Finding 10302 (2022-002)

Material Weakness

Requirement

ABEILN

Questioned Costs

Year

2022

Accepted

2024-01-26

Audit: 13965

Organization: West Harrison Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: An employee has too much control over multiple incompatible duties, which increases the risk of errors or fraud.
Impacted Requirements: This violates the principle of segregation of duties, essential for effective internal controls.
Recommended Follow-Up: Reassess and redistribute responsibilities to ensure no single employee manages conflicting tasks.

Finding Text

One important aspect of the internal control structure is the segregation of duties among employees to prevent an individual employee from handling duties which are incompatible. We noted one individual has control over portions of one or more of the following areas for the District relating to major federal programs; cash, investments, receipts, inventories, payroll, computer systems, journal entries and school lunch program. See finding 2022-001.

Corrective Action Plan

Segregation of duties will always be an issue in a small district. However, the District continues to constantly reevaluate internal controls and tests to ensure compliance with these controls.

Other Findings in this Audit

10303 2022-002

Material Weakness
10304 2022-002

Material Weakness
586744 2022-002

Material Weakness
586745 2022-002

Material Weakness
586746 2022-002

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.425	Education Stabilization Fund	$269,594
10.555	National School Lunch Program	$218,116
10.553	School Breakfast Program	$89,056
84.010	Title I Grants to Local Educational Agencies	$69,751
84.358	Rural Education	$46,005
10.559	Summer Food Service Program for Children	$23,513
84.367	Improving Teacher Quality State Grants	$12,668
84.424	Student Support and Academic Enrichment Program	$10,000
16.839	Stop School Violence	$3,200
84.027	Special Education_grants to States	$2,406