Audit 378104

Reference Number: 2025-004 Program Name: Special Education Cluster Description: Unallowable Costs Condition: During our testing, we noted that 4 individuals had benefit expenditures charged for employees with no corresponding salaries charged to the grant. Criteria: Per 2 CFR 200.405 and 2 CFR 200.431, fringe benefits must be allocable to the award in proportion to the salaries and wages charged. Cause: The District lacked adequate internal controls to ensure fringe benefits charged to the grant were tied to allowable documented salaries. Effect: Unallowable costs resulted from charging benefits without salaries. Questioned Costs: Not applicable – known questioned costs did not exceed the $25,000 reporting threshold. Identification of a Repeat Finding: This is not a repeat finding. Auditors’ Recommendation: We recommend the District review payroll reports while completing grant claims to ensure fringe benefits are associated with salaries. Views of Responsible Officials: See attachment for the District’s corrective action plan.

Reference Number: 2025-005 Program Name: Special Education Cluster Description: Procurement, Suspension & Debarment Condition: The District increased its micro-purchase threshold to $50,000 in 2021. However, the District did not complete or retain the required annual self-certification which support the increased threshold. Criteria: Under 2 CFR 200.320(a)(1)(iv), the District may increase their micro-purchase threshold above the federal default limit only if they annually self-certify that they meet the criteria for a higher threshold. Cause: The District believed that the adoption of an internal procurement policy satisfied the requirement. Effect: Procurements up to $50,000 were made using an unsupported micro-purchase threshold. While no unallowable vendors were identified during the audit, the procurement process did not comply with federal requirements. Questioned Costs: Not applicable per above. Identification of a Repeat Finding: This is not a repeat finding. Auditors’ Recommendation: We recommend the District: • Prepare and maintain the required self-certification • Have this self-certification approved at the annual meeting Views of Responsible Officials: See attachment for the District’s corrective action plan.

Reference Number: 2025-003 Program Name: 93.778 - Medicaid Description: Unallowable Costs and Reporting Condition and Criteria: On a quarterly basis, the District must file with Wisconsin Medicaid the wages and benefits of direct medical service providers with whom the District requests reimbursement from Wisconsin Medicaid. During our testing, we noted 1 individual that the District included costs for associated with non-special education services (General Fund salaries and benefits). Cause: The District lacked adequate internal controls to ensure only eligible special education salaries and benefits were charged to Medicaid. Effect: The District overstated its Medicaid claim. Questioned Costs: Not applicable – known questioned costs did not exceed the $25,000 reporting threshold. Identification of a Repeat Finding: This is a repeat finding. Auditors’ Recommendation: We recommend the District implement controls to ensure that only allowable special education costs are included in the Medicaid claim. Views of Responsible Officials: See attachment for the District’s corrective action plan.