FAC Explorer

Finding 601632 (2022-003)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-14
Audit: 22062
Organization: School District of Mishicot (WI)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls due to a lack of segregation of duties in grant management, increasing the risk of errors or fraud.
  • Impacted Requirements: Compliance with Uniform Guidance and State Single Audit Guidelines is compromised, as payroll and grant claims lack independent reviews.
  • Recommended Follow-Up: Conduct a risk assessment to identify and implement controls, ensure proper segregation of duties in disbursements and payroll, and enhance monitoring by the Board of Education.

Finding Text

Segregation of Duties ? Federal and State Grant Management Assistance Listing Numbers - All State IDS ? All Type of Finding Significant deficiency in internal control over compliance. Condition Please see the condition described in Finding 2021-001 for information on the lack of segregation of duties specifically related to the activities allowed or unallowed and allowable costs/cost principles. Additionally, our testing of internal controls over state grants identified the following weaknesses in internal controls due to the lack of segregation of duties in relation to the Uniform Guidance and State Single Audit Guidelines compliance requirements: ? There is no separate review of the payroll transactions processed by the business manager and subsequently included on the grant claims. ? There is no separate review of the grant claims which are the basis for the schedule of expenditures of federal awards and schedule of expenditures of state awards. 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. Cause The lack of segregation of duties is due to the limited number of employees and the size of District?s operations. The District has not recently completed a full risk assessment and review of internal controls to identify additional mitigating and compensating controls to implement to reduce the potential risk of errors or intentional fraud. Context The District has limited employees and does not have adequate segregation of duties over the grant management process. 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. Questioned Costs None. Repeat Finding ? This is a repeat finding of 2021-003. Recommendation We recommend the District perform a risk assessment of its operations to identify and implement mitigating and compensating controls to reduce the risk of errors or intentional fraud. The District should review its disbursement process to ensure that there is adequate segregation of duties in regards to initiating, authorizing and approving purchases, along with adding controls to ensure that the item purchased was received by the District. The District should review its payroll process and identify payroll tasks that could be reassigned to other District personnel. We also recommend the Board of Education continue to monitor the transactions and the financial records of the District.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 25187 2022-003
    Significant Deficiency Repeat
  • 25188 2022-003
    Significant Deficiency Repeat
  • 25189 2022-003
    Significant Deficiency Repeat
  • 25190 2022-003
    Significant Deficiency Repeat
  • 25191 2022-003
    Significant Deficiency Repeat
  • 25192 2022-003
    Significant Deficiency Repeat
  • 25193 2022-003
    Significant Deficiency Repeat
  • 25194 2022-003
    Significant Deficiency Repeat
  • 25195 2022-003
    Significant Deficiency Repeat
  • 25196 2022-003
    Significant Deficiency Repeat
  • 25197 2022-003
    Significant Deficiency Repeat
  • 25198 2022-003
    Significant Deficiency Repeat
  • 25199 2022-003
    Significant Deficiency Repeat
  • 25200 2022-003
    Significant Deficiency Repeat
  • 25201 2022-003
    Significant Deficiency Repeat
  • 601629 2022-003
    Significant Deficiency Repeat
  • 601630 2022-003
    Significant Deficiency Repeat
  • 601631 2022-003
    Significant Deficiency Repeat
  • 601633 2022-003
    Significant Deficiency Repeat
  • 601634 2022-003
    Significant Deficiency Repeat
  • 601635 2022-003
    Significant Deficiency Repeat
  • 601636 2022-003
    Significant Deficiency Repeat
  • 601637 2022-003
    Significant Deficiency Repeat
  • 601638 2022-003
    Significant Deficiency Repeat
  • 601639 2022-003
    Significant Deficiency Repeat
  • 601640 2022-003
    Significant Deficiency Repeat
  • 601641 2022-003
    Significant Deficiency Repeat
  • 601642 2022-003
    Significant Deficiency Repeat
  • 601643 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $232,186
10.553 School Breakfast Program $118,210
93.778 Medical Assistance Program $93,813
84.010 Title I Grants to Local Educational Agencies $91,977
84.027 Special Education_grants to States $49,225
10.555 National School Lunch Program $48,739
84.367 Improving Teacher Quality State Grants $20,505
84.424 Student Support and Academic Enrichment Program $9,899
84.048 Career and Technical Education -- Basic Grants to States $4,842
84.173 Special Education_preschool Grants $4,447