Audit 398410

Federal Agency: United States Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Pass-Through Agency: Wisconsin Department of Instruction Pass-Through Number: 2025-681141-DPI-SB_SEVERE-546, 2025-681141-DPI-NSL-547, 2025- 681141-DPI-SK_NSLAE-566. 2025-681141-DPI-SFSP-586 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirements Affected: Eligibility and Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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 procedure. Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Eligibility and verification determinations are not reviewed and approved for accuracy or input into District software. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting, eligibility, and special test compliance requirements. Questioned Costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. 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 the lack of timely review. Repeat Finding: No Section III – Federal and State Award Findings and Questioned Costs (Continued) 2024-004 Segregation of Duties – Child Nutrition Cluster (Continued) Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Additionally, we recommend the district designate an individual to review eligibility and verification determinations for accuracy and proper input into software. Views of Responsible Officials: There is no disagreement with the finding.