FAC Explorer

Audit 7623

FY End
2023-06-30
Total Expended
$1.32M
Findings
4
Programs
14
Organization: Lodi School District (WI)
Year: 2023 Accepted: 2023-12-20
Auditor: Miller Brussell Ebben and Glaeske LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
5679 2023-002 Significant Deficiency Yes P
5680 2023-002 Significant Deficiency Yes P
582121 2023-002 Significant Deficiency Yes P
582122 2023-002 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
84.027 Special Education_grants to States $355,804 - 0
84.425 Education Stabilization Fund $251,587 Yes 1
10.555 National School Lunch Program $231,559 - 0
93.778 Medical Assistance Program $113,984 - 0
84.010 Title I Grants to Local Educational Agencies $49,675 - 0
32.009 Emergency Connectivity Fund Program $44,604 - 0
10.553 School Breakfast Program $36,136 - 0
84.367 Improving Teacher Quality State Grants $22,018 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $14,334 - 0
84.173 Special Education_preschool Grants $13,328 - 0
84.048 Career and Technical Education -- Basic Grants to States $5,772 - 0
84.424 Student Support and Academic Enrichment Program $5,565 - 0
84.365 English Language Acquisition State Grants $2,792 - 0
10.185 Local Food for Schools $2,627 - 0

Contacts

Name Title Type
WYTFCNTH6N17 Brent Richter Auditee
6085923851 Mindy McConnell 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 Lodi School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements as prescribed by the Wisconsin Department of Public Instruction. 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 Lodi School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements as prescribed by the Wisconsin Department of Public Instruction. 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 Lodi School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements as prescribed by the Wisconsin Department of Public Instruction. 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 $3,612,679.
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 Lodi School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements as prescribed by the Wisconsin Department of Public Instruction. 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 Lodi School District and are presented on the modified accrual basis of accounting. The information in these schedules is presented in accordance with the requirements as prescribed by the Wisconsin Department of Public Instruction. 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
Financial Reporting for Federal and State Assistance Conditions: The Uniform Guidance and the State Single Audit Guidelines requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal awards, the District contracts with its auditor to compile the data from these records and prepare the single 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 awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District’s single 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 single 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 single 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 federal programs are properly reported in the District’s single audit report.
Finding 2023-002
Financial Reporting for Federal and State Assistance Conditions: The Uniform Guidance and the State Single Audit Guidelines requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal awards, the District contracts with its auditor to compile the data from these records and prepare the single 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 awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District’s single 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 single 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 single 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 federal programs are properly reported in the District’s single audit report.
Finding 2023-002
Financial Reporting for Federal and State Assistance Conditions: The Uniform Guidance and the State Single Audit Guidelines requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal awards, the District contracts with its auditor to compile the data from these records and prepare the single 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 awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District’s single 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 single 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 single 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 federal programs are properly reported in the District’s single audit report.
Finding 2023-002
Financial Reporting for Federal and State Assistance Conditions: The Uniform Guidance and the State Single Audit Guidelines requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal awards, the District contracts with its auditor to compile the data from these records and prepare the single 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 awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District’s single 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 single 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 single 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 federal programs are properly reported in the District’s single audit report.