Finding 606940 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-17
Audit: 26065
Organization: School District of Thorp (WI)

AI Summary

  • Core Issue: Lack of independent review for food service claims increases the risk of errors in reporting.
  • Impacted Requirements: Internal controls are inadequate, failing to ensure reliable reporting for the Child Nutrition Cluster program.
  • Recommended Follow-Up: Assign separate roles for preparing and reviewing claims to enhance oversight and accountability.

Finding Text

Finding 2022-003: Significant Deficiency - Controls over Reporting Federal Program: Child Nutrition Cluster Assistance Listing Number: 10.553 / 10.555 / 10.559 Pass Through Entity: 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 your staff. Condition/Context: There is no independent review and approval of food service claims. For the two months selected for testing, supporting documentation was prepared by the same person who prepared and submitted the claims, without any additional review. This sample was not statistically valid. Cause: There is improper segregation of duties surrounding the District?s process for preparation and submission of food service claims. Effect: Incorrect amounts could be claimed, which could result in overcharging the grant. Questioned Costs: None noted. Recommendation: The food service director should be responsible for either preparing the supporting documentation or reviewing/approving the claims. A second employee should be responsible for the other part of the process. Views of responsible officials: Because of the size of our district, we have limited staff to prepare and submit these claims. The Bookkeeper will look at and sign off on all final food service claims before being submitted.

Categories

Internal Control / Segregation of Duties Reporting School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 30498 2022-003
    Significant Deficiency
  • 30499 2022-003
    Significant Deficiency
  • 30500 2022-003
    Significant Deficiency
  • 30501 2022-004
    Significant Deficiency
  • 30502 2022-005
    -
  • 30503 2022-004
    Significant Deficiency
  • 30504 2022-005
    -
  • 30505 2022-004
    Significant Deficiency
  • 30506 2022-005
    -
  • 30507 2022-003
    Significant Deficiency
  • 606941 2022-003
    Significant Deficiency
  • 606942 2022-003
    Significant Deficiency
  • 606943 2022-004
    Significant Deficiency
  • 606944 2022-005
    -
  • 606945 2022-004
    Significant Deficiency
  • 606946 2022-005
    -
  • 606947 2022-004
    Significant Deficiency
  • 606948 2022-005
    -
  • 606949 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $654,163
84.010 Title I Grants to Local Educational Agencies $251,376
84.027 Special Education_grants to States $124,480
32.009 Emergency Connectivity Fund Program $117,454
10.553 School Breakfast Program $114,935
93.778 Medical Assistance Program $84,804
84.027 Idea 611 Arp Allocations $39,771
10.555 National School Lunch Program $31,996
84.367 Supporting Effective Instruction State Grants $28,166
84.424 Student Support and Academic Enrichment Program $14,342
10.559 Summer Food Service Program for Children $10,494
84.358 Rural Education $5,470
84.173 Idea 619 Arp Allocations $1,556