FAC Explorer

Finding 15792 (2022-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-24
Audit: 18907
Organization: Medford Area Public School District (WI)
Auditor: Bauman Associates LTD

AI Summary

  • Core Issue: There is a risk of material misstatements in the District's annual financial statements due to inadequate internal controls.
  • Impacted Requirements: The District must ensure compliance with GAAP by establishing effective internal controls for financial reporting.
  • Recommended Follow-Up: Evaluate internal staff capabilities and consider implementing a control policy; provide management with training on key disclosures.

Finding Text

Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Criteria: Management is responsible for establishing internal controls to assure the District?s annual financial reporting is in accordance with GAAP. Condition: The potential exists that a material misstatement of the annual financial statements could occur and not be prevented or detected by the District?s internal controls. Effect: The District engages the audit firm to prepare drafts of its annual financial statements and related footnote disclosures in accordance with GAAP based on information and trial balances provided by management. Cause: The District?s staff does not possess the technical expertise, or the time required to draft the year end external financial statements. Recommendation: The District should continue to evaluate its internal staff and expertise to determine if an internal control policy over the annual financial reporting is beneficial. Management should review key disclosures in a checklist and receive additional education.

Corrective Action Plan

Financial Statement Findings Finding Number: 2022-001 Significant Deficiency ? Annual Financial Reporting Under Generally Accepted Accounting Principles (GAAP) Fiscal Year: 2022 District's Response: We concur. Views of Responsible Officials and Corrective Action: The District recognizes management's responsibility for the financial statements, despite being drafted by an accounting firm. Due to the District's small size and limited staff the District does review and take responsibility for these statements. Name of Responsible Person: Audra Brooks, Director of Business Services Projected Implementation Date: N/A

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 15793 2022-001
    Significant Deficiency
  • 15794 2022-001
    Significant Deficiency
  • 15795 2022-001
    Significant Deficiency
  • 592234 2022-001
    Significant Deficiency
  • 592235 2022-001
    Significant Deficiency
  • 592236 2022-001
    Significant Deficiency
  • 592237 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $1.27M
84.027 Special Education_grants to States $584,486
10.553 School Breakfast Program $502,551
93.778 Medical Assistance Program $330,909
84.010 Title I Grants to Local Educational Agencies $294,283
93.276 Drug-Free Communities Support Program Grants $206,657
10.559 Summer Food Service Program for Children $155,439
84.367 Improving Teacher Quality State Grants $51,178
21.027 Coronavirus State and Local Fiscal Recovery Funds $37,574
84.173 Special Education_preschool Grants $23,204
10.665 Schools and Roads - Grants to States $19,551
84.048 Career and Technical Education -- Basic Grants to States $16,447
84.424 Student Support and Academic Enrichment Program $11,958
84.425 Education Stabilization Fund $1,850