Finding Text
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 Number(s): 2024-714508-DPI-SB-SEVERE-546, 2024-714508-DPI-NSL-547, 2024-714508-DPI-SFSP-586
Award Period: July 1, 2023 – June 30, 2024
Type of Finding: Material Weakness 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.
Condition: When micropurchase transactions did not require a purchase order, there was no documented review by the Superintendent or other positions responsible for the grant activity prior to payment to ensure allowability and proper coding.
Questioned Costs: None.
Context: While performing audit procedures, it was noted that when micropurchase transactions did not require a purchase order, there was no documented review by the Superintendent or other positions responsible for the grant activity prior to payment to ensure allowability and proper coding
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.
Repeat Finding: No.
Recommendation: We recommend the District review its procurement process to ensure that there is adequate segregation of duties in regards to initiating, authorizing, reviewing for grant allowability and approving micro purchases, along with adding controls to ensure that the item purchased was received by the District.
Views of responsible officials: There is no disagreement with the audit finding.