School District of Wisconsin DellsLocal Government

Condition: During audit fieldwork, our testing resulted in a restatement of fund balance in order to correctly record interfund activity. Criteria: A good system of internal controls would provide for accurate recording and reporting of accrued payroll, leases, capital assets, and grant receivables on a regular basis in order to provide for accurate financial reporting. Cause: Year-end entries related to the Other Post-Employment Benefits Trust interfund activity were required in order to accurately present the District’s financial statements. Effect: A material adjustment to the District’s beginning fund balance was required to properly state interfund balances. Recommendation: We recommend the District implement effective internal controls in order to provide an accurate assessment of reporting requirements. This implementation of improved controls would result in the appropriate recognition for financial reporting requirements. Corrective Action Plan: The District will implement internal controls to properly record interfund balances on a timely basis prior to audit fieldwork.

Condition: The District did not timely report the quarterly submissions. Criteria: Districts are required to submit the quarterly financial submission within 40 days of quarterend. Cause: District staff did not submit the quarterly financial submission within 40 days of quarter-end. Effect: Failing to submit on time could affect the reimbursements received by the District under the SBS program. Recommendation: We recommend the District review its procedures for submitting the quarterly financial submissions to ensure that they are submitted timely. Corrective Action Plan: The District acknowledges its lack of timeliness for the quarterly reports and will continue to review its procedures for submitting the quarterly financial submissions to ensure that they are submitted to the SBS Medicaid System in a timely manner.

Condition: The District's supporting documentation for any students who filled out an online application was not properly maintained. Criteria: Districts are required to maintain supporting documentation (typically, applications) for all students who submit applications for free or reduced meals. Cause: District staff did not properly maintain applications on file. Effect: The auditors were unable to verify whether students were correctly classified as to free/reduced/paid due to the District not maintaining the support behind each online application. Improper categorization of students would affect the reimbursements received by the District under the Child Nutrition Cluster. Recommendation: We recommend the District review its procedures for maintaining supporting documentation year over year. Corrective Action Plan: The District will print and save copies of all online applications to enhance record retention. 14

Finding 2024 – 001: Medicaid Reporting, Expenses Condition: The District’s supporting documentation for the expenses incurred for staff and contractors that provide direct medical services did not get reported appropriately in the quarterly submissions. Criteria: For staff and contractors that provide direct medical services, Districts are required to report amounts paid for a salaries, benefits, and contracted services through quarterly financial submissions. Cause: District staff did not properly report the expense information through the quarterly financial submissions. Effect: Improperly reported expenses could affect the reimbursements received by the District under the SBS program. Questioned Costs: Not Applicable Recommendation: We recommend the District review its procedures for compiling and submitting the quarterly financial submissions to ensure that all salaries, benefits, and contracted costs are properly reported in the SBS Medicaid system.

Condition: The District did not timely report the quarterly submissions. Criteria: Districts are required to submit the quarterly financial submission within 40 days of quarter-end. Cause: District staff did not submit the quarterly financial submission within 40 days of quarter-end. Effect: Failing to submit on time could affect the reimbursements received by the District under the SBS program. Questioned Costs: Not Applicable Recommendation: We recommend the District review its procedures for submitting the quarterly financial submissions to ensure that it is submitted timely.

Condition: The District’s supporting documentation for the expenses incurred for staff and contractors that provide direct medical services did not get reported appropriately in the quarterly submissions. Criteria: For staff and contractors that provide direct medical services, Districts are required to report amounts paid for a salaries, benefits, and contracted services through quarterly financial submissions. Cause: District staff did not properly report the expense information through the quarterly financial submissions. Effect: Improperly reported expenses could affect the reimbursements received by the District under the SBS program. Questioned Costs: Not Applicable Recommendation: We recommend the District review its procedures for compiling and submitting the quarterly financial submissions to ensure that all salaries, benefits, and contracted costs are properly reported in the SBS Medicaid system. Corrective Action Plan: The District acknowledges the discrepancies in the quarterly reports and will continue to review its procedures for compiling and submitting the quarterly financial submissions to ensure that all salaries, benefits, and contracted costs are properly reported in the SBS Medicaid system.

2022-002 Program Affected – Child Nutrition Cluster – Assistance Listing No. 10.555, 10.556, 10.559 Criteria: The Uniform Guidance requires the local program operator to submit monthly claims for reimbursement to the administering agency. All meals claimed for reimbursement must meet federal requirements and be served to eligible children. Condition: Audit sampling revealed variances between total meals claimed in monthly food service claims and the meal count sheets that the District used to track meals served to students. Cause: Meal counts were not accurately reported on the claim forms in the months sampled. Effect: Excess reimbursement amounts claimed may be disallowed and, if any, the excess may need to be returned to the federal agency. Questioned Cost: Unknown. Repeat Finding: Yes. Auditor’s Recommendation: We recommend the District set up a review procedure to review the claims and reconcile the claims to actual meals served. District Response: The District has reviewed procedures and implemented a system to review the claims and reconcile the claims to actual meals served. This will be done by entering the actual meals served in our computer system (Skyward) on an ongoing basis at the point of service, meaning the meals are entered daily into the system as students/staff go through the food service line at their school. This is a change from the past–during COVID, when all meals were served free to all students. At that time, our previous food service director used a manual, “tally” method, as a result of being short staffed. Now, we have a new food service director and we are going to keep all of our meal counts up to date in Skyward, as opposed to using the manual, “tally” method from the past two years.

2022-003 Program Affected – Medical Assistance Program – Assistance Listing No. 93.778 Criteria: Districts are required to report an IEP ratio and a one-way trip ratio on the Medicaid Annual Cost Report. The IEP ratio is the ratio of students with billed SBS Medicaid services to total students with a related medical service. The one-way trip ratio is the ratio of one-way trips for Medicaid-eligible students with specialized transportation needs in their IEP to total one-way trips by all students with specialized transportation needs in their IEP. Condition: The District did not maintain adequate documentation to support the ratios reported on the Medicaid Annual Cost Report. Cause: The values entered into the Medicaid Annual Cost report by District staff did not match the values calculated on the supporting documentation maintained by the District for each ratio. Effect: Improperly calculated ratios could affect reimbursements received from the SBS Medicaid program. Questioned Cost: Unknown Repeat Finding: Yes. Auditor’s Recommendation: We recommend the District review its procedures for compiling the information used to calculate the IEP ratio and one-way trip ratio for the annual cost report. Training should be provided so staff can identify all students that should be included in the calculation and procedures should be implemented to review and verify that the calculation is correct. District Response: The District will review its procedures for compiling the information used to calculate the ratios for the annual cost report, and training will be provided so staff can be sure to identify all students that should be included in the calculation are included. In addition, procedures will be implemented to review and verify that the calculation is correct, which includes working with our SBS Medicaid provider, MJ Care, in conjunction with our special education director on these numbers.

2022-004 Program Affected – Medical Assistance Program – Assistance Listing No. 93.778 Criteria: For staff and contractors that provide direct medical services, Districts are required to report amounts paid for salaries, benefits, and contracted services through quarterly financial submissions. Condition: The District did not report any salaries, benefits, or contracted services for the second quarter of 2021. Cause: District staff did not properly report the expense information through the quarterly financial submission. Effect: Improperly reported expenses would affect the reimbursements received by the District under the SBS Medicaid program. Questioned Cost: None. Repeat Finding: No. Auditor’s Recommendation: We recommend the District review its procedures for compiling and submitting the quarterly financial submissions to ensure that all salaries, benefits, and contracted costs are properly reported in the SBS Medicaid system. District Response: This was related to the Staff Pool List not being submitted for the 4th quarter of FY21 (April-June 2021) on a timely basis. When the District contacted the SBS Medicaid claiming system, they said it was too late to enter the List. As a result, the District will review its procedures for submitting the Staff Pool Lists on time, and SBS training sessions will be utilized as needed. For this, the District will work in conjunction with our special education staff, who submit the Staff Pool List, to ensure the list is entered a week before the due date into the system. Once that is completed, in turn, all salaries, benefits and contracted costs will be able to be properly reported in the SBS Medicaid system and will be done so on a timely basis.

2021-001 Program Affected ? Child Nutrition Cluster ? Assistance Listing No. 10.555, 10.556, 10.559 Criteria: The Uniform Guidance requires the local program operator to submit monthly claims for reimbursement to administering agency. All meals claimed for reimbursement must meet federal requirements and be served to eligible children. Condition: Audit sampling revealed variances between total meals claimed in monthly food service claims and the meal count sheets that the District used to track meals served to students. Cause: Meal counts were not accurately reported on the claim forms in the months sampled. Effect: Excess reimbursement amounts claimed may be disallowed and, if any, the excess may need to be returned to the federal agency. Questioned Cost: Unknown Repeat Finding: No. Auditor?s Recommendation: We recommend the District set up a review procedure to review the claims and reconcile the claims to actual meals served. District Response: The District has reviewed procedures and implemented a system to review the claims and reconcile the claims to actual meals served. This will be done by entering the actual meals served in our computer system (Skyward) on an ongoing basis at the point of service, meaning the meals are entered daily into the system as students/staff go through the food service line at their school. This is a change from the past?during COVID, when all meals were served free to all students. At that time, our previous food service director used a manual, ?tally? method, as a result of being short staffed. Now, we have a new food service director and we are going to keep all of our meal counts up to date in Skyward, as opposed to using the manual, ?tally? method from the past two years.

2021-002 Program Affected ? Medical Assistance Program ? Assistance Listing No. 93.778 Criteria: Districts are required to report an IEP ratio on the Medicaid Annual Cost Report. This is the ratio of students with billed SBS Medicaid services to total students with a related medical service. Condition: A review of the IEP ratio showed that not all students were included in the calculation. Cause: District staff did not include all students with a billed SBS Medicaid service or all students that received a related medical service in the IEP ratio calculation. Effect: An improperly calculated IEP ratio could affect reimbursements received from the SBS Medicaid program. Questioned Cost: Unknown Repeat Finding: No. Auditor?s Recommendation: We recommend the District review its procedures for compiling the information used to calculate the IEP ratio for the annual cost report. Training should be provided so staff can identify all students that should be included in the calculation and procedures should be implemented to review and verify that the calculation is correct. District Response: The District will review its procedures for compiling the information used to calculate the IEP ratio for the annual cost report, and training will be provided so staff can be sure to identify all students that should be included in the calculation are included. In addition, procedures will be implemented to review and verify that the calculation is correct, which includes working with our SBS Medicaid provider, MJ Care, in conjunction with our special education director on these numbers.