FAC Explorer

Finding 1153080 (2024-011)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
$1
Year
2024
Accepted
2025-09-15
Audit: 366326
Organization: Milwaukee Public Schools (WI)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: There were significant errors in reporting provider salaries and benefits for Medicaid services, affecting reimbursement amounts.
  • Impacted Requirements: The School-Based Services Handbook mandates accurate reporting by practitioner license, which was not followed in 22 out of 25 cases tested.
  • Recommended Follow-Up: Implement reminders for teachers to accurately report hours worked and conduct regular reviews of salary and benefit entries for accuracy.

Finding Text

Finding 2024-011 - Material Weakness - Reporting Federal Assistance Listing Number: 93.778 Federal Program Name: Medicaid Cluster Federal Agency Name: U.S. Department of Health and Human Services Pass-Through Entity Name: Wisconsin Department of Health Services Pass-Through Entity Identification Number (Year): 2023 Criteria: The School-Based Services Handbook requires school districts report the salary and fringe benefit cost by practitioner license. Condition/Context: In 22 of the 25 providers tested, there were issues related to incorrectly reporting the provider's salaries and benefits in the quarterly cost reports. • In quarters ended December 2022 and March 2023 there were 21 instances where the providers' salaries and benefits were not reported even though they worked providing services to eligible students. • In quarters ended March 2023 and June 2023 there were eight instances where the providers' salaries and benefits were overstated when compared to the District's payroll records. Seven of the eight individuals were included in the 21 instances above that were not reported in the quarters ended December 2022 and March 2023. Cause: The District had turnover in key positions related to the time period outlined in the Condition. Effect or Potential Effect: By failing to report the salaries and benefits related to quarters ended December 2022 and March 2023, the District received less reimbursement than they may have been otherwise entitled to. Additionally, if salaries and benefits are overreported there is a potential for the District to have to pay back the proportionate amount related to the overall reimbursement if the pass-through entity requests repayment. Questioned Costs: In relation to the eight providers who had overstated salaries and benefits, there are known questioned costs in the amount of $32,576, which are comprised of the overstated salaries and related benefits that were charged at a rate of 52 percent. Recommendations: We recommend that the responsible individual should send reminders to the teachers so that they enter their hours worked in the reporting system accordingly. Additionally, the salaries and benefits input into the reporting system should be reviewed for completeness and accuracy. Views of Responsible Official: Management concurs with the finding.

Corrective Action Plan

Finding 2024-011 – Material Weakness – Reporting Condition In 22 of the 25 providers tested, there were issues related to incorrectly reporting the provider’s salaries and benefits in the quarterly cost reports. • In quarters ended December 2022 and March 2023 there were 21 instances where the providers’ salaries and benefits were not reported even though they worked providing services to eligible students. • In quarters ended March 2023 and June 2023 there were eight instances where the providers’ salaries and benefits were overstated when compared to the District’s payroll records. Seven of the eight individuals were included in the 21 instances above that were not reported in the quarters ended December 2022 and March 2023. Corrective Action Plan Central office will be improving processes and procedures to ensure that teachers are reminded to enter their hours worked on a regular basis. Controls will be implemented for timely reviews to ensure completeness and accuracy. Training of key staff on an annual or semi-annual basis is key. It is the intent of the Office of Finance to create and implement a robust training plan in place for the summer of 2026. Name(s) of Contact Person(s) Responsible for Corrective Action: Chief Financial Officer, Central Office leadership Anticipated Completion: 06.30.26

Categories

Questioned Costs Subrecipient Monitoring Cash Management Material Weakness Reporting

Other Findings in this Audit

  • 1153072 2024-010
    Material Weakness Repeat
  • 1153073 2024-010
    Material Weakness Repeat
  • 1153074 2024-009
    Material Weakness Repeat
  • 1153075 2024-009
    Material Weakness Repeat
  • 1153076 2024-009
    Material Weakness Repeat
  • 1153077 2024-009
    Material Weakness Repeat
  • 1153078 2024-010
    Material Weakness Repeat
  • 1153079 2024-010
    Material Weakness Repeat
  • 1153081 2024-012
    Material Weakness Repeat
  • 1153082 2024-012
    Material Weakness Repeat
  • 1153083 2024-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $36.90M
84.027 Special Education Grants to States $29.49M
10.553 School Breakfast Program $13.49M
93.778 Medical Assistance Program $7.52M
84.010 Title I Grants to Local Educational Agencies $7.06M
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $5.85M
84.424 Student Support and Academic Enrichment Program $5.28M
84.287 Twenty-First Century Community Learning Centers $4.37M
10.582 Fresh Fruit and Vegetable Program $1.84M
84.425 Education Stabilization Fund $1.79M
84.048 Career and Technical Education -- Basic Grants to States $1.57M
10.558 Child and Adult Care Food Program $1.53M
84.173 Special Education Preschool Grants $1.38M
93.600 Head Start $986,627
84.206 Javits Gifted and Talented Students Education $834,305
15.662 Great Lakes Restoration $764,115
10.559 Summer Food Service Program for Children $656,042
84.299 Indian Education -- Special Programs for Indian Children $549,460
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $549,157
84.215 Innovative Approaches to Literacy; Promise Neighborhoods; Full-Service Community Schools; and Congressionally Directed Spending for Elementary and Secondary Education Community Projects $470,210
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $261,714
84.282 Charter Schools $205,824
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $182,437
93.327 Demonstration Grants for Domestic Victims of Human Trafficking $181,756
20.205 Highway Planning and Construction $162,618
10.935 Urban Agriculture and Innovative Production $106,324
84.060 Indian Education Grants to Local Educational Agencies $98,114
66.609 Protection of Children From Environmental Health Risks $98,026
84.365 English Language Acquisition State Grants $22,259
32.009 Emergency Connectivity Fund Program $7,997
10.902 Soil and Water Conservation $6,842
93.079 Cooperative Agreements to Promote Adolescent Health Through School-Based Hiv/std Prevention and School-Based Surveillance $-180
84.196 Education for Homeless Children and Youth $-312
10.574 Team Nutrition Grants $-657
84.184 School Safely National Activities $-698
93.500 Pregnancy Assistance Fund Program $-49,297
47.070 Computer and Information Science and Engineering $-82,759