FAC Explorer

Audit 289834

FY End
2023-06-30
Total Expended
$889,108
Findings
12
Programs
11
Organization: School District of Stratford (WI)
Year: 2023 Accepted: 2024-02-10
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
366789 2023-003 Material Weakness Yes EIL
366790 2023-003 Material Weakness Yes EIL
366791 2023-003 Material Weakness Yes EIL
366792 2023-004 Material Weakness - L
366793 2023-004 Material Weakness - L
366794 2023-004 Material Weakness - L
943231 2023-003 Material Weakness Yes EIL
943232 2023-003 Material Weakness Yes EIL
943233 2023-003 Material Weakness Yes EIL
943234 2023-004 Material Weakness - L
943235 2023-004 Material Weakness - L
943236 2023-004 Material Weakness - L

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $164,225 - 0
84.010 Title I Grants to Local Educational Agencies $93,749 - 0
93.778 Medical Assistance Program $52,133 - 0
10.555 National School Lunch Program $34,254 Yes 1
10.553 School Breakfast Program $24,871 Yes 1
84.367 Improving Teacher Quality State Grants $18,839 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $11,249 - 0
84.424 Student Support and Academic Enrichment Program $10,207 - 0
84.173 Special Education_preschool Grants $10,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $4,922 - 0
84.425 Education Stabilization Fund $3,750 Yes 1

Contacts

Name Title Type
HKXAULK2LJN3 Lauren Lucius Auditee
7156874311 Jon Trautman, 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 District’s 2023 fund financial statements. 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. 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. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. The accompanying schedules of expenditures of federal and state awards for the School District of Stratford (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 Wisconsin Public School District Audit Manual issued by the Wisconsin Department of Public Instruction. The schedules of expenditures of federal and state awards include 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 of the District.
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 District’s 2023 fund financial statements. 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. 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. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. 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 AGENCY 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 District’s 2023 fund financial statements. 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. 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. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. The federal and state oversight agencies for the District are as follows: Federal – U.S. Department of Education State – Wisconsin Department of Public Instruction
Title: PASS-THROUGH ENTITIES 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 District’s 2023 fund financial statements. 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. 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. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The District has not elected to charge a de minimis rate of 10% of modified total costs. Federal awards have been passed-through the following entities: WI DHS – Wisconsin Department of Health Services WI DPI – Wisconsin Department of Public Instruction CESA #9 – Cooperative Educational Services Agency #9

