Finding #2022-001 ?Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Internal controls should be in place that provide adequate segregation of duties. Cause: The condition is due to limited staff available. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District?s operations. Response: We agree with this finding. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-003 ? Material Adjustments (Prior Year Finding #2021-003) Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District?s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-004 ? Lack of Financial Close Process and Delayed Accounting (Prior Year Finding #2021-004) Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. During the year and as of June 30, 2022, cash balances on the general ledger had unreconciled differences compared to the bank balances. Accounting processes were delayed. January 2022 through June 2022 bank reconciliations were performed in August 2022. Many significant 2022 cash receipts and disbursements weren't recorded on the general ledger until August 2022. Instances were identified where payments of certain payroll withholdings and employer benefits were delayed until several months after the related payroll dates. Effect: Financial reporting from the District?s general ledger could be materially misstated. Not remitting payroll withholdings and benefits when due will lead to penalties and payroll liabilities increasing on the District?s general ledger. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Dates for payments to be made on payroll liabilities were not always being tracked and payroll liability accounts were not being reconciled. Criteria: Cash and other accounts should be timely reconciled. General ledger cash balances should be reconciled to the monthly or quarterly bank statements. During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Payments for payroll liabilities should be paid timely. Payroll liability accounts should be reviewed to ensure withholdings, accruals, and payments are properly clearing the liabilities. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Develop procedures to monitor when payroll liability payments are due. Reconcile the payroll liabilities to ensure that the payments are being made within the appropriate period. Response: The District will work to establish procedures to reconcile accounts monthly and ensure payroll amounts are remitted on time. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-005- Delayed Submission of November 2021 Breakfast and December 2021 Lunch Meals Served Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: Food service claims were not prepared by the District within the 60-day window for November 2021 breakfast meals and December 2021 lunch meals served. The auditor brought to the District?s attention during August 2022 fieldwork. Based on meals served, the November 2021 breakfast claim was calculated to be for $9,665 and the December 2021 lunch claim was calculated as $23,751. Effect: District did not receive reimbursement for meals served during November 2021 for breakfast meals serviced and December 2021 lunch meals served. Cause: The District did not have proper procedures in place for submitting monthly claims. The District began contracting with a Food Service Management Company starting in 2021-2022. Criteria: Monthly breakfast and lunch reimbursement claims should be made within the 60-day time frame. Procedures should be in place to ensure accurate claims are made timely. Recommendation: Policies and procedures should be implemented to ensure meals are claimed in compliance with federal requirements and within the 60-day time frame. Response: On January 30, 2023, the District requested one-time waiver requests with DPI to claim the meals that were previously missed. The November 2021 breakfast claim was for $9,665 and the December 2021 lunch claim was for $23,751. DPI approved payment on the one-time exceptions in February 2023 and payments were made to the District in March 2023. The District will establish policies and procedures to ensure meals are claimed in a timely manner and in compliance with requirements.
Finding #2022-006 ? Lack of Supporting Documentation Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: The federal program annually requires performance of sampling and verification of free and reduced price applications. Supporting documentation supporting verification of applicants for free or reduced meals was not available for review. District could not provide documentation supporting that a verification of 3% of all applicants submitted for free or reduced meals was performed. Effect: Sampling and verification procedures are required to be performed annually. Potential to receive an incorrect amount of aid per meal served and students could be charged the wrong price for meals. Cause: The accounting system had notes indicating that sampling and verification procedures may have taken place, however, no supporting documentation was able to be retrieved. Turnover in the business office occurred. Criteria: The District is required to test 3% of all applications submitted for free or reduced meals to ensure their eligibility has not changed since they applied. If their eligibility has changed, then the District must change the student?s status appropriately. Supporting documentation of these sampling and verification procedures should be maintained for future reference. Recommendation: Policies and procedures should be implemented to ensure proper sampling and verification of applicants is performed and that the supporting documentation be maintained. Response: The District will establish policies and procedures proper sampling and verification procedures are performed and that the supporting documentation is maintained.
