FAC Explorer

Finding 1091571 (2023-002)

Material Weakness
Requirement
ABFL
Questioned Costs
-
Year
2023
Accepted
2024-12-17
Audit: 333159
Organization: Exira-Elk Horn-Kimballton Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: An employee has too much control over critical financial areas, which increases the risk of errors or fraud.
  • Impacted Requirements: Segregation of duties is not being properly enforced, affecting compliance with internal control standards.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure 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 one individual has 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, wire transfers, journal entries and school lunch program. See finding 2023-001.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 515129 2023-002
    Material Weakness
  • 515130 2023-002
    Material Weakness
  • 515131 2023-002
    Material Weakness
  • 1091572 2023-002
    Material Weakness
  • 1091573 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $179,839
84.010 Title I Grants to Local Educational Agencies $74,571
10.553 School Breakfast Program $45,306
84.027 Special Education_grants to States $19,430
84.358 Rural Education $14,712
84.367 Improving Teacher Quality State Grants $13,016
84.424 Student Support and Academic Enrichment Program $10,000
84.425 Education Stabilization Fund $6,591
84.048 Career and Technical Education -- Basic Grants to States $5,852