Finding 1218150 (2025-001)

Material Weakness Repeat Finding
Requirement
ABEGMN
Questioned Costs
-
Year
2025
Accepted
2026-06-22
Audit: 404340
Auditor: BFR CPA LLC

AI Summary

  • Core Issue: Monthly bank reconciliations for operating accounts were not completed on time from March to June 2025.
  • Impacted Requirements: Internal controls require timely reconciliations to ensure accurate cash balances and identify errors.
  • Recommended Follow-Up: Management should establish procedures for timely monthly reconciliations and reviews of all bank accounts.

Finding Text

Finding 2025-001 - Title I Grants to Local Educational Agencies – Assistance Listing Number 84.010 Condition: Management did not complete monthly bank reconciliations for the District's operating accounts from March 2025 through June 2025 in a timely manner. Criteria: Effective internal controls require that bank reconciliations be prepared and reviewed monthly to ensure cash balances are accurate and that errors or irregularities are identified and corrected promptly. Cause: Due to inadequate oversight and monitoring of the District's cash reconciliation process, monthly reconciliations were not completed. Effect: As a result, significant discrepancies were not identified and corrected on a timely basis, requiring multiple audit adjustments to accurately state the District's financial records and year-end balances. Auditor’s Recommendation: We recommend that management implement procedures to ensure that all bank accounts are reconciled on a monthly basis and that reconciliations are completed and reviewed in a timely manner.

Corrective Action Plan

Management recognized the importance of timely bank reconciliations and accurate financial reporting. The District has implemented procedures requiring all bank reconciliations to be completed and reviewed within 30 days of month-end. A reconciliation checklist has been established to ensure all balance sheet accounts are reviewed and reconciled monthly. Management will also perform periodic reviews of the general ledger throughout the year to identify and correct discrepancies before year-end. In addition, the District will provide additional training to accounting personnel regarding month-end closing procedures and financial reporting requirements.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

  • 1218151 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $459,096
84.027 SPECIAL EDUCATION GRANTS TO STATES $333,690
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $151,559
93.778 GRANTS TO STATES FOR MEDICAID $122,476
10.555 NATIONAL SCHOOL LUNCH PROGRAM $119,582
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $90,084
10.553 SCHOOL BREAKFAST PROGRAM $58,465
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $54,000
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $25,917
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $19,915
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $18,320
84.358 RURAL EDUCATION $17,670
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $17,609
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $3,760