Finding 1177818 (2025-002)

Material Weakness Repeat Finding

Requirement

ABEILN

Questioned Costs

Year

2025

Accepted

2026-03-10

Audit: 391185

Organization: Sergeant Bluff-Luton Community School District (IA)

Auditor: NOLTE CORNMAN & JOHNSON PC

AI Summary

Core Issue: One employee has too much control over multiple 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 proper segregation and reduce risk.

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 federal programs; cash, investments, receipts, disbursements, wire transfers, financial reporting, computer systems and journal entries. See finding 2025-001

Corrective Action Plan

We are reviewing all accounting procedures to implement the necessary changes.

Other Findings in this Audit

1177817 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
10.555	NATIONAL SCHOOL LUNCH PROGRAM	$493,911
97.067	HOMELAND SECURITY GRANT PROGRAM	$193,682
84.010	TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES	$146,856
10.553	SCHOOL BREAKFAST PROGRAM	$88,670
84.126	REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES	$79,033
84.027	SPECIAL EDUCATION GRANTS TO STATES	$65,987
84.367	SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS)	$26,282
84.048	CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES	$15,850
84.424	STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM	$10,283
84.425	EDUCATION STABILIZATION FUND	$4,909
84.365	ENGLISH LANGUAGE ACQUISITION STATE GRANTS	$4,384