FAC Explorer

Finding 1172813 (2024-008)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2026-02-09
Audit: 386141
Organization: Carthage Elementary School District No. 317 (IL)
Auditor: GORENZ AND ASSOCIATES LTD

AI Summary

  • Core Issue: The use of a signature stamp allowed unauthorized individuals to approve transactions, risking internal control integrity.
  • Impacted Requirements: This situation violates 2 CFR 200.303, which mandates proper internal controls over financial reporting.
  • Recommended Follow-Up: Ensure that signature stamps are either eliminated or strictly controlled by designated individuals to maintain compliance.

Finding Text

Criteria or Specific Requirement: Per 2 CFR 200.303 - Internal Controls and the OMB Compliance Supplement: the District is required to have internal controls over reporting of monthly reimbursement claims. Condition: The Board of Education designated a limited number of individuals to authorize transactions. However, a signature stamp with the signatures of board designated individuals was available for use by non-designated individuals. Questioned costs: None. Context: The use of the signature stamp could subvert internal controls that were designed for District expenditures. Effect: Expenditures could be made without proper authorization by a board designated individual via the use of a stamped signature. Cause: Signature stamps were implemented for administrative convenience to avoid the manual signing of numerous amounts of purchase orders and checks. Recommendation: Signature stamps should not be used, or if used, should be retained and used only by the board designated individual. Management's Response: The District no longer uses signature stamps.

Corrective Action Plan

Condition: The board of education designated a limited number of individuals to authorize transactions. However, a signature stamp with the signatures of the board designated individuals was available for use by non-designated individuals. Plan: The District will stop the use of signature stamps to approve purchase orders and sign payment remittances. Anticipated date of completion: June 30, 2026. Name of contact person: Dustin Day, Superintendent. Management response: We no longer use signature stamps. All purchase orders and payment remittances are signed manually by the designated individual.

Categories

Procurement, Suspension & Debarment Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172806 2024-008
    Material Weakness Repeat
  • 1172807 2024-008
    Material Weakness Repeat
  • 1172808 2024-008
    Material Weakness Repeat
  • 1172809 2024-008
    Material Weakness Repeat
  • 1172810 2024-008
    Material Weakness Repeat
  • 1172811 2024-008
    Material Weakness Repeat
  • 1172812 2024-008
    Material Weakness Repeat
  • 1172814 2024-009
    Material Weakness Repeat
  • 1172815 2024-009
    Material Weakness Repeat
  • 1172816 2024-009
    Material Weakness Repeat
  • 1172817 2024-009
    Material Weakness Repeat
  • 1172818 2024-009
    Material Weakness Repeat
  • 1172819 2024-009
    Material Weakness Repeat
  • 1172820 2024-009
    Material Weakness Repeat
  • 1172821 2024-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $76,089
32.009 EMERGENCY CONNECTIVITY FUND PROGRAM $39,100
10.553 SCHOOL BREAKFAST PROGRAM $22,600
84.027 SPECIAL EDUCATION GRANTS TO STATES $21,252
10.555 NATIONAL SCHOOL LUNCH PROGRAM $17,379
84.425 EDUCATION STABILIZATION FUND $10,900
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,000
93.778 MEDICAL ASSISTANCE PROGRAM $8,709
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $2,099
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $1,179
10.649 PANDEMIC EBT ADMINISTRATIVE COSTS $653