Finding 370449 (2023-007)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2023
Accepted
2024-02-24
Audit: 292020
Organization: One City Schools, Inc. (WI)
Auditor: Wegner CPAS LLP

AI Summary

  • Core Issue: Supporting documentation for claims totaling $344,674 was not retained, violating federal requirements.
  • Impacted Requirements: Compliance with 2 CFR, Part 200.334 and 2 CFR, Part 200.302(3) regarding documentation retention and support.
  • Recommended Follow-up: One City Schools, Inc. should establish and implement effective internal controls to ensure proper documentation retention for claims.

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 200.334 of the Uniform Guidance, supporting documentation pertinent to a federal award must be retained for a period of three years from the date of submission of the expenditure. According to 2 CFR, Part 200.302(3) of the Uniform Guidance, records must be supported by source documentation. Condition: Supporting documentation for claims were not retained. Cause: Internal controls for funding claims have not been designed appropriately. Currently, there are no internal controls to ensure support for claims are retained in accordance with federal requirements. Questioned Costs: $344,674 Effect or Potential Effect: Incomplete or inaccurate information could be reported on funding claims. Context: A sample of 8 claims reports were selected from a population of 39. The testing found that supporting documentation for claims was not retained for any of the claims in the sample. Repeat Finding: No Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for retaining support for claims in accordance with federal requirements. Views of Responsible Officials: One City Schools, Inc. agrees with the finding and are working on implementing internal controls for maintaining supporting documentation.

Corrective Action Plan

Recommendation: One City Schools, Inc. should design and implement appropriate internal controls for retaining support for claims in accordance with federal requireents. Action Taken: One City Schools has developed a new process to document meal counts per month, attendance and enrollment numbers per month, submission of claims, and the signature of a designated second approver, the COO. As each claim is made, the associated backup documentation will be presented to the second approver for their review and signature. Once approved, the entire packet of information will be retained. This process was initiated in December 2023.OCS completed the second designated approver review retroactively for all claims in the months of July, September, October, and November 2023.

Categories

Questioned Costs Subrecipient Monitoring School Nutrition Programs 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
  • 370445 2023-006
    Material Weakness
  • 370446 2023-006
    Material Weakness
  • 370447 2023-006
    Material Weakness
  • 370448 2023-006
    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