Finding Text
2022 ? 007 ? Reporting Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-591029-DPI-NSL-547 Award Period: 07/01/2021 ? 06/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria: 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 procedure. Condition: The claim forms submitted by the District are not reviewed and approved prior to submission. Accordingly, this does not allow for proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The District has limited employees and does not have adequate segregation of duties over the grant management process. Cause: The lack of segregation of duties is due to the limited number of employees and the size of the District?s operations. 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 timely review of the grant claims. Recommendation: We recommend the District establish a procedure for timely review and approval of claims prior to their submission for reimbursement by someone who is knowledgeable of the grant requirements. View of Responsible Officials: There is no disagreement with the audit finding.