FAC Explorer

Finding 1153083 (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.

Corrective Action Plan

Finding 2024-012 – Material Weakness – Maintenance of Effort Condition 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. Corrective Action Plan The Office of Finance is committed to timely and accurate financial reporting. As we aim to improve our financial reporting due to DPI, our ACFR preparation and our SEFSA preparation, we will ensure that our reporting reconciles and there are no variances. We are working to improve, as mentioned in all the findings above, related to financial reporting. We recognize that this is critical for funding purposes for our district and it is our intent that this finding is remedied for FY25 reporting. Name(s) of Contact Person(s) Responsible for Corrective Action: Chief Financial Officer Anticipated Completion: 06.30.2026

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
  • 1153081 2024-012
    Material Weakness Repeat
  • 1153082 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