Finding 1202924 (2025-005)

Material Weakness Repeat Finding
Requirement
H
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 effective internal controls to ensure compliance with federal period of performance requirements.
  • Impacted Requirements: Failure to adhere to 2 CFR, Part 200.303 may lead to noncompliance and potential loss of federal funding.
  • Recommended Follow-Up: Implement and maintain robust internal controls to ensure compliance with period of performance requirements.

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 controls in place to ensure period of performance requirements were adhered to. Questioned costs: None Context: We identified 3 expenditures not recorded correctly as they were not incurred by year-end and were subsequently removed from the SEFSA. Cause: Policies and procedures were put in place, but were not being followed. Effect: This could result in noncompliance, disallowed costs, or discontinuance of federal funding. Repeat Finding: No Recommendation: We recommend that the Organization maintain effective internal controls over period of performance requirements. Views of responsible officials: One City Schools, Inc. agrees with the finding and are working on implementing internal controls over period of performance.

Corrective Action Plan

2025-005 US Department of Education Material Weakness in Internal Control over Compliance and Other Matter Period of Performance Auditor's Recommendation: We recommend that the Organization maintain effective internal controls over period of performance requirements Corrective Action: One City understand the requirements for expenditure of grant funds in the proper period and will work more closely with the funders to ensure that documentation exists when a no cost extension is needed. The new Chief Financial Officer will monitor compliance with the policy and ensure proper documentation exists in the grant management system. Responsible for Corrective Action: Scott R Haumersen CPA, CGMA Shaumersen@onecityschools.org 608-575-4950 Anticipated Completion Date: June 30th, 2026

Categories

Material Weakness Period of Performance Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1202921 2025-002
    Material Weakness Repeat
  • 1202922 2025-003
    Material Weakness Repeat
  • 1202923 2025-004
    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