FAC Explorer

Finding 1216532 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-06-04
Audit: 403034
Organization: Adams-Friendship Area School District (WI)
Auditor: LAUTERBACH & AMEN LLP

AI Summary

  • Issue: The fund balance needed to be restated due to discrepancies between the third-party capital asset report and last year's financial statements.
  • Requirements Impacted: Internal controls must ensure accurate recording and reporting of capital assets for reliable financial statements.
  • Follow-Up: The District should implement stronger internal controls to ensure timely and accurate capital asset reporting before future audits.

Finding Text

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance due to differences between the third party capital asset report and the prior year financial statements. Criteria: A good system of internal controls would provide for accurate recording and reporting of capital assets on a regular basis in order to provide for accurate financial reporting. Cause: A large adjustment to capital assets was required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning fund balance was required to properly state capital asset balances. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The District will implement internal controls to properly record capital asset balances on a timely basis prior to audit fieldwork.

Corrective Action Plan

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correctly record capital asset activity. Plan: The District will implement internal controls to properly record capital assets on a timely basis prior to audit fieldwork. Anticipated Date of Completion: The District will correct this for the 2025-2026 school year. Name of Contact Person: Nicki Ells, Business Manager Management Response: The Adams-Friendship School District accepts the plan for the Corrective Action listed above and does not dispute anything.

Categories

Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216533 2025-002
    Material Weakness Repeat
  • 1216534 2025-003
    Material Weakness Repeat
  • 1216535 2025-003
    Material Weakness Repeat
  • 1216536 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $624,180
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $507,793
84.027 SPECIAL EDUCATION GRANTS TO STATES $379,656
93.778 GRANTS TO STATES FOR MEDICAID $259,970
10.553 SCHOOL BREAKFAST PROGRAM $173,737
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $71,404
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $55,279
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $52,718
10.558 CHILD AND ADULT CARE FOOD PROGRAM $46,577
84.358 RURAL EDUCATION $25,553
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $22,617
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $18,748
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $15,959
84.425 EDUCATION STABILIZATION FUND $8,844
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $3,683