School District of AlgomaLocal Government

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553/10.555 Federal Award Identification Number and Year: 2025-310070-DPI-NSL-547/ 2025-310070-DPI-SB-SEVERE-546 Pass-Through Agency: Wisconsin Department of Public Instruction Award Period: July 1, 2024 through June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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: Child Nutrition claim forms submitted by the District are not reviewed by a second employee 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 and segregation of duties. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend the district designate an individual to review reports prior to submitting. Views of responsible officials: There is no disagreement with the audit finding.