Finding 1090262 (2024-003)

Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425E210044-2021 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2022-104207-DPI-ESSERFII-163, 2022-104207-DPI-ESSERFIII-165 Award Period: 3/13/2020 – 9/30/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s general ledger system. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Condition: There was no review of the required performance reports by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The annual performance report required by the grant did not contain documentation that the report was reviewed and approved by an individual other than the preparer. Cause: The District experienced turnover during the year and due to the different reporting portal, an electronic approval was not required. Effect: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Views of responsible officials: Refer to the management’s response per the corrective action plan.