FAC Explorer

Audit 351427

FY End
2024-06-30
Total Expended
$2.56M
Findings
12
Programs
7
Organization: Cooperative Educational Service Agency #5 (WI)
Year: 2024 Accepted: 2025-03-31
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547054 2024-004 Significant Deficiency - P
547055 2024-004 Significant Deficiency - P
547056 2024-004 Significant Deficiency - P
547057 2024-004 Significant Deficiency - P
547058 2024-004 Significant Deficiency - P
547059 2024-004 Significant Deficiency - P
1123496 2024-004 Significant Deficiency - P
1123497 2024-004 Significant Deficiency - P
1123498 2024-004 Significant Deficiency - P
1123499 2024-004 Significant Deficiency - P
1123500 2024-004 Significant Deficiency - P
1123501 2024-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.181 Special Education-Grants for Infants and Families $887,649 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $274,684 - 0
84.173 Special Education Preschool Grants $218,920 Yes 1
84.048 Career and Technical Education -- Basic Grants to States $132,922 - 0
84.027 Special Education Grants to States $116,208 Yes 1
84.011 Migrant Education State Grant Program $68,845 - 0
84.365 English Language Acquisition State Grants $54,461 - 0

Contacts

Name Title Type
G6QLH5MQY6J6 Mike Koltes Auditee
6087455416 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 Educational Service Agency No. 5 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 Wisconsin Department of Public Instruction is the state oversight agency for the Agency.
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 DHS - Wisconsin Department of Health Services WI DPI - Wisconsin Department of Public Instruction CESA 1 - Cooperative Educational Service Agency No. 1 CESA 11 - Cooperative Educational Service Agency No. 11 CESA 12 - Cooperative Educational Service Agency No. 12

Finding Details

Finding 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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 2024-004
Federal Agency: Department of Education Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public Assistance Listing Number: 84.027, 84.173 Pass-Through Agency: WI DPI Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348 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. Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued) Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place. Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts. 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 not a repeat finding. 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.