Audit 46508

FY End
2022-06-30
Total Expended
$941,367
Findings
12
Programs
10
Organization: School District of Stratford (WI)
Year: 2022 Accepted: 2023-01-11

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
48878 2022-004 Material Weakness - L
48879 2022-005 Material Weakness - I
48880 2022-004 Material Weakness - L
48881 2022-005 Material Weakness - I
48882 2022-004 Material Weakness - L
48883 2022-005 Material Weakness - I
625320 2022-004 Material Weakness - L
625321 2022-005 Material Weakness - I
625322 2022-004 Material Weakness - L
625323 2022-005 Material Weakness - I
625324 2022-004 Material Weakness - L
625325 2022-005 Material Weakness - I

Programs

Contacts

Name Title Type
HKXAULK2LJN3 Rod Huther Auditee
7156874311 Jon Trautman, CPA Auditor
No contacts on file

Notes to SEFA

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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 2022 2023 eligible costs under the State Special Education Program as reported by the District are $313,284. Compiled information required by compliance requirement 1-1 of the Special Education Audit Program was reported to the Wisconsin Department of Public Instruction.
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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 School District of Stratford (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 Wisconsin Public School District Audit Manual issued by the Wisconsin Department of Public Instruction.The schedules of expenditures of federal and state awards include 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 of the District.
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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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 federal and state oversight agencies for the District are as follows:Federal U.S. Department of EducationState Wisconsin Department of Public Instruction
Title: PASS-THROUGH ENTITIES 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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State Single Audit Guidelines, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. Federal awards have been passed-through the following entities:WI DHS Wisconsin Department of Health ServicesWI DPI Wisconsin Department of Public InstructionCESA #10 Cooperative Educational Services Agency #10

