Finding 48656 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-20
Audit: 45473
Organization: Port Edwards School District (WI)

AI Summary

  • Core Issue: Lack of proper review process for Child Nutrition claims leads to potential errors and fraud due to inadequate segregation of duties.
  • Impacted Requirements: Claims for reimbursement must be based on accurate data, and internal controls should prevent a single employee from managing the entire reporting process.
  • Recommended Follow-Up: Implement a review procedure where claims are verified by someone other than the preparer to ensure accuracy before submission.

Finding Text

Child Nutrition Cluster Reporting Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555, 10.559 Federal Award Identification Number and Year: N/A Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Numbers: 2022-714508-DPI-SB-SEVERE-546, 2022-714508-DPI-NSL-547, 2021-714508-DPI-SFSP-566 Award Period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance and Other Matter Criteria or specific requirement: Each claim for reimbursement should be based on accurate and precise data. 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 parts of the grant reporting process. Condition: The Food Service Director is responsible for preparing and submitting claims related to the Child Nutrition Cluster. There is no review or verification by someone other than the preparer that the appropriate steps are being followed or completed. Accordingly, this does not allow for a proper segregation of duties for internal control purposes. Questioned costs: None. Context: While performing audit procedures, it was noted that the District did not have a review or approval of Child Nutrition claims by someone other than the preparer. Two of the six months tested in our sample had errors in the meal counts reported to Wisconsin Department of Public Instruction. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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. The District would be under or overpaid for meals due to overclaiming number of meals served. Repeat Finding: No. Recommendation: We recommend the District implement a review procedure over reimbursement requests where someone other than the preparer reviews the claim to ensure counts agree back to supporting documentation prior to the reimbursement request being filed with the granting agency. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Child Nutrition Cluster Reporting Child Nutrition Cluster ? Assistance Listing No. 10.553, 10.555, 10.559 Recommendation: CLA recommends the District implement a review procedure over reimbursement requests where someone other than the preparer reviews the claim to ensure counts agree back to supporting documentation prior to the reimbursement request being filed with the granting agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We continue to look for ways to segregate duties and will implement a review procedure for reimbursement requests. Name(s) of the contact person(s) responsible for corrective action: Lisa Miller Planned completion date for corrective action plan: Ongoing

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Cash Management Material Weakness Reporting School Nutrition Programs

Other Findings in this Audit

  • 48657 2022-006
    Material Weakness
  • 48658 2022-003
    Material Weakness
  • 48659 2022-006
    Material Weakness
  • 48660 2022-003
    Material Weakness
  • 48661 2022-006
    Material Weakness
  • 48662 2022-003
    Material Weakness
  • 48663 2022-006
    Material Weakness
  • 48664 2022-004
    Material Weakness
  • 48665 2022-005
    Significant Deficiency
  • 48666 2022-004
    Material Weakness
  • 48667 2022-005
    Significant Deficiency
  • 625098 2022-003
    Material Weakness
  • 625099 2022-006
    Material Weakness
  • 625100 2022-003
    Material Weakness
  • 625101 2022-006
    Material Weakness
  • 625102 2022-003
    Material Weakness
  • 625103 2022-006
    Material Weakness
  • 625104 2022-003
    Material Weakness
  • 625105 2022-006
    Material Weakness
  • 625106 2022-004
    Material Weakness
  • 625107 2022-005
    Significant Deficiency
  • 625108 2022-004
    Material Weakness
  • 625109 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $98,730
84.425 Education Stabilization Fund $97,656
84.010 Title I Grants to Local Educational Agencies $88,290
10.553 School Breakfast Program $52,546
10.555 National School Lunch Program $25,164
84.027 Special Education_grants to States $20,372
84.367 Improving Teacher Quality State Grants $17,119
84.424 Student Support and Academic Enrichment Program $10,000
84.048 Career and Technical Education -- Basic Grants to States $3,097
84.173 Special Education_preschool Grants $2,310
10.559 Summer Food Service Program for Children $880