Finding Text
Finding 2025-005: Significant Deficiency - Internal Control Over Reporting Program: COVID-19: Education Stabilization Fund Assistance Listing Number: 84.425 Pass-Through Agency: Wisconsin Department of Public Instruction Repeat of Prior Year Finding 2024-005 Criteria: A system of internal control should be in place and operating effectively to achieve higher reliability that errors or irregularities in reporting would be discovered by the District. Condition/Context: For the two claims selected for testing, the reports were prepared and certified by the same person. The sample was not statistically valid. Cause: There is improper segregation of duties surrounding the preparation and submission of claim forms. Effect: Incorrect amounts could be reported in the claims, potentially resulting in overreported or underreported expenses. Questioned Costs: None noted. Recommendation: The District should implement a system in which one person prepares the report and another reviews to ensure it is correct prior to submission. Documentation of review should be maintained. Views of Responsible Officials: Management agrees with finding 2025-005 and has made efforts to implement recommended procedures. All claims will be reviewed and approved by a third party prior to submission.