FAC Explorer

Audit 47284

FY End
2022-06-30
Total Expended
$1.05M
Findings
12
Programs
9
Organization: Cedar Grove-Belgium Area School District (WI)
Year: 2022 Accepted: 2022-12-21
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44397 2022-005 Material Weakness - I
44398 2022-006 Material Weakness - N
44399 2022-007 Significant Deficiency - L
44400 2022-005 Material Weakness - I
44401 2022-006 Material Weakness - N
44402 2022-007 Significant Deficiency - L
620839 2022-005 Material Weakness - I
620840 2022-006 Material Weakness - N
620841 2022-007 Significant Deficiency - L
620842 2022-005 Material Weakness - I
620843 2022-006 Material Weakness - N
620844 2022-007 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $103,089 - 0
84.010 Title I Grants to Local Educational Agencies $93,278 - 0
93.778 Medical Assistance Program $64,074 - 0
10.555 National School Lunch Program $40,922 Yes 3
84.027 Special Education_grants to States $37,751 - 0
84.367 Improving Teacher Quality State Grants $21,752 - 0
84.424 Student Support and Academic Enrichment Program $10,000 - 0
84.048 Career and Technical Education -- Basic Grants to States $5,192 - 0
84.173 Special Education_preschool Grants $4,575 - 0

Contacts

Name Title Type
Z9HMF3AUYVJ3 Tera Rogers Auditee
9206688686 Bryan Grunewald, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. 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. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedules of expenditures of federal and state awards for the Cedar Grove-Belgium Area School District are presented in accordance with the requirements of the 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 or changes in net position of the District.
Title: Special Education and School Age Parents Program Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. 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. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2021 - 2022 eligible costs under the State Special Education Program as reported by the District are $1,051,103. Compiled information required by compliance requirement 1-1 of the Special Education Audit Program was reported to the Wisconsin Department of Public Instruction.
Title: Food Distribution Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. 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. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the schedule of expenditures of federal awards at the fair market value of the commodities received and disbursed.
Title: Oversight Agencies Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the Districts 2022 fund financial statements. 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. Accrued revenue at year-end consists of federal and state program expenditures scheduled for reimbursement to the District in the succeeding year while unearned revenue represents advances for federal and state programs that exceed recorded District expenditures. Because of subsequent program adjustments, these amounts may differ from the prior years ending balances. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal and state oversight agencies for the District are as follows: Federal U.S. Department of Education and State Wisconsin Department of Public Instruction.

Finding Details

Finding 2022-005
2022 ? 005 - Procurement Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least two). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Condition: During our testing of procurement transactions of the program we noted that the District was not consistently following the procurement policy, specifically requirements related to small purchases. Small purchases were not supported by an adequate number of quotes (at least two) or proposals to ensure the District is prudent with the monies used towards the program. Questioned Costs: None Context: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In our sample of four procurement transactions subject to small purchase requirements we noted that the District did not retain documentation of an adequate number of price quotes for two vendors selected for testing. Cause: The District did not follow their Federal Funds Procurement Policy related to appropriate methods of procurement. Effect: Obtaining price quotes and proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes or proposals may cause the District to overpay for supplies or services. Recommendation: We recommend the District review procedures to ensure that the District?s procurement policy is consistently followed. View of Responsible Officials: There is no disagreement with the finding.
Finding 2022-006
2022 ? 006 ? Special Tests and Provisions ? Verification of Applications Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria: The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition: The District did not retain workpapers to support that the special tests and provision to perform verification of free and reduced price applications was completed. Questioned Costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause: The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect: The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Recommendation: We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-007
2022 ? 007 ? Reporting Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria: 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 procedure. Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-005
2022 ? 005 - Procurement Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least two). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Condition: During our testing of procurement transactions of the program we noted that the District was not consistently following the procurement policy, specifically requirements related to small purchases. Small purchases were not supported by an adequate number of quotes (at least two) or proposals to ensure the District is prudent with the monies used towards the program. Questioned Costs: None Context: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In our sample of four procurement transactions subject to small purchase requirements we noted that the District did not retain documentation of an adequate number of price quotes for two vendors selected for testing. Cause: The District did not follow their Federal Funds Procurement Policy related to appropriate methods of procurement. Effect: Obtaining price quotes and proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes or proposals may cause the District to overpay for supplies or services. Recommendation: We recommend the District review procedures to ensure that the District?s procurement policy is consistently followed. View of Responsible Officials: There is no disagreement with the finding.
Finding 2022-006
2022 ? 006 ? Special Tests and Provisions ? Verification of Applications Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria: The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition: The District did not retain workpapers to support that the special tests and provision to perform verification of free and reduced price applications was completed. Questioned Costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause: The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect: The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Recommendation: We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-007
2022 ? 007 ? Reporting Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria: 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 procedure. Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-005
2022 ? 005 - Procurement Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least two). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Condition: During our testing of procurement transactions of the program we noted that the District was not consistently following the procurement policy, specifically requirements related to small purchases. Small purchases were not supported by an adequate number of quotes (at least two) or proposals to ensure the District is prudent with the monies used towards the program. Questioned Costs: None Context: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In our sample of four procurement transactions subject to small purchase requirements we noted that the District did not retain documentation of an adequate number of price quotes for two vendors selected for testing. Cause: The District did not follow their Federal Funds Procurement Policy related to appropriate methods of procurement. Effect: Obtaining price quotes and proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes or proposals may cause the District to overpay for supplies or services. Recommendation: We recommend the District review procedures to ensure that the District?s procurement policy is consistently followed. View of Responsible Officials: There is no disagreement with the finding.
Finding 2022-006
2022 ? 006 ? Special Tests and Provisions ? Verification of Applications Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria: The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition: The District did not retain workpapers to support that the special tests and provision to perform verification of free and reduced price applications was completed. Questioned Costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause: The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect: The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Recommendation: We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-007
2022 ? 007 ? Reporting Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria: 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 procedure. Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-005
2022 ? 005 - Procurement Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least two). Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Proposals must be solicited from an adequate number of qualified offerors. Condition: During our testing of procurement transactions of the program we noted that the District was not consistently following the procurement policy, specifically requirements related to small purchases. Small purchases were not supported by an adequate number of quotes (at least two) or proposals to ensure the District is prudent with the monies used towards the program. Questioned Costs: None Context: During our testing of procurement transactions of the program we noted that the small purchases were not supported by an adequate number of quotes (at least two) to ensure the District is prudent with the monies used towards the program. In our sample of four procurement transactions subject to small purchase requirements we noted that the District did not retain documentation of an adequate number of price quotes for two vendors selected for testing. Cause: The District did not follow their Federal Funds Procurement Policy related to appropriate methods of procurement. Effect: Obtaining price quotes and proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes or proposals may cause the District to overpay for supplies or services. Recommendation: We recommend the District review procedures to ensure that the District?s procurement policy is consistently followed. View of Responsible Officials: There is no disagreement with the finding.
Finding 2022-006
2022 ? 006 ? Special Tests and Provisions ? Verification of Applications Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Material Weakness in Internal Control Over Compliance, Material Noncompliance Criteria: The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition: The District did not retain workpapers to support that the special tests and provision to perform verification of free and reduced price applications was completed. Questioned Costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause: The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect: The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Recommendation: We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. View of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-007
2022 ? 007 ? Reporting Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria: 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 procedure. Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. View of Responsible Officials: There is no disagreement with the audit finding.