Finding Text
Child Nutrition Cluster - Segregation of Duties ? Grant Reporting Federal Agency: U.S. Department of Agriculture Federal Program Title: Child Nutrition Cluster Assistance Listing Number: 10.553, 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Entity Identifying Number: 2022-375628-DPI-SB-546, 2022-375628-DPI-NSL-547 Award period: July 1, 2021 ? June 30, 2022 Type of Finding: Material Weakness in Internal Control Over Compliance Compliance Requirements: Reporting Criteria or Specific Requirement: 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 six 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 the business manager compile the data and prepare the monthly reports based on data from the school nutrition software. 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. Repeat Finding: No Recommendation: We recommend that the District implement a review process over the reporting requirements related to the Child Nutrition Cluster. Views of Responsible Officials: There is no disagreement with the audit finding.