Audit 331602

FY End
2024-06-30
Total Expended
$1.84M
Findings
16
Programs
17
Organization: Montello School District (WI)
Year: 2024 Accepted: 2024-12-09

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
513692 2024-001 Significant Deficiency Yes N
513693 2024-002 Material Weakness - N
513694 2024-001 Significant Deficiency Yes N
513695 2024-002 Material Weakness - N
513696 2024-001 Significant Deficiency Yes N
513697 2024-002 Material Weakness - N
513698 2024-001 Significant Deficiency Yes N
513699 2024-002 Material Weakness - N
1090134 2024-001 Significant Deficiency Yes N
1090135 2024-002 Material Weakness - N
1090136 2024-001 Significant Deficiency Yes N
1090137 2024-002 Material Weakness - N
1090138 2024-001 Significant Deficiency Yes N
1090139 2024-002 Material Weakness - N
1090140 2024-001 Significant Deficiency Yes N
1090141 2024-002 Material Weakness - N

Contacts

Name Title Type
LX6XQ6AABP23 Elizabeth Calnin Auditee
6082977617 Shawn Roelli Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Montello School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations (CFR) 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: District does not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. There were no awards passed through to subrecipients.
Title: Medical Assistance Program Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Montello School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations (CFR) 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: District does not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures presented for the Medical Assistance Program – School-Based Services represent only the federal funds received from the Wisconsin Department of Health Services. District records should be consulted to determine the total amount expended for this program. Medical Assistance Program – School-Based Services, listed as a federal award, was considered a major state program.
Title: Food Distribution Accounting Policies: The accompanying schedules of expenditures of federal and state awards includes the federal and state grant activity of the Montello School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations (CFR) 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: District does not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed.

Finding Details

Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.
Finding #2024-001 – Limited Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: The condition is due to limited staff available. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly.
Finding #2024-002 – Material Adjustments Condition: Material auditing journal entries not prepared by the District before the audit were required to be recorded. Effect: Financial reports generated by the accounting system may not provide an accurate reflection for the District’s financial position or activities. Cause: An invoice was recorded as an expense in 2023/2024 that was a 2024/2025 expense. An adjustment was needed to record this cost in the correct period. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure receipts and invoices are properly recorded in the correct period. Response: We will review the District’s procedures for recording receipts and invoices at year end to ensure they are recorded in the proper period.