Finding Text
2022-002 Journal Entry Approval Federal Agency: U.S. Department of Education Federal Program Title: COVID-19 Elementary and Secondary School Emergency Relief Federal ALN: 84.425D 84.425U Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2021-631526-DPI-ESSERF-160, 2022-631526-DPI-ESSERFII-163, 2022-631526-DPI-ESSERFIII-165 Award Period: March 13, 2020 ? September 30, 2024 Type of Finding Significant deficiency in internal control over compliance Compliance Requirement: Allowable Costs & Allowable Activities Condition: There was no review of the journal entries by someone other than the preparer for activity associated with the ESSER grant. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over allowable costs and activities compliance requirements. Criteria: In order to ensure all costs coded to a grant are accurate and allowable, internal controls should be designed and implemented to prevent and detect errors in the underlying costs and activities. Segregation of duties is an internal control intended to prevent or decrease the occurrence of error or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Questioned Costs: None Context: In the course of our audit, we tested 6 of the 19 journal entries with activity pertaining to the ESSER Grant, none had documentation of a separate approval and review done by someone other than the preparer. Cause: The District has not fully implemented procedures that require the approval of journal entry before the activity is posted into the general ledger. Effect: The District could record activity pertaining to the grant which is not allowable under the grant requirements. Repeat Finding: No Recommendation: We recommend the District review its written procedures to ensure there are adequate controls over journal entry reviews. Views of responsible officials: There is no disagreement with the audit finding.