Finding 1206232 (2025-002)

Material Weakness Repeat Finding

Requirement

ABEILN

Questioned Costs

-

Year

2025

Accepted

2026-04-09

Audit: 398196

Organization: Shenandoah Community School District (IA)

Auditor: NOLTE CORNMAN & JOHNSON PC

AI Summary

Core Issue: One employee has too much control over critical financial areas, risking incompatible duties.
Impacted Requirements: This affects compliance with internal control standards for major federal programs.
Recommended Follow-Up: Implement a segregation of duties to enhance oversight 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 major federal programs; cash, investments, capital assets, payroll, financial reporting and journal entries. See finding 2025-001.

Corrective Action Plan

The district has reviewed each of the six areas and implemented a Standard Operating Procedure for each area.

Programs in Audit

ALN	Program Name	Expenditures
10.555	NATIONAL SCHOOL LUNCH PROGRAM	$417,981
84.010	TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES	$241,672
10.553	SCHOOL BREAKFAST PROGRAM	$143,324
10.559	SUMMER FOOD SERVICE PROGRAM FOR CHILDREN	$80,953
84.027	SPECIAL EDUCATION GRANTS TO STATES	$48,598
84.367	SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS)	$39,914
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$28,279
84.424	STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM	$16,817
84.196	EDUCATION FOR HOMELESS CHILDREN AND YOUTH	$10,000
84.425	EDUCATION STABILIZATION FUND	$4,657
84.048	CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES	$1,173

Finding 1206232 (2025-002)

AI Summary

Finding Text

Corrective Action Plan

Categories

Other Findings in this Audit

Programs in Audit