Finding Text
Criteria: Internal controls should be in place to ensure the District performs timely and accurate financial closeout procedures in order for the District to produce its monthly and annual financial statements and prepare for the annual audit. Condition: Internal controls were not sufficient to detect certain material misstatements in the District's year end balances that were submitted for audit. Effect: Numerous material audit adjustments were required to present the Government-wide statements, the General Fund, Special Projects Fund, EIA Fund, Food Service Fund and Debt Service Fund fairly and in accordance with accounting principles generally accepted in the United States of America. Cause: The June 30, 2021 audit for Clarendon County School District One, which consolidated into Clarendon County School District Four on July 1, 2021, was not issued until October 11, 2023, and beginning balances were not available until that time. Additionally, Clarendon County School District Four's June 30, 2021 audit was not issued until July 25, 2023. At June 30, 2022, the original Finance Director's contract with the District had ended, and he left the District. Other personnel were assigned to work on the financial closeout, but both of these individuals left the District's employment prior to its completion and fieldwork beginning. Recommendation: The District should carefully review year end balances and relevant close out procedures to ensure that all transactions are reported in the proper period and in accordance with GAAP. District response: The District no longer exists due to consolidation. Internal controls will be practiced in the new district by the Director of Finance.