Finding Details

Finding 2023-003
2023-003 Child Nutrition Cluster - Segregation of Duties Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-375628-DPI-SB-546, 2023-375628-DPI-NSL-547 Award period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Compliance Requirements: Eligibility, Procurement, Reporting Criteria or Specific Requirement: Uniform Guidance requires entities that expend federal funds are required to implement a system of internal controls to ensure that the entity remains in compliance with the requirements of the grant. 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 transaction. Condition: For activities related to Eligibility, Procurement, and Reporting, the District had not established procedures related to the documenting of the review and approval of the compliance requirements. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: During our testing we noted no review of the calculation of eligibility for the five applications submitted for testing, no review of the six monthly reports selected for testing, no approval on eight of the eleven micro-purchase transactions, and no documentation to support the price comparison for two of the three small purchase transactions selected for testing. Cause: The District has not established policies to identify an individual to review the District’s compliance with the federal awards and how their review and approval is documented Effect: Without an adequately designed system of internal controls over compliance, the District has an increased risk of non-compliance with the grant requirements. These risks include providing or denying benefits incorrectly, misreporting activities, or violating federal procurement requirements. Repeat Finding: Repeat of Finding 2022-004 and 2022-005 Recommendation: We recommend that the District review the compliance requirements of the grant program and evaluate the currently assigned responsibilities by position to ensure that an adequate system of internal controls, including proper segregation of duties, exists. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Child Nutrition Cluster - Segregation of Duties Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-375628-DPI-SB-546, 2023-375628-DPI-NSL-547 Award period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Compliance Requirements: Eligibility, Procurement, Reporting Criteria or Specific Requirement: Uniform Guidance requires entities that expend federal funds are required to implement a system of internal controls to ensure that the entity remains in compliance with the requirements of the grant. 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 transaction. Condition: For activities related to Eligibility, Procurement, and Reporting, the District had not established procedures related to the documenting of the review and approval of the compliance requirements. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: During our testing we noted no review of the calculation of eligibility for the five applications submitted for testing, no review of the six monthly reports selected for testing, no approval on eight of the eleven micro-purchase transactions, and no documentation to support the price comparison for two of the three small purchase transactions selected for testing. Cause: The District has not established policies to identify an individual to review the District’s compliance with the federal awards and how their review and approval is documented Effect: Without an adequately designed system of internal controls over compliance, the District has an increased risk of non-compliance with the grant requirements. These risks include providing or denying benefits incorrectly, misreporting activities, or violating federal procurement requirements. Repeat Finding: Repeat of Finding 2022-004 and 2022-005 Recommendation: We recommend that the District review the compliance requirements of the grant program and evaluate the currently assigned responsibilities by position to ensure that an adequate system of internal controls, including proper segregation of duties, exists. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Child Nutrition Cluster - Segregation of Duties Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-375628-DPI-SB-546, 2023-375628-DPI-NSL-547 Award period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Compliance Requirements: Eligibility, Procurement, Reporting Criteria or Specific Requirement: Uniform Guidance requires entities that expend federal funds are required to implement a system of internal controls to ensure that the entity remains in compliance with the requirements of the grant. 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 transaction. Condition: For activities related to Eligibility, Procurement, and Reporting, the District had not established procedures related to the documenting of the review and approval of the compliance requirements. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: During our testing we noted no review of the calculation of eligibility for the five applications submitted for testing, no review of the six monthly reports selected for testing, no approval on eight of the eleven micro-purchase transactions, and no documentation to support the price comparison for two of the three small purchase transactions selected for testing. Cause: The District has not established policies to identify an individual to review the District’s compliance with the federal awards and how their review and approval is documented Effect: Without an adequately designed system of internal controls over compliance, the District has an increased risk of non-compliance with the grant requirements. These risks include providing or denying benefits incorrectly, misreporting activities, or violating federal procurement requirements. Repeat Finding: Repeat of Finding 2022-004 and 2022-005 Recommendation: We recommend that the District review the compliance requirements of the grant program and evaluate the currently assigned responsibilities by position to ensure that an adequate system of internal controls, including proper segregation of duties, exists. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 ESSER - Segregation of Duties – Grant Reporting Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165 Award period: March 13, 2020 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District may incorrectly report certain activities. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 ESSER - Segregation of Duties – Grant Reporting Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165 Award period: March 13, 2020 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District may incorrectly report certain activities. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 ESSER - Segregation of Duties – Grant Reporting Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165 Award period: March 13, 2020 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District may incorrectly report certain activities. