Finding Text
Federal Program: U.S. Department of Education passed through Missouri Department of Elementary and Secondary Education: Education Stabilization Fund (84.425). Criteria: For good internal controls, documentation of supervisory approval and review of disbursements should be retained. Condition: According to the District, the Superintendent reviews all expenditures and payroll before the direct deposit is sent. However, there is no documentation of the review. Adjusting journal entries and bank reconciliations are not reviewed after being completed. Cause: The prior auditor did not require or make the District aware that the school Superintendent was to approve all invoices before payment and make note of her approval. The Superintendent was also not aware that she should be reviewing and documenting review of adjusting journal entries and bank reconciliations. Effect: There is no documentation to show the review and approval took place. Questioned Costs: None. Repeat Finding: No. Recommendation: We recommend the District maintain proper documentation of the Superintendent's approval and review of expenditures, payroll, adjusting journal entries, and bank reconciliations. Views of Responsible Officials: We agree with the finding and the Superintendent will begin documenting her approval and review.