Finding 1182329 (2025-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2025
Accepted
2026-03-24

AI Summary

  • Core Issue: An employee has too much control over multiple incompatible duties, which increases the risk of errors or fraud.
  • Impacted Requirements: This finding affects the internal control standards for managing major federal programs, including cash handling and financial reporting.
  • Recommended Follow-Up: Implement a clear segregation of duties to ensure no single employee manages conflicting responsibilities.

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, receipts, school lunch program and journal entries. See finding 2025-001.

Corrective Action Plan

The District acknowledges the auditor’s comments regarding segregation of duties. Due to the limited number of office personnel, complete segregation of duties is not always feasible. However, the District has implemented procedures to strengthen oversight and provide compensating controls. The District Administrative Assistant has begun depositing and entering all cash deposits received in the Business Office into Weblink. The Business Manager or Assistant Business Manager reviews the entries and posts all cash receipts to the General Ledger. Additionally, all building secretaries prepare and take deposits to the bank and enter the cash receipts into Weblink. The Business Manager or Assistant Business Manager reviews these entries and posts the receipts to the General Ledger after verifying the supporting documentation. The District will continue to review internal control procedures and strengthen oversight where possible to ensure transactions are properly recorded and monitored.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1182327 2025-002
    Material Weakness Repeat
  • 1182328 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $466,035
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $289,719
10.553 SCHOOL BREAKFAST PROGRAM $119,579
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $69,985
84.425 EDUCATION STABILIZATION FUND $60,240
84.027 SPECIAL EDUCATION GRANTS TO STATES $54,043
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $48,276
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $36,809
81.041 STATE ENERGY PROGRAM $20,500
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $16,559
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $16,406