FAC Explorer

Finding 1206423 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-10
Audit: 398412
Organization: Streator Esd No. 44 (IL)
Auditor: NEWKIRK & ASSOCIATES INC

AI Summary

  • Core Issue: Lack of sufficient controls over period-end financial reporting indicates a potential material weakness in internal control.
  • Impacted Requirements: Compliance with AU-C 265 is essential for ensuring proper oversight and involvement in financial statement preparation.
  • Recommended Follow-Up: Review and strengthen internal controls related to financial reporting to mitigate risks of material weaknesses.

Finding Text

In accordance with prescribed definitions in AU-C 265, it is a strong indication of a material weakness in internal control if an entity lacks sufficient controls over the period-end financial reporting process. AU-C 265 provides guidance regarding the extent to which the auditor may be involved in drafting an entity's financial statements.

Corrective Action Plan

Management is currently confident with the abilities of the accounting staff to prepare interim financial statements. The District has also accepted the additional risk associated with the auditor drafting year-end financial statements including the notes to the financial statements. Management will review, approve, and take responsibility for the financial statements.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1206424 2025-002
    Material Weakness Repeat
  • 1206425 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $806,647
84.027 SPECIAL EDUCATION GRANTS TO STATES $734,918
84.425 EDUCATION STABILIZATION FUND $546,994
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $333,002
10.553 SCHOOL BREAKFAST PROGRAM $210,773
93.778 GRANTS TO STATES FOR MEDICAID $110,669
84.358 RURAL EDUCATION $84,006
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $42,440
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $40,747
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $38,896
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $5,024
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $4,995