Finding #2022-001 ?Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Internal controls should be in place that provide adequate segregation of duties. Cause: The condition is due to limited staff available. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District?s operations. Response: We agree with this finding. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-003 ? Material Adjustments (Prior Year Finding #2021-003) Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District?s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-004 ? Lack of Financial Close Process and Delayed Accounting (Prior Year Finding #2021-004) Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. During the year and as of June 30, 2022, cash balances on the general ledger had unreconciled differences compared to the bank balances. Accounting processes were delayed. January 2022 through June 2022 bank reconciliations were performed in August 2022. Many significant 2022 cash receipts and disbursements weren't recorded on the general ledger until August 2022. Instances were identified where payments of certain payroll withholdings and employer benefits were delayed until several months after the related payroll dates. Effect: Financial reporting from the District?s general ledger could be materially misstated. Not remitting payroll withholdings and benefits when due will lead to penalties and payroll liabilities increasing on the District?s general ledger. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Dates for payments to be made on payroll liabilities were not always being tracked and payroll liability accounts were not being reconciled. Criteria: Cash and other accounts should be timely reconciled. General ledger cash balances should be reconciled to the monthly or quarterly bank statements. During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Payments for payroll liabilities should be paid timely. Payroll liability accounts should be reviewed to ensure withholdings, accruals, and payments are properly clearing the liabilities. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Develop procedures to monitor when payroll liability payments are due. Reconcile the payroll liabilities to ensure that the payments are being made within the appropriate period. Response: The District will work to establish procedures to reconcile accounts monthly and ensure payroll amounts are remitted on time. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-005- Delayed Submission of November 2021 Breakfast and December 2021 Lunch Meals Served Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: Food service claims were not prepared by the District within the 60-day window for November 2021 breakfast meals and December 2021 lunch meals served. The auditor brought to the District?s attention during August 2022 fieldwork. Based on meals served, the November 2021 breakfast claim was calculated to be for $9,665 and the December 2021 lunch claim was calculated as $23,751. Effect: District did not receive reimbursement for meals served during November 2021 for breakfast meals serviced and December 2021 lunch meals served. Cause: The District did not have proper procedures in place for submitting monthly claims. The District began contracting with a Food Service Management Company starting in 2021-2022. Criteria: Monthly breakfast and lunch reimbursement claims should be made within the 60-day time frame. Procedures should be in place to ensure accurate claims are made timely. Recommendation: Policies and procedures should be implemented to ensure meals are claimed in compliance with federal requirements and within the 60-day time frame. Response: On January 30, 2023, the District requested one-time waiver requests with DPI to claim the meals that were previously missed. The November 2021 breakfast claim was for $9,665 and the December 2021 lunch claim was for $23,751. DPI approved payment on the one-time exceptions in February 2023 and payments were made to the District in March 2023. The District will establish policies and procedures to ensure meals are claimed in a timely manner and in compliance with requirements.
Finding #2022-006 ? Lack of Supporting Documentation Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: The federal program annually requires performance of sampling and verification of free and reduced price applications. Supporting documentation supporting verification of applicants for free or reduced meals was not available for review. District could not provide documentation supporting that a verification of 3% of all applicants submitted for free or reduced meals was performed. Effect: Sampling and verification procedures are required to be performed annually. Potential to receive an incorrect amount of aid per meal served and students could be charged the wrong price for meals. Cause: The accounting system had notes indicating that sampling and verification procedures may have taken place, however, no supporting documentation was able to be retrieved. Turnover in the business office occurred. Criteria: The District is required to test 3% of all applications submitted for free or reduced meals to ensure their eligibility has not changed since they applied. If their eligibility has changed, then the District must change the student?s status appropriately. Supporting documentation of these sampling and verification procedures should be maintained for future reference. Recommendation: Policies and procedures should be implemented to ensure proper sampling and verification of applicants is performed and that the supporting documentation be maintained. Response: The District will establish policies and procedures proper sampling and verification procedures are performed and that the supporting documentation is maintained.
