FAC Explorer

Audit 7273

FY End
2023-06-30
Total Expended
$3.40M
Findings
8
Programs
14
Organization: Wautoma Area School District (WI)
Year: 2023 Accepted: 2023-12-18
Auditor: Miller Brussell Ebben & Glaeske LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
5517 2023-002 Significant Deficiency - P
5518 2023-003 Significant Deficiency - P
5519 2023-002 Significant Deficiency - P
5520 2023-003 Significant Deficiency - P
581959 2023-002 Significant Deficiency - P
581960 2023-003 Significant Deficiency - P
581961 2023-002 Significant Deficiency - P
581962 2023-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.425 Education Stabilization Fund $1.18M Yes 2
84.010 Title I Grants to Local Educational Agencies $359,224 - 0
84.287 Twenty-First Century Community Learning Centers $244,886 - 0
32.009 Emergency Connectivity Fund Program $197,040 - 0
84.027 Special Education_grants to States $194,201 - 0
93.778 Medical Assistance Program $164,815 - 0
10.553 School Breakfast Program $147,836 - 0
10.555 National School Lunch Program $81,331 - 0
84.367 Improving Teacher Quality State Grants $76,445 - 0
10.559 Summer Food Service Program for Children $57,521 - 0
84.048 Career and Technical Education -- Basic Grants to States $12,489 - 0
84.424 Student Support and Academic Enrichment Program $10,752 - 0
84.173 Special Education_preschool Grants $10,675 - 0
84.365 English Language Acquisition State Grants $3,940 - 0

Contacts

Name Title Type
NKERGL4N8M38 Carmen O'Brien Auditee
9207877112 Joseph Peterson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Wautoma Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Wautoma Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: SPECIAL EDUCATION AND SCHOOL AGE PARENTS PROGRAM Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Wautoma Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. 2022-2023 eligible costs under the State Special Education Program are $1,353,149.
Title: DE MINIMIS COST RATE Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Wautoma Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. The District has elected not to use the 10% de minimis cost rate.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the federal and state grant activity of the Wautoma Area School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of The Uniform Guidance and the State Single Audit Guidelines. Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis cost rate. There were no awards passed through to subrecipients.

Finding Details

Finding 2023-002
Conditions:The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria:Having staff with expertise in federal reporting to prepare the District’s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause:The additional cost associated with hiring staff sufficiently experienced to prepare the District’s state program audit report, including the additional training time, outweigh the derived benefits. Effect:Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District’s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation:We recommend District personnel continue reviewing the District’s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District’s state program audit report.Management Views and Corrective Action Plan: See corrective action plan 2023-002.
Finding 2023-003
Conditions:The District’s unrestricted indirect cost rate was not updated to reflect the District’s year end June 30, 2023 unrestricted indirect cost rate. Criteria:The Elementary and Secondary School Emergency Relief III (ESSER III) grant allows unrestricted indirect costs over the life of the grant, (March 13, 2020 - September 30, 2024).The unrestricted indirect cost rate changes each school year and each year’s rate can be found on the Department of Public Instruction’s website. Cause:The ESSER III grant indirect cost rate was not updated on the grant claims to reflect the current unrestricted cost rate for the year end June 30, 2023. Effect:The effect of the incorrect higher cost rate caused the district to over claim indirect costs for ESSER III. Recommendation:The District should amend its ESSER III claim using the correct rate. We recommend District personnel to review the indirect costs rates on their claims and compare them with the Department of Public’s website on indirect cost rates before claiming going forward. Management Views and Corrective Action Plan: See corrective action plan 2023-003.
Finding 2023-002
Conditions:The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria:Having staff with expertise in federal reporting to prepare the District’s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause:The additional cost associated with hiring staff sufficiently experienced to prepare the District’s state program audit report, including the additional training time, outweigh the derived benefits. Effect:Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District’s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation:We recommend District personnel continue reviewing the District’s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District’s state program audit report.Management Views and Corrective Action Plan: See corrective action plan 2023-002.
Finding 2023-003
Conditions:The District’s unrestricted indirect cost rate was not updated to reflect the District’s year end June 30, 2023 unrestricted indirect cost rate. Criteria:The Elementary and Secondary School Emergency Relief III (ESSER III) grant allows unrestricted indirect costs over the life of the grant, (March 13, 2020 - September 30, 2024).The unrestricted indirect cost rate changes each school year and each year’s rate can be found on the Department of Public Instruction’s website. Cause:The ESSER III grant indirect cost rate was not updated on the grant claims to reflect the current unrestricted cost rate for the year end June 30, 2023. Effect:The effect of the incorrect higher cost rate caused the district to over claim indirect costs for ESSER III. Recommendation:The District should amend its ESSER III claim using the correct rate. We recommend District personnel to review the indirect costs rates on their claims and compare them with the Department of Public’s website on indirect cost rates before claiming going forward. Management Views and Corrective Action Plan: See corrective action plan 2023-003.
Finding 2023-002
Conditions:The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria:Having staff with expertise in federal reporting to prepare the District’s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause:The additional cost associated with hiring staff sufficiently experienced to prepare the District’s state program audit report, including the additional training time, outweigh the derived benefits. Effect:Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District’s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation:We recommend District personnel continue reviewing the District’s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District’s state program audit report.Management Views and Corrective Action Plan: See corrective action plan 2023-002.
Finding 2023-003
Conditions:The District’s unrestricted indirect cost rate was not updated to reflect the District’s year end June 30, 2023 unrestricted indirect cost rate. Criteria:The Elementary and Secondary School Emergency Relief III (ESSER III) grant allows unrestricted indirect costs over the life of the grant, (March 13, 2020 - September 30, 2024).The unrestricted indirect cost rate changes each school year and each year’s rate can be found on the Department of Public Instruction’s website. Cause:The ESSER III grant indirect cost rate was not updated on the grant claims to reflect the current unrestricted cost rate for the year end June 30, 2023. Effect:The effect of the incorrect higher cost rate caused the district to over claim indirect costs for ESSER III. Recommendation:The District should amend its ESSER III claim using the correct rate. We recommend District personnel to review the indirect costs rates on their claims and compare them with the Department of Public’s website on indirect cost rates before claiming going forward. Management Views and Corrective Action Plan: See corrective action plan 2023-003.
Finding 2023-002
Conditions:The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria:Having staff with expertise in federal reporting to prepare the District’s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause:The additional cost associated with hiring staff sufficiently experienced to prepare the District’s state program audit report, including the additional training time, outweigh the derived benefits. Effect:Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District’s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation:We recommend District personnel continue reviewing the District’s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District’s state program audit report.Management Views and Corrective Action Plan: See corrective action plan 2023-002.
Finding 2023-003
Conditions:The District’s unrestricted indirect cost rate was not updated to reflect the District’s year end June 30, 2023 unrestricted indirect cost rate. Criteria:The Elementary and Secondary School Emergency Relief III (ESSER III) grant allows unrestricted indirect costs over the life of the grant, (March 13, 2020 - September 30, 2024).The unrestricted indirect cost rate changes each school year and each year’s rate can be found on the Department of Public Instruction’s website. Cause:The ESSER III grant indirect cost rate was not updated on the grant claims to reflect the current unrestricted cost rate for the year end June 30, 2023. Effect:The effect of the incorrect higher cost rate caused the district to over claim indirect costs for ESSER III. Recommendation:The District should amend its ESSER III claim using the correct rate. We recommend District personnel to review the indirect costs rates on their claims and compare them with the Department of Public’s website on indirect cost rates before claiming going forward. Management Views and Corrective Action Plan: See corrective action plan 2023-003.