Finding 1096187 (2024-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-01-20
Audit: 338862
Organization: Independent School District 695 (MN)
Auditor: Sterle & CO LTD

AI Summary

  • Core Issue: Material audit adjustments were proposed due to the District's inadequate internal controls, risking financial statement misstatements.
  • Impacted Requirements: The lack of a robust internal control system fails to ensure all necessary adjustments are identified and recorded.
  • Recommended Follow-Up: Management should implement a thorough review and reconciliation of accounts before audits, involving both accounting staff and administration.

Finding Text

Material jounal entires were proposed during the audit process - Material Weakness Condition: During the course of the engagement, we proposed material audit adjustments that were not identified as a result of the District's existing internal controls, and therefore could have resulted in a material misstatementof the District's financial statements. Criteria: A good system of internal accounting control contemplates an adequate system for recording and processing entries material to the financial statements. Cause: The District does not have an internal control system designed to identify all necessary adjustments. Effect: The deficiency could result in a misstatement to the financial statements that wold not be prevented or detected. Context: These entries covered both federal and nonfederal transactions. Recommendation: The District's management should develop a thorough review and reconciliation of accounts in each fund that should be performed prior to the beginning of the audit. This review should be performed at both the accounting staff and administrative levels. View of Responsible Officials and Planned Corrective Actions: The District is aware of the situation and has hired additional business office staff and will provide additional training for UFARS reporting. Repeat Finding: No

Categories

Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519744 2024-002
    Significant Deficiency Repeat
  • 519745 2024-001
    Material Weakness
  • 519746 2024-002
    Significant Deficiency Repeat
  • 519747 2024-006
    -
  • 519748 2024-001
    Material Weakness
  • 519749 2024-002
    Significant Deficiency Repeat
  • 519750 2024-006
    -
  • 1096186 2024-002
    Significant Deficiency Repeat
  • 1096188 2024-002
    Significant Deficiency Repeat
  • 1096189 2024-006
    -
  • 1096190 2024-001
    Material Weakness
  • 1096191 2024-002
    Significant Deficiency Repeat
  • 1096192 2024-006
    -

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $238,324
84.010 Title I Grants to Local Educational Agencies $209,810
21.027 Coronavirus State and Local Fiscal Recovery Funds $118,055
84.027 Special Education Grants to States $74,307
10.553 School Breakfast Program $58,192
10.559 Summer Food Service Program for Children $21,656
84.173 Special Education Preschool Grants $3,176
84.424 Student Support and Academic Enrichment Program $2,607
10.555 National School Lunch Program $1,398
10.649 Pandemic Ebt Administrative Costs $653