Finding 621870 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-01
Audit: 45998
Organization: School District of La Crosse (WI)

AI Summary

  • Core Issue: Lack of proper review process for grant claims, leading to inadequate segregation of duties.
  • Impacted Requirements: Compliance with reporting criteria, ensuring accuracy and reconciliation of grant claims.
  • Recommended Follow-Up: Update policies to implement a review and approval process for reports before submission to prevent errors or fraud.

Finding Text

2022-003 Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Federal CFDA: 10.553, 10.555, & 10.559 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-322849-DPI-SB-546, 2022-322849-DPI-SB-SEVERE-546, 2022-322849-DPI-NSL-547, 2022-322849-DPI-SK_NSLAE-561, 2022-322849-DPI-SFSP-561 Award Period: September 1, 2021 - June 30, 2022 Type of Finding: Significant deficiency in internal control over compliance Compliance Requirement: Reporting Criteria: Grant claims filed by the District to the various granting agencies must be accurate and reconcile to the District?s records. Internal controls should be designed and implemented to prevent and detect errors in the data reported on the grant claims. 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. Condition: There was no review of the reports and claims for reimbursement by someone other than the preparer prior to submission. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: Of the eight sampled claims, none of the reports had sign off or final reviews indicating review and approval had occurred prior to submission to the federal government. Cause: The District currently has a business office staff member compile the data and prepare the monthly reports based on data from the school nutrition department. However, the District has not designated an individual to review and approve the report prior to submission to ensure there was not an error during the compilation and preparation procedure. Effect: There could be the possibility that the client would over- or under-report certain items for reimbursement. Recommendation: We recommend the District update policies related to school nutrition reporting to ensure they have appropriate reviews that would prevent or detect errors or fraud. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Internal Control / Segregation of Duties Cash Management HUD Housing Programs Reporting School Nutrition Programs Significant Deficiency

Other Findings in this Audit

  • 45419 2022-002
    Significant Deficiency
  • 45420 2022-003
    Significant Deficiency
  • 45421 2022-002
    Significant Deficiency
  • 45422 2022-003
    Significant Deficiency
  • 45423 2022-002
    Significant Deficiency
  • 45424 2022-003
    Significant Deficiency
  • 45425 2022-002
    Significant Deficiency
  • 45426 2022-003
    Significant Deficiency
  • 45427 2022-002
    Significant Deficiency
  • 45428 2022-003
    Significant Deficiency
  • 621861 2022-002
    Significant Deficiency
  • 621862 2022-003
    Significant Deficiency
  • 621863 2022-002
    Significant Deficiency
  • 621864 2022-003
    Significant Deficiency
  • 621865 2022-002
    Significant Deficiency
  • 621866 2022-003
    Significant Deficiency
  • 621867 2022-002
    Significant Deficiency
  • 621868 2022-003
    Significant Deficiency
  • 621869 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.553 School Breakfast Program $1.42M
93.778 Medical Assistance Program $797,608
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $655,847
10.555 National School Lunch Program $345,323
84.027 Special Education_grants to States $336,095
10.559 Summer Food Service Program for Children $206,711
14.218 Community Development Block Grants/entitlement Grants $200,000
84.367 Improving Teacher Quality State Grants $199,901
84.424 Student Support and Academic Enrichment Program $146,584
84.048 Career and Technical Education -- Basic Grants to States $57,817
84.196 Education for Homeless Children and Youth $39,747
84.010 Title I Grants to Local Educational Agencies $32,305
84.365 English Language Acquisition State Grants $29,755
84.173 Special Education_preschool Grants $9,727
15.659 National Wildlife Refuge Fund $5,886
84.060 Indian Education_grants to Local Educational Agencies $1,948
84.425 Education Stabilization Fund $1,657