Finding 1098588 (2024-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-05

AI Summary

  • Core Issue: Limited segregation of duties in payroll, cash receipts, and cash disbursements increases the risk of undetected errors.
  • Impacted Requirements: Proper checks and balances are necessary to prevent and detect misstatements in financial operations.
  • Recommended Follow-Up: Implement procedures to segregate duties among staff and ensure ongoing management oversight of financial activities.

Finding Text

Finding #2024-001 – Limited Segregation of Duties (Prior year finding #2023-001) Condition: The available office staff precludes a proper segregation of duties in the following control areas: payroll, cash receipts, and cash disbursements. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Due to the small size of the District there is only one person in the bookkeeping department, who records all transactions and performs reconciliations. Criteria: Checks and balances should be in place to allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct any misstatements on a timely basis. Recommendation: Procedures should be implemented segregating duties among different employees. Management should continue to maintain a working knowledge of matters relating to the District’s operations. Response: We agree with this finding but due to the size of our District and financial constraints do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Board of Education and Administration personnel review monthly treasurer reports, and approve disbursements monthly. Any concerns or questions are addressed throughout the year. Management will review various accounting functions periodically.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 522146 2024-001
    Significant Deficiency Repeat
  • 522147 2024-001
    Significant Deficiency Repeat
  • 522148 2024-001
    Significant Deficiency Repeat
  • 522149 2024-001
    Significant Deficiency Repeat
  • 1098589 2024-001
    Significant Deficiency Repeat
  • 1098590 2024-001
    Significant Deficiency Repeat
  • 1098591 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.027 Special Education Grants to States $207,531
93.778 Medical Assistance Program $162,340
84.425 Education Stabilization Fund $103,407
84.010 Title I Grants to Local Educational Agencies $65,499
10.555 National School Lunch Program $35,167
10.553 School Breakfast Program $26,097
84.196 Education for Homeless Children and Youth $18,596
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $13,014
84.173 Special Education Preschool Grants $9,009
84.424 Student Support and Academic Enrichment Program $8,922
10.185 Local Food for Schools Cooperative Agreement Program $5,000
84.048 Career and Technical Education -- Basic Grants to States $4,179
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $220