Finding Text
Federal Agency: United States Department of Agriculture
Federal Program Name: Child Nutrition Cluster
Assistance Listing Number: 10.553, 10.555, 10.556
Pass-Through Agency: Wisconsin Department of Instruction
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirements Affected: Eligibility, Reporting, Special Tests and Provisions
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 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 procedure.
Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Eligibility and verification determinations are not reviewed and approved for accuracy or input into District software. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting, eligibility, and special test compliance requirements.
Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations.
Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of timely review.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Additionally we recommend the district designate an individual to review eligibility and verification determinations for accuracy and proper input into software.
Views of Responsible Officials and Planned Corrective Action: No disagreement with finding.