Florence School DistrictState Government

Financial Reporting for Federal and State Awards Federal Assistance Listing Number - All State IDs - All Type of Finding: Significant deficiency in internal control over state award reporting. Condition: Uniform Guidance and the Wisconsin Public School District Audit Manual requires the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. While the current staff of the District maintain financial records supporting amounts reported in the schedules of federal and state awards, the District contracts with CLA to compile the data from these records and assist in the preparation of the schedule of expenditures for the District. Criteria or specific requirement: Having staff with expertise in federal and state financial reporting prepare the District's single audit report is an internal control intended to prevent, detect and correct a potential misstatement in the schedules of expenditures of federal and state awards, or accompanying notes to the schedule. Cause: The additional costs associated with hiring staff sufficiently experience to prepare the District's schedule of expenditures including the additional training time, outweigh the derived benefits. Effect: The District could receive federal or state grant awards which are not included in the accompanying schedules of expenditures of federal and state awards. Recommendation: We recommend District personnel continue reviewing the District's schedule of expenditures. While it may not be cost beneficial to hire additional staff to prepare these items, a thorough review of this information by appropriate staff of the District is necessary to ensure all federal and state award programs are properly reported in the District's schedule of expenditures. Views of Responsibile Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Federal Grants Management - Procurement Policy Assistance Listing Numbers: Child Nutrition Cluster, 10.553 School Breakfast Program, 10.555 National School Lunch Program, and 10.559 Summer Food Service Program for Children Type of Finding: Significant deficiency in internal control over compliance. Condition: During our testing of procurement transactions of the program we noted that the selection of a vendor for food supplies was not supported by an adequate number of quotes (at least 2) to ensure the District is prudent with the monies used towards the program. Additionally, our testing of internal controls over compliance identified the following weakness in internal control: there is not proper identification of what purchases require quotes or bids. Criteria or specific requirement: 2 CFR 2..320 Methods of Procurement state that if the small purchases method is used, price or rate quotations must be obtained from an adequate number of qualified sources (at least 2). Cause: The District did not follow Federal Funds Procurement Policy. Effect: Obtaining price quotes from an adequate number of vendors allows the District to use federal funds in the most fiscally responsible way. The lack of price quotes may cause the District to over pay for supplies or services. Recommendation: We recommend the District follow their purchasing policy related to small purchases which includes obtaining price quotes from an adequate number of vendors (at least two) and maintaining this documentation. Questioned Costs: None Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Federal Grants Management - Allowable Costs/Cost Principals, Cash Management, Procurement, and Reporting Federal Assistance Listing Number - All Type of Finding: Significant deficiency in internal control over compliance. Condition: The District has various policies and procedures in place to safeguard its assets and establish related controls over receipts, disbursements, payroll transactions and general ledger maintenance. Federal awards received and disbursed by the District are managed through these district-wide policies and procedures had not been evaluated to ensure compliance with the requirements of Uniform Guidance as of year-end. Criteria or specific requirement: Uniform Guidance requires the County to maintain certain policies related to cash management, cost allowability, procurement, and conflict of interest provisions, along with appropriate financial management systems and internal controls over federal awards to safeguard federal funds. Cause: The District has begun but not finalized an assessment of its financial management system and related internal controls over federal awards, along with an evaluation of existing policies for compliance with Uniform Guidance by year-end. Effect: The District could become noncompliant with requirement of Uniform Guidance, resulting in future findings and questioned costs related to federal awards administered by the District. The District's 2019 audit in accordance with the requirements of Uniform Guidance did not identify an instances of noncompliance with respect to direct and material compliance requirements of its major federal award program. Recommendation: We recommend the District continue the process in assessing its financial management systems and related internal controls over federal awards during the 2023 fiscal year. This assessment should include evaluating existing policies and procedures to determine where additional enhancements should be made or new policies created, a plan to communicate these policies to District employees, and procedures to periodically review and update, as considered necessary. Questioned Costs: None Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.