Madison School District

2019-002 ? Evidence of Approval Prior to Removal of Student from Cohort Finding Type: Significant deficiency in internal controls over federal award compliance. Criteria: School District must have an official written documentation to support the removal of the student from the regulatory adjusted cohort. In conjunction with the compliance requirement the School District must have control in place related to the process of removing a student from the regulatory adjusted cohort. Condition: During our audit we noted that the School District have an informal process related to their approval process prior to removing a student from the regulatory adjusted cohort. The written documentation kept and maintained by the District has no evidence of approval from the authorized approver. Cause: The authorized approver is not aware that an evidence of approval must be clearly shown in the written documentation maintained by the School District. Effect: This could imply that the approval prior to removing a student from the regulatory adjusted cohort did not take place. Recommendation: We recommend that the School District's written documentation should be initialed by the authorized person approving the removal of a student from the regulatory adjusted cohort to document his/her review and approval. Individual Responsible for Corrective Action Plan: Superintendent and Principal View of Responsible Official and Planned Corrective Action Plan: We agree with the auditor?s recommendations the School District will implement a formal written documentation that will provide proof of approval of the authorized person prior to removal of a student from the regulatory adjusted cohort. In addition, the formal written documentation will include the reason for the removal, the date of action warranting the removal, the school the student transferred to (if reason of removal is transfer) etc. The corrective action plan will be in place beginning fiscal year 2020.

RE: Corrective Action Plan 2019 Financial Statement and Federal Award Findings and Questioned Costs To: Darnell & Meyering, P.C. From: Ryan Rowe (Superintendent) Date: October 18, 2019 2019-002 ? Evidence of Approval Prior to Removal of Student from Cohort Finding Type: Significant deficiency in internal controls over federal award compliance. Criteria: School District must have an official written documentation to support the removal of the student from the regulatory adjusted cohort. In conjunction with the compliance requirement the School District must have control in place related to the process of removing a student from the regulatory adjusted cohort. Condition: During our audit we noted that the School District have an informal process related to their approval process prior to removing a student from the regulatory adjusted cohort. The written documentation kept and maintained by the District has no evidence of approval from the authorized approver. Cause: The authorized approver is not aware that an evidence of approval must be clearly shown in the written documentation maintained by the School District. Effect: This could imply that the approval prior to removing a student from the regulatory adjusted cohort did not take place. Recommendation: We recommend that the School District's written documentation should be initialed by the authorized person approving the removal of a student from the regulatory adjusted cohort to document his/her review and approval. 2019-002 ? Evidence of Approval Prior to Removal of Student from Cohort (continued) Individual Responsible for Corrective Action Plan: Superintendent and Principal View of Responsible Official and Planned Corrective Action Plan: We agree with the auditor?s recommendations the School District will implement a formal written documentation that will provide proof of approval of the authorized person prior to removal of a student from the regulatory adjusted cohort. In addition, the formal written documentation will include the reason for the removal, the date of action warranting the removal, the school the student transferred to (if reason of removal is transfer) etc. The corrective action plan will be in place beginning fiscal year 2020. Ryan L. Rowe, Ph.D. Superintendent