Finding Text
2022-003 Financial Reporting for State Assistance Conditions: The Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintains financial records supporting amounts reported in the schedules of expenditures of federal and state awards, the District contracts with its auditor to compile the data from these records and prepare the state program audit report for the District. Criteria: Having staff with expertise in federal reporting to prepare the District?s single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional cost associated with hiring staff sufficiently experienced to prepare the District?s state program audit report, including the additional training time, outweigh the derived benefits. Effect: Because management relies on its auditor to assist with the preparation of the financial statements, including state program audit reports, the District?s system of internal control may not prevent, detect or correct misstatements in these financial statements. Recommendation: We recommend District personnel continue reviewing the District?s state program audit report prepared by its auditor. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all state programs are properly reported in the District?s state program audit report. Management Views and Corrective Action Plan: See corrective action plan 2022-003.