Finding Text
Financial Reporting for Federal and State Awards Federal Assistance Listing Number - All State IDs - All Type of Finding: Significant deficiency in internal control over state award reporting. Condition: Uniform Guidance and the Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintain financial records supporting amounts reported in the schedules of federal and state awards, the District contracts with CLA to compile the data from these records and assist in the preparation of the schedule of expenditures for the District. Criteria or specific requirement: Having staff with expertise in federal and state financial reporting prepare the District's single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional costs associated with hiring staff sufficiently experience to prepare the District's schedule of expenditures including the additional training time, outweigh the derived benefits. Effect: The District could receive federal or state grant awards which are not included in the accompanying schedules of expenditures of federal and state awards. Recommendation: We recommend District personnel continue reviewing the District's schedule of expenditures. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all federal and state award programs are properly reported in the District's schedule of expenditures. Views of Responsibile Officials and Planned Corrective Actions: There is no disagreement with the audit finding.