Finding Text
2025-003 Segregation of Duties – Child Nutrition Cluster Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Instruction Pass Through Numbers: 2025-133675-DPI-SB-546, 2024-133675-DPI-NSL-547 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Reporting Criteria or specific requirement: 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 procedure. Condition: The monthly claim forms submitted by the District are prepared and submitted by one individual. Accordingly, this does not allow for proper segregation of duties. Questioned Costs: None Context: The District has limited program employees and does not have adequate segregation of duties over the eligibility process. Cause: The lack of segregation of duties is due to the limited number of program employees and the size of the District’s operations. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of review. Repeat Finding: No Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials: There is no disagreement with the finding.