FAC Explorer

Audit 36188

FY End
2022-06-30
Total Expended
$1.42M
Findings
8
Programs
10
Organization: St. Francis School District (WI)
Year: 2022 Accepted: 2023-03-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28407 2022-003 Material Weakness Yes P
28408 2022-003 Material Weakness Yes P
28409 2022-003 Material Weakness Yes P
28410 2022-003 Material Weakness Yes P
604849 2022-003 Material Weakness Yes P
604850 2022-003 Material Weakness Yes P
604851 2022-003 Material Weakness Yes P
604852 2022-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $176,825 - 0
84.010 Title I Grants to Local Educational Agencies $141,913 - 0
10.553 School Breakfast Program $134,649 Yes 1
84.425 Education Stabilization Fund $79,889 - 0
10.555 National School Lunch Program $51,767 Yes 1
84.027 Special Education_grants to States $26,031 - 0
84.367 Improving Teacher Quality State Grants $24,343 - 0
10.559 Summer Food Service Program for Children $17,928 Yes 1
84.424 Student Support and Academic Enrichment Program $11,738 - 0
84.173 Special Education_preschool Grants $9,943 - 0

Contacts

Name Title Type
R62ZN7A5JL73 Deborah Kerr Auditee
4147473910 Jordan Boehm 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 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 Wisconsin 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedules of expenditures of federal and state awards for the St. Francis 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 Wisconsin 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.
Title: Special Education and School Age Parents Accounting Policies: 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 Wisconsin 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. 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 $2,331,533. 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: 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 Wisconsin 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. 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 Agencies Accounting Policies: 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 Wisconsin 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. 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
Title: Pass Through Entities Accounting Policies: 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 Wisconsin 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal awards have been passed through the following entities:WI DHS - Wisconsin Department of Health ServicesWI DPI - Wisconsin Department of Public Instruction

Finding Details

Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.
Finding 2022-003
Finding No. Control Deficiencies 2022-003 Segregation of Duties ? Federal and State Awards Type of Finding: Material Weakness In Internal Control Over Compliance Repeat of Finding 2021-003 Assistance Listing Number ? All State ID Number ? All Compliance Requirements: Allowable Costs/Cost Principles Reporting Condition: The District has one position to essentially complete or review and approve all financial and recordkeeping activities of the District. Context: While performing audit procedures, it was noted that the District did not have adequate segregation of duties for internal control purposes during the majority of the fiscal year. Criteria: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction or process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District has not completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls which could be implemented to reduce the risk of errors or intentional fraud. Effect: Errors or intentional fraud could occur and not be detected in a timely manner by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Recommendation: We recommend that the District Board of Education continue to monitor the transactions and the financial records of the District. We recommend that the District perform a risk assessment of its operations and current procedures to identify and implement mitigating controls to reduce the risk of errors and intentional fraud. Management Response: There is no disagreement with the audit finding.