FAC Explorer

Finding 1074358 (2023-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2023
Accepted
2024-09-24
Audit: 320519
Organization: Dike-New Hartford Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: Two employees have overlapping control over critical financial areas, which increases the risk of errors or fraud.
  • Impacted Requirements: This situation violates the principle of segregation of duties necessary for effective internal controls.
  • Recommended Follow-Up: Review and adjust roles to ensure that no single employee has control over incompatible duties.

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 two individuals have control over portions of one or more of the following areas for the District relating to major federal programs; cash, investments, inventories, receipts, disbursements, capital assets, payroll, computer systems, journal entries and the school lunch program. See finding 2023-001.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 497914 2023-002
    Material Weakness Repeat
  • 497915 2023-002
    Material Weakness Repeat
  • 497916 2023-002
    Material Weakness Repeat
  • 1074356 2023-002
    Material Weakness Repeat
  • 1074357 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $290,840
10.555 National School Lunch Program $286,283
84.010 Title I Grants to Local Educational Agencies $69,597
10.553 School Breakfast Program $38,484
84.027 Special Education_grants to States $37,352
10.559 Summer Food Service Program for Children $26,816
84.367 Improving Teacher Quality State Grants $12,983
84.424 Student Support and Academic Enrichment Program $10,000
10.185 Local Food for Schools Cooperative Agreement Program $7,980
10.575 Farm to School Grant Program $1,152