SEGREGATION OF DUTIESCriteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately.Condition: There is a lack of segregation of duties among personnel.Effect: Transactions could be mishandled.Cause: There are a limited number of personnel for certain functions.Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls.Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTSCriteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP).Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements.Cause: The government is a small organization with limited resources.Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material.Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements.Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
SEGREGATION OF DUTIESCriteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately.Condition: There is a lack of segregation of duties among personnel.Effect: Transactions could be mishandled.Cause: There are a limited number of personnel for certain functions.Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls.Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTSCriteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP).Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements.Cause: The government is a small organization with limited resources.Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material.Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements.Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
ACTIVITIES ALLOWED OR UNALLOWEDCriteria: The purpose of the ARP-ESSER fund is to provide Local Educational Agencies (LEAs) with emergency relief funds to help schools return safely to in-person instruction, maximize in-person instructional time, sustain the safe operation of schools, and address the academic, social, emotional, and mental health impacts of the COVID-19 pandemic on the Nation's students. ARP-ESSER funds are ultimately to be used to prevent, prepare for and respond to the COVID-19 pandemic.Condition: The district purchased general athletic supplies, shot clocks, a high jump pit and wrestling mats in the amount of $43,448 with ARP-ESSER funds.Cause: Responsible personnel misinterpreted the purpose of the ARP-ESSER funds.Effect: Noncompliance with Activities Allowed or Unallowed Requirements.Questioned Costs: $43,448.Recommendation: Expenditures from ARP-ESSER funds must be specifically used to prevent, prepare for and respond to the COVID-19 pandemic. The district should revisit the requirements and restrictions for using ARP-ESSER funds and develop formal policies and procedures to ensure compliance with the requirements. The policies and procedures should be documented and disseminated to all applicable personnel.Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
SEGREGATION OF DUTIESCriteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately.Condition: There is a lack of segregation of duties among personnel.Effect: Transactions could be mishandled.Cause: There are a limited number of personnel for certain functions.Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls.Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTSCriteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP).Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements.Cause: The government is a small organization with limited resources.Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material.Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements.Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
SEGREGATION OF DUTIESCriteria: Duties should be segregated to provide reasonable assurance that transactions are handled appropriately.Condition: There is a lack of segregation of duties among personnel.Effect: Transactions could be mishandled.Cause: There are a limited number of personnel for certain functions.Recommendation: The duties should be separated as much as possible, and alternative controls should be used to compensate for lack of separation. The governing board should provide some of these controls.Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.
AUDITOR PREPARED FINANCIAL STATEMENTSCriteria: As part of its internal control structure, it is the government?s responsibility to prepare its financial statements in accordance with generally accepted accounting principles (GAAP).Condition: The government does not have the expertise to prepare or evaluate the selection and application of accounting principles and resulting disclosures and presentations within the auditor prepared financial statements.Cause: The government is a small organization with limited resources.Effect: It is common for a small organization to rely on the audit firm to prepare the financial statements; however, an audit firm cannot be considered part of the government?s internal control by professional standards currently in effect. Since some presentations and disclosures may be material to the financial statements, this weakness in internal control would be classified as material.Recommendation: While it may not be cost effective to do so, we recommend the government consider hiring a qualified person to evaluate the auditor prepared financial statements.Views of responsible officials and planned corrective actions: The government agrees with this finding and will adhere to the attached corrective action plan.
ACTIVITIES ALLOWED OR UNALLOWEDCriteria: The purpose of the ARP-ESSER fund is to provide Local Educational Agencies (LEAs) with emergency relief funds to help schools return safely to in-person instruction, maximize in-person instructional time, sustain the safe operation of schools, and address the academic, social, emotional, and mental health impacts of the COVID-19 pandemic on the Nation's students. ARP-ESSER funds are ultimately to be used to prevent, prepare for and respond to the COVID-19 pandemic.Condition: The district purchased general athletic supplies, shot clocks, a high jump pit and wrestling mats in the amount of $43,448 with ARP-ESSER funds.Cause: Responsible personnel misinterpreted the purpose of the ARP-ESSER funds.Effect: Noncompliance with Activities Allowed or Unallowed Requirements.Questioned Costs: $43,448.Recommendation: Expenditures from ARP-ESSER funds must be specifically used to prevent, prepare for and respond to the COVID-19 pandemic. The district should revisit the requirements and restrictions for using ARP-ESSER funds and develop formal policies and procedures to ensure compliance with the requirements. The policies and procedures should be documented and disseminated to all applicable personnel.Views of responsible officials and planned corrective action: The government agrees with this finding and will adhere to the attached corrective action plan.