FAC Explorer

Finding 1153081 (2024-012)

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

AI Summary

  • Core Issue: There was a significant $16,977,949 discrepancy between the PI-1505 report and the District's accounting records, affecting the Maintenance of Effort (MOE) calculation.
  • Impacted Requirements: The District failed to maintain effective internal controls and financial management systems as required by 2 CFR 200.303(a) and 2 CFR 200.302(a).
  • Recommended Follow-Up: The District should create and implement written policies for preparing the PI-1505 report, ensuring it aligns with accounting records and includes necessary documentation.

Finding Text

Finding 2024-012 - Material Weakness - Maintenance of Effort Federal Assistance Listing Number: 84.010 and 84.367 Federal Program Name: Title I Grants to Local Educational Agencies and Supporting Effective Instruction State Grants Federal Agency Name: U.S. Department of Education Pass-Through Entity Name: Wisconsin Department of Public Instruction Pass-Through Entity Identification Number: 2024-403619-DPI-TI-A-141, 2024-403619-DPI-TID-144, 2024-403619-DPI-CSI-148 and 2024-403619-DPI-TIIA-365 Criteria: In accordance with 2 CFR 200.303(a), the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations and the terms and conditions of the Federal award. In accordance with 2 CFR 200.302(a), the non-Federal entity's financial management systems must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Condition/Context: The Maintenance of Effort (MOE) calculation is calculated annually by the Wisconsin Department of Public Instruction (WI DPI) based on the information submitted in the PI-1505 report. There was a $16,977,949 variance between what was reported in the PI-1505 and the District's accounting records for the revenue source code 751. Due to this variance, we recalculated the MOE based on the District's accounting records. The MOE on a per pupil basis would have still been met. Cause: There was turnover related to those previously responsible for preparing the PI-1505 report. The cross-walk between the accounting records and the PI-1505 submission could not be located. Effect or Potential Effect: The PI-1505 report was not fully supported by the District's accounting records for one of the line items used in the calculation of MOE. Questioned Costs: None noted. Recommendations: We recommend the District establish written policies and procedures related to the preparation and submission of the PI-1505 report. The report should be fully supported by the accounting records and any cross-walk documentation should be maintained by the District. Views of Responsible Official: Management concurs with the finding.

Categories

Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

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
  • 1153080 2024-011
    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