Segregation of Duties
Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control.
Criteria: Lack of segregation of duties.
Cause: The limited number of office staff results in incompatible functions being performed by the same individuals.
Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded.
Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education’s and management’s knowledge of matters relating to the District’s operations.
Management Views and Corrective Action Plan: See corrective action plan 2023-001.
Financial Reporting for Federal and State Assistance
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.
Management Views and Corrective Action Plan: See corrective action plan 2023-003.
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.
Segregation of Duties
Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control.
Criteria: Lack of segregation of duties.
Cause: The limited number of office staff results in incompatible functions being performed by the same individuals.
Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded.
Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education’s and management’s knowledge of matters relating to the District’s operations.
Management Views and Corrective Action Plan: See corrective action plan 2023-001.
Financial Reporting for Federal and State Assistance
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.
Management Views and Corrective Action Plan: See corrective action plan 2023-003.
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.
Segregation of Duties
Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control.
Criteria: Lack of segregation of duties.
Cause: The limited number of office staff results in incompatible functions being performed by the same individuals.
Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded.
Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education’s and management’s knowledge of matters relating to the District’s operations.
Management Views and Corrective Action Plan: See corrective action plan 2023-001.
Financial Reporting for Federal and State Assistance
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.
Management Views and Corrective Action Plan: See corrective action plan 2023-003.
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.
Segregation of Duties
Condition: The size of the office staff precludes a proper segregation of functions to assure adequate internal control.
Criteria: Lack of segregation of duties.
Cause: The limited number of office staff results in incompatible functions being performed by the same individuals.
Effect: There may be inappropriate transactions recorded and assets may not be adequately safeguarded.
Recommendations: This is not unusual for Districts your size, but the Board of Education and management should continue to be aware of this condition and to realize that the concentration of duties and responsibilities in a limited number of individuals is not desirable for an effective system of internal control. Under these conditions, the most effective controls lie in the Board of Education’s and management’s knowledge of matters relating to the District’s operations.
Management Views and Corrective Action Plan: See corrective action plan 2023-001.
Financial Reporting for Federal and State Assistance
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.
Management Views and Corrective Action Plan: See corrective action plan 2023-003.
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.