FAC Explorer

Finding 1214871 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-18
Audit: 401597
Organization: Ottawa Elementary School District 141 (IL)
Auditor: NEWKIRK & ASSOCIATES INC

AI Summary

  • Core Issue: Lack of sufficient controls over period-end financial reporting indicates a potential material weakness.
  • Impacted Requirements: Compliance with AU-C 265 is essential for effective internal controls and accurate financial reporting.
  • Recommended Follow-Up: Review and strengthen internal controls related to financial reporting processes to mitigate risks.

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

  • 1214870 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.555 NATIONAL SCHOOL LUNCH PROGRAM $809,081
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $380,181
84.425 EDUCATION STABILIZATION FUND $291,328
10.553 SCHOOL BREAKFAST PROGRAM $195,812
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $119,325
93.778 GRANTS TO STATES FOR MEDICAID $94,380
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $58,498
84.358 RURAL EDUCATION $58,173
84.027 SPECIAL EDUCATION GRANTS TO STATES $33,753
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $27,647
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $2,820
10.185 LOCAL FOOD FOR SCHOOLS COOPERATIVE AGREEMENT PROGRAM $1,416