Finding Text
Federal Agency: Department of Education
Federal Program Name: Career and Technical Education – Basic Grants to States
Assistance Listing Number: 84.048A
Pass-Through Agency: WI DPI
Pass-Through Numbers: 2023-749908-DPI-CTE-400, 2023-749908-DPI-Reserve-422, 2023-749908-DPI-NTO-420
Award Period: 7/1/22 – 6/30/23
Type of Finding: Significant Deficiency in Internal Control over Compliance
Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards.
Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement.
Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place.
Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of a lack of segregation of duties.
Repeat Finding: No.
Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes.
Views of responsible officials and planned corrective actions: Management agrees with the finding.