FAC Explorer

Audit 46066

FY End
2022-06-30
Total Expended
$1.86M
Findings
12
Programs
12
Organization: Darlington Community School District (WI)
Year: 2022 Accepted: 2023-03-29
Auditor: Johnson Block and Company INC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
48296 2022-001 Significant Deficiency Yes P
48297 2022-001 Significant Deficiency Yes P
48298 2022-001 Significant Deficiency Yes P
48299 2022-001 Significant Deficiency Yes P
48300 2022-001 Significant Deficiency Yes P
48301 2022-001 Significant Deficiency Yes P
624738 2022-001 Significant Deficiency Yes P
624739 2022-001 Significant Deficiency Yes P
624740 2022-001 Significant Deficiency Yes P
624741 2022-001 Significant Deficiency Yes P
624742 2022-001 Significant Deficiency Yes P
624743 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $217,152 - 0
84.010 Title I Grants to Local Educational Agencies $187,148 - 0
32.009 Emergency Connectivity Fund Program $132,265 - 0
10.555 National School Lunch Program $91,484 Yes 1
93.778 Medical Assistance Program $80,556 - 0
84.367 Improving Teacher Quality State Grants $41,719 - 0
84.424 Student Support and Academic Enrichment Program $15,524 - 0
84.365 English Language Acquisition State Grants $10,482 - 0
84.048 Career and Technical Education -- Basic Grants to States $6,630 - 0
84.173 Special Education_preschool Grants $6,129 - 0
84.425 Education Stabilization Fund $2,759 Yes 1
10.649 Pandemic Ebt Administrative Costs $614 - 0

Contacts

Name Title Type
ZLHBLVP4YK61 Cale Jackson Auditee
6087762006 Brent Nelson, CPA Auditor
No contacts on file

Notes to SEFA

Title: Special Education and School Age Parents Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Darlington Community School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations (CFR) 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. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Eligible costs under the state special education program are $1,148,334 for the year ended June 30, 2022. The 2022-2023 aid estimate is $284,787.
Title: Subrecipients Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Darlington Community School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations (CFR) 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. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not pass any amounts through to subrecipients.
Title: Food Distribution Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Darlington Community School District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations (CFR) 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. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule at fair value of the commodities received and disbursed of $43,953.

Finding Details

Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.
Finding 2022-001
Finding #2022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks and reconciling the bank statements. Criteria: Internal controls should be in place that provide adequate segregation of duties. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Principal at the High School or Elementary/Middle School approves monthly accounts payable checks and the Department Head or Principal approves payroll timesheets prior to processing payroll. The Principals and Department Heads will continue to monitor transactions of the District.