FAC Explorer

Audit 302062

FY End
2023-06-30
Total Expended
$1.50M
Findings
24
Programs
9
Organization: St. Francis School District (WI)
Year: 2023 Accepted: 2024-04-01
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391599 2023-006 Material Weakness Yes BL
391600 2023-007 Significant Deficiency - B
391601 2023-006 Material Weakness Yes BL
391602 2023-007 Significant Deficiency - B
391603 2023-006 Material Weakness Yes BL
391604 2023-007 Significant Deficiency - B
391605 2023-006 Material Weakness Yes BL
391606 2023-007 Significant Deficiency - B
391607 2023-006 Material Weakness Yes BL
391608 2023-007 Significant Deficiency - B
391609 2023-006 Material Weakness Yes BL
391610 2023-006 Material Weakness Yes BL
968041 2023-006 Material Weakness Yes BL
968042 2023-007 Significant Deficiency - B
968043 2023-006 Material Weakness Yes BL
968044 2023-007 Significant Deficiency - B
968045 2023-006 Material Weakness Yes BL
968046 2023-007 Significant Deficiency - B
968047 2023-006 Material Weakness Yes BL
968048 2023-007 Significant Deficiency - B
968049 2023-006 Material Weakness Yes BL
968050 2023-007 Significant Deficiency - B
968051 2023-006 Material Weakness Yes BL
968052 2023-006 Material Weakness Yes BL

Programs

ALN Program Spent Major Findings
84.010 Title I Grants to Local Educational Agencies $151,069 - 0
84.425 Education Stabilization Fund $143,182 Yes 1
93.778 Medical Assistance Program $107,975 - 0
10.553 School Breakfast Program $61,802 - 0
10.555 National School Lunch Program $58,905 - 0
84.027 Special Education_grants to States $46,721 Yes 2
84.424 Student Support and Academic Enrichment Program $15,725 - 0
10.559 Summer Food Service Program for Children $13,250 - 0
84.173 Special Education_preschool Grants $61 Yes 2

Contacts

Name Title Type
R62ZN7A5JL73 Jackson Parker Auditee
4147473912 Shannon Small 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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedules of expenditures of federal and state awards for the St. Francis School 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 State Single Audit Guidelines issued by the Wisconsin Department of Administration. The schedules of expenditures of federal and state awards include all federal and state awards of the District. Because the schedules present only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Special Education and School Age Parents Program Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2022 - 2023 eligible costs under the State Special Education Program as reported by the District are $2,538,587. Compiled information required by compliance requirement 1-1 of the Special Education Audit Program was reported to the Wisconsin Department of Public Instruction.
Title: Food Distribution Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule of expenditures of federal awards at the fair market value of the commodities received and disbursed.
Title: Oversight Agencies Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District’s 2023 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal and state oversight agencies for the District are as follows: Federal - U.S. Department of Education 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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior year’s ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal awards have been passed through the following entities: WI DHS - Wisconsin Department of Health Services WI DPI - Wisconsin Department of Public Instruction

Finding Details

Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-007
Finding 2023-007 Lack of Documentation of Approval – Federal and State Awards Type of Finding: Significant Deficiency in Internal Control Over Compliance Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.027A, 84.173A, 84.173X Federal Program Titles: Special Education Grants to States, Special Education Preschool Grants, COVID-19 Special Education Preschool Grants Pass-through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-405026-DPI-FLOW-341, 2023-405026-DPI-FLOW-341, 2022-405026-DPI-PRESCH-347, 2023-405026-DPI-PRESCH-347, 2022-405026-DPI-PRESCH-346 Award Period: July 1, 2022 – June 30, 2023 State Compliance Component: Community Service Fund Compliance Requirements: Allowable Costs/Cost Principles Condition: The District did not properly document prior approval for cash disbursements in the Special Education Cluster or the Community Service Fund. Context: While performing cash disbursement testing, three of the eleven disbursements tested for the Special Education Cluster did not contain documentation of approval. Two of the seventeen disbursements tested for the Community Service Fund did not contain documentation of approval. Criteria: The review and approval of disbursements by staff is an internal control intended to prevent, detect, and correct a potential omission or misstatement in the financial statements or a potential unallowable cost. Cause: The lack of documentation of approval is due to turnover in the Finance department and a lack of segregation allowing disbursements to get posted to the financial system and paid without documentation of approval. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of documentation of approval. There is also potential for unallowable costs to be charged to the program. Recommendation: We recommend that the District continue to monitor the processes and controls over cash disbursements. We recommend that all disbursements contain documentation of approval at both the invoice level, and also within the accounting system prior to payment and processing. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2023-006
Finding 2023-006 Segregation of Duties – Federal and State Awards Type of Finding: Material Weakness in Internal Control Over Compliance Other Matter Repeat of Finding 2022-003 Federal and State Agencies: All Assistance Listing Numbers: All State ID Number: All Federal and State Program Titles: All Pass-through Agencies: All Pass-Through Numbers: All Award Periods: All Compliance Requirements: Allowable Costs/Cost Principles, Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: 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 or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.