Audit 45412

FY End
2022-06-30
Total Expended
$921,527
Findings
8
Programs
9
Organization: Howards Grove School District (WI)
Year: 2022 Accepted: 2023-01-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
45435 2022-003 Material Weakness - I
45436 2022-003 Material Weakness - I
45437 2022-003 Material Weakness - I
45438 2022-003 Material Weakness - I
621877 2022-003 Material Weakness - I
621878 2022-003 Material Weakness - I
621879 2022-003 Material Weakness - I
621880 2022-003 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $126,137 - 0
84.027 Special Education_grants to States $125,437 - 0
10.553 School Breakfast Program $112,511 Yes 1
10.555 National School Lunch Program $34,894 Yes 1
84.010 Title I Grants to Local Educational Agencies $32,858 - 0
93.778 Medical Assistance Program $13,333 - 0
84.367 Improving Teacher Quality State Grants $12,386 - 0
84.173 Special Education_preschool Grants $2,130 - 0
10.556 Special Milk Program for Children $1,123 Yes 1

Contacts

Name Title Type
FQ7TUPTB91Y6 Brian Walters Auditee
9205655461 Bryan Grunewald, 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 modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. 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 District are presented in accordance with the requirements of the Wisconsin Public School District Audit Manual issued by the Wisconsin Department of Public Instruction.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 or changes in net position of the District.
Title: SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM 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. 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 $1,229,841. 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. 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. 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 Wisconsin Department of Public Instruction is the state oversight agency for the District. The U.S. Department of Education is the federal oversight agency for the District.

Finding Details

Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.
Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, and 10.556 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-592605-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Procurement and Suspension and Debarment Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matter Criteria or Specific Requirement: 2 CFR 200.320 Methods of Procurement outlines various purchasing methods, thresholds and requirements including, but not limited to, guidance with regards to when a non-federal entity is required to obtain rate quotations and sealed bids. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Condition: The District does not have a procurement policy that meets the requirements of the Uniform Guidance. In addition, while the District does have a policy in place related to suspension and debarment, we noted that the District is not following the policy. Context: During our testing of procurement transactions of the program we noted that District is not following federal procurement requirements and that the District policy does not follow Uniform Guidance procurement thresholds. In our testing of suspension and debarment, we noted that the District is not retaining documentation related to verification of suspension and debarment. In our sample of three covered transactions subject to suspension and debarment, we noted that the District did not retain documentation for two of the covered transactions. Cause: The District has not implemented procurement policies that meet the requirements of the Uniform Guidance. In addition, while the District does have a written policy related to suspension and debarment, the policy was not being followed. Effect: Implementing and consistently following procurement policies that meet the requirements of Uniform Guidance are required and are designed to ensure fiscal responsibility, objective contractor performance and elimination of unfair competitive advantage while spending federal funds. Additionally, not verifying that an entity is debarred or suspended could result in entering into covered transactions with debarred or suspended vendors. Recommendation: We recommend the District review and update the procurement and suspension and debarment policies. We also recommend that the District ensure that approved policies that meet federal requirements are consistently followed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the finding. Management will review and update the procurement policy in to be in compliance with Uniform Guidance.