FAC Explorer

Finding 1135438 (2024-002)

Material Weakness
Requirement
ABFL
Questioned Costs
-
Year
2024
Accepted
2025-05-01
Audit: 355241
Organization: Audubon Community School District (IA)
Auditor: Nolte Cornman & Johnson PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, increasing the risk of errors or fraud.
  • Impacted Requirements: This violates the principle of segregation of duties, which is essential for internal controls.
  • Recommended Follow-Up: Reassess and redistribute responsibilities to ensure no single employee manages 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, transfers, computers systems, financial reporting, journal entries and school nutrition program. See finding 2024-001.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 558996 2024-002
    Material Weakness
  • 558997 2024-002
    Material Weakness Repeat
  • 558998 2024-002
    Material Weakness Repeat
  • 558999 2024-002
    Material Weakness Repeat
  • 1135439 2024-002
    Material Weakness Repeat
  • 1135440 2024-002
    Material Weakness Repeat
  • 1135441 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.045 Clean School Bus Program $395,000
10.555 National School Lunch Program $215,537
84.010 Title I Grants to Local Educational Agencies $94,050
84.287 Twenty-First Century Community Learning Centers $70,744
10.553 School Breakfast Program $50,611
84.358 Rural Education $42,155
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $28,748
84.027 Special Education Grants to States $23,907
84.425 Education Stabilization Fund $19,686
10.559 Summer Food Service Program for Children $14,961
32.009 Emergency Connectivity Fund Program $11,760
84.424 Student Support and Academic Enrichment Program $10,000
10.185 Local Food for Schools Cooperative Agreement Program $4,329