Audit 47288

FY End
2022-06-30
Total Expended
$2.92M
Findings
8
Programs
11
Year: 2022 Accepted: 2022-12-20

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
44403 2022-002 Significant Deficiency Yes I
44404 2022-002 Significant Deficiency Yes I
44405 2022-002 Significant Deficiency Yes I
44406 2022-003 Significant Deficiency - I
620845 2022-002 Significant Deficiency Yes I
620846 2022-002 Significant Deficiency Yes I
620847 2022-002 Significant Deficiency Yes I
620848 2022-003 Significant Deficiency - I

Programs

Contacts

Name Title Type
NXLHMRL24QE7 Dean Hess Auditee
9208484471 Scott Sternhagen, 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 District's 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 year's 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 Oconto Falls Public School District are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State Single Audit Guidelines issued by the Wisconsin Department of Administration. The schedules of expenditures of federal and state awards include all federal and state awards of the District. Because the schedules present only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM Accounting Policies: Revenues and expenditures in the schedules are presented in accordance with the modified accrual basis of accounting and are generally in agreement with revenues and expenditures reported in the District's 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 year's 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 and School Age Parents Program as reported by the District are $3,060,129, 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 District's 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 year's 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 District's 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 year's 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; State - 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 District's 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 year's 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 Services; WI DPI - Wisconsin Department of Public Instruction; CESA #8 - Cooperative Educational Services Agency #8

Finding Details

Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.
Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.
Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.
Federal Grants Management Procurement Policy Assistance Listing Number: 32.009 Compliance Requirements: Procurement and Suspension and Debarment Condition: The District used grant funds to purchase Chromebooks and other devices needed by the District using the same vendor that the District had previously purchased these items from. Per the District's procurement policy the District should have obtained two quotes or documented why the District did not use a competitive procurement method. Additionally, the District did not verify that the vendor was not suspended or debarred. Criteria Uniform Guidance establishes methods of procurement (200.320) which states 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. Any response to publicized requests for proposals must be considered to the maximum extent practical. Additionally, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Cause The District did not follow their Federal Funds Procurement and Suspension and Debarment policy related to appropriate methods of procurement and suspension and debarment. Effect Obtaining price quotes or proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Additionally, not verifying that an entity is not debarred or suspended could result in entering covered transactions with debarred or suspended vendors. Questioned Costs None Recommendation We recommend the District follow their procurement and suspension and debarment policy related small purchases which includes obtaining price quotes from an adequate number of vendors (at least two) and suspension and debarment policy for verifying vendors and maintaining this documentation. Repeat Finding No Views of Responsible Officials There is no disagreement with the audit finding
Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.
Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.
Federal Grants Management Procurement Policy Assistance Listing Number: 10.CNC (10.553, 10.555) Compliance Requirement Procurement Condition The District procured its food service contractor through competitive proposals during the 2020-21 fiscal year; however, the District was unable to provide us with the original signed contract, Board of Education approval, or any other supporting documentation used to identify who the District requested proposals from and what criteria was used to award the contract. Criteria Uniform Guidance establishes methods of procurement (200.320) related to federal programs which must be compiled with by the District. Since the anticipated contract exceeded the Simplified Acquisition Threshold, procurement by competitive proposal was required and procurement records should include, at a minimum, the basis for contractors selection and the basis for award cost. Cause The District received only one bid during the competitive proposal process which it accepted. The District did not realize that despite receiving only one proposal, documentation supporting the competitive process and the decision to accept the proposal should be retained in accordance with Uniform Guidance. Effect Without adequate procurement records, federal and state agencies could potentially question if the contract was awarded without competition since only one bid was received by the District Questioned Costs None Recommendation We recommend the District review present policies and procedures, including the retention of sufficient support related to procurements to ensure it complies with the methods of procurement (200.320) standards in Uniform Guidance. Procurement records should include some form of cost or price analysis, along with the basis of for the contractor selected, especially in situations when the District receives only one bid. Repeat Finding Yes Views of Responsible Officials There is no disagreement with the audit finding.
Federal Grants Management Procurement Policy Assistance Listing Number: 32.009 Compliance Requirements: Procurement and Suspension and Debarment Condition: The District used grant funds to purchase Chromebooks and other devices needed by the District using the same vendor that the District had previously purchased these items from. Per the District's procurement policy the District should have obtained two quotes or documented why the District did not use a competitive procurement method. Additionally, the District did not verify that the vendor was not suspended or debarred. Criteria Uniform Guidance establishes methods of procurement (200.320) which states 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. Any response to publicized requests for proposals must be considered to the maximum extent practical. Additionally, when a non-Federal entity enters into a covered transaction with an entity at a lower tier, the non-Federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting regulations, is not suspended or debarred or otherwise excluded from participating in the transaction. Cause The District did not follow their Federal Funds Procurement and Suspension and Debarment policy related to appropriate methods of procurement and suspension and debarment. Effect Obtaining price quotes or proposals from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of quotes and proposals may cause the District to over pay for supplies or services. Additionally, not verifying that an entity is not debarred or suspended could result in entering covered transactions with debarred or suspended vendors. Questioned Costs None Recommendation We recommend the District follow their procurement and suspension and debarment policy related small purchases which includes obtaining price quotes from an adequate number of vendors (at least two) and suspension and debarment policy for verifying vendors and maintaining this documentation. Repeat Finding No Views of Responsible Officials There is no disagreement with the audit finding