Finding Text
Federal Agency: United States Department of Education Federal Program Name: Special Education Cluster (IDEA programs) Assistance Listing Number: 84.027, 84.173 Federal Award Identification Number and Year: H027A240064-2024; H173A240070-2024 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025 - 403619 - DPI - YIPPE – 342, 2025-403619-DPI-FLOW-341, 2025-403619-DPI-FLOW-341, 2025 - 403619 - DPI - FNC – 342, 2025-403619-DPI-ELIMG-348, 2025-403619-DPI-ELTAI-348, 2025-403619-DPI-PRESCH-347 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: In accordance with 2 CFR 200.303(a), the District must establish and maintain effective internal control over the federal award that provides reasonable assurance that the District is managing the federal award in compliance with federal statutes, regulations and the terms and conditions of the federal award. In accordance with 2 CFR 200.430(h), costs charged to federal awards must be incurred during the approved budget period as defined in the grant agreement. Condition: For one (1) of the 40 payments to vendors selected for testing, the District did not correctly allocate the cost to the proper grant period. This sample was not statistically valid. Questioned costs: Cost in the amount of $29,850 were identified as being related to periods outside the grants award period. Context: One instance of a payment to a vendor related to services that will provide benefit during the subsequent fiscal year were accrued to the fiscal year and grant period under audit. Cause: From 2023 through 2025, the District experienced substantial turnover within the finance department, including management positions. Individuals in these roles lacked the necessary skills, knowledge, and experience to oversee day-to-day operations, resulting in controls not operating effectively to ensure proper classification of vendor payments by applicable grant period and fiscal year. Effect: This resulted in amounts claimed for reimbursement that did not meet eligibility requirements for reimbursement from the grant award. Repeat Finding: No Recommendation: We recommend the District implement controls that allow for the identification and proper classification of vendor payments to applicable grant period. Views of responsible officials: There is no disagreement with this finding.