Finding 1142424 (2022-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2025-06-24

AI Summary

  • Core Issue: The District lacks proper segregation of duties due to limited staff, leading to potential errors or fraud.
  • Impacted Requirements: Internal controls are not adequately implemented, violating best practices for financial oversight.
  • Recommended Follow-Up: Explore alternative procedures to segregate duties without increasing staff, while ensuring management stays informed about operations.

Finding Text

Finding #2022-001 – Lack of Segregation of Duties Condition: The limited size of the District’s staff prevents the ideal separation of functions. The bookkeeper prints accounts payable checks, has access to the password to print electronic signatures and performs bank reconciliations. The bookkeeper also performed all payroll functions during the year. Effect: Because of the lack of segregation of duties, errors or irregularities could occur and not be detected on a timely basis. Cause: Limited number of personnel. Criteria: Internal controls should be in place that provides adequate segregation of duties. 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 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 reviews and approves all expenditures on a monthly basis prior to mailing accounts payable checks.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 565980 2022-001
    Material Weakness Repeat
  • 565981 2022-002
    Material Weakness Repeat
  • 565982 2022-001
    Material Weakness Repeat
  • 565983 2022-002
    Material Weakness Repeat
  • 565984 2022-001
    Material Weakness Repeat
  • 565985 2022-002
    Material Weakness Repeat
  • 565986 2022-001
    Material Weakness Repeat
  • 565987 2022-002
    Material Weakness Repeat
  • 565988 2022-001
    Material Weakness Repeat
  • 565989 2022-002
    Material Weakness Repeat
  • 1142422 2022-001
    Material Weakness Repeat
  • 1142423 2022-002
    Material Weakness Repeat
  • 1142425 2022-002
    Material Weakness Repeat
  • 1142426 2022-001
    Material Weakness Repeat
  • 1142427 2022-002
    Material Weakness Repeat
  • 1142428 2022-001
    Material Weakness Repeat
  • 1142429 2022-002
    Material Weakness Repeat
  • 1142430 2022-001
    Material Weakness Repeat
  • 1142431 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $192,233
32.009 Emergency Connectivity Fund Program $104,813
10.553 School Breakfast Program $87,522
84.027 Special Education Grants to States $83,669
84.425 Education Stabilization Fund $65,046
93.778 Medical Assistance Program $48,161
84.358 Rural Education $39,207
84.010 Title I Grants to Local Educational Agencies $28,487
84.424 Student Support and Academic Enrichment Program $10,000
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $7,381
84.173 Special Education Preschool Grants $2,371
84.048 Career and Technical Education -- Basic Grants to States $2,004
10.649 Pandemic Ebt Administrative Costs $614