Finding Text
2023-004 ESSER - Segregation of Duties – Grant Reporting
Federal Agency: U.S. Department of Education
Federal Program Title: Elementary and Secondary School Emergency Relief Fund
Assistance Listing Number: 84.425D, 84.425U
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Entity Identifying Number: 2021-375628-DPI-ESSERF-160, 2022-375628-DPI-ESSERFII-163, 2023-375628-DPI-LETRS-165
Award period: March 13, 2020 – September 30, 2023
Type of Finding:
• Material Weakness in Internal Control Over Compliance
Compliance Requirements: Reporting
Criteria or Specific Requirement: Grant Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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 transaction.
Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements.
Questioned Costs: None.
Context: Of the two sampled reports, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government.
Cause: The District currently has the business manager compile the data and prepare the reports based on data from the District’s software. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure.
Effect: The District may incorrectly report certain activities.
Repeat Finding: No
Recommendation: We recommend that the District implement a review process over the reporting requirements related to the ESSER grants.
Views of Responsible Officials: There is no disagreement with the audit finding.