Finding Text
Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-371561-DPI-SB-546, 2022-371561-DPI-NSL-547, Unknown Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Segregation of duties is an internal control intended to prevent or decrease the occurrence of errors or intentional fraud. Segregation of duties ensures that no single employee has control over all phases of a transaction. Compliance Requirements: Reporting. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. For a portion of the year, there was no review or verification by someone other than the Food Service Director that the claims appeared accurate and complete. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned Costs: None. Context: When identifying internal controls over compliance related to reporting (reimbursement requests), it was noted that two out of the six reports tested did not have proper reviews on the claim by someone other than the preparer. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. In addition, the District had not initially completed a formal risk assessment and review of internal controls to identify additional mitigating and compensating controls at the beginning of the fiscal year which lead to a portion of reports not being reviewed. 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 the lack of segregation of duties. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2021-003. Recommendation: We recommended that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster during the fiscal year. Views of Responsible Officials: There is no disagreement with the audit finding.