Finding 370445 (2023-006)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-02-24
Audit: 292020
Organization: One City Schools, Inc. (WI)
Auditor: Wegner CPAS LLP

AI Summary

  • Core Issue: One City Schools, Inc. lacks a review process for funding claims before submission.
  • Impacted Requirements: This violates 2 CFR, Part 200.303, which mandates effective internal controls for compliance with federal regulations.
  • Recommended Follow-up: Implement a robust internal control system to ensure all funding claims are reviewed prior to submission.

Finding Text

Assistance Listing Number(s): 10.553 and 10.555 Name of Federal Program or Cluster: Child Nutrition Cluster Name of Federal Agency: Department of Agriculture Name of Pass-through Entity: Wisconsin Department of Public Instruction Pass-through Entity Identifying Number(s): 2023-138142-DPI-SB-546, 2023-138005-DPI-SB-546, 2023-138005-DPI-NSL-547, and 2023-138005-DPI-SK_NSLAE-566 Award Period: July 1, 2022 through June 30, 2023 Criteria: According to 2 CFR, Part 200.303 of the Office of Management and Budget’s Uniform Grant Guidance, a non-Federal entity must establish and maintain effective internal controls to ensure compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: One City Schools, Inc. did not have a process in place to review funding claims prior to submission. Cause: Internal controls for funding claims have not been designed appropriately. Currently, there is no review of claim reports prior to submission to the grantor. Effect or Potential Effect: Incomplete or inaccurate information could be reported on funding claims. Repeat Finding: No Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for reviewing funding claims. Views of Responsible Officials: One City Schools, Inc. agrees with the finding and are working on implementing policies and procedures over reviewing claims prior to submission.

Corrective Action Plan

Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for reviewing funding claims. Action Taken: One City Schools has developed a new process for submission where a second approver, the COO, reviews the claims for accuracy. This process started in December 2023, however OCS also completed this second approver review retroactively for all claims in July 2023, September 2023, October 2023, and November 2023.

Categories

Subrecipient Monitoring School Nutrition Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370437 2023-004
    Significant Deficiency
  • 370438 2023-004
    Significant Deficiency
  • 370439 2023-004
    Significant Deficiency
  • 370440 2023-004
    Significant Deficiency
  • 370441 2023-005
    Material Weakness
  • 370442 2023-005
    Material Weakness
  • 370443 2023-005
    Material Weakness
  • 370444 2023-005
    Material Weakness
  • 370446 2023-006
    Material Weakness
  • 370447 2023-006
    Material Weakness
  • 370448 2023-006
    Material Weakness
  • 370449 2023-007
    Material Weakness
  • 370450 2023-007
    Material Weakness
  • 370451 2023-007
    Material Weakness
  • 370452 2023-007
    Material Weakness
  • 370453 2023-008
    Material Weakness
  • 370454 2023-008
    Material Weakness
  • 370455 2023-008
    Material Weakness
  • 370456 2023-008
    Material Weakness
  • 946879 2023-004
    Significant Deficiency
  • 946880 2023-004
    Significant Deficiency
  • 946881 2023-004
    Significant Deficiency
  • 946882 2023-004
    Significant Deficiency
  • 946883 2023-005
    Material Weakness
  • 946884 2023-005
    Material Weakness
  • 946885 2023-005
    Material Weakness
  • 946886 2023-005
    Material Weakness
  • 946887 2023-006
    Material Weakness
  • 946888 2023-006
    Material Weakness
  • 946889 2023-006
    Material Weakness
  • 946890 2023-006
    Material Weakness
  • 946891 2023-007
    Material Weakness
  • 946892 2023-007
    Material Weakness
  • 946893 2023-007
    Material Weakness
  • 946894 2023-007
    Material Weakness
  • 946895 2023-008
    Material Weakness
  • 946896 2023-008
    Material Weakness
  • 946897 2023-008
    Material Weakness
  • 946898 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $290,025
10.553 School Breakfast Program $97,723
84.027 Special Education_grants to States $69,636
84.010 Title I Grants to Local Educational Agencies $55,822
10.555 National School Lunch Program $45,998
84.367 Improving Teacher Quality State Grants $14,711
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education_preschool Grants $1,310