Finding 1138528 (2024-002)

Material Weakness

Requirement

ABEILN

Questioned Costs

-

Year

2024

Accepted

2025-06-02

Audit: 357713

Organization: Red Oak Community School District (IA)

Auditor: Nolte Cornman & Johnson PC

AI Summary

Core Issue: One employee has control over multiple incompatible duties, increasing risk of errors or fraud.
Impacted Requirements: Segregation of duties is not being properly implemented for major federal programs.
Recommended Follow-Up: Review and reassign responsibilities to ensure proper segregation of duties across cash, investments, and financial reporting.

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, receipting, disbursements, capital assets, wire transfers, financial reporting and journal entries. See finding 2024-001.

Programs in Audit

ALN	Program Name	Expenditures
84.010	Title I Grants to Local Educational Agencies	$444,839
10.555	National School Lunch Program	$394,492
84.425	Education Stabilization Fund	$151,874
10.553	School Breakfast Program	$86,966
21.027	Coronavirus State and Local Fiscal Recovery Funds	$70,065
84.027	Special Education Grants to States	$50,568
10.582	Fresh Fruit and Vegetable Program	$47,250
84.367	Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants)	$42,272
84.424	Student Support and Academic Enrichment Program	$25,104
10.559	Summer Food Service Program for Children	$5,545
84.048	Career and Technical Education -- Basic Grants to States	$2,173

Finding 1138528 (2024-002)

AI Summary

Finding Text

Categories

Other Findings in this Audit

Programs in Audit