FAC Explorer

Finding 1073931 (2022-010)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-09-20
Audit: 320254
Organization: Clarendon County School District (SC)
Auditor: McGregor & Company LLP

AI Summary

  • Core Issue: The District lacked proper documentation for several expenditures, including missing purchase orders and bank statements.
  • Impacted Requirements: Internal controls for record retention were insufficient, hindering timely audits and access to necessary records.
  • Recommended Follow-Up: Establish a clear record retention policy and designate responsible staff in the new district to ensure compliance.

Finding Text

Criteria: Internal controls should be in place to permit the District to maintain accurate and organized records to support the transactions reported in the general ledger. Condition: We noted several expenditures in our samples of accounts payable transactions for which no supporting documentation could be found. There were numerous expenditures for which required purchase orders/requisitions were not located. There was a bank account in the Debt Service Fund for which no statements were found. Personnel folders did not contain contracts for all employees and very few had required identifying information such as copies of social security cards and state issued i.d. The District had to request copies of numerous bank account statements from the bank. Effect: The deficiencies in the District's record retention practices prevented the timely review of many items selected for testing during the audit. It was difficult to determine who might have access to the records or know where to find them. Cause: The District's management had all left the District prior to the audit, records were boxed up and moved around the new consolidated District. Accounts payable support was sent to be scanned and uploaded, then the originals were destroyed. Recommendation: The District did not appear to have developed an appropriate record retention policy and centralized storage area. We recommend that the District have written policies for record retention and note the staff position within the District who is responsible for various records. District response: The District no longer exists due to consolidation. Internal controls will be practiced in the new district by the Director of Finance.

Categories

Procurement, Suspension & Debarment Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.27M
84.027 Special Education_grants to States $956,715
10.553 School Breakfast Program $261,319
84.424 Student Support and Academic Enrichment Program $210,157
84.367 Improving Teacher Quality State Grants $181,894
84.013 Title I State Agency Program for Neglected and Delinquent Children and Youth $80,224
84.048 Career and Technical Education -- Basic Grants to States $71,669
84.358 Rural Education $46,141
84.173 Special Education_preschool Grants $31,200
84.425 Education Stabilization Fund $29,557
12.U01 Rotc $27,501
10.582 Fresh Fruit and Vegetable Program $11,138
10.555 National School Lunch Program $5,159