Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The limited size of the District?s office staff prevents the ideal separation of functions. The bookkeeper prints payroll checks, sends payroll files to the bank, and has access to the password to print electronic signatures. The Business Manager has access to manual checkbooks, has access to the stamped signatures, and is involved in the bank reconciliation process. Criteria: Internal controls should be in place that provide adequate segregation of duties. Effect: Failure to properly segregate duties may allow for errors or irregularities to occur and not be detected in a timely manner by employees in the normal course of performing their assigned functions. Cause: Limited number of personnel. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board reviews and approves all expenditures on a monthly basis, and the Business Manager reviews the payroll files prior to payroll processing.
Finding #2022-004 ? Material Adjustments (Prior Year Finding #2021-004) Condition: The auditor recorded numerous adjusting journal entries to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District?s internal controls. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Cause: The District did not have procedures in place to ensure that all transactions are properly recorded in the general ledger prior to the audit. Effect: This means that the proper recording and reporting of financial information may not occur within a timely manner. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor.
Finding #2022-005 ? Education Stabilization Fund ? ESSER I and ESSER II #84.425D (Prior Year Finding #2021-007) Federal Grantor ? U.S. Department of Education Pass-through Award Numbers ? 2021-224904-DPI-ESSERF-160 and 2022-224904-DPI-ESSERFII-163 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: There were two Education Stabilization Fund construction projects performed by contractors. ESSER I grant expenditures for the project totaled $10,445 and ESSER II grant expenditures for the project totaled $21,238. There was not a prevailing wage clause in the contract and certified payrolls were not received while construction was occurring. Labor costs for the ESSER I project totaled $2,691. Labor costs for the ESSER II project totaled $2,800. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contacts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the prevailing wage rate requirements. Recommendation: Establish controls to comply with prevailing wage rate requirements related to the Education Stabilization Fund. Response: The District is working with each contractor and their attorneys to determine the amount of backpay owed to employees to ensure prevailing wage rates are paid. Once the District became aware of this requirement, all construction contracts in excess of $2,000 funded with federal dollars a prevailing wage rate clause in the request for bid and contract. Certified payrolls are being receiving on all current applicable projects.