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Child Nutrition Cluster - Segregation of Duties Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-375628-DPI-SB-546, 2023-375628-DPI-NSL-547 Award period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Compliance Requirements: Eligibility, Procurement, Reporting Criteria or Specific Requirement: Uniform Guidance requires entities that expend federal funds are required to implement a system of internal controls to ensure that the entity remains in compliance with the requirements of the grant. 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 transaction. Condition: For activities related to Eligibility, Procurement, and Reporting, the District had not established procedures related to the documenting of the review and approval of the compliance requirements. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: During our testing we noted no review of the calculation of eligibility for the five applications submitted for testing, no review of the six monthly reports selected for testing, no approval on eight of the eleven micro-purchase transactions, and no documentation to support the price comparison for two of the three small purchase transactions selected for testing. Cause: The District has not established policies to identify an individual to review the District’s compliance with the federal awards and how their review and approval is documented Effect: Without an adequately designed system of internal controls over compliance, the District has an increased risk of non-compliance with the grant requirements. These risks include providing or denying benefits incorrectly, misreporting activities, or violating federal procurement requirements. Repeat Finding: Repeat of Finding 2022-004 and 2022-005 Recommendation: We recommend that the District review the compliance requirements of the grant program and evaluate the currently assigned responsibilities by position to ensure that an adequate system of internal controls, including proper segregation of duties, exists. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Child Nutrition Cluster - Segregation of Duties Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-375628-DPI-SB-546, 2023-375628-DPI-NSL-547 Award period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Compliance Requirements: Eligibility, Procurement, Reporting Criteria or Specific Requirement: Uniform Guidance requires entities that expend federal funds are required to implement a system of internal controls to ensure that the entity remains in compliance with the requirements of the grant. 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 transaction. Condition: For activities related to Eligibility, Procurement, and Reporting, the District had not established procedures related to the documenting of the review and approval of the compliance requirements. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: During our testing we noted no review of the calculation of eligibility for the five applications submitted for testing, no review of the six monthly reports selected for testing, no approval on eight of the eleven micro-purchase transactions, and no documentation to support the price comparison for two of the three small purchase transactions selected for testing. Cause: The District has not established policies to identify an individual to review the District’s compliance with the federal awards and how their review and approval is documented Effect: Without an adequately designed system of internal controls over compliance, the District has an increased risk of non-compliance with the grant requirements. These risks include providing or denying benefits incorrectly, misreporting activities, or violating federal procurement requirements. Repeat Finding: Repeat of Finding 2022-004 and 2022-005 Recommendation: We recommend that the District review the compliance requirements of the grant program and evaluate the currently assigned responsibilities by position to ensure that an adequate system of internal controls, including proper segregation of duties, exists. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-003
2023-003 Child Nutrition Cluster - Segregation of Duties Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2023-375628-DPI-SB-546, 2023-375628-DPI-NSL-547 Award period: July 1, 2022 – June 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Compliance Requirements: Eligibility, Procurement, Reporting Criteria or Specific Requirement: Uniform Guidance requires entities that expend federal funds are required to implement a system of internal controls to ensure that the entity remains in compliance with the requirements of the grant. 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 transaction. Condition: For activities related to Eligibility, Procurement, and Reporting, the District had not established procedures related to the documenting of the review and approval of the compliance requirements. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: During our testing we noted no review of the calculation of eligibility for the five applications submitted for testing, no review of the six monthly reports selected for testing, no approval on eight of the eleven micro-purchase transactions, and no documentation to support the price comparison for two of the three small purchase transactions selected for testing. Cause: The District has not established policies to identify an individual to review the District’s compliance with the federal awards and how their review and approval is documented Effect: Without an adequately designed system of internal controls over compliance, the District has an increased risk of non-compliance with the grant requirements. These risks include providing or denying benefits incorrectly, misreporting activities, or violating federal procurement requirements. Repeat Finding: Repeat of Finding 2022-004 and 2022-005 Recommendation: We recommend that the District review the compliance requirements of the grant program and evaluate the currently assigned responsibilities by position to ensure that an adequate system of internal controls, including proper segregation of duties, exists. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 ESSER - Segregation of Duties – Grant Reporting Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165 Award period: March 13, 2020 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District may incorrectly report certain activities. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 ESSER - Segregation of Duties – Grant Reporting Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165 Award period: March 13, 2020 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District may incorrectly report certain activities. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2023-004
2023-004 ESSER - Segregation of Duties – Grant Reporting Federal Agency: U.S. Department of Education Federal Program Title: Elementary and Secondary School Emergency Relief Fund Assistance Listing Number: 84.425D, 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165 Award period: March 13, 2020 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: The District may incorrectly report certain activities. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants. Views of Responsible Officials: There is no disagreement with the audit finding.