Finding 1132362 (2024-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-25
Audit: 354588
Organization: School District of Osceola (WI)

AI Summary

  • Core Issue: Lack of independent review for Quarterly Financial Summaries and Annual Cost reports increases the risk of errors going unnoticed.
  • Impacted Requirements: Internal controls must ensure that reports are reviewed by someone other than the original preparer to enhance reliability.
  • Recommended Follow-Up: Implement a documented review process for financial reports to prevent potential funding discrepancies.

Finding Text

Program: Medicaid Cluster Assistance Listing Number: 93.778 Pass-Through Agency: Wisconsin Department of Health Criteria: A system of internal control should be in place and operating effectively to achieve a higher reliability that errors or irregularities in reporting would be discovered by District staff. Condition/Context: Two Quarterly Financial Summaries and Annual Cost reports tested were prepared without documentation of review by someone other than the original preparer. The reports had clerical errors but did not result in over reporting expenditures of the program. The sample was not a statistically valid sample. Cause: There is no review by someone other than the original preparer of Quarterly Financial Summaries and Annual Cost reports. Effect: Without proper review of claims, incorrect amounts could be claimed on the reports and could result in over (or under) funding. Questioned Costs: None noted. Recommendation: A system should be put in place for the District to sufficiently document the review of Quarterly Financial Summaries and the Annual Cost report. Views of Responsible Officials: Management agrees with finding 2024-004 and will make efforts to implement recommended procedures. Management submitted corrected versions of the tested Quarterly Financial Summaries to SBS after audit fieldwork.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 555914 2024-003
    Significant Deficiency
  • 555915 2024-003
    Significant Deficiency
  • 555916 2024-003
    Significant Deficiency
  • 555917 2024-004
    Significant Deficiency
  • 555918 2024-004
    Significant Deficiency
  • 555919 2024-004
    Significant Deficiency
  • 555920 2024-005
    Significant Deficiency
  • 555921 2024-006
    Significant Deficiency
  • 1132356 2024-003
    Significant Deficiency
  • 1132357 2024-003
    Significant Deficiency
  • 1132358 2024-003
    Significant Deficiency
  • 1132359 2024-004
    Significant Deficiency
  • 1132360 2024-004
    Significant Deficiency
  • 1132361 2024-004
    Significant Deficiency
  • 1132363 2024-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $406,215
10.555 National School Lunch Program $342,620
93.778 Medical Assistance Program $170,974
84.010 Title I Grants to Local Educational Agencies $151,640
10.553 School Breakfast Program $109,128
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $24,474
84.173 Special Education Preschool Grants $9,949
84.424 Student Support and Academic Enrichment Program $9,000
84.048 Career and Technical Education -- Basic Grants to States $3,985