Finding 1165257 (2025-005)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2025-12-18
Audit: 375728
Organization: School District of Waupaca (WI)
Auditor: KERBERROSE

AI Summary

  • Core Issue: The District failed to properly manage Medicaid billing, resulting in non-compliance with required documentation for services.
  • Impacted Requirements: Services billed must be included in each eligible student's IEP, which was not consistently met.
  • Recommended Follow-Up: Management should enhance monitoring of billings and ensure all services are documented in current IEPs before submission.

Finding Text

2025-005 – Medicaid – Allowable Activities and Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Medical Assistance Program Assistance Listing Number: 93.778 Pass-Through Agency: WI DHS Pass-Through Entity Identifying Number: N/A Award Period: July 1, 2024 – June 30, 2025 Exceptions: 1 exceptions out of 40 tested (2.50%) Questioned Costs: $5,533 Type of Finding: Compliance Finding and Material Weakness in Internal Control Over Compliance and Other Matter Criteria For a district to bill Medicaid for School Based Services (SBS) the district must have a signed “Consent to Bill Wisconsin Medicaid for Medically Related Special Education and Related Services” for each eligible student and services billed must be included in the students individualized evaluation plan (IEP). Covered SBS services include nursing, occupational and physical therapy, psychological services, counseling and social work, speech-language pathology, audiology, and hearing, transportation, and attendant care. Condition The District has not properly implemented controls to oversee the Medicaid billing process and update student IEP’s for changes. Cause The District did not ensure that services billed for reimbursement were included in the students’ IEP. Effect The allowable cost requirements applicable to the grant were not met. Recommendation We recommend management monitor billings and ensure prior to billing the services are included in the students current IEP. Management’s Response The District is aware of the requirements and will attempt to compile the information necessary in the future. Responsible Official Austin Moore, Business Manager Anticipated Completion Date The District intends to work towards resolving this finding for the following year.

Corrective Action Plan

2025-005 – Medicaid – Allowable Activities and Costs - The District is aware of the student’s receiving benefits need to have their billed services included in their IEPs. Responsible Official – Austin Moore, Business Manager Anticipated Completion Date – The District will correct this in the subsequent fiscal year.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1165253 2025-004
    Material Weakness Repeat
  • 1165254 2025-004
    Material Weakness Repeat
  • 1165255 2025-004
    Material Weakness Repeat
  • 1165256 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $512,412
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $411,896
93.778 MEDICAL ASSISTANCE PROGRAM $262,598
10.555 NATIONAL SCHOOL LUNCH PROGRAM $98,396
10.553 SCHOOL BREAKFAST PROGRAM $97,316
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $59,177
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $49,727
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $37,537
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $27,213
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $20,280
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $16,255