Finding Text
2025-004 U.S. Department of Agriculture Pass-Through Iowa State Board of Education Child Nutrition Cluster 10.553 School Breakfast Program, 10.555 National School Lunch Program, 10.559 Summer Food Service Program for Children, and 10.582 Fresh Fruit and Vegetable Program U.S. Department of Education Pass-Through Iowa Department of Education 84.010A Title I Grants to Local Educational Agencies Education Stabilization Fund 84.425B COVID-19 ARP-Elementary and Secondary School Emergency Relief Fund 84.425U COVID-19 ARP-Elementary and Secondary School Emergency Relief Fund (ARPESSER) U.S. Department of Homeland Security and Emergency Management Pass-Through Iowa Department of Homeland Security and Emergency Management 97.039 Hazard Mitigation Grant Program Federal Award Year: 2025, 2024, 2023 Finding: There is a lack of segregation of duties over the cash receipts and disbursement transaction cycles related to the federal programs. Criteria: Management is responsible for establishing and maintaining a system of internal controls. A good system of internal control provides for adequate segregation of duties so no one individual handles a transaction from inception to completion. In order to maintain proper internal control, duties should be segregated so the authorization, custody and recording of transactions are not under control of the same employee. This segregation of duties helps prevent losses from employee error or dishonesty and maximizes the accuracy of the District’s financial statement. Condition: Adequate control procedures through the segregation of employee duties has not been achieve by the District. See Findings 2025-001, 2025-002, and 2025-003 for additional information. Cause: The District has a limited number of staff to complete these duties and procedures have not been designed to adequately segregate them or provide compensating controls through additional oversight of transactions and processes. Effect: Inadequate segregation of duties could adversely affect the District’s ability to prevent or detect and correct misstatements, errors or misappropriation on a timely basis by staff in the normal course of performing their assigned functions. Questioned costs: Not applicable. Context: This finding applies to all transactions relating to federal awards. Identification as a repeat finding: This is a repeat finding. Recommendation: We realize segregation of duties is difficult with a limited number of business office employees. However, the District should continually review its procedures to obtain the maximum internal controls possible under the circumstances utilizing currently available staff, including elected officials. Response and Corrective Action Plan: The District will review its procedures and look into possible additional controls to be implemented.