FAC Explorer

Finding 1147423 (2024-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2024
Accepted
2025-07-10
Audit: 361905
Organization: Shenandoah 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 situation violates the principle of segregation of duties, which is essential for effective internal controls.
  • Recommended Follow-up: Review and adjust responsibilities to ensure that 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, capital assets, payroll, financial reporting and journal entries. See finding 2024-001.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 570979 2024-002
    Material Weakness Repeat
  • 570980 2024-002
    Material Weakness Repeat
  • 570981 2024-002
    Material Weakness Repeat
  • 1147421 2024-002
    Material Weakness Repeat
  • 1147422 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 National School Lunch Program $453,670
84.010 Title I Grants to Local Educational Agencies $281,269
10.553 School Breakfast Program $126,532
84.027 Special Education Grants to States $48,182
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $38,170
10.559 Summer Food Service Program for Children $37,750
84.424 Student Support and Academic Enrichment Program $23,512
84.048 Career and Technical Education -- Basic Grants to States $7,427