Finding 1024063 (2022-001)

Significant Deficiency
Requirement
AN
Questioned Costs
-
Year
2022
Accepted
2022-10-30
Audit: 313190
Organization: Goodrich Isd (TX)
Auditor: Axley & Rode LLP

AI Summary

  • Core Issue: Limited personnel hindered proper segregation of accounting duties, increasing the risk of errors and fraud.
  • Impacted Requirements: The District must ensure procedures are in place to separate recording, authorizing, and custody functions.
  • Recommended Follow-Up: The Board of Trustees should regularly review internal controls and implement compensating measures to safeguard assets and ensure accurate transaction recording.

Finding Text

2022-01 - Segregation of DutiesCondition: Due to the limited number of personnel, a segregation of certain accounting functions was notpossible.Criteria: The District continues to establish procedures that would ensure proper segregation of certainaccounting functions, especially, to limit the functions of recording, authorizing and custody.Effect: As a result, during the audit period, operation of procedures might not have allowedmanagement or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct misstatements on a timely basis.Cause: The District has limited resources and personnel in the responsibilities and business function.Recommendation: We recommend that the Board of Trustees continue to monitor the internal accounting controlprocedures in use to assure that compensating controls are being utilized to provide assurancethat assets are safeguarded and transactions are proper and recorded in a timely manner. Theseactions would mitigate, but not eliminate the risk of misstatement or misappropriation.Contact: SuperintendentTimeframe: Ongoing

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $655,881
10.555 National School Lunch Program $130,098
84.010 Title I Grants to Local Educational Agencies $119,849
10.553 School Breakfast Program $49,594
93.778 Medical Assistance Program $42,011
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $23,974
84.424 Student Support and Academic Enrichment Program $20,121
10.565 Commodity Supplemental Food Program $16,824
10.582 Fresh Fruit and Vegetable Program $13,497
84.367 Improving Teacher Quality State Grants $12,038
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $9,797