Audit 341853

FY End
2024-06-30
Total Expended
$783,542
Findings
4
Programs
8
Organization: Raymond #14 School District (WI)
Year: 2024 Accepted: 2025-02-10
Auditor: Lucida LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
522616 2024-005 Material Weakness - L
522617 2024-006 - - L
1099058 2024-005 Material Weakness - L
1099059 2024-006 - - L

Contacts

Name Title Type
XLJ2GM24FA61 Michael Leach Auditee
2628352929 Pattie Reda Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedules of expenditures of federal and state awards (the “Schedules”) includes the federal and state award activity of the District under programs of the federal and state government for the year ended June 30, 2024. The information in the Schedules is presented in accordance with the requirements of the 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 Public Instruction. Therefore, some amounts presented in the Schedules may differ from amounts presented in, or used in, the preparation of the basic financial statements. All federal and state awards received directly from federal and state agencies as well as federal and state financial awards passed through other government agencies are included on these Schedules.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and the Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There were no awards passed through to subrecipients.

Finding Details

Condition: During our testing it was noted that the accounting records segregated for ESSER funds did not match reported claims for the same period. Criteria: The District must have internal controls in place to ensure that accounting and reporting records are appropriate for grants claimed. Cause: The District did not appropriately record expenditures applied to the ESSER funds. Effect: The District has a significant deficiency in internal control and has not appropriately documented expenditures applied to grants. Recommendation: We recommend that the District devise and implement a control whereby specific general ledger account balances are compared to cost reimbursement claims prior to submission of a claim to ensure that costs are appropriately claimed. Views of Responsible Officials: See attachment for District’s corrective action plan.
Condition: The District claimed costs in the amount of $112,669 for technology equipment. In examining backup documentation, invoices amounting to $90,539 we provided. Criteria: The District must have internal controls I place to ensure that amounts claimed on cost reimbursement grants are appropriate. Cause: The District does not have appropriate controls in place to ensure that amounts claimed for reimbursement are appropriate and match documentation. Effect: The District could have charged costs to the program that were not legitimate. Questioned Costs: $22,130 Recommendation: The District should implement internal controls over grant claims which verify that amounts being claimed match accounting records and supporting documentation. Views of Responsible Officials: See attachment for District’s corrective action plan.
Condition: During our testing it was noted that the accounting records segregated for ESSER funds did not match reported claims for the same period. Criteria: The District must have internal controls in place to ensure that accounting and reporting records are appropriate for grants claimed. Cause: The District did not appropriately record expenditures applied to the ESSER funds. Effect: The District has a significant deficiency in internal control and has not appropriately documented expenditures applied to grants. Recommendation: We recommend that the District devise and implement a control whereby specific general ledger account balances are compared to cost reimbursement claims prior to submission of a claim to ensure that costs are appropriately claimed. Views of Responsible Officials: See attachment for District’s corrective action plan.
Condition: The District claimed costs in the amount of $112,669 for technology equipment. In examining backup documentation, invoices amounting to $90,539 we provided. Criteria: The District must have internal controls I place to ensure that amounts claimed on cost reimbursement grants are appropriate. Cause: The District does not have appropriate controls in place to ensure that amounts claimed for reimbursement are appropriate and match documentation. Effect: The District could have charged costs to the program that were not legitimate. Questioned Costs: $22,130 Recommendation: The District should implement internal controls over grant claims which verify that amounts being claimed match accounting records and supporting documentation. Views of Responsible Officials: See attachment for District’s corrective action plan.