Finding Details

Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the six sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Compliance Requirements: Procurement 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. Condition: The business manager is responsible for preparing and reviewing procurement transactions related to the Child Nutrition Cluster. For some transactions, there was no review or proper procedure such as obtaining multiple quotes from a number of vendors and there was no control in place to review a vendor on the Sam.gov or other listing to see if they were suspended or debarred from receiving federal funds. Questioned Costs: None. Context: One out of eight micro-purchase transactions and two of six small purchase or proposal transactions tested had documented review and approval for the purchase. The District also did not have documented internal controls to ensure that the vendors were not suspended or debarred from receiving federal funds prior to. In addition, the District did not obtain price comparisons as required by District policy for two procurement transactions out of the five such transactions. Cause: Due to the limited staff size at the District, the majority of the procurement process the responsibility of the business manager with minimal oversight by other positions in the District. Due to this organization structure, there is not proper segregation of duties in place to allow for full review, approval, and verification that all procurement requirements were followed. Effect: The District could procure with vendors who are suspended or debarred or not allow themselves proper review of competition that may cause them to overspend on an item or service. Repeat Finding: No Recommendation: We recommended that the District implement a review process over the procurement requirements and establish controls over suspension and debarment related to the grant programs during the fiscal year. The District should also review its procurement policy to ensure that the thresholds within the policy match current federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the six sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Compliance Requirements: Procurement 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. Condition: The business manager is responsible for preparing and reviewing procurement transactions related to the Child Nutrition Cluster. For some transactions, there was no review or proper procedure such as obtaining multiple quotes from a number of vendors and there was no control in place to review a vendor on the Sam.gov or other listing to see if they were suspended or debarred from receiving federal funds. Questioned Costs: None. Context: One out of eight micro-purchase transactions and two of six small purchase or proposal transactions tested had documented review and approval for the purchase. The District also did not have documented internal controls to ensure that the vendors were not suspended or debarred from receiving federal funds prior to. In addition, the District did not obtain price comparisons as required by District policy for two procurement transactions out of the five such transactions. Cause: Due to the limited staff size at the District, the majority of the procurement process the responsibility of the business manager with minimal oversight by other positions in the District. Due to this organization structure, there is not proper segregation of duties in place to allow for full review, approval, and verification that all procurement requirements were followed. Effect: The District could procure with vendors who are suspended or debarred or not allow themselves proper review of competition that may cause them to overspend on an item or service. Repeat Finding: No Recommendation: We recommended that the District implement a review process over the procurement requirements and establish controls over suspension and debarment related to the grant programs during the fiscal year. The District should also review its procurement policy to ensure that the thresholds within the policy match current federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the six sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Compliance Requirements: Procurement 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. Condition: The business manager is responsible for preparing and reviewing procurement transactions related to the Child Nutrition Cluster. For some transactions, there was no review or proper procedure such as obtaining multiple quotes from a number of vendors and there was no control in place to review a vendor on the Sam.gov or other listing to see if they were suspended or debarred from receiving federal funds. Questioned Costs: None. Context: One out of eight micro-purchase transactions and two of six small purchase or proposal transactions tested had documented review and approval for the purchase. The District also did not have documented internal controls to ensure that the vendors were not suspended or debarred from receiving federal funds prior to. In addition, the District did not obtain price comparisons as required by District policy for two procurement transactions out of the five such transactions. Cause: Due to the limited staff size at the District, the majority of the procurement process the responsibility of the business manager with minimal oversight by other positions in the District. Due to this organization structure, there is not proper segregation of duties in place to allow for full review, approval, and verification that all procurement requirements were followed. Effect: The District could procure with vendors who are suspended or debarred or not allow themselves proper review of competition that may cause them to overspend on an item or service. Repeat Finding: No Recommendation: We recommended that the District implement a review process over the procurement requirements and establish controls over suspension and debarment related to the grant programs during the fiscal year. The District should also review its procurement policy to ensure that the thresholds within the policy match current federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the six sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Compliance Requirements: Procurement 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. Condition: The business manager is responsible for preparing and reviewing procurement transactions related to the Child Nutrition Cluster. For some transactions, there was no review or proper procedure such as obtaining multiple quotes from a number of vendors and there was no control in place to review a vendor on the Sam.gov or other listing to see if they were suspended or debarred from receiving federal funds. Questioned Costs: None. Context: One out of eight micro-purchase transactions and two of six small purchase or proposal transactions tested had documented review and approval for the purchase. The District also did not have documented internal controls to ensure that the vendors were not suspended or debarred from receiving federal funds prior to. In addition, the District did not obtain price comparisons as required by District policy for two procurement transactions out of the five such transactions. Cause: Due to the limited staff size at the District, the majority of the procurement process the responsibility of the business manager with minimal oversight by other positions in the District. Due to this organization structure, there is not proper segregation of duties in place to allow for full review, approval, and verification that all procurement requirements were followed. Effect: The District could procure with vendors who are suspended or debarred or not allow themselves proper review of competition that may cause them to overspend on an item or service. Repeat Finding: No Recommendation: We recommended that the District implement a review process over the procurement requirements and establish controls over suspension and debarment related to the grant programs during the fiscal year. The District should also review its procurement policy to ensure that the thresholds within the policy match current federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the six sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Compliance Requirements: Procurement 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. Condition: The business manager is responsible for preparing and reviewing procurement transactions related to the Child Nutrition Cluster. For some transactions, there was no review or proper procedure such as obtaining multiple quotes from a number of vendors and there was no control in place to review a vendor on the Sam.gov or other listing to see if they were suspended or debarred from receiving federal funds. Questioned Costs: None. Context: One out of eight micro-purchase transactions and two of six small purchase or proposal transactions tested had documented review and approval for the purchase. The District also did not have documented internal controls to ensure that the vendors were not suspended or debarred from receiving federal funds prior to. In addition, the District did not obtain price comparisons as required by District policy for two procurement transactions out of the five such transactions. Cause: Due to the limited staff size at the District, the majority of the procurement process the responsibility of the business manager with minimal oversight by other positions in the District. Due to this organization structure, there is not proper segregation of duties in place to allow for full review, approval, and verification that all procurement requirements were followed. Effect: The District could procure with vendors who are suspended or debarred or not allow themselves proper review of competition that may cause them to overspend on an item or service. Repeat Finding: No Recommendation: We recommended that the District implement a review process over the procurement requirements and establish controls over suspension and debarment related to the grant programs during the fiscal year. The District should also review its procurement policy to ensure that the thresholds within the policy match current federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned Costs: None. Context: Of the six sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.
Child Nutrition Cluster - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Other Matters Compliance Requirements: Procurement 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. Condition: The business manager is responsible for preparing and reviewing procurement transactions related to the Child Nutrition Cluster. For some transactions, there was no review or proper procedure such as obtaining multiple quotes from a number of vendors and there was no control in place to review a vendor on the Sam.gov or other listing to see if they were suspended or debarred from receiving federal funds. Questioned Costs: None. Context: One out of eight micro-purchase transactions and two of six small purchase or proposal transactions tested had documented review and approval for the purchase. The District also did not have documented internal controls to ensure that the vendors were not suspended or debarred from receiving federal funds prior to. In addition, the District did not obtain price comparisons as required by District policy for two procurement transactions out of the five such transactions. Cause: Due to the limited staff size at the District, the majority of the procurement process the responsibility of the business manager with minimal oversight by other positions in the District. Due to this organization structure, there is not proper segregation of duties in place to allow for full review, approval, and verification that all procurement requirements were followed. Effect: The District could procure with vendors who are suspended or debarred or not allow themselves proper review of competition that may cause them to overspend on an item or service. Repeat Finding: No Recommendation: We recommended that the District implement a review process over the procurement requirements and establish controls over suspension and debarment related to the grant programs during the fiscal year. The District should also review its procurement policy to ensure that the thresholds within the policy match current federal requirements. Views of Responsible Officials: There is no disagreement with the audit finding.