FAC Explorer

Finding 8538 (2023-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-01-15
Audit: 11536
Organization: School District of Sevastopol (WI)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The District failed to keep necessary documentation to verify eligibility for free and reduced price meals, indicating a material weakness in compliance controls.
  • Impacted Requirements: The requirement to verify applications for free and reduced price meals by retaining supporting documentation was not met.
  • Recommended Follow-Up: The District should implement procedures to ensure proper retention of verification documentation to comply with program requirements.

Finding Text

Federal Agency: United State Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2023-155130-SB-546; 2023-155130-NSL-547 Award Period: 07/01/2022 – 06/30/2023 Compliance Requirement Affected: Special Tests and Provisions – Verification of Applications Type of Finding Material weakness in internal control over compliance, Qualification Criteria The District is required to verify and support with documentation the current free and reduced price eligibility of households selected from a sample of applications that it has approved for free and reduced price meals as of October 1 and completed by November 15. Condition The District did not retain workpapers to support that the special tests and provision requirement to perform verification of free and reduced price applications was completed. Context The District has limited employees and does not have adequate segregation of duties over the grant management process to ensure that the documentation to support the verification process was retained. Cause The District did not retain documentation and other information to support their procedures over the compliance requirements of the program. Effect The District may have households that were not eligible for the status based on the documentation and other information obtained through the verification process. Repeat Finding Yes - 2022-004 Recommendation We recommend the District establish procedures and controls over the retention of verification documentation and other information obtained through the verification process. Views of Responsible Officials There is no disagreement with the audit finding.

Categories

School Nutrition Programs Internal Control / Segregation of Duties Special Tests & Provisions Eligibility Material Weakness

Other Findings in this Audit

  • 8537 2023-003
    Material Weakness Repeat
  • 8539 2023-004
    Significant Deficiency Repeat
  • 8540 2023-004
    Significant Deficiency Repeat
  • 8541 2023-005
    Significant Deficiency
  • 8542 2023-005
    Significant Deficiency
  • 584979 2023-003
    Material Weakness Repeat
  • 584980 2023-003
    Material Weakness Repeat
  • 584981 2023-004
    Significant Deficiency Repeat
  • 584982 2023-004
    Significant Deficiency Repeat
  • 584983 2023-005
    Significant Deficiency
  • 584984 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $243,216
84.027 Special Education_grants to States $147,310
10.555 National School Lunch Program $146,752
84.010 Title I Grants to Local Educational Agencies $69,277
93.778 Medical Assistance Program $53,337
84.358 Rural Education $43,468
10.553 School Breakfast Program $15,013
84.367 Improving Teacher Quality State Grants $13,001
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $12,035
84.424 Student Support and Academic Enrichment Program $10,000
84.173 Special Education_preschool Grants $7,334
10.559 Summer Food Service Program for Children $6,152
84.048 Career and Technical Education -- Basic Grants to States $3,800
84.060 Indian Education_grants to Local Educational Agencies $847