FAC Explorer

Audit 45879

FY End
2022-06-30
Total Expended
$1.24M
Findings
6
Programs
12
Organization: Edgar School District (WI)
Year: 2022 Accepted: 2023-01-02
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46942 2022-003 Significant Deficiency Yes L
46943 2022-003 Significant Deficiency Yes L
46944 2022-003 Significant Deficiency Yes L
623384 2022-003 Significant Deficiency Yes L
623385 2022-003 Significant Deficiency Yes L
623386 2022-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $176,065 Yes 0
84.010 Title I Grants to Local Educational Agencies $112,180 - 0
10.553 School Breakfast Program $106,667 Yes 1
93.778 Medical Assistance Program $49,223 - 0
10.555 National School Lunch Program $37,327 Yes 1
84.358 Rural Education $32,941 - 0
84.027 Special Education_grants to States $27,981 - 0
84.367 Improving Teacher Quality State Grants $17,471 - 0
84.424 Student Support and Academic Enrichment Program $11,581 - 0
32.009 Emergency Connectivity Fund Program $6,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $4,217 - 0
84.173 Special Education_preschool Grants $3,173 - 0

Contacts

Name Title Type
MDAMMJK6AV45 Morgan Mueller Auditee
7153522352 Jon Trautman, CPA Auditor
No contacts on file

Notes to SEFA

Title: BASIS FOR 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. Expenditures in the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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 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 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 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. Expenditures in the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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 $47,074. Compiled information required by compliance requirement 1-1 of the Special Education Audit Program was reported to the Wisconsin Department of Public Instruction.
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. Expenditures in the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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 Education and State - Wisconsin Department of Public Instruction.
Title: PASS-THROUGH 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. Expenditures in the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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 Services, WI DPI - Wisconsin Department of Public Instruction, and CESA #5 - Cooperative Educational Services Agency #5.
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. Expenditures in the schedules are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedules of expenditures of federal and state awards represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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.

Finding Details

Finding 2022-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 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 transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. 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 had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 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 transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. 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 had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 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 transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. 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 had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 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 transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. 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 had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 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 transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. 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 had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 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 transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. 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 had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.