July 28, 2026 Business Services Missoula County Public Schools 909 South Avenue West Missoula, MT 59801 Phone 406-728-2400 Ext 3021 business@mcpsmt.org Management’s Response to Auditor’s Findings and Corrective Action Plan June 30, 2023 Prepared by Management of Missoula County Public Schools Contact: Denise Williams, Executive Director of Business Operations 2023-001 Internal Controls Over Student Activity Expenditures Criteria or Specific Requirement: The State of Montana Student Activity Fund Accounting Manual requires all expenditure of funds have proper documentation. Condition: During review of student activity expenditures it was noted that documentation was not retained for all expenses. Context: We selected 50 total expenditures for testing and noted that 2 of the expenditures did not have documentation of the expense. Effect: We selected 50 total expenditures for testing and noted that 2 of the expenditures did not have documentation of the expense. Cause: The District is not in compliance with State requirements for the accounting for student activity expenditures. Auditor's Recommendation: We recommend that the District review its policies and procedures pertaining to student activity expenditures and receipts and ensure that is up to date and that it can be easily followed and replicated in case of personnel turnover. View of Responsible Officials and Corrective Action Plan: We concur with this finding. It is an on-going issue. Our policies and procedures concerning student activity funds are up to date. We have held meetings with the school bookkeepers to review the MASBO Student Activity Fund Accounting Manual and have provided electronic and paper copies to the principals, activities/athletic directors and bookkeepers. Our next meeting with this group is August 6, 2026. 2023-002 Late Submission Federal Program Information: Funding agency: U.S Department of Education U.S Department of Agriculture Title: Elementary and Secondary School Emergency Relief ESSER) Fund, American Rescue Plan - Elementary and Secondary School Emergency Relief (ARP ESSER), American Rescue Plan Elementary and Secondary School Emergency Relief - Homeless Children and Youth and Special Education Cluster Child Nutrition Cluster CFDA number: 84.425D, 84.425U, 84.425W, 84.027, 84.173 10.553, 10.555, 10.559 Award year and number: 32-0583-912020, 32-0584-922021, 32-0583-972021, 32-0583- 932021, 32-0584-772021, 32-0584-772022, 32-0584-79-2022 Criteria or Specific Requirement: 2 CFR section 200.512(a) requires the reporting package and data collection form be submitted to the Federal Audit Clearinghouse the earlier of 30 calendar days after the reports are received from auditors or nine months after the end of the audit period. Condition: The fiscal year audit and reporting package is being submitted after the required due date. Context: We reviewed the audit submission date in comparison to the required due date. Questioned Costs: To be determined by grantor Effect: There is a potential for suspension or cessation of federal and/or state funding. Cause: The ongoing Covid-19 pandemic caused a delay in the audit and as such the required deadline could not be met. Repeat: Yes Auditor's Recommendations: The District should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. View of Responsible Officials and Corrective Action Plan: In November 2022, the District was informed by its then auditor that they could not complete the audit for FY2022. By that time, most audit firms were booked solid and the District had a difficult time contracting with a new firm. Wipfli, LLC entered into a 3-year contract with the District with the understanding that the FY2022 audit would likely not be filed on time. The FY2022 audit was issued on May 7, 2024. The District committed to having financial information ready for the FY2023 audit by the end of June 2024, which was already twelve months after the end of the audit period. Unfortunately, the financial information for FY2023 was not ready as promised and this had an adverse effect on Wipfli LLC's ability to perform its work as scheduled. To further complicate matters, key accounting personnel left the District in August 2024 and June 2025. These individuals had 30 years and 20 years’ experience, respectively, in the District. Even though this will be a repeat finding for the FY2024 and FY2025 audits, the current accounting personnel and their staff are committed to maintaining the District's financial records on a current basis, reconciling accounts timely and will work to have them audited within the required deadlines.