Finding Number 2023-006 — Significant Deficiency in Internal Control — Covid 19-ESSER II
23b-Summer School and ESSER II-98C - Approval Process
Condition: During expense testing of ESSER funds, a July 2022 expenditure for $24.95, payable
to BMO, and an August 2022 invoice for $10,167, payable to IXL ...
Finding Number 2023-006 — Significant Deficiency in Internal Control — Covid 19-ESSER II
23b-Summer School and ESSER II-98C - Approval Process
Condition: During expense testing of ESSER funds, a July 2022 expenditure for $24.95, payable
to BMO, and an August 2022 invoice for $10,167, payable to IXL for math software licenses,
were not approved by the Director of Business Services. During this time, the Director of
Business Services position was vacant. Proper internal control procedures would ensure a
proper approval process, for any position that is temporarily vacant.
Responsible Person: Carl Seiter, Director of Business Services
Implementation Date: December 31, 2023
Corrective Action: Develop an approval process workflow that would temporarily utilize
another administrator for approvals in Munis if any key position is vacant. The district has two
administrators per building. The administrators will have the other building administrator act
as approver for that building in the event an administrative position is vacant. If both principal
positions are vacant, an administrator in another building will be integrated into the approval
process for the building with no administrator.
At Central Office, the next key position for approvals would be Trina Smith, the Accounts
Payable/Accounts Receivable Accountant. If this position is vacant, the llRlPayroll Accountant
will assume those approval duties.
The final step of approval is the Director of Business Services to approve items before the AP/AR
position can process any items. These items include invoices, requisitions, purchase orders,
payroll related items and journal entries. In the event the Director of Business Services position
is vacant, the District Superintendent of Schools will be the final approver.
Sincerely,
Carl Seiter
Director of Business Services
Shepherd Public Schools