Finding Text
2023-003 ESSER Segregation of Duties
Federal Agency: U.S. Department of Education
Federal Program Title: Elementary and Secondary School Emergency Relief
Assistance Listing Number: 84.425D, 84.425U
Federal Award Identification Number and Year: S425U210044
Pass-Through Agency: Wisconsin Department of Public Instruction
Pass-Through Entity Identifying Number: 2023-371561-DPI-LETRS-165, 2023-371561-DPI-ESSERFII-163, 2023-371561-DPI-ESSERFIII-165
Award Period: 3/13/2020-9/30/2024
Type of Finding: Significant Deficiency 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.
Compliance Requirements: Reporting.
Condition: The District Administrator and Bookkeeper collaborated in preparing the annual report. There was no review of the data entered into DPI's Wisegrants System by the bookkeeper by someone other than the preparer prior to submitting it. Accordingly, this does not allow for a proper segregation of duties for internal control purposes.
Questioned Costs: None.
Context: When reviewing the annual report, it was noted that the District Administrator and Bookkeeper collaborated in preparing the report, but no one reviewed report before submitting the document.
Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District’s operations. In addition, this was a new report and the employee that normally reviews reports assisted the Bookkeeper in preparing the report instead.
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 that the District implement a formal review process over the reporting requirement relating to ESSER annual reports.
Views of Responsible Officials: There is no disagreement with the audit finding.