Finding 517499 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-01-02
Audit: 335506
Organization: One City Schools, Inc. (WI)

AI Summary

  • Core Issue: One City Schools, Inc. lacks a process to review funding claims before submission, leading to potential inaccuracies.
  • Impacted Requirements: This finding violates 2 CFR, Part 200.303, which mandates effective internal controls for compliance with federal regulations.
  • Recommended Follow-Up: Implement internal controls for pre-submission review of funding claims to prevent future issues.

Finding Text

Federal Agency: Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2024-678022-DPI-SB-546, 2024-010014-DPI-NSL-547, 2024-010014-DPISK_NSLAE-566 Award Period: July 1, 2023 through June 30, 2024 Type of Finding:  Material Weakness in Internal Control over Compliance and Other Matter Criteria: According to 2 CFR, Part 200.303 of the Office of Management and Budget’s Uniform Grant Guidance, a non-Federal entity must establish and maintain effective internal controls to ensure compliance with federal statutes, regulations, and the terms and conditions of federal awards. Condition: One City Schools, Inc. did not have a process in place to review funding claims prior to submission. Questioned costs: None Context: We sampled 4 monthly funding claims, noting that all were reviewed subsequent to submission. Cause: Policies and procedures were put in place after the prior year single audit findings, but were not able to be incorporated for the current fiscal year under audit. Effect: Incomplete or inaccurate information could be reported on funding claims. Repeat Finding: Yes (2023-006) Recommendation: One City Schools, Inc. should implement appropriate internal controls for reviewing funding claims prior to submission. Views of responsible officials: One City Schools, Inc. agrees with the finding and are working on implementing policies and procedures over reviewing claims prior to submission.

Corrective Action Plan

MATERIAL WEAKNESS 2024-004 Child Nutrition Cluster – Assistance Listing Number 10.553 and 10.555 Claiming Review Recommendation: One City Schools should implement appropriate internal controls for reviewing funding claims prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: One City Schools did improve their claims procedures in 2023-24. To further implement best practice, policies related to federal claims reviews were incorporated into the Federal Grants Procedural Manual. One City Schools also utilized guidance from DPI to implement meal counting and claiming policies and procedures including counting reimbursable meals, performing edit checks of counts, submitting site-based claims, and retaining appropriate documentation. Name(s) of the contact person(s) responsible for corrective action: Janel Vertz, Finance Director Planned completion date for corrective action plan: Completed

Categories

Material Weakness School Nutrition Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 517497 2024-002
    Material Weakness Repeat
  • 517498 2024-003
    Material Weakness
  • 517500 2024-005
    Material Weakness Repeat
  • 517501 2024-002
    Material Weakness Repeat
  • 517502 2024-003
    Material Weakness
  • 517503 2024-004
    Material Weakness Repeat
  • 517504 2024-005
    Material Weakness Repeat
  • 517505 2024-002
    Material Weakness Repeat
  • 517506 2024-003
    Material Weakness
  • 517507 2024-004
    Material Weakness Repeat
  • 517508 2024-005
    Material Weakness Repeat
  • 1093939 2024-002
    Material Weakness Repeat
  • 1093940 2024-003
    Material Weakness
  • 1093941 2024-004
    Material Weakness Repeat
  • 1093942 2024-005
    Material Weakness Repeat
  • 1093943 2024-002
    Material Weakness Repeat
  • 1093944 2024-003
    Material Weakness
  • 1093945 2024-004
    Material Weakness Repeat
  • 1093946 2024-005
    Material Weakness Repeat
  • 1093947 2024-002
    Material Weakness Repeat
  • 1093948 2024-003
    Material Weakness
  • 1093949 2024-004
    Material Weakness Repeat
  • 1093950 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $131,523
10.553 School Breakfast Program $100,095
84.027 Special Education Grants to States $90,033
84.282 Charter Schools $88,766
10.555 National School Lunch Program $53,936
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $19,239
84.196 Education for Homeless Children and Youth $15,000
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education Preschool Grants $1,539