Finding 1169081 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-01-15

AI Summary

  • Core Issue: The District lacks proper review procedures for monthly reports, compromising internal controls over compliance.
  • Impacted Requirements: Reports must be accurate and reconciled with the general ledger; segregation of duties is essential to prevent errors or fraud.
  • Recommended Follow-Up: Implement a procedure to ensure all reports have a designated reviewer separate from the preparer.

Finding Text

Federal Agency: U.S. Department of Agriculture Federal Program Name: School Breakfast Program, National School Lunch Program, Summer Food Service Program for Children Assistance Listing Number: 10.553, 10.555, 10.559 Federal Award Identification Number and Year: N/A Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025-631526-DPI-SB-546, 2025-631526-DPI-SB-SEVERE-546, 2025-631526-DPI-NSL-547, 2025-631526-DPI-SFSP-586 Award Period: 7/1/2024 – 6/30/2025 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s general ledger system. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction. Condition: There was no review of the monthly reports by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The monthly reports detailing meals served used to determine the reimbursement received by the District did not contain documentation that the report was reviewed and approved by an individual other than the preparer. Cause: The District has not recently completed an internal control assessment in relation to the reporting requirements of the grant to ensure that adequate review procedures existed. Effect: Errors in the monthly reporting could be made and not detected prior to submission resulting in an incorrect reimbursement amount. Repeat finding: No Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to Finding: The Business Manager and School Food Service Director met regarding the finding and agreed that the Food Service Director will continue to gather the required claim data and enter the appropriate data into DPIs required Excel template monthly. All supporting documentation as well as the Excel documents will be emailed to the Business Manager monthly. The Business Manager will verify the numbers in the Excel documents using the supporting documentation. If the Business Manager agrees with the numbers in the Excel files, they will be uploaded to DPI as is. If any discrepancies are discovered, the Food Service Director and the Business Manager will work together to ensure the correct data is sent to DPI. Name of Responsible Official: Tera Fritz, Business Manager Expected Completion Date: September 1, 2025

Categories

School Nutrition Programs Internal Control / Segregation of Duties Cash Management HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 1169077 2025-002
    Material Weakness Repeat
  • 1169078 2025-002
    Material Weakness Repeat
  • 1169079 2025-002
    Material Weakness Repeat
  • 1169080 2025-002
    Material Weakness Repeat
  • 1169082 2025-003
    Material Weakness Repeat
  • 1169083 2025-003
    Material Weakness Repeat
  • 1169084 2025-003
    Material Weakness Repeat
  • 1169085 2025-003
    Material Weakness Repeat
  • 1169086 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 SPECIAL EDUCATION GRANTS TO STATES $292,474
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $291,155
93.778 MEDICAL ASSISTANCE PROGRAM $224,040
10.553 SCHOOL BREAKFAST PROGRAM $99,241
10.555 NATIONAL SCHOOL LUNCH PROGRAM $51,824
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $46,636
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $12,389
84.425 EDUCATION STABILIZATION FUND $11,303
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $9,428
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $7,194