IOWA GRANT SCHOOL DISTRICTLocal Government

Finding #2025-00 l - Segregation of Duties (Prior Year Finding #2024-001 Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Cause: Controls Over Accounts Payable/Disbursements Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll Person preparing the payroll is not independent of other personnel duties such as custody of the checks. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees.Management should continue to maintain a working knowledge of matters relating to the District's operations. Response: We agree with this finding but due to the size of our District and financial constraints we do not believe it is cost effective to increase the office staff io an attempt to bring about a more effective segregation of duties. The Board of Education approves monthly accow1ts payable checks and the Department Head or Building Principal approves payroll timesheets prior to processing payroll. The Board, Principals, and Department Heads will continue to monitor transactions of the District. Contact Person: Loras Winders Anticipated Completion: Not Applicable

2024-001

Finding #2025-002 -Material Audit Adjustments (Prior Year Finding #2024-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District's internal controls. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District's financial position or activities. Cause: Financial information was not recorded in a timely manner and numerous adjustments were needed in order to correct account balances. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor in future years. Contact Person: Loras Winders Anticipated Completion: June 30, 2026

2024-002

Finding #2024-001 – Segregation of Duties (Prior Year Finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the disnict accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual info1matio11 along with disbursement information monthly. Contact Person: Loras Winders Anticipated Completion: Not Applicable

2023-001

Finding #2024-002 – Material Audit Adjustments (Prior Year Finding #2023-002) Condition: The audit proposed adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District’s internal controls. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Cause: Financial information was not recorded in a timely manner and numerous adjustments were needed in order to correct account balances. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor in future years. Contact Person: Loras Winders Anticipated Completion: June 30, 2025

2023-002

Finding #2024-004 – Education Stabilization Fund – ESSER II #84.425D and ESSER III #84.425U Federal Grantor – U.S. Department of Education Pass-through Award Number – 2022-252646-DPI-ESSERFII-163 and 2022-252646-DPI-ESSERFIII-165 Pass-through Entity – Wisconsin Department of Public Instruction Condition: There was one Education Stabilization Fund construction project performed by a contractor. Grant expenditures for project totaled $348,177. There was not a prevailing wage clause in the contract and certified payrolls were not received. Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for contractor or subcontractor t submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that wage rate requirements applied to the construction project until after it was completed. Effect: Potential reimbursement for costs that did not follow the wage rate requirements. Questioned Costs: $348,177 Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Response: Before bidding any future construction project more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received for any such contracts. Contact Person: Loras Winders Anticipated Completion: June 30, 2025

Finding #2023-001 – Limited Segregation of Duties (Prior Year Finding #2022-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district’s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly. Contact Person: Loras Winders Anticipated Completion: Not Applicable

2022-001

Finding #2023-002 – Material Audit Adjustments Condition: The audit proposed numerous adjusting journal entries during the audit process to adjust District account balances. We deem these entries to be significant in relation to the financial statements. Since the District did not make these adjustments in its accounting system prior to the audit, a material weakness was determined to exist in the District’s internal controls. Effect: Financial reports generated by the accounting system may not provide an accurate reflection of the District’s financial position or activities. Cause: Financial information was not recorded in a timely manner and numerous adjustments were needed in order to correct account balances. Criteria: Material adjusting journal entries not prepared by the District before the audit are considered an internal control weakness. Recommendation: Policies and procedures should be implemented to ensure account balances are properly recorded in a timely manner. Response: The District will establish policies and procedures to reduce the number of adjusting journal entries proposed by the auditor in future years. Contact Person: Loras Winders Anticipated Completion: June 30, 2024

Finding #20222022-001 ? Limited Segregation of Duties (Prior Year Finding #2021-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly. Contact Person: Loras Winders Anticipated Completion: Not Applicable

2021-001

CORRECTIVE ACTION PLAN January 26, 2022 Single Audit Clearinghouse Iowa-Grant School District respectfully submits the following corrective action plan for the year ended June 30, 2021. Name and address of independent public accounting firm: Johnson Block and Company, Inc. 2500 Business Park Road, Mineral Point, Wisconsin 53565 Audit period: July 1, 2020 ? June 30, 2021. The auditor?s findings and our responses from the June 30, 2021 schedule of findings and questioned cost are discussed below. Finding #2021-001 ? Limited Segregation of Duties (Prior Year Finding #2020-001) Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Controls Over Accounts Payable/Disbursements 1. Person processing accounts payable is not always separate from those who print the checks. Controls Over Payroll 1. Person preparing the payroll is not independent of other personnel duties such as custody of the checks. Criteria: Internal controls should be in place that provide adequate segregation of duties. Generally, a system of internal control contemplates separation of duties such that no individual has responsibility to execute a transaction, have physical access to the related assets, and have responsibility or authority to record the transaction. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the district?s operations. Response: We agree with this finding and continue to work to achieve segregation of duties whenever cost effective. The cash disbursements process includes approval of purchase orders and matching of approved purchase orders with invoices. Review of account coding is performed by the district accounting staff. The payroll disbursement process includes approval of timesheets and review of coding on an ongoing basis. The Board of Education reviews budget to actual information along with disbursement information monthly. Contact Person: Loras Winders Anticipated Completion: Not Applicable Sincerely, Loras Winders. District Business Manager Iowa-Grant School District lwinders@igs.k12.wi.us

2020-001