Finding #2022-001 ?Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Internal controls should be in place that provide adequate segregation of duties. Cause: The condition is due to limited staff available. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District?s operations. Response: We agree with this finding. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-003 ? Material Adjustments (Prior Year Finding #2021-003) Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District?s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-004 ? Lack of Financial Close Process and Delayed Accounting (Prior Year Finding #2021-004) Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. During the year and as of June 30, 2022, cash balances on the general ledger had unreconciled differences compared to the bank balances. Accounting processes were delayed. January 2022 through June 2022 bank reconciliations were performed in August 2022. Many significant 2022 cash receipts and disbursements weren't recorded on the general ledger until August 2022. Instances were identified where payments of certain payroll withholdings and employer benefits were delayed until several months after the related payroll dates. Effect: Financial reporting from the District?s general ledger could be materially misstated. Not remitting payroll withholdings and benefits when due will lead to penalties and payroll liabilities increasing on the District?s general ledger. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Dates for payments to be made on payroll liabilities were not always being tracked and payroll liability accounts were not being reconciled. Criteria: Cash and other accounts should be timely reconciled. General ledger cash balances should be reconciled to the monthly or quarterly bank statements. During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Payments for payroll liabilities should be paid timely. Payroll liability accounts should be reviewed to ensure withholdings, accruals, and payments are properly clearing the liabilities. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Develop procedures to monitor when payroll liability payments are due. Reconcile the payroll liabilities to ensure that the payments are being made within the appropriate period. Response: The District will work to establish procedures to reconcile accounts monthly and ensure payroll amounts are remitted on time. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-005- Delayed Submission of November 2021 Breakfast and December 2021 Lunch Meals Served Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: Food service claims were not prepared by the District within the 60-day window for November 2021 breakfast meals and December 2021 lunch meals served. The auditor brought to the District?s attention during August 2022 fieldwork. Based on meals served, the November 2021 breakfast claim was calculated to be for $9,665 and the December 2021 lunch claim was calculated as $23,751. Effect: District did not receive reimbursement for meals served during November 2021 for breakfast meals serviced and December 2021 lunch meals served. Cause: The District did not have proper procedures in place for submitting monthly claims. The District began contracting with a Food Service Management Company starting in 2021-2022. Criteria: Monthly breakfast and lunch reimbursement claims should be made within the 60-day time frame. Procedures should be in place to ensure accurate claims are made timely. Recommendation: Policies and procedures should be implemented to ensure meals are claimed in compliance with federal requirements and within the 60-day time frame. Response: On January 30, 2023, the District requested one-time waiver requests with DPI to claim the meals that were previously missed. The November 2021 breakfast claim was for $9,665 and the December 2021 lunch claim was for $23,751. DPI approved payment on the one-time exceptions in February 2023 and payments were made to the District in March 2023. The District will establish policies and procedures to ensure meals are claimed in a timely manner and in compliance with requirements.
Finding #2022-006 ? Lack of Supporting Documentation Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: The federal program annually requires performance of sampling and verification of free and reduced price applications. Supporting documentation supporting verification of applicants for free or reduced meals was not available for review. District could not provide documentation supporting that a verification of 3% of all applicants submitted for free or reduced meals was performed. Effect: Sampling and verification procedures are required to be performed annually. Potential to receive an incorrect amount of aid per meal served and students could be charged the wrong price for meals. Cause: The accounting system had notes indicating that sampling and verification procedures may have taken place, however, no supporting documentation was able to be retrieved. Turnover in the business office occurred. Criteria: The District is required to test 3% of all applications submitted for free or reduced meals to ensure their eligibility has not changed since they applied. If their eligibility has changed, then the District must change the student?s status appropriately. Supporting documentation of these sampling and verification procedures should be maintained for future reference. Recommendation: Policies and procedures should be implemented to ensure proper sampling and verification of applicants is performed and that the supporting documentation be maintained. Response: The District will establish policies and procedures proper sampling and verification procedures are performed and that the supporting documentation is maintained.
