Finding 1202923 (2025-004)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396186
Organization: One City Schools, Inc. (WI)

AI Summary

  • Core Issue: One City Schools, Inc. lacks a proper review process for funding claims before submission, leading to potential inaccuracies.
  • Impacted Requirements: This finding violates 2 CFR, Part 200.303, which mandates effective internal controls for compliance with federal regulations.
  • Recommended Follow-Up: One City Schools, Inc. should establish and enforce internal controls to ensure all funding claims are reviewed prior to submission.

Finding Text

Federal Agency: Department of Education Federal Program Name: Wisconsin Charter Schools Program Waiver Cohort Assistance Listing Number: 84.282 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025-138005-DPI-WCSPWC1-360 Award Period: July 1, 2024 through June 30, 2025 Type of Finding:  Material Weakness in Internal Control over Compliance and Other Matter Criteria: According to 2 CFR, Part 200.303 of the Office of Management and Budget’s Uniform Grant Guidance, a non-Federal entity must establish and maintain effective internal controls to ensure compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: One City Schools, Inc. did not have a process in place to review funding claims prior to submission. Questioned costs: None Context: We sampled 5 cash management requests, noting that 3 were not reviewed prior to submission. Cause: Policies and procedures were put in place, but were not being followed. Effect: Incomplete or inaccurate information could be reported on funding claims. Repeat Finding: Yes (2024-004) Recommendation: One City Schools, Inc. should implement appropriate internal controls for reviewing funding claims prior to submission. Views of responsible officials: One City Schools, Inc. agrees with the finding and are working on implementing policies and procedures over reviewing claims prior to submission.

Corrective Action Plan

2025--004 US Department of Education Material Weakness in Internal Control over Compliance and Other Matter Cash Management Auditor's Recommendation: One City Schools, Inc. should implement appropriate internal controls for reviewing funding claims prior to submission. Corrective Action: One City adopted a new grants management process which requires that all submitted claims are reviewed and signed by two responsible officials. Evidence of approvals will be maintained in the electronic grant files. In addition, One City has developed a training tool so that all staff who have grant claiming authority must participate in the training. The new Chief Financial Officer will monitor compliance with the policy and ensure proper documentation exists. Responsible for Corrective Action: Scott R Haumersen CPA, CGMA Shaumersen@onecityschools.org 608-575-4950 Anticipated Completion Date: June 30th, 2026

Categories

Cash Management Material Weakness Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1202921 2025-002
    Material Weakness Repeat
  • 1202922 2025-003
    Material Weakness Repeat
  • 1202924 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.282 CHARTER SCHOOLS $597,535
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $129,433
10.553 SCHOOL BREAKFAST PROGRAM $119,478
84.027 SPECIAL EDUCATION GRANTS TO STATES $31,958
10.555 NATIONAL SCHOOL LUNCH PROGRAM $24,778
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $18,820
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $15,000
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,000
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $1,331