Amount: $9,422,655 Award Number: N/A Criteria: According to the Wisconsin School-Based Services Medicaid Cost Report and Cost Settlement Training Guide, the IEP ratio is reported within the General and Statistical Information section of the online annual cost report and is used to apportion Medicaid allowable costs versus total special education costs for direct medical services. The IEP ratio is made up of the ?Number of Unique Medicaid Eligible with a prescribed Medical Service in the IEP? (numerator) and the ?Number of Unique SPED Students with a prescribed Medical Service in the IEP.? Condition: The numerator of the IEP ratio reported in the FY21 annual cost report was not supported by the list of Medicaid-eligible students and was overstated by 42 students. The ratio reported in the annual cost report was 33.21% and the ratio calculated based on the number of Medicaid-eligible students should have been 32.68%. Cause: The numerator was not based on a list of Medicaid-eligible students. Questioned Costs: Could not be determined. Context: The numerator and denominator of the IEP ratio were compared to the student listing. No sampling occurred for this test. Effect: Since the IEP Ratio is used to apportion Medicaid allowable costs versus total special education costs for direct medical services, the Medicaid apportionment could be incorrect. Recommendation: We recommend the IEP ratio be supported by a list of Medicaid-eligible students and a list of the total number of IEP students that receive a medical service. Views of Responsible Official: Management concurs with the finding.