Finding #2022-001 ?Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Internal controls should be in place that provide adequate segregation of duties. Cause: The condition is due to limited staff available. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District?s operations. Response: We agree with this finding. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-003 ? Material Adjustments (Prior Year Finding #2021-003) Condition: Material adjusting journal entries not prepared by the District before the audit were required to record and reconcile account balances. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District?s financial position or activities. Not reconciling accounts on a timely basis could lead to errors or other problems not being recognized and resolved. Cause: Financial information was not recorded in a timely manner and material adjustments were needed in order to correct various transactions. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will work to establish policies and procedures to reduce the materiality of adjusting journal entries proposed by the auditor. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-004 ? Lack of Financial Close Process and Delayed Accounting (Prior Year Finding #2021-004) Condition: Cash and other accounts were adjusted during the audit process. Many audit journal entries were required to record and adjust activity. During the year and as of June 30, 2022, cash balances on the general ledger had unreconciled differences compared to the bank balances. Accounting processes were delayed. January 2022 through June 2022 bank reconciliations were performed in August 2022. Many significant 2022 cash receipts and disbursements weren't recorded on the general ledger until August 2022. Instances were identified where payments of certain payroll withholdings and employer benefits were delayed until several months after the related payroll dates. Effect: Financial reporting from the District?s general ledger could be materially misstated. Not remitting payroll withholdings and benefits when due will lead to penalties and payroll liabilities increasing on the District?s general ledger. Cause: The District did not have procedures in place to ensure that all transactions were properly recorded on the general ledger prior to the audit. Dates for payments to be made on payroll liabilities were not always being tracked and payroll liability accounts were not being reconciled. Criteria: Cash and other accounts should be timely reconciled. General ledger cash balances should be reconciled to the monthly or quarterly bank statements. During the close of the monthly financial statements, other balances should be reconciled to subsidiary detailed listings. Payments for payroll liabilities should be paid timely. Payroll liability accounts should be reviewed to ensure withholdings, accruals, and payments are properly clearing the liabilities. Recommendation: The District should develop procedures to timely reconcile cash and other balance sheet accounts. The reconciliations should be reviewed by someone other than the person preparing the reconciliations. The reviewer should initial and date the reconciliations when the review is complete. Develop procedures to monitor when payroll liability payments are due. Reconcile the payroll liabilities to ensure that the payments are being made within the appropriate period. Response: The District will work to establish procedures to reconcile accounts monthly and ensure payroll amounts are remitted on time. To assist with business operations, the District contracted for additional business office services for the 2022/2023 school year.
Finding #2022-005- Delayed Submission of November 2021 Breakfast and December 2021 Lunch Meals Served Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: Food service claims were not prepared by the District within the 60-day window for November 2021 breakfast meals and December 2021 lunch meals served. The auditor brought to the District?s attention during August 2022 fieldwork. Based on meals served, the November 2021 breakfast claim was calculated to be for $9,665 and the December 2021 lunch claim was calculated as $23,751. Effect: District did not receive reimbursement for meals served during November 2021 for breakfast meals serviced and December 2021 lunch meals served. Cause: The District did not have proper procedures in place for submitting monthly claims. The District began contracting with a Food Service Management Company starting in 2021-2022. Criteria: Monthly breakfast and lunch reimbursement claims should be made within the 60-day time frame. Procedures should be in place to ensure accurate claims are made timely. Recommendation: Policies and procedures should be implemented to ensure meals are claimed in compliance with federal requirements and within the 60-day time frame. Response: On January 30, 2023, the District requested one-time waiver requests with DPI to claim the meals that were previously missed. The November 2021 breakfast claim was for $9,665 and the December 2021 lunch claim was for $23,751. DPI approved payment on the one-time exceptions in February 2023 and payments were made to the District in March 2023. The District will establish policies and procedures to ensure meals are claimed in a timely manner and in compliance with requirements.
Finding #2022-006 ? Lack of Supporting Documentation Child Nutrition Cluster (#10.553 and #10.555) Federal Grantor ? U.S. Department of Agriculture Pass-through Award Numbers ? 2022-304627-DPI-SB-546 and 2022-3046247-DPI-NSL-547 Pass-through Entity ? Wisconsin Department of Public Instruction Condition: The federal program annually requires performance of sampling and verification of free and reduced price applications. Supporting documentation supporting verification of applicants for free or reduced meals was not available for review. District could not provide documentation supporting that a verification of 3% of all applicants submitted for free or reduced meals was performed. Effect: Sampling and verification procedures are required to be performed annually. Potential to receive an incorrect amount of aid per meal served and students could be charged the wrong price for meals. Cause: The accounting system had notes indicating that sampling and verification procedures may have taken place, however, no supporting documentation was able to be retrieved. Turnover in the business office occurred. Criteria: The District is required to test 3% of all applications submitted for free or reduced meals to ensure their eligibility has not changed since they applied. If their eligibility has changed, then the District must change the student?s status appropriately. Supporting documentation of these sampling and verification procedures should be maintained for future reference. Recommendation: Policies and procedures should be implemented to ensure proper sampling and verification of applicants is performed and that the supporting documentation be maintained. Response: The District will establish policies and procedures proper sampling and verification procedures are performed and that the supporting documentation is maintained.