Finding Text
Finding 2024-004: Significant Deficiency - Internal Control over Reporting
Program: Child Nutrition Cluster
Assistance Listing Number: 10.553/10.555
Pass-Through Agency: Wisconsin Department of Public Instruction
Criteria: A system of internal control should be in place and operating effectively to achieve a higher reliability that errors or irregularities in reporting would be discovered by District staff.
Condition/Context: The four claims selected for testing had supporting documentation prepared by the same person who prepared and submitted the claims. Food service claims and supporting documentation are prepared by the same person, and there is a lack of documented review by someone other than the original preparer. The sample was not a statistically valid sample.
Cause: There is a lack of documentation of review by someone other than the original preparer of food service claims.
Effect: Without proper review of claims, incorrect amounts could be claimed on the reports and could result in over (or under) funding.
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 2024-003 and will make efforts to implement recommended procedures.