FAC Explorer

Audit 46345

FY End
2022-06-30
Total Expended
$4.06M
Findings
8
Programs
17
Organization: Seymour Community School District (WI)
Year: 2022 Accepted: 2023-06-20
Auditor: Reilly Penner & Benton LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44194 2022-004 Significant Deficiency - F
44195 2022-005 Significant Deficiency - F
44196 2022-004 Significant Deficiency - F
44197 2022-005 Significant Deficiency - F
620636 2022-004 Significant Deficiency - F
620637 2022-005 Significant Deficiency - F
620638 2022-004 Significant Deficiency - F
620639 2022-005 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
10.555 National School Lunch Program $873,548 Yes 0
84.027 Special Education_grants to States $530,705 - 0
10.553 School Breakfast Program $314,375 Yes 0
93.778 Medical Assistance Program $312,546 - 0
84.010 Title I Grants to Local Educational Agencies $308,343 - 0
84.060 Indian Education_grants to Local Educational Agencies $81,066 - 0
84.367 Improving Teacher Quality State Grants $55,541 - 0
84.041 Impact Aid $52,902 - 0
84.196 Education for Homeless Children and Youth $33,260 - 0
84.173 Special Education_preschool Grants $32,150 - 0
10.579 Child Nutrition Discretionary Grants Limited Availability $25,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $13,214 - 0
84.184 Safe and Drug-Free Schools and Communities_national Programs $7,978 - 0
84.425 Education Stabilization Fund $6,116 Yes 0
84.424 Student Support and Academic Enrichment Program $3,420 - 0
10.556 Special Milk Program for Children $1,944 Yes 0
84.365 English Language Acquisition State Grants $285 - 0

Contacts

Name Title Type
D2DGLWMTDJH9 Peter Kempen Auditee
9208332304 Brian Mechenich Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: 2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the subsequent year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. 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 (the Schedules) includes the federal and state award activity of the District under programs of the federal and state government for the year ended June 30, 2022. The information in these schedules is 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 requirements of the Wisconsin State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in, the preparation of the basic financial statements. Because the schedules present only a selected portion of the operations of the District, it is not intended to and does not present the net financial position, changes in fund balance or cash flows of the District. All federal and state awards received directly from federal and state agencies as well as federal and state financial awards passed through other government agencies are included on the schedule.
Title: 4. Noncash Awards Accounting Policies: 2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance and Wisconsin State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the subsequent year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal donated commodities in the Child Nutrition Cluster is administered by the U.S. Department of Agriculture and passed through the Wisconsin Department of Public Instruction and transactions relating to this program are included in the Districts basic financial statements. Commodities received during the year that are included in the federal expenditures are valued by the federal agency. There are no balances outstanding as of June 30, 2022.

Finding Details

Finding 2022-004
Reference Number: 2022-004 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that capitalized items purchased with federal funding are properly inventoried. The District purchased a vehicle for $57,308 and a UV Lighting construction contract for $199,305 with federal funds and did not indicate this on the fixed asset appraisal report. Cause: The District does not have controls in place to ensure that the fixed asset appraisal properly categories items purchased with federal funds. Effect: The District is not in compliance with ESSER requirements. Identification of a Repeat Finding: This is not a repeat finding. Auditors? Recommendation: We recommend the District inform the appraisal company of all capitalized items purchased with federal funding. Views of Responsible Officials: See attachment for the District?s corrective action plan.
Finding 2022-005
Reference Number: 2022-005 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. The District used $199,305 in ESSER funds for UV Lighting upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements. It was ultimately determined that the contract did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to ESSER that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using ESSER funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-004
Reference Number: 2022-004 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that capitalized items purchased with federal funding are properly inventoried. The District purchased a vehicle for $57,308 and a UV Lighting construction contract for $199,305 with federal funds and did not indicate this on the fixed asset appraisal report. Cause: The District does not have controls in place to ensure that the fixed asset appraisal properly categories items purchased with federal funds. Effect: The District is not in compliance with ESSER requirements. Identification of a Repeat Finding: This is not a repeat finding. Auditors? Recommendation: We recommend the District inform the appraisal company of all capitalized items purchased with federal funding. Views of Responsible Officials: See attachment for the District?s corrective action plan.
Finding 2022-005
Reference Number: 2022-005 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. The District used $199,305 in ESSER funds for UV Lighting upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements. It was ultimately determined that the contract did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to ESSER that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using ESSER funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-004
Reference Number: 2022-004 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that capitalized items purchased with federal funding are properly inventoried. The District purchased a vehicle for $57,308 and a UV Lighting construction contract for $199,305 with federal funds and did not indicate this on the fixed asset appraisal report. Cause: The District does not have controls in place to ensure that the fixed asset appraisal properly categories items purchased with federal funds. Effect: The District is not in compliance with ESSER requirements. Identification of a Repeat Finding: This is not a repeat finding. Auditors? Recommendation: We recommend the District inform the appraisal company of all capitalized items purchased with federal funding. Views of Responsible Officials: See attachment for the District?s corrective action plan.
Finding 2022-005
Reference Number: 2022-005 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. The District used $199,305 in ESSER funds for UV Lighting upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements. It was ultimately determined that the contract did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to ESSER that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using ESSER funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.
Finding 2022-004
Reference Number: 2022-004 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that capitalized items purchased with federal funding are properly inventoried. The District purchased a vehicle for $57,308 and a UV Lighting construction contract for $199,305 with federal funds and did not indicate this on the fixed asset appraisal report. Cause: The District does not have controls in place to ensure that the fixed asset appraisal properly categories items purchased with federal funds. Effect: The District is not in compliance with ESSER requirements. Identification of a Repeat Finding: This is not a repeat finding. Auditors? Recommendation: We recommend the District inform the appraisal company of all capitalized items purchased with federal funding. Views of Responsible Officials: See attachment for the District?s corrective action plan.
Finding 2022-005
Reference Number: 2022-005 Program Name: 85.425D ? Elementary and Secondary School Emergency Relief (?ESSER?) Description: Equipment/Real Property Management Condition and Criteria: The District must have internal controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. The District used $199,305 in ESSER funds for UV Lighting upgrades with a contractor. This District did not have internal controls in place to document that the contract met Davis-Bacon prevailing wage requirements. It was ultimately determined that the contract did comply with Davis-Bacon, however, this represents a significant deficiency in internal controls as no verification was documented beforehand. Cause: The District does not have the controls in place to ensure that construction contracts over $2,000 meet Davis-Bacon prevailing wage requirements prior to charging contract related costs to the ESSER program. Potential Effect: The District could have charged contract costs to ESSER that were not allowable. Questioned Costs: $-0- Auditors? Recommendation: The District should implement controls that verify compliance with Davis-Bacon for all construction contracts using ESSER funds and retain supporting documentation. View of Responsible Officials and Corrective Action Plan: See attachment for District?s corrective action plan.