Finding Text
Federal Agency: Department of Education
Federal Program Name: IDEA Flow Through Entitlement, IDEA VIB Preschool Entitlement Public
Assistance Listing Number: 84.027, 84.173
Pass-Through Agency: WI DPI
Pass-Through Numbers: 2023-749905-DPI-ARCORE-342, 2024-749905-DPI-ES3-342, 2024-749912-DPI-WSPEI-342, 2024-749911-DPI-TIG-342, 2024-749905-DPI-ELTAI-348, 2024-749905-DPI-ECSELIC-348
Award Period: 7/1/23 – 6/30/24
Type of Finding: Significant Deficiency in Internal Control over Compliance
Condition: Uniform Guidance and the State Single Audit Guidelines require the Agency to maintain records supporting amounts reported into the schedule of expenditures of federal and state awards.
Criteria or Specific Requirement: Having approved journal entries is an internal control intended to prevent, detect, and correct a potential misstatement.
Section III – Findings and Questioned Costs – Federal and State Award Programs (Continued)
Cause: Due to lack of proper segregation of duties, there was not a review and approval process in place.
Context: While performing audit procedures, it was noted that management does not maintain supporting documentation showing evidence of reviews and approvals on journal entries made to grant accounts.
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 a lack of segregation of duties.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Agency establish internal controls surrounding journal entry procedures to ensure proper segregation of duties, review and approval processes.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding.