Finding 516244 (2024-005)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-20

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over reporting, specifically due to improper segregation of duties.
  • Impacted Requirements: The lack of effective controls increases the risk of errors in claims reporting, which could lead to inaccurate financial statements.
  • Recommended Follow-Up: Implement a system where one person prepares the report and another reviews it, ensuring documentation of the review process is maintained.

Finding Text

Finding 2024-005: Significant Deficiency - Internal Control over Reporting Program: COVID-19: Education Stabilization Fund Assistance Listing Number: 84.425 Pass-Through Agency: Wisconsin Department of Public Instruction Repeat of Prior Year Finding 2023-005 Criteria: A system of internal control should be in place and operating effectively to achieve higher reliability that errors or irregularities in reporting would be discovered the District. Condition/Context: For one of the two claims selected for testing, the report was prepared and certified by the same person. The sample was not statistically valid. Cause: There is improper segregation of duties surrounding the preparation and submission of claim forms. Effect: Incorrect amounts could be reported in the claims, potentially resulting in overreported or underreported expenses. Questioned Costs: None noted. Recommendation: The District should implement a system in which one person prepares the report and another reviews to ensure it is correct prior to submission. Documentation of review should be maintained. Views of Responsible Officials: Management agrees with finding 2024-005 and has made efforts to implement recommended procedures. All claims will be reviewed and approved by a third party prior to submission.

Corrective Action Plan

Due to its size, it is not cost effective to hire additional staff to complete necessary reporting. Reviews and checks have been put into place prior to claim submissions with existing staff members.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 516242 2024-003
    Material Weakness
  • 516243 2024-004
    Material Weakness Repeat
  • 516245 2024-003
    Material Weakness
  • 516246 2024-004
    Material Weakness Repeat
  • 516247 2024-005
    Significant Deficiency Repeat
  • 516248 2024-006
    Significant Deficiency Repeat
  • 1092684 2024-003
    Material Weakness
  • 1092685 2024-004
    Material Weakness Repeat
  • 1092686 2024-005
    Significant Deficiency Repeat
  • 1092687 2024-003
    Material Weakness
  • 1092688 2024-004
    Material Weakness Repeat
  • 1092689 2024-005
    Significant Deficiency Repeat
  • 1092690 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $557,078
84.027 Special Education_grants to States $255,161
10.555 National School Lunch Program $218,169
84.010 Title I Grants to Local Educational Agencies $188,592
93.778 Medical Assistance Program $158,361
10.553 School Breakfast Program $104,339
84.367 Improving Teacher Quality State Grants $22,715
10.559 Summer Food Service Program for Children $11,462
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $11,233
84.173 Special Education_preschool Grants $11,202
84.048 Career and Technical Education -- Basic Grants to States $8,897
84.424 Student Support and Academic Enrichment Program $4,116