Owen-Withee School District

Federal Agency: U.S. Department of Education Federal Program Name: Education Stabilization Funds Assistance Listing Number: 84.425 Federal Award Identification Number and Year: S425E210044-2021 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2022-104207-DPI-ESSERFII-163, 2022-104207-DPI-ESSERFIII-165 Award Period: 3/13/2020 – 9/30/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Reports filed by the District to the various granting agencies must be accurate and reconcile to the District’s general ledger system. 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 required performance reports by someone other than the preparer. Accordingly, this does not allow for a proper segregation of duties for internal control purposes over reporting compliance requirements. Questioned costs: None Context: The annual performance report required by the grant did not contain documentation that the report was reviewed and approved by an individual other than the preparer. Cause: The District experienced turnover during the year and due to the different reporting portal, an electronic approval was not required. Effect: We recommend that the District review its internal controls and designate an individual other than the preparer to review and approve any grant claims. Repeat Finding: No Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Views of responsible officials: Refer to the management’s response per the corrective action plan.

2022-004 Equipment & Property Management ? ESSER Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Education Federal Program Title: Education Stabilization Fund Assistance Listing Number: 84.425 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Numbers: 2022-104207-DPI-ESSERFIII-165 Award Period: March 13, 2020 ? September 30, 2024 Compliance Requirement: Equipment & Property Management Condition: The District uses the Skyward capital asset module to track all asset purchases; however, there is no review of this data entry by anyone other than the preparer. Criteria: 2 CFR Sections 200.313(c) through (e) requires property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number, who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use, and condition of the property, and any ultimate disposition date of disposal and sales price of the property. Cause: The process is manual to enter capital assets into the Skyward Fixed Assets software. There is no review of this data entry by anyone other than the individual entering the information into the software. Effect: The District could incorrectly track an asset purchased with federal funds and could potentially be subject to paying the funds back for the asset. Recommendation: We recommend the District should consider having another individual, besides the one performing the data entry, perform a review after the data is entered into the software. View of Responsible Officials: Refer to the management?s response per the corrective action plan.