Finding 1160006 (2024-003)

Material Weakness Repeat Finding
Requirement
ABFL
Questioned Costs
-
Year
2024
Accepted
2025-10-06

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, risking incompatible duties.
  • Impacted Requirements: This violates the principle of segregation of duties, essential for internal controls.
  • Recommended Follow-up: Review and redistribute responsibilities to ensure no single employee manages conflicting tasks.

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, receipts, journal entries and the school nutrition program. See finding 2023-001.

Corrective Action Plan

The District concurs with the recommendation. While limited staffing makes full segregation of duties difficult, we are strengthening internal controls through increased oversight and shared responsibilities. Bank reconciliations, journal entries, and investment reports are reviewed monthly by the SBO and Superintendent, with financial reports presented to the Board. Duties are divided where possible, and compensating controls are in place for areas such as the lunch program and activity accounts. Management will continue to review procedures annually and adjust as needed.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160001 2024-003
    Material Weakness Repeat
  • 1160002 2024-003
    Material Weakness Repeat
  • 1160003 2024-003
    Material Weakness Repeat
  • 1160004 2024-003
    Material Weakness Repeat
  • 1160005 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $253,877
10.555 National School Lunch Program $164,490
84.010 Title I Grants to Local Educational Agencies $155,569
93.575 Child Care and Development Block Grant $141,400
10.553 School Breakfast Program $70,300
84.358 Rural Education $41,639
10.558 Child and Adult Care Food Program $25,194
84.027 Special Education Grants to States $23,835
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $19,325
10.559 Summer Food Service Program for Children $14,577
84.424 Student Support and Academic Enrichment Program $11,123
84.048 Career and Technical Education -- Basic Grants to States $9,697