FAC Explorer

Finding 1208439 (2025-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2025
Accepted
2026-04-22
Audit: 399393
Organization: Albia Community School District (IA)
Auditor: NOLTE CORNMAN & JOHNSON PC

AI Summary

  • Core Issue: One employee has too much control over critical financial areas, which increases the risk of errors or fraud.
  • Impacted Requirements: This situation violates the principle of segregation of duties, essential for effective internal controls.
  • Recommended Follow-Up: Review and redistribute responsibilities to ensure no single employee manages incompatible duties.

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, receipts, capital assets and financial reporting. See finding 2025-001.

Corrective Action Plan

The District continues to review duties and procedures throughout all fiscal services to improve segregation of duty procedures. We are implementing procedures to ensure additional oversight in areas such as cash handling, recordkeeping and financial reporting. These procedures include ensuring that all journal entries, cash receipt entry, check batches, and balancing procedures are reviewed/edited by more than one person at Central Office.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 1208436 2025-002
    Material Weakness Repeat
  • 1208437 2025-002
    Material Weakness Repeat
  • 1208438 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $286,994
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $243,872
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $232,991
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $169,073
10.553 SCHOOL BREAKFAST PROGRAM $81,604
84.425 EDUCATION STABILIZATION FUND $69,736
84.027 SPECIAL EDUCATION GRANTS TO STATES $48,322
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $35,989
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $20,692
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $20,132
10.556 SPECIAL MILK PROGRAM FOR CHILDREN $2,273