FAC Explorer

Audit 31730

FY End
2022-06-30
Total Expended
$7.35M
Findings
4
Programs
11
Organization: Verona Area School District (WI)
Year: 2022 Accepted: 2023-06-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35016 2022-001 Significant Deficiency - I
35017 2022-001 Significant Deficiency - I
611458 2022-001 Significant Deficiency - I
611459 2022-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.37M Yes 0
10.553 School Breakfast Program $1.07M - 0
84.027 Special Education_grants to States $929,691 Yes 1
93.778 Medical Assistance Program $636,665 Yes 0
84.010 Title I Grants to Local Educational Agencies $254,038 - 0
10.555 National School Lunch Program $238,823 Yes 0
84.365 English Language Acquisiton State Grants $75,852 - 0
84.173 Special Education_preschool Grants $55,273 Yes 1
84.367 Improving Teacher Quality State Grants $50,073 - 0
84.048 Career and Technical Education - Basic Grants to States $25,827 - 0
84.424 Student Support and Academic Enrichment Program $11,340 - 0

Contacts

Name Title Type
M1ADGQHWN8U5 Peter Grender Auditee
6088454300 Amber Drewieske, CPA Auditor
No contacts on file

Notes to SEFA

Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedules of expenditures of federal and state awards for the Verona Area 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 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances.The District has not elected to charge a de minimis rate of 10% of modified total costs.
Title: SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM Accounting Policies: The accompanying schedules of expenditures of federal and state awards for the Verona Area 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 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2021-2022 eligible costs under the State Special Education Program as reported by the District are $11,271,980. 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: The accompanying schedules of expenditures of federal and state awards for the Verona Area 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 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. 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 AGENCY Accounting Policies: The accompanying schedules of expenditures of federal and state awards for the Verona Area 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 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. 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 EducationState Wisconsin Department of Public Instruction

Finding Details

Finding 2022-001
2022 ? 001: Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Education Federal Program Name: IDEA Assistance Listing Number: 84.027; 84.173 Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2021-135901-DIP-IDEA-FT-341; 2021-135901-DPI-IDEA-P-347 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement or suspension and debarment policy that meets the requirements of the Uniform Guidance. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of responsible officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Finding 2022-001
2022 ? 001: Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Education Federal Program Name: IDEA Assistance Listing Number: 84.027; 84.173 Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2021-135901-DIP-IDEA-FT-341; 2021-135901-DPI-IDEA-P-347 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement or suspension and debarment policy that meets the requirements of the Uniform Guidance. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of responsible officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Finding 2022-001
2022 ? 001: Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Education Federal Program Name: IDEA Assistance Listing Number: 84.027; 84.173 Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2021-135901-DIP-IDEA-FT-341; 2021-135901-DPI-IDEA-P-347 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement or suspension and debarment policy that meets the requirements of the Uniform Guidance. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of responsible officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.
Finding 2022-001
2022 ? 001: Procurement, Suspension, and Debarment Federal Agency: U.S. Department of Education Federal Program Name: IDEA Assistance Listing Number: 84.027; 84.173 Pass-Through Agency: Wisconsin Department of Public Institution Pass-Through Numbers: 2021-135901-DIP-IDEA-FT-341; 2021-135901-DPI-IDEA-P-347 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Matter Criteria or specific requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement or suspension and debarment policy that meets the requirements of the Uniform Guidance. Context: During our testing of procurement transactions of the program we noted that the District is not following federal procurement requirements, as it relates to conflict of interest. In addition, during our testing of suspension and debarment, we noted that the District is not following federal suspension and debarment requirements nor does the currently policy include procedures relating to suspension and debarment. Cause: The District has not implemented procurement or suspension and debarment policies that meet the requirements of the Uniform Guidance. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair completive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of responsible officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement and suspension and debarment policy to be in compliance with Uniform Guidance.