FINDING 2023-005
Compliance Requirement(s): Allowable Activities, Allowable Costs / Cost Principles
Audit Findings: Material Weakness, Other Matters
Summary of Finding:
An effective internal control system, which would include segregation of duties, was not in place at the
School Corporation in orde...
FINDING 2023-005
Compliance Requirement(s): Allowable Activities, Allowable Costs / Cost Principles
Audit Findings: Material Weakness, Other Matters
Summary of Finding:
An effective internal control system, which would include segregation of duties, was not in place at the
School Corporation in order to ensure compliance with requirements related to the grant agreement and
the following compliance requirements: Allowable Activities, Allowable Costs / Cost Principles
The School Corporation paid trash removal services from the School Lunch fund without a methodology or
supporting documentation for the amount charged. Without a reasonable methodology for the expenses
paid, the amount was considered a questioned cost. The total amount charged to the School Lunch fund
was $15,448. Internal controls over vendor disbursements were in place but were not operating effectively
during the audit period.
Additionally, there was no documentation indicating that payroll disbursements were reviewed or approved
by a second individual not involved in the original payroll process.
The lack of internal controls and noncompliance were systemic issues throughout the audit period.
Views of Responsible Officials:
We Concur with this finding.
Description of Corrective Action Plan:
The School will start to divide trash removal services between cafeteria accounts and building accounts
when being paid monthly. Verification of percentage coming from each account will be discussed.
Internal controls will be put in place to document that payroll disbursements are being reviewed by a second
individual. Payroll disbursement reports will be presented to the correct central office employee.
Anticipated Completion Date:
Immediately