ADELINE MONTESSORI SCHOOL, INC.Non-Profit

Federal Agency: U.S. Department of Education Federal Program Name: Charter Schools Assistance Listing Number: 84.282 Federal Award Identification Number and Year: S282A230008-2025 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025-678022-DPI-WCSPWC1-360 Award Period: 7/01/2024-6/30/2025 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or specific requirement: 2 CFR 200.320 allows for noncompetitve procurement, but requires documentation of the circumstances. Condition: The School had one procurement transaction applied to the grant in excess of the small purchase threshold and one in excess of the micro-purchase threshold that did not meet the procurement requirement regarding documentation of the circumstances for a noncompetitive procurement process. Questioned costs: None Context: We tested three procurement transactions. Two of the transactions did not comply with requirements. The School has a procurement policy that includes the necessary requirements, but this policy was not followed in all cases. Cause: Management Oversight Effect: The effect of not following procurement requirements would be noncompliance with 2 CFR 200.320. Repeat finding: No Recommendation: It is recommended that the School follow their formal procurement policy. Views of responsible officials: There is no disagreement with the audit finding. Management will work with their staff to adopt the relevant policies.

Federal Agency: U.S. Department of Education Federal Program Name: Charter Schools Assistance Listing Number: 84.282 Federal Award Identification Number and Year: S282A230008-2025 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025-678022-DPI-WCSPWC1-360 Award Period: 7/01/2024-6/30/2025 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or specific requirement: 2 CFR Part 180.220 requires contracts not be made with parties that are suspended or debarred. Condition: No contracts with parties that were over $25,000 were tested for suspension and debarment before entering into the contract. Questioned costs: None Context: The School entered into three contracts with parties that were over $25,000. None were evaluated for suspension and debarment before entering into the contract. Cause: Management Oversight Effect: The effect of not testing parties for suspension or debarment would be noncompliance with 2 CFR Part 180.220 Repeat finding: No Recommendation: It is recommended that the School establish a policy and procedure for testing parties for suspension and debarment. Views of responsible officials: There is no disagreement with the audit finding. Management will work with their staff to adopt the relevant policies.

Federal Agency: U.S. Department of Education Federal Program Name: Charter Schools Assistance Listing Number: 84.282 Federal Award Identification Number and Year: S282A230008-2025 Pass-Through Agency: Wisconsin Department of Public Instruction Pass-Through Number(s): 2025-678022-DPI-WCSPWC1-360 Award Period: 7/01/2024-6/30/2025 Type of Finding: Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria or specific requirement: 2 CFR Part 200.313 requires property and equipment purchased with federal funding to be safeguarded and maintained, and for the organization to maintain property records that include information such as the source of funding, percentage of federal agency participation in the cost, use, and condition. Condition: All equipment and real property that was acquired with federal funding had no policy in place to safeguard and maintain them, and property records that did not include the necessary information. Questioned costs: None Context: Four purchases of equipment and real property (three buses and a fence) were made with federal funding. There was no policy to properly safeguard and maintain them, and property records did not include all necessary information. Cause: Management Oversight Effect: The effect of not having an policy for safeguarding, maintaining, and recording property and equipment purchased with federal funding would be noncompliance with 2 CFR 200.313. Repeat finding: No Recommendation: It is recommended that the School establish a policy and procedure for safeguarding and maintaining real property and equipment purchased with federal funding, and develop property records that include all required information. Views of responsible officials: There is no disagreement with the audit finding. Management will work with their staff to adopt the relevant policies.