FAC Explorer

Audit 336435

FY End
2024-06-30
Total Expended
$958,397
Findings
6
Programs
4
Organization: Cooperative Educational Service Agency No. 8 (WI)
Year: 2024 Accepted: 2025-01-08
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
518127 2024-002 Significant Deficiency Yes A
518128 2024-002 Significant Deficiency Yes A
518129 2024-002 Significant Deficiency Yes A
1094569 2024-002 Significant Deficiency Yes A
1094570 2024-002 Significant Deficiency Yes A
1094571 2024-002 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $172,997 - 0
84.027 Special Education Grants to States $70,000 - 0
84.425 Education Stabilization Fund $25,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $7,000 Yes 1

Contacts

Name Title Type
P8K9KG7MMKX1 Nick Curran Auditee
9208552114 Amber Drewieske, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Agency’s 2024 basic 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 Agency in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Agency 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 Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal and state awards for the Cooperative Education Service Agency No. 8 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 Agency. Because the schedules present only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Agency.
Title: OVERSIGHT AGENCIES Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Agency’s 2024 basic 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 Agency in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Agency 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 Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The federal and state oversight agencies for the Agency 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 accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Agency’s 2024 basic 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 Agency in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded Agency 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 Agency has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Federal awards have been passed through the following entities: WI DPI – Wisconsin Department of Public Instruction

Finding Details

Finding 2024-002
Federal Agency: Department of Education Federal Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.048A Pass-Through Agency: WI DPI Pass-Through Numbers: 2024-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2024-749908-DPI-NTO-420 Award Period: 7/1/23 – 6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards. Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement. Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties. Repeat Finding: This is a repeat of finding 2023-002. Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.
Finding 2024-002
Federal Agency: Department of Education Federal Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.048A Pass-Through Agency: WI DPI Pass-Through Numbers: 2024-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2024-749908-DPI-NTO-420 Award Period: 7/1/23 – 6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards. Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement. Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties. Repeat Finding: This is a repeat of finding 2023-002. Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.
Finding 2024-002
Federal Agency: Department of Education Federal Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.048A Pass-Through Agency: WI DPI Pass-Through Numbers: 2024-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2024-749908-DPI-NTO-420 Award Period: 7/1/23 – 6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards. Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement. Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties. Repeat Finding: This is a repeat of finding 2023-002. Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.
Finding 2024-002
Federal Agency: Department of Education Federal Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.048A Pass-Through Agency: WI DPI Pass-Through Numbers: 2024-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2024-749908-DPI-NTO-420 Award Period: 7/1/23 – 6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards. Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement. Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties. Repeat Finding: This is a repeat of finding 2023-002. Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.
Finding 2024-002
Federal Agency: Department of Education Federal Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.048A Pass-Through Agency: WI DPI Pass-Through Numbers: 2024-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2024-749908-DPI-NTO-420 Award Period: 7/1/23 – 6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards. Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement. Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties. Repeat Finding: This is a repeat of finding 2023-002. Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.
Finding 2024-002
Federal Agency: Department of Education Federal Program Name: Career and Technical Education – Basic Grants to States Assistance Listing Number: 84.048A Pass-Through Agency: WI DPI Pass-Through Numbers: 2024-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2024-749908-DPI-NTO-420 Award Period: 7/1/23 – 6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards. Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement. Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties. Repeat Finding: This is a repeat of finding 2023-002. Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.