School District of Shiocton

2021-001 Lack of Adequate Segregation of Duties Condition: The District has a limited number of personnel that are responsible for and perform substantially all of the bookkeeping and accounting functions. Criteria: We are required to report on whether the District has appropriate segregation of duties relating to all aspects of its bookkeeping and accounting procedures. Good internal control requires a complete separation of duties with respect to the handling and recording of transactions. Cause: The additional costs with hiring additional support staff to achieve complete segregation of duties would outweigh the derived benefits. Effect: Proper segregation of duties in the system of controls is not accomplished. Identification of a Repeat Finding: This is a repeat finding from previous audits, see 2020-001. Recommendation: The District should continue to evaluate the cost/benefit of hiring additional support staff to achieve complete segregation of duties. The Board of Education should remain involved with review of and oversight regarding the District?s financial statements and budgets.

2021-004 Financial Reporting for Federal and State Awards Condition: The Uniform Guidance and the State Single Audit Guidelines require the District to prepare appropriate financial statements, including the schedules of expenditures of federal and state awards. Criteria: Having staff prepare the District?s schedules of expenditures of federal and state awards is an internal control intended to prevent, detect and correct a potential misstatement in the schedules or accompanying notes to the schedules. Cause: The District has staff with the knowledge to prepare the schedules of federal and state awards, however sufficient time was not allocated to complete the schedules. Effect: The schedules of federal and state awards were not prepared by the District, instead they were prepared by the District?s auditors. Identification of a Repeat Finding: This is a new finding for the 2020-2021 fiscal year. Recommendation: The District should attempt to allocate sufficient time to complete the schedules of expenditures of federal and state awards. Views of Responsible Official: See District?s corrective action plan.

2021-001 Lack of Adequate Segregation of Duties Condition: The District has a limited number of personnel that are responsible for and perform substantially all of the bookkeeping and accounting functions. Criteria: We are required to report on whether the District has appropriate segregation of duties relating to all aspects of its bookkeeping and accounting procedures. Good internal control requires a complete separation of duties with respect to the handling and recording of transactions. Cause: The additional costs with hiring additional support staff to achieve complete segregation of duties would outweigh the derived bene?ts. Effect: Proper segregation of duties in the system of controls is not accomplished. Identi?cation of a Repeat Finding: This is a repeat ?nding from previous audits, see 2020-001. Recommendation: The District should continue to evaluate the cost/bene?t of hiring additional support staff to achieve complete segregation of duties. The Board of Education should remain involved with review of and oversight regarding the District?s ?nancial statements and budgets.

2021-004 Financial Reporting for Federal and State Awards Condition: The Uniform Guidance and the State Single Audit Guidelines require the District to prepare appropriate ?nancial statements, including the schedules of expenditures of federal and state awards. Criteria: Having staff prepare the District?s schedules of expenditures of federal and state awards is an internal control intended to prevent, detect and correct a potential misstatement in the schedules or accompanying notes to the schedules. Cause: The District has staff with the knowledge to prepare the schedules of federal and state awards, however suf?cient time was not allocated to complete the schedules. Effect: The schedules of federal and state awards were not prepared by the District, instead they were prepared by the District?s auditors. Identi?cation of a Repeat Finding: This is a new ?nding for the 2020-2021 ?scal year. Recommendation: The District should attempt to allocate suf?cient time to complete the schedules of expenditures of federal and state awards. Views of Responsible Of?cial: See District?s corrective action plan.