Finding 1211186 (2025-002)

Material Weakness Repeat Finding
Requirement
ABEILN
Questioned Costs
-
Year
2025
Accepted
2026-05-01

AI Summary

  • Core Issue: An employee has too much control over critical financial areas, risking incompatible duties.
  • Impacted Requirements: Segregation of duties is not being properly enforced, which is essential for internal controls.
  • Recommended Follow-Up: Review and adjust roles to ensure proper segregation of duties across cash, investments, and other areas.

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, manual journal entries and computer systems. See finding 2025‑001.

Corrective Action Plan

We understand the importance of maintaining strong internal controls and acknowledge the concerns related to segregation of duties. Given our limited staffing levels, full segregation is not always practical. However, we have established compensating controls, including enhanced supervisory oversight, routine transaction reviews, and board-level monitoring when appropriate. Following a mid-year retirement, we reassessed and updated our internal procedures to strengthen controls and improve segregation of duties where feasible. We will continue to explore additional ways to address this challenge.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1211185 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $339,223
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $200,000
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $160,297
10.553 SCHOOL BREAKFAST PROGRAM $66,728
84.027 SPECIAL EDUCATION GRANTS TO STATES $45,548
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $34,398
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $25,364
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $10,697
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $9,340
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $1,400