FAC Explorer

Finding 35089 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-02
Audit: 24809
Organization: School District of Sevastopol (WI)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The District lacks proper review and approval of claim forms before submission, leading to a material weakness in internal controls.
  • Impacted Requirements: This affects the compliance requirement of segregation of duties, which is essential to prevent errors and fraud.
  • Recommended Follow-Up: Implement a procedure for timely review and approval of claims by a knowledgeable individual before submission.

Finding Text

2022-003 Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-155130-SB-546; 2022-155130-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Compliance Requirement Affected: Reporting Type of Finding Material weakness in internal control over compliance. Condition The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. Criteria or Specific Requirement Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a procedure. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. Effect Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of timely review of the grant claims. Repeat Finding Yes - 2021-005 Recommendation We recommend the District implement a procedure to allow for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. Views of Responsible Officials There is no disagreement with the audit finding.

Corrective Action Plan

2022-003 Segregation of Duties ? Reporting Federal Assistance Listing Number: 10.CNC Management is cognizant of the District?s internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. It is the District?s plan to train an individual in the process of submitting claims in order to create a review process of the grant management process. Responsible Official: Karl Volkmann, Business Manager Anticipated Completion Date: June 30, 2023

Categories

Internal Control / Segregation of Duties Cash Management HUD Housing Programs Material Weakness Reporting School Nutrition Programs

Other Findings in this Audit

  • 35090 2022-004
    Material Weakness
  • 35091 2022-005
    Significant Deficiency
  • 35092 2022-003
    Material Weakness Repeat
  • 35093 2022-004
    Material Weakness
  • 35094 2022-005
    Significant Deficiency
  • 35095 2022-003
    Material Weakness Repeat
  • 35096 2022-004
    Material Weakness
  • 35097 2022-005
    Significant Deficiency
  • 611531 2022-003
    Material Weakness Repeat
  • 611532 2022-004
    Material Weakness
  • 611533 2022-005
    Significant Deficiency
  • 611534 2022-003
    Material Weakness Repeat
  • 611535 2022-004
    Material Weakness
  • 611536 2022-005
    Significant Deficiency
  • 611537 2022-003
    Material Weakness Repeat
  • 611538 2022-004
    Material Weakness
  • 611539 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $102,273
93.778 Medical Assistance Program $58,841
84.010 Title I Grants to Local Educational Agencies $56,106
10.553 School Breakfast Program $43,501
84.358 Rural Education $40,368
84.027 Special Education_grants to States $26,626
84.367 Improving Teacher Quality State Grants $21,676
10.555 National School Lunch Program $20,866
84.424 Student Support and Academic Enrichment Program $14,036
84.048 Career and Technical Education -- Basic Grants to States $3,059
84.173 Special Education_preschool Grants $3,018
84.060 Indian Education_grants to Local Educational